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Key Points
- Eaton reported $24.88 billion in 2024 sales, driven by strong demand in Electrical Americas, Electrical Global, and Aerospace segments.
- Net income rose 17.72% to $3.8 billion, with EPS reaching $10.80. Eaton projects further earnings growth in 2025.
- Arnold holds a $250 million stake in Eaton, reinforcing commitment as the company eyes long-term expansion in power management markets.
Eaton Corp., an intelligent power management company led by one of the richest Black executives in the U.S., Craig Arnold, closed its 2024 fiscal year with strong results. The company reported $24.88 billion in net sales, up 7.25 percent from the previous year.
This growth was driven by robust organic sales, particularly within the company’s Electrical Americas, Electrical Global and Aerospace segments, reflecting an increasing demand for energy-efficient infrastructure solutions.
Key segment sales fuels Eaton’s growth
Eaton’s Electrical Americas division, its largest revenue driver, posted $11.44 billion in sales, up 13.25 percent from $10.1 billion the previous year. The growth was fueled by rising demand for commercial and industrial power solutions as businesses focused on energy management improvements.
The Electrical Global and Aerospace segments also saw strong momentum, with sales climbing to $6.25 billion and $3.74 billion, respectively, from $6.08 billion and $3.41 billion last year—reflecting increases of 2.7 percent and 9.7 percent. The gains underscore Eaton’s role as a key provider of specialized power management systems, particularly as aerospace companies accelerate electrification efforts.
Meanwhile, the vehicle segment saw a 5.9 percent decline, with sales falling to $2.79 billion from $2.97 billion in 2023. The drop is largely due to a slowdown in global vehicle production and unfavorable currency exchange rates. Eaton is addressing these challenges through efficiency initiatives to sustain performance amid sector headwinds.
Strong profit growth and positive outlook
Eaton reported a 17.72 percent jump in net income to $3.8 billion, up from $3.22 billion last year, as earnings per share (EPS) climbed to $10.8 from $9.12.
Eaton Chairman and CEO Craig Arnold reaffirmed the company’s strong execution and market positioning, citing record segment margins and robust earnings per share. “Once again, we delivered on our commitments in the quarter, with orders remaining at high levels and a strong backlog supporting future growth,” Arnold said.
Looking ahead, Arnold expressed confidence in Eaton’s continued momentum into 2025, emphasizing the company’s unique position to capitalize on powerful megatrends driving increased demand across its markets.
Arnold’s personal investment signals commitment
Craig Arnold, who has led Eaton since June 2016, holds a minority stake of 0.14 percent in the company, amounting to 737,044 shares valued at approximately $250 million. This stake underscores Arnold’s dedication to Eaton’s ongoing success.
The electrical company's total assets decreased marginally by 0.13 percent from $38.43 billion on Dec. 31, 2023, to $38.38 billion by Dec. 31, 2024. Total equity also declines by 2.82 percent from $19.07 billion to $18.53 billion.
Building on its strong 2024 performance, Eaton has set an optimistic outlook for 2025, projecting earnings per share between $10.60 and $11.00, a 14 percent increase at the midpoint over 2024. Adjusted EPS is projected between $11.80 and $12.20, reflecting an 11 percent rise, reinforcing Eaton’s confidence in sustained growth and market momentum.
