Eaton Corporation, PLC
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Item 1. Business.
Eaton Corporation plc (Eaton or the Company) is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are capitalizing on the megatrends of the electrification, digitalization, and the reindustrialization of and growth of megaprojects in North America and increased global infrastructure spending, all of which are expanding our end markets and positioning Eaton for growth for years to come. We are strengthening our participation across the entire electrical power value chain and benefiting from momentum in the data center and utility end markets as well as a growth cycle in the commercial aerospace and defense markets. We are guided by our commitment to operate sustainably and with the highest ethical standards. Our work is helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and for future generations.
Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of $27.4 billion in 2025, the Company serves customers in 180 countries.
Eaton electronically files or furnishes reports pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (Exchange Act) to the United States Securities and Exchange Commission (SEC), including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and proxy and information statements, as well as any amendments to those reports. As soon as reasonably practicable, these reports are available free of charge through the Company's website at www.eaton.com. These filings are also accessible on the SEC's website at www.sec.gov.
Acquisitions and Divestiture of Businesses
In 2025, the Company acquired Fibrebond Corporation (Fibrebond) and Resilient Power Systems Inc. (Resilient), and announced an agreement to acquire Boyd Thermal. Additionally, on January 23, 2026, the Company closed the acquisition of Ultra PCS Limited (Ultra PCS). The acquisition of Resilient strengthens our power distribution offerings and accelerates the commercialization of solid-state transformer technology for future global applications in data centers and energy storage. Adding Fibrebond to the portfolio expands Eaton’s presence in the growing market for modular solutions for multi-tenant and hyperscale data center customers. The acquisition of Ultra PCS expands and integrates Eaton’s offerings in next-generation aerospace solutions. The agreement to acquire Boyd Thermal expands Eaton’s existing portfolio of solutions for data center customers to include critical liquid cooling technology, enabling the Company to serve hyperscale and colocation customers from the chip to the grid.
On January 26, 2026, Eaton announced its intention to pursue a spin-off of its Mobility business, which consists of its Vehicle and eMobility operating segments, into an independent, publicly traded company.
More information regarding the Company's acquisitions and divestiture is presented in Note 2 of the Notes to the consolidated financial statements.
Business Segment Information
Information by business segment regarding principal products, principal markets, methods of distribution and net sales is presented in Note 18 of the Notes to the consolidated financial statements. Additional information regarding Eaton's segments and business is presented below.
During the first quarter of 2026, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable segment is Mobility, which consists of the legacy Vehicle and eMobility segments. Financial information for this new reportable segment has not been provided as the re-segmentation occurred subsequent to the year ended December 31, 2025. The Company expects to provide financial information for this new reportable segment in the Quarterly Report on Form 10-Q for the period ended March 31, 2026.
Electrical Americas and Electrical Global
Eaton’s Electrical sector helps customers manage power in a way that’s reliable, efficient, safe and sustainable. From the grid to homes, buildings, data centers and industrials – Eaton plays a vital role in modernizing infrastructure and accelerating the electrification of society. As the world’s demand for electricity grows, so does the need for Eaton’s innovative technology and solutions.
Principal methods of competition in these segments are performance of products and systems, technology, customer service and support, and price. Eaton has a strong competitive position in these segments and, with respect to many products, is considered among the market leaders. In normal economic cycles, sales of these segments are historically lower in the first quarter and higher in the third and fourth quarters of a specific year. In 2025, 22% of these segments' sales were made to six large customers of electrical products and electrical systems and services.
2
Aerospace
Eaton’s industry-leading portfolio of aerospace technologies elevates aircraft efficiency, safety and performance for customers across the commercial, military and space markets. As the demand for more electric and sustainable aviation solutions amplifies, the company is uniquely positioned to help power the next generation of platforms.
Principal methods of competition in this segment are total cost of ownership, product and system performance, quality, design engineering capabilities, and timely delivery. Eaton has a strong competitive position in this segment and, with respect to many products and platforms, is considered among the market leaders. In 2025, 20% of this segment's sales were made to three large original equipment manufacturers of aircraft.
