Q2 2026 Eaton Corporation PLC Earnings Call Transcript
Key Points
- Record Q2 revenue of $8.5 billion with 21% total growth and 14% organic growth, exceeding guidance.
- Adjusted EPS of $3.15 beat guidance by $0.10, with strong operational performance and record cash flow.
- Electrical Americas delivered 18% organic growth and 190 bps margin expansion quarter-over-quarter, with book-to-bill at 1.3.
- Data center demand remains robust, with US backlog growing to 307 gigawatts (15 years of backlog) and Boyd acquisition performing above expectations.
- Raised full-year 2026 guidance: organic growth midpoint up 200 bps to 12% and adjusted EPS midpoint up $0.22 to $13.50.
- Electrical Americas margins declined year-over-year due to temporary negative price-cost, though expected to normalize in H2.
- Mobility segment organic sales declined 2% in Q2, impacted by intentional exit of low-margin business.
- Higher tax rate partially offset segment profit beat, reducing EPS by $0.15.
- Electrical Global organic growth is expected to decelerate in H2, implying potential conservatism or demand pull-forward.
- Capacity ramp challenges persist, with lead times still extended in some product lines, though improving.
Thank you for standing by and welcome to Eaton's second-quarter 2026 earnings results conference call. (Operator Instructions) As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, Yan Jin, Senior Vice President of Investor Relations. Please go ahead.
Hey, good morning. Thank you all for joining us for each second-quarter 2026 earnings call. With me today are Paulo Ruiz, Chief Executive Officer; and Dave Foster, Executive Vice President and Chief Financial Officer. Our agenda today includes operating remarks by Paulo. Then he will turn it over to Dave, who will highlight the company's performance in the second quarter. As we have done in our past calls, we'll be taking questions at the end of Paulo's closing commentary.
The press release and the presentation will go through today, including reconciliations to non-GAAP measures, have been posted on our website, and a replay of this webcast will be accessible on
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