Eaton Reports 28% Sales Growth Driven by Record Orders Amid Rising Acquisition Debt
Eaton (ETN) reported strong third-quarter results, highlighted by a 28% increase in sales to $8.9 billion and organic growth of 19%. The company achieved record order levels across all three business segments, with the Electrical segment backlog surging by 46%. Despite this operational strength, GAAP earnings per share grew only 7% to $2.77 due to significant headwinds from increased interest expenses and amortization related to recent acquisitions. While adjusted EPS showed robust growth at $3.68, net interest expense nearly tripled to $198 million following the purchases of Boyd Thermal and Ultra PCS. Management has raised its organic growth outlook but cautioned that fourth-quarter growth is expected to moderate to a range of 13% to 15%. Investors are closely monitoring how debt servicing costs will continue to impact the gap between adjusted and GAAP profitability.
Tickers: $ETN
Topics: backlog earnings report guidance interest expense organic growth
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