Eaton: Net sales up 21% to $8.53bn with record $3.15 adjusted EPS and Electrical backlog up 43%

Eaton Corporation plc reported second-quarter net sales of $8,531 million (+21% YoY from $7,028 million) for the period ended June 30, 2026 — 14% organic and 7% from acquisitions — with GAAP diluted EPS of $2.11 and adjusted diluted EPS of $3.15 (a Q2 record; +$0.20 YoY). Segment operating margin was 23.1% (10 bps above guide high; −80 bps YoY). GAAP net income attributable $821 million. Operating cash flow $1,127 million; free cash flow (company-defined: OCF − capex) $874 million (+22% YoY). Figures are unaudited (Ex. 99.1 / 8-K Acc. 0001551182-26-000027). Management guided Q3 2026 organic 13.5–15.5%, segment margins 24.6–25.0%, GAAP EPS $2.77–$2.87, adj. EPS $3.46–$3.56, and raised FY2026 organic to 11–13% (from 9–11%) with adj. EPS $13.40–$13.60 (mid $13.50; GAAP $10.36–$10.56) while reaffirming segment margins 24.1–24.5%. H1 sales $15,982 million (+19%); H1 adj. EPS $5.96.

Eaton sells electrical and power-management equipment for buildings, utilities, data centers, and vehicles (UPS, PDUs, switchgear, busway, modular enclosures, EV charging, aerospace electrical, Boyd liquid cooling). Eaton is a broad electrical franchise (Electrical Americas / Global, Aerospace, Mobility — legacy Vehicle + eMobility re-segmented Q1 2026). Orders / backlog / pipeline / U.S. DC GW backlog (307 GW; majority 2028+) = call KPIs.

Period: Fiscal Q2 2026 ended June 30, 2026. Release / call: July 31, 2026. Primary: SEC Ex. 99.1 (8-K Acc. 0001551182-26-000027); IR package; analyst presentation; call transcript (July 31, 2026). 10-Q: Acc. 0001551182-26-000030. Next print: Q3 2026. Headline P&L (company-reported — Ex. 99.1; unaudited) (Q2 2026): Net sales $8,531m (+21% YoY); Organic / acquisitions 14% / 7%; Cost of products sold $5,676m (+28% YoY); GAAP gross margin (calculated) ~33.5% (−~340 bps YoY); Segment operating profit / margin $1,974m / 23.1% (+17% / −80 bps YoY); GAAP net income (attrib.) $821m (−16% YoY); GAAP / adj. diluted EPS $2.11 / $3.15 (−$0.40 / +$0.20 YoY); Diluted shares (m) 389.5; Interest expense — net $201m (+183% YoY); OCF / FCF (co.-def.) $1,127m / $874m (+23% / +22% YoY).

Vs company guide: Adj. EPS $3.15 was $0.10 above the company midpoint ($3.00–$3.10 — call / presentation). Segment mix (Ex. 99.1) and data-center / electrical KPIs (call) (Q2 2026 sales): Electrical Americas $3,951m (+18% YoY); Electrical Global $2,517m (+44% YoY); Aerospace $1,222m (+13% YoY); Mobility (Vehicle + eMobility) $841m (flat YoY); Total $8,531m (+21% YoY). Note: Q1 2026 re-segmented legacy Vehicle + eMobility → Mobility (Ex. 99.1 Note 2). Electrical Americas + Global ≈ 76% of Q2 sales. Orders / backlog / data-center KPIs (call): Electrical Americas R12 orders +41% organically; backlog +33% YoY; book-to-bill 1.3. Electrical Global R12 orders +33%; backlog +103% (organic backlog +54% ex-Boyd — call). Electrical sector B2B 1.2; backlog +43%. Aerospace R12 orders +17%; backlog +28%; B2B 1.2 (Ex. 99.1 / call). Electrical Americas data-center organic revenue ~+65%; Electrical Sector DC orders ~+85% vs Q2’25 (call) — call KPIs, not hyperscaler offtake. Negotiations pipeline +60% YTD (call). U.S. data-center backlog cited at 307 GW (~15 years at 2025 rates; ~20% near-term, majority 2028+ — call). Content ~$3.4m/MW (call) — modeling color only. Capacity: >$1bn / ~24 Electrical Americas projects; revenue-per-day ~+25% since start of 2025 (call). Boyd (closed March 12, 2026; $9.55bn): Q2 $432m; FY raised to $1.8bn ($1.5bn on Eaton books — call); sits in Electrical Global — adding liquid cooling. 800V DC blocks (call): MV SST (Resilient), DC breakers, UPS / power electronics, advanced cooling — roadmap, not offtake.

