Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Eaton Corp. plc, consolidated statement of comprehensive income
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Net income demonstrated a consistent upward trend over the five-year period, increasing from US$2,146 million in 2021 to US$4,090 million in 2025. While net income increased steadily, fluctuations were observed in other components of comprehensive income, resulting in a more variable pattern for total comprehensive income attributable to Eaton ordinary shareholders.
- Net Income Trend
- Net income increased each year, with growth rates accelerating from 15.0% between 2021 and 2022, to 17.9% between 2022 and 2023, and then slowing to 17.7% and 7.7% in the subsequent periods. This suggests a sustained improvement in core profitability.
- Currency Translation and Hedging
- The impact of currency translation and related hedging instruments was highly volatile. A gain of US$30 million in 2021 was followed by a substantial loss of US$647 million in 2022. This was partially offset by a gain in 2023, but a further loss occurred in 2024, before recovering to a gain in 2025. These fluctuations indicate significant exposure to foreign exchange risk and the effectiveness of hedging strategies varied considerably year to year.
- Pension and Postretirement Benefits
- Pensions and other postretirement benefits exhibited a declining impact on comprehensive income. Gains were reported in 2021 and 2022, followed by losses in 2023 and 2024, and a smaller loss in 2025. The magnitude of these gains and losses decreased over time, suggesting a stabilization of pension-related impacts, though continued volatility is present.
- Cash Flow Hedges
- Cash flow hedges had a relatively minor, but fluctuating, impact on comprehensive income. Gains were observed in 2021 and 2022, followed by losses in 2023 and 2024, and a minimal gain in 2025. The overall effect was limited compared to other components of comprehensive income.
- Other Comprehensive Income
- Other comprehensive income (loss), net of tax, was significantly impacted by the currency translation and pension items. A substantial gain in 2021 was followed by a large loss in 2022, a smaller gain in 2023, a significant loss in 2024, and a recovery in 2025. This volatility contributed to the fluctuations in total comprehensive income.
- Comprehensive Income Attributable to Shareholders
- Comprehensive income attributable to Eaton ordinary shareholders generally followed the trend of net income, increasing from US$2,706 million in 2021 to US$4,310 million in 2025. However, the impact of other comprehensive income dampened the growth in 2022 and 2024. The effect of noncontrolling interests remained consistently small throughout the period.
In summary, while core profitability, as measured by net income, demonstrated consistent growth, the overall comprehensive income picture was influenced by significant volatility in currency translation, pension adjustments, and other comprehensive income components. This suggests that factors beyond core operations have a notable impact on the company’s overall financial performance.
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