Vehicle
Eaton provides differentiated technologies that improve safety, efficiency, and performance for customers in the automotive, commercial vehicle, aftermarket and off-road segments. The company is committed to enabling the transition to electrified vehicles (EVs) while also continuing to provide innovative and efficient internal combustion engine (ICE) solutions.
Principal methods of competition in this segment are product performance, technology, global service, and price. Eaton is considered among the market leaders in this segment. In 2025, 37% of this segment's sales were made to four large original equipment manufacturers of vehicles and related components.
eMobility
Principal methods of competition in this segment are product performance, technology, global service, and price. In 2025, 18% of this segment's sales were made to one large original equipment manufacturer of vehicles and related components.
Information Concerning Eaton's Business in General
Raw Materials
Eaton's major requirements for raw materials include iron, steel, copper, nickel, aluminum, lead, silver, gold, titanium, rubber, plastic, electronic components, chemicals, and fluids. Materials are purchased in various forms, such as coils, sheets, strips, ingots, bars, extrusions, castings, forgings, stampings, powder metal, plastic resins, and pellets. Raw materials, as well as parts and other components, are purchased from many suppliers. Under normal circumstances, the Company has no difficulty obtaining its raw materials. To mitigate the impact of supply chain risk events we continue to invest in supply chain resiliency and work closely with our partners.
Intellectual Property
Eaton considers its intellectual property, including without limitation patents, trade names, domain names, trademarks, confidential information, and trade secrets to be of significant value to its business as a whole. The Company's products may be manufactured, marketed and sold using a portfolio of patents, trademarks, licenses, and other forms of intellectual property, some of which expire in the future. Eaton develops and acquires new intellectual property on an ongoing basis and considers all of its intellectual property to be valuable. Based on the broad scope of the Company's product lines, management believes that the loss or expiration of any single intellectual property right would not in and of itself have a material effect on Eaton's consolidated financial statements or its business segments. The Company works diligently to protect its intellectual property, including innovations, through various legal means.
Environmental Contingencies
Our comprehensive sustainability strategy is driven by our mission to improve the quality of life and the environment. We are committed to reducing our footprint, eliminating waste, and making the best use of natural resources. The operations of the Company involve emissions, as well as the use and disposal of certain substances regulated under environmental protection laws. Eaton continues to modify processes on an ongoing, regular basis in order to reduce the impact on the environment, including the reduction or elimination of certain chemicals used in, and wastes generated from, operations. Compliance with laws that have been enacted or adopted regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, are not expected to have a material adverse effect upon capital expenditures, including expenditures for environmental control facilities, earnings or the competitive position of the Company. Compliance with future environmental protection laws may require an increase in capital expenditures. Information regarding the Company's liabilities related to environmental matters is presented in Note 11 of the Notes to the consolidated financial statements.
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Human Capital Management
Eaton has approximately 97,000 employees globally. The number of persons employed by our reportable segments and corporate at December 31, 2025 are as follows:
| (In thousands) | 2025 | ||||
Electrical Americas | 35 | ||||
| Electrical Global | 26 | ||||
| Aerospace | 14 | ||||
| Vehicle | 12 | ||||
| eMobility | — | ||||
| Corporate | 10 | ||||
| Total number of persons employed | 97 | ||||
Eaton uses and monitors a variety of metrics to demonstrate our objectives related to employee attraction, development, and retention are met. Most notably, Eaton tracks the following:
Inclusion and Diversity
Eaton aspires to be a model of inclusion and diversity in the industry - known for the way it welcomes all employees to the table and includes them by listening to what they have to offer.