Cash flow & balance sheet (light credit overlay) (June 30, 2026): Cash $483m; Short-term investments $212m; Accounts receivable — net $6,673m; Inventory $5,417m; Goodwill $20,229m; Other intangible assets $12,611m; Short-term debt $2,091m; Long-term debt $18,509m; Total assets $56,181m; Eaton shareholders’ equity $20,254m. Boyd / Ultra PCS / Fibrebond drive goodwill, intangibles, debt, and interest ($201m vs $71m). Net debt is elevated vs YE 2025. FCF is company-defined (OCF − capex). Q3 2026 (Ex. 99.1): Organic growth: 13.5–15.5%. Segment margins: 24.6–25.0%. GAAP diluted EPS: $2.77–$2.87. Adjusted EPS: $3.46–$3.56. FY2026 (raised organic / adj. EPS — Ex. 99.1 / call): Organic growth: 11–13% (raised from 9–11%; midpoint ~12%). Electrical Americas organic midpoint ~15%; Electrical Global midpoint ~12% (call). Segment margins: 24.1–24.5% (reaffirmed). GAAP diluted EPS: $10.36–$10.56. Adjusted EPS: $13.40–$13.60 (midpoint $13.50; +$0.22 vs prior midpoint — call). OCF / FCF: $5.0bn–$5.4bn / $3.9bn–$4.3bn (reaffirmed — presentation). Boyd FY revenue $1.8bn ($1.5bn on Eaton books — call).

H2 Electrical Americas OM bridge (call): H1→H2 +450–500 bps (~300 price/cost, 150–200 productivity) — call bridge, not a permanent OM step-up off 23.1% / 27.5%.

Eaton sells electrical distribution and critical power across buildings, utilities, data centers, industrial OEMs, aerospace, and (still) mobility — not the compute rack, Ethernet fabric, or generation turbine. Q2 $8.53bn monetizes switchgear, busway, UPS, modular enclosures (Fibrebond), SST tech (Resilient), liquid-cooling thermal (Boyd), and aerospace controls (Ultra PCS). Print: organic and adj. EPS beat; GAAP EPS compressed by deal math. Organic 14% and adj. EPS $3.15 cleared the high end of guide; Electrical Americas sequential OM +190 bps to 27.5% is the execution tell after Q4’25–Q1’26 capacity-ramp pain (call). YoY segment OM −80 bps and GAAP EPS $2.11 (vs $2.51) reflect temporary price/cost plus post-deal amortization / interest — H2 price/cost framed toward neutral (call). That is a bridge, not a permanent margin step-up off Q2.

Americas DC organic revenue ~+65%, Electrical Sector DC orders ~+85%, Electrical backlog +43% are call / Ex. 99.1 KPIs. The 307 GW U.S. DC backlog citation and $3.4m/MW content frame are call figures — majority 2028+. Portfolio: Electrical + Aerospace focus; Mobility exits via RMT. Dana RMT (close Q1 2027; ~$1.1bn cash to Eaton) and Sept. 25 COL Group (~€810m EV; EMEA MV / data-center / utility capacity; close Q1 2027) are structural tells. Elevated LT debt and interest after Boyd / Ultra PCS / Fibrebond; Q2 FCF $874m and FY FCF guide $3.9bn–$4.3bn (company-defined) — credit light.

