Eaton Reports Q4 Revenue Miss, Plans Growth for 2025

Eaton Corporation's shares dropped 0.71% following the release of their fourth-quarter 2024 results, which revealed a 5% year-over-year revenue increase to $6.24 billion, but fell short of the expected $6.34 billion. The Electrical Americas segment saw a 9% sales increase to $2.9 billion, while the global segment sales grew 4% to $1.6 billion. The company reported a significant backlog increase of 29% organically, despite facing challenges from Hurricane Helene and labor strikes that impacted sales by approximately $80 million. Segment margins expanded to 24.7%, and adjusted EPS rose 11% to $2.83, beating the consensus estimate. Looking ahead, Eaton projects organic growth of 7% to 9% for 2025 and expects adjusted EPS between $11.80 and $12.20. Analyst Joe Ritchie from Goldman Sachs views the report as inline and anticipates potential stock outperformance due to strong order performance and backlog.