We’re doing this because we believe an inclusive and diverse workforce makes better decisions. Our success depends on our ability to attract and retain the best employees without regard to race, color, social or economic status, religion, national origin, marital status, age, veteran status, sexual orientation, gender identity, or any protected status. It is the policy of the Company to make all decisions regarding employment based on the principle of equal employment opportunity and without discrimination. We embrace the power of diverse experiences, backgrounds and perspectives from all our employees to drive innovation and sustainable growth that benefits our employees, investors, customers and communities.
We also believe that when we value the uniqueness of each individual, we can attract and retain top talent, enable higher-performing teams, and accelerate the process of becoming an enterprise that can win in all markets.
At December 31, 2025, Eaton’s workforce distribution is as follows:
| Total Global | Number of women (Global) | Percentage of women (Global) | U.S. total | Number of minorities (U.S. only)1 | Percentage of minorities (U.S. only)1 | |||||||||||||||||||||||||||
| Board of directors | 12 | 4 | 33.3 | |||||||||||||||||||||||||||||
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Amounts are in millions of dollars or shares unless indicated otherwise (per share data assume dilution). Columns and rows may not add and the sum of components may not equal total amounts reported due to rounding.
COMPANY OVERVIEW
Eaton Corporation plc (Eaton or the Company) is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are capitalizing on the megatrends of the electrification, digitalization, and the reindustrialization of and growth of megaprojects in North America and increased global infrastructure spending, all of which are expanding our end markets and positioning Eaton for growth for years to come. We are strengthening our participation across the entire electrical power value chain and benefiting from momentum in the data center and utility end markets as well as a growth cycle in the commercial aerospace and defense markets. We are guided by our commitment to operate sustainably and with the highest ethical standards. Our work is helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and for future generations.
Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of $27.4 billion in 2025, the Company serves customers in 180 countries.
During the first quarter of 2026, Eaton re-segmented certain business segments due to a reorganization of the Company's businesses. The new segment is Mobility, which consists of the legacy Vehicle and eMobility segments. Historical segment information has been recast to reflect this change.
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Portfolio Changes
The Company continues to actively manage its portfolio of businesses to deliver on its strategic objectives. The Company is focused on deploying its capital toward businesses that provide opportunities for above-market growth and strong returns, and that align with secular trends and its power management strategies. During 2025 and 2026, Eaton completed several transactions to strengthen its portfolio.
| Acquisitions of businesses | Date of acquisition | Business segment | ||||||||||
| Fibrebond Corporation | April 1, 2025 | Electrical Americas | ||||||||||
| A U.S. based designer and builder of pre-integrated modular power enclosures for data center, industrial, utility and communications customers. | ||||||||||||
| Resilient Power Systems, Inc. | August 6, 2025 | Electrical Americas | ||||||||||
| A leading North American developer and manufacturer of innovative energy solutions, including solid-state transformer-based technology. | ||||||||||||
| Ultra PCS Limited | January 23, 2026 | Aerospace | ||||||||||
Producer of electronic controls, sensing, stores ejection and data processing solutions with operations in the U.K. and U.S. | ||||||||||||
| Boyd Thermal | March 12, 2026 | Electrical Global | ||||||||||
A U.S. based global leader in thermal components, systems, and ruggedized solutions for data center, aerospace and other end-markets. | ||||||||||||
On January 26, 2026, Eaton announced its intention to pursue a spin-off of its Mobility business, which consists of the Mobility business segment, into an independent, publicly traded company. Eaton expects to complete the anticipated spin-off by the end of the first quarter of 2027, subject to customary legal and regulatory requirements and approvals, including final approval of the Company’s Board of Directors and effectiveness of a Form 10 registration statement filed with the Securities and Exchange Commission. The planned spin-off is expected to be completed in a manner that is tax-free to Eaton ordinary shareholders for U.S. federal income tax purposes.
Additional information related to acquisitions of businesses is presented in Note 2.