Q2 2026 print (July 31): Sales $8.53bn (+21% YoY; 14% organic); adj. EPS $3.15; segment OM 23.1%; Q3 adj. EPS $3.46–$3.56; FY26 organic raised to 11–13%, adj. EPS $13.40–$13.60. (Ex. 99.1). Mobility RMT / Dana (June): Combined co. >$10bn; Eaton holders ≥50.1%; ~$1.1bn cash to Eaton; close Q1 2027. (Company). Boyd Thermal (call): Closed March 12 ($9.55bn); FY Boyd $1.8bn ($1.5bn on Eaton books); Q2 $432m. COL Group (Sept. 25): Italy MV / manufacturing for data-center & utility; EV €810m; close Q1 2027. (Company / BW). Form 4s: Johnson buys; Monesmith Sale+OE — below.

“Eaton accelerated its momentum in the second quarter and delivered record sales and solid earnings from strong organic growth. Our focus on disciplined execution led to sequential margin expansion, especially in Electrical Americas. While data centers remain a key growth driver, we are benefiting from robust demand across our end markets. Reflecting this strong performance and sustained demand, we are raising our full-year organic growth guidance and remain well-positioned to deliver on our commitments.” — Paulo Ruiz, CEO, Ex. 99.1, July 31, 2026 (SEC Ex. 99.1) “Adjusted EPS of $3.15 exceeded guidance by $0.10 at the midpoint, reflecting strong operating performance by our teams. We posted record revenue of $8.5 billion with 21% total revenue growth, 14% organic growth and 23.1% margins, all better than the high end of our guidance.” — Paulo Ruiz, CEO, Q2 2026 earnings call, July 31, 2026 (Call transcript)

“Organic sales growth accelerated to 18%, driven primarily by strength in data centers, up about 65%… We are pleased with our better-than-expected margins of 27.5%, 190 basis points higher than Q1… the majority of the margin decline was driven by temporary negative price/cost. With the pricing actions taken in Q2 and early Q3, we are confident this will return to a roughly neutral impact in the second half.” — David Foster, CFO, Q2 2026 earnings call, July 31, 2026 (call — Americas execution / price-cost) “Total U.S. data center backlog has grown to 307 gigawatts or 15 years of backlog at 2025 build rates… Only roughly 20% of this backlog converts near term. The majority will translate to 2028 and beyond… If we look at H1 versus H2… we’ll be up 450 to 500 basis points. 300 basis points will come from price/cost… and then we’ll get about 150 to 200 basis points from output and productivity.” — Paulo Ruiz / David Foster, Q2 2026 earnings call, July 31, 2026 (call — H2 OM bridge, not permanent step-up)

Verified Form 4 activity (open-market prioritized): Johnson Aug. open-market buy (~$92k) is the post-print purchase signal; Monesmith Sale+OE (~$8.26m) is the largest post-print sale. No large officer open-market buys. Form 4 CEO name: Ruiz Sternadt Paulo.

Eaton guides Q3 2026 organic growth of 13.5–15.5% (no absolute dollar guide) and adjusted EPS of $3.46–$3.56. For 2026, it guides organic growth of 11–13% and adjusted EPS of $13.40–$13.60; it gave no single-point Q4 or 2027 guide, with Mobility RMT and Boyd color on the call. The outlook embeds ramp, Boyd and backlog conversion — not offtake.

Eaton’s Q2 is a broad electrical / power-management print ($8.53bn / +21%; 14% organic) — UPS, switchgear, busway, modular power, aerospace electrical, Boyd liquid-cooling. Q3 organic 13.5–15.5% / adj. EPS $3.46–$3.56; FY26 organic 11–13% / adj. EPS $13.40–$13.60 / FCF $3.9bn–$4.3bn (co.-def.). Swings: Americas H2 price/cost + productivity, Boyd, Mobility RMT (Q1 2027), COL Group, backlog / DC orders. Credit: post-Boyd leverage.