IEEPA Tariffs
On February 20, 2026, the U.S. Supreme Court issued a ruling invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA), and thereafter, the Court of International Trade (CIT) ordered the Customs and Border Protection (CBP) to develop a process to refund tariffs imposed under IEEPA. We are evaluating the impact of these developments on our business and financial statements and cannot reasonably estimate the financial impact nor deem such impact probable. Some of the factors considered in our evaluation include the uncertainty as to the extent tariffs will be refunded by CBP, what processes will govern such refunds, or if such refunds are fully collectable. No amounts have been recorded in the condensed consolidated financial statements as of March 31, 2026 given the uncertainty regarding the potential refund process.
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RESULTS OF OPERATIONS
Non-GAAP Financial Measures
The following discussion of Consolidated Financial Results includes certain non-GAAP financial measures. These financial measures include adjusted earnings and adjusted earnings per ordinary share, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of adjusted earnings and adjusted earnings per ordinary share to the most directly comparable GAAP measure is included in the Consolidated Financial Results table below. Management believes that these financial measures are useful to investors because they provide additional meaningful financial information that should be considered when assessing our business performance and trends, and they allow investors to more easily compare Eaton’s financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton.
Acquisition and Divestiture Charges
Eaton incurs integration charges and transaction costs to acquire and integrate businesses, and transaction, separation and other costs to divest and exit businesses. Eaton also recognizes gains and losses on the sale of businesses. A summary of these Corporate items is as follows:
| Three months ended March 31 | ||||||||||||||||||||||||
| (In millions except for per share data) | 2026 | 2025 | ||||||||||||||||||||||
| Acquisition integration, divestiture charges and transaction costs | $ | 109 | $ | 10 | ||||||||||||||||||||
| Income tax benefit | 21 | 2 | ||||||||||||||||||||||
| Total after income taxes | $ | 87 | $ | 8 | ||||||||||||||||||||
| Per ordinary share - diluted | $ | 0.22 | $ | 0.02 | ||||||||||||||||||||
Acquisition integration, divestiture charges and transaction costs in 2026 and 2025 are primarily related to the following:
•The acquisitions of Fibrebond Corporation, Resilient Power Systems Inc., Ultra PCS Limited, Boyd Thermal, and Exertherm, the anticipated spin-off of the Mobility business, transactions completed prior to 2023, and other charges to acquire and exit businesses.
•Employee transaction and retention award compensation expense related to the acquisition of Fibrebond of $14 million in the first quarter of 2026.
•Employee incentive compensation expense related to the acquisition of Resilient of $11 million in the first quarter of 2026.
Charges in 2026 and 2025 were included in Cost of products sold, Selling and administrative expense, or Other income - net. In Business Segment Information in Note 15, the charges were included in Other expense - net.
Restructuring Programs
During the first quarter of 2024, Eaton implemented a multi-year restructuring program to accelerate opportunities to optimize its operations and global support structure. These actions will better align the Company's functions to support anticipated growth and drive greater effectiveness throughout the Company. Since the inception of the program, the Company has incurred charges of $374 million. This restructuring program is expected to be completed in 2026 and is expected to incur additional expenses related to workforce reductions of $78 million and plant closing and other costs of $24 million, resulting in total estimated charges of $475 million for the entire program. The Company expects mature year benefits of $375 million when the multi-year program is fully implemented.
Additional information related to these restructuring programs is presented in Note 14.
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Intangible Asset Amortization Expense
Intangible asset amortization expense is as follows:
| Three months ended March 31 | |||||||||||||||||||||||
| (In millions except for per share data) | 2026 | 2025 | |||||||||||||||||||||
| Intangible asset amortization expense | $ | 140 | $ | 106 | |||||||||||||||||||
| Income tax benefit | 30 | 22 | |||||||||||||||||||||
| Total after income taxes | $ | 111 | $ | 84 | |||||||||||||||||||
| Per ordinary share - diluted | $ | 0.29 | $ | 0.21 | |||||||||||||||||||
Consolidated Financial Results
| Three months ended March 31 | Increase (decrease) | |||||||||||||||||||||||||||
| (In millions except for per share data) | 2026 | 2025 | ||||||||||||||||||||||||||
| Net sales | $ | 7,451 | $ | 6,377 | 17 | % | ||||||||||||||||||||||
| Gross profit | 2,652 | 2,447 | 8 | % | ||||||||||||||||||||||||
| Percent of net sales | 35.6 | % | 38.4 | % | ||||||||||||||||||||||||
| Income before income taxes | 1,107 | 1,177 | (6) | % | ||||||||||||||||||||||||
| Net income | 868 | 965 | (10) | % | ||||||||||||||||||||||||
| Less net income for noncontrolling interests | (2) | (1) | ||||||||||||||||||||||||||
| Net income attributable to Eaton ordinary shareholders | 866 | 964 | (10) | % | ||||||||||||||||||||||||
| Excluding acquisition and divestiture charges, after-tax | 87 | 8 | ||||||||||||||||||||||||||
| Excluding restructuring program charges, after-tax | 30 | 14 | ||||||||||||||||||||||||||
| Excluding intangible asset amortization expense, after-tax | 111 | 84 | ||||||||||||||||||||||||||
| Adjusted earnings | $ | 1,094 | $ | 1,070 | 2 | % | ||||||||||||||||||||||
| Net income per share attributable to Eaton ordinary shareholders - diluted | $ | 2.22 | $ | 2.45 | (9) | % | ||||||||||||||||||||||
| Excluding per share impact of acquisition and divestiture charges, after-tax | 0.22 | 0.02 | ||||||||||||||||||||||||||
| Excluding per share impact of restructuring program charges, after-tax | 0.08 | 0.04 | ||||||||||||||||||||||||||
| Excluding per share impact of intangible asset amortization expense, after-tax | 0.29 | 0.21 | ||||||||||||||||||||||||||
| Adjusted earnings per ordinary share | $ | 2.81 | $ | 2.72 | 3 | % | ||||||||||||||||||||||
Net Sales
| Changes in Net sales: | Three months ended March 31, 2026 | ||||||||
| Organic growth | 10 | % | |||||||
Acquisitions of businesses | 4 | % | |||||||
| Foreign currency | 3 | % | |||||||
| Total increase in Net sales | 17 | % | |||||||
The increase in organic sales in the first quarter of 2026 was due to strength in data center and machine OEM end-markets in the Electrical Americas and Electrical Global business segments, strength in commercial & institutional end-markets in the Electrical Americas business segment, strength in residential end-markets in the Electrical Global business segment, and strength in military aftermarket, commercial OEM, and commercial aftermarket in the Aerospace business segment, partially offset by weakness in industrial end-markets in the Electrical Americas and Electrical Global business segments, weakness in utility end-markets in the Electrical Americas business segment, and weakness in the North American region driven by the exit of a low-margin light vehicle business in the Mobility business segment.
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Gross Profit
Gross profit margin decreased from 38.4% in the first quarter of 2025 to 35.6% in the first quarter of 2026. Material factors affecting this decrease were a 400 basis point decline from commodity and wage inflation, partially offset by an 80 basis point increase from operating efficiencies and a 70 basis point increase from higher sales.
Income Taxes
The effective income tax rate for the first quarter of 2026 was expense of 21.6% compared to expense of 18.0% for the first quarter of 2025. The increase in the effective tax rate in the first quarter of 2026 was primarily due to greater levels of income in higher tax jurisdictions and the fact that the effective tax rate for the first quarter of 2025 included a reduction in the amount of foreign unrecognized tax benefits.
Net Income
Changes in Net income attributable to Eaton ordinary shareholders and Net income per share attributable to Eaton ordinary shareholders - diluted are summarized as follows:
| Three months ended | |||||||||||||||||||
| (In millions except for per share data) | Dollars | Per share | |||||||||||||||||
March 31, 2025 | $ | 964 | $ | 2.45 | |||||||||||||||
Business segment results of operations | |||||||||||||||||||
| Operational performance | 129 | 0.34 | |||||||||||||||||
| Foreign currency | 8 | 0.02 | |||||||||||||||||
| Corporate | |||||||||||||||||||
| Interest expense - net | (60) | (0.15) | |||||||||||||||||
| Intangible asset amortization expense | (27) | (0.08) | |||||||||||||||||
| Restructuring program charges | (16) | (0.04) | |||||||||||||||||
| Acquisition and divestiture charges | (80) | (0.20) | |||||||||||||||||
| Other corporate items | (9) | (0.02) | |||||||||||||||||
| Tax rate impact | (43) | (0.11) | |||||||||||||||||
| Impact of shares | — | 0.02 | |||||||||||||||||
March 31, 2026 | $ | 866 | $ | 2.22 | |||||||||||||||
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Business Segment Results of Operations
The following is a discussion of Net sales, operating profit (loss) and operating margin by business segment. Additionally, the Company uses the following metrics as indicators of customer demand and future revenue expectations in the Electrical Americas, Electrical Global, and Aerospace business segments. The Company believes these metrics are useful to investors for the same reasons.
•Backlog: Includes orders to which customers are firmly committed
•Organic change in backlog: Percentage change in backlog, excluding (1) the impact of foreign currency, (2) divestitures, and (3) firm orders in place prior to closing of business acquisitions
•Organic change in customer orders: Percentage change in firm customer orders on a trailing twelve month basis, excluding (1) the impact of foreign currency, (2) divestitures, and (3) firm orders in place prior to closing of business acquisitions
•Book-to-bill: Average of the ratio of firm customer orders to Net sales for the last four quarters
Electrical Americas
| Three months ended March 31 | Increase (decrease) | |||||||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | ||||||||||||||||||||||||||
| Net sales | $ | 3,600 | $ | 3,010 | 20 | % | ||||||||||||||||||||||
| Operating profit | $ | 922 | $ | 904 | 2 | % | ||||||||||||||||||||||
| Operating margin | 25.6 | % | 30.0 | % | ||||||||||||||||||||||||
| Changes in Net sales: | ||||||||||||||||||||||||||||
| Organic growth | 14 | % | ||||||||||||||||||||||||||
Acquisitions of businesses | 5 | % | ||||||||||||||||||||||||||
| Foreign currency | 1 | % | ||||||||||||||||||||||||||
| Total increase in Net sales | 20 | % | ||||||||||||||||||||||||||
Change from March 31 | |||||||||||||||||||||||||||||||||
| Performance metrics: | March 31, 2026 | March 31, 2025 | 2026 vs. 2025 | 2025 vs. 2024 | |||||||||||||||||||||||||||||
| Backlog | $ | 14,459 | $ | 10,050 | 44 | % | 5 | % | |||||||||||||||||||||||||
| Organic change in backlog | 32 | % | 6 | % | |||||||||||||||||||||||||||||
| Organic change in customer orders | 42 | % | (4) | % | |||||||||||||||||||||||||||||
| Book-to-bill | 1.2 | 1.0 | |||||||||||||||||||||||||||||||
The increase in organic sales in the first quarter of 2026 was due to strength in data center, commercial & institutional, and machine OEM end-markets, partially offset by weakness in utility and industrial end-markets.
The operating margin decreased from 30.0% in the first quarter of 2025 to 25.6% in the first quarter of 2026. Material factors affecting this decrease were a 480 basis point decline from higher commodity inflation and a 100 basis point decline from higher costs to support growth initiatives, partially offset by a 210 basis point increase from higher sales.
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Electrical Global
| Three months ended March 31 | Increase (decrease) | |||||||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | ||||||||||||||||||||||||||
| Net sales | $ | 1,945 | $ | 1,610 | 21 | % | ||||||||||||||||||||||
| Operating profit | $ | 373 | $ | 300 | 24 | % | ||||||||||||||||||||||
| Operating margin | 19.2 | % | 18.6 | % | ||||||||||||||||||||||||
| Changes in Net sales: | ||||||||||||||||||||||||||||
| Organic growth | 9 | % | ||||||||||||||||||||||||||
| Acquisition of a business | 6 | % | ||||||||||||||||||||||||||
| Foreign currency | 6 | % | ||||||||||||||||||||||||||
| Total increase in Net sales | 21 | % | ||||||||||||||||||||||||||
Change from March 31 | |||||||||||||||||||||
| Performance metrics: | March 31, 2026 | March 31, 2025 | 2026 vs. 2025 | 2025 vs. 2024 | |||||||||||||||||
| Backlog | $ | 3,162 | $ | 1,832 | 73 | % | 5 | % | |||||||||||||
| Organic change in backlog | 20 | % | 5 | % | |||||||||||||||||
| Organic change in customer orders | 13 | % | — | % | |||||||||||||||||
| Book-to-bill | 1.1 | 1.0 | |||||||||||||||||||
The increase in organic sales in the first quarter of 2026 was due to strength in data center, residential, and machine OEM end-markets, partially offset by weakness in industrial end-markets.
The operating margin increased from 18.6% in the first quarter of 2025 to 19.2% in the first quarter of 2026. Material factors affecting this increase were a 180 basis point increase from higher sales and a 290 basis point increase from operating efficiencies, partially offset by a 470 basis point decline from higher commodity and wage inflation.
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Aerospace
| Three months ended March 31 | Increase (decrease) | |||||||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | ||||||||||||||||||||||||||
| Net sales | $ | 1,139 | $ | 979 | 16 | % | ||||||||||||||||||||||
| Operating profit | $ | 304 | $ | 226 | 35 | % | ||||||||||||||||||||||
| Operating margin | 26.7 | % | 23.1 | % | ||||||||||||||||||||||||
| Changes in Net sales: | ||||||||||||||||||||||||||||
| Organic growth | 9 | % | ||||||||||||||||||||||||||
| Acquisition of a business | 5 | % | ||||||||||||||||||||||||||
| Foreign currency | 2 | % | ||||||||||||||||||||||||||
| Total increase in Net sales | 16 | % | ||||||||||||||||||||||||||
Change from March 31 | |||||||||||||||||||||||
| Performance metrics: | March 31, 2026 | March 31, 2025 | 2026 vs. 2025 | 2025 vs. 2024 | |||||||||||||||||||
| Backlog | $ | 5,004 | $ | 3,899 | 28 | % | 16 | % | |||||||||||||||
| Organic change in backlog | 15 | % | 16 | % | |||||||||||||||||||
| Organic change in customer orders | |||||||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-05-22 | Thompson Dorothy C | Director | Sell | -167 | $385.00 | -$64,295 |
| 2026-05-13 | Galvao Antonio | See Remarks below. | Sell | -494 | $405.86 | -$200,492 |
| 2026-05-11 | Johnson Gerald | Director | Buy | +215 | $419.02 | $90,089 |
| 2026-05-08 | Johnson Gerald | Director | Buy | +746 | $402.29 | $300,108 |
| 2026-05-06 | Monesmith Heath B. | See Remarks below. | Sell | -18,367 | $409.11 | -$7,514,074 |
| 2026-05-06 | Denk Peter | See Remarks below. | Sell | -2,000 | $417.94 | -$835,880 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-08-06 10-Q expected by 2026-08-14 (in 52 days)
- ~2026-11-05 10-Q expected by 2026-11-13 (in 143 days)
- ~2027-02-25 10-K expected by 2027-03-01 (in 255 days)
- ~2027-05-06 10-Q expected by 2027-05-14 (in 325 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-06-11 8-K Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
- 2026-05-05 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-05 10-Q Quarterly Report
- 2026-03-10 8-K Material Agreement Terminated; Material Financial Obligation; Financial Statements and Exhibits
- 2026-03-02 8-K Officer/Director Change
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