Analysis of Reportable Segments
Eaton Corp. plc operates in 5 segments: Electrical Americas; Electrical Global; Aerospace; Vehicle; and eMobility.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
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Segment Profit Margin
Eaton Corp. plc, profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Electrical Americas | |||||
| Electrical Global | |||||
| Aerospace | |||||
| Vehicle | |||||
| eMobility |
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).
Segment profit margins exhibited varied performance across the reporting periods. Generally, margins in Electrical Americas and Aerospace demonstrated consistent strength and growth, while Vehicle margins remained relatively stable. Conversely, the eMobility segment consistently reported negative profit margins, though these margins showed some improvement over time.
- Electrical Americas
- The Electrical Americas segment experienced a steady increase in profit margin from 20.64% in 2021 to a peak of 30.21% in 2024. A slight decrease to 29.92% was observed in 2025, but the segment maintained a strong overall performance throughout the period. This represents a substantial improvement in profitability.
- Electrical Global
- Electrical Global’s profit margin remained relatively flat, fluctuating between 18.75% and 19.41% over the five-year period. While there was a minor dip to 18.39% in 2024, the segment’s profitability remained consistent, indicating stable performance.
- Aerospace
- The Aerospace segment demonstrated consistent profitability, with margins ranging from 21.90% to 23.84%. A modest upward trend was observed, culminating in a margin of 23.84% in 2025. This suggests a resilient and growing business within the aerospace industry.
- Vehicle
- Vehicle segment profit margins showed limited fluctuation, remaining within a narrow range of 16.01% to 17.99%. A slight increase was noted in 2024, reaching 17.99%, followed by a decrease to 16.73% in 2025. Overall, the segment’s profitability remained stable.
- eMobility
- The eMobility segment consistently reported negative profit margins throughout the period, ranging from -8.45% to -1.06%. While the margin improved significantly from -8.45% in 2021 to -1.06% in 2024, it remained negative in 2025 at -2.32%, indicating ongoing challenges in achieving profitability within this segment. The 2025 result represents a reversal of the prior year’s improvement.
In summary, the performance of the segments varied considerably. Electrical Americas and Aerospace demonstrated strong and improving profitability, while Electrical Global and Vehicle maintained stable margins. The eMobility segment continues to require attention to address its consistent negative profit margins.
Segment Profit Margin: Electrical Americas
Eaton Corp. plc; Electrical Americas; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit (loss) ÷ Net sales
= 100 × ÷ =
The Electrical Americas segment demonstrated a consistent pattern of growth in both operating profit and net sales between 2021 and 2025. This growth was accompanied by a notable improvement in profitability as indicated by the segment profit margin.
- Segment Operating Profit
- Segment operating profit increased steadily over the five-year period, rising from US$1,495 million in 2021 to US$3,972 million in 2025. This represents a cumulative increase of 165.8%. The largest absolute increase occurred between 2022 and 2023, adding US$762 million to the operating profit.
- Net Sales
- Net sales exhibited a similar upward trajectory, growing from US$7,242 million in 2021 to US$13,276 million in 2025, a cumulative increase of 83.2%. Sales growth accelerated in later years, with the period between 2023 and 2025 showing the most substantial gains.
- Segment Profit Margin
- The segment profit margin experienced a consistent improvement from 20.64% in 2021 to a peak of 30.21% in 2024. While still strong, the margin experienced a slight decrease in 2025, settling at 29.92%. This suggests that while profitability remains high, the rate of margin expansion may be moderating. The overall trend indicates increasing efficiency in converting sales into profit within this segment.
The correlation between increasing net sales and operating profit, coupled with the expanding profit margin, suggests strong operational performance and effective cost management within the Electrical Americas segment. The slight margin decrease in the most recent year warrants further investigation to determine its underlying causes and potential implications.
Segment Profit Margin: Electrical Global
Eaton Corp. plc; Electrical Global; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit (loss) ÷ Net sales
= 100 × ÷ =
The Electrical Global segment demonstrated a generally positive performance trend over the five-year period. Both segment operating profit and net sales increased, contributing to a relatively stable segment profit margin. However, fluctuations were observed within the period, warranting further examination.
- Segment Operating Profit
- Segment operating profit exhibited an overall upward trajectory, increasing from US$1,034 million in 2021 to US$1,323 million in 2025. Growth was consistent from 2021 to 2023, with a slight decrease in 2024 before resuming growth in 2025. This suggests a resilient business with the capacity to overcome short-term challenges.
- Net Sales
- Net sales followed a similar pattern to operating profit, increasing steadily from US$5,516 million in 2021 to US$6,815 million in 2025. The rate of sales growth accelerated in the later years of the period, indicating potentially increasing market demand or successful sales initiatives.
- Segment Profit Margin
- The segment profit margin remained relatively high and stable, fluctuating between 18.39% and 19.41% throughout the period. It peaked at 19.39% in 2022 and 19.41% in 2025. The dip to 18.39% in 2024 coincided with the slight decrease in operating profit, suggesting a correlation between profitability and operational performance. Despite this fluctuation, the margin demonstrates strong pricing power or efficient cost management within the segment.
In summary, the Electrical Global segment experienced consistent growth in both sales and operating profit, maintaining a healthy profit margin. The slight dip in 2024 warrants monitoring, but the overall trend indicates a strong and stable business unit.
Segment Profit Margin: Aerospace
Eaton Corp. plc; Aerospace; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit (loss) ÷ Net sales
= 100 × ÷ =
The Aerospace segment demonstrated consistent growth in both operating profit and net sales between 2021 and 2025. Operating profit increased from US$580 million to US$1,013 million over the five-year period, while net sales rose from US$2,648 million to US$4,249 million. The segment profit margin exhibited relative stability, fluctuating within a narrow range, and ultimately showing an upward trend.
- Segment Operating Profit
- Segment operating profit experienced a steady increase annually. The growth rate accelerated from 21.55% between 2021 and 2022 to 10.64% between 2024 and 2025. This suggests increasing operational efficiency or growing demand within the Aerospace segment.
- Net Sales
- Net sales also increased each year, mirroring the trend in operating profit. The percentage increase in net sales was highest between 2022 and 2023 at 12.38%, and lowest between 2021 and 2022 at 15.17%. This indicates a sustained expansion of the segment’s market presence.
- Segment Profit Margin
- The segment profit margin remained relatively consistent throughout the period, ranging from 21.90% to 23.84%. A slight dip was observed between 2021 and 2022, followed by a period of stability before a noticeable increase to 23.84% in 2025. This suggests that the segment maintained its profitability while growing sales, and improved profitability in the final year of the observed period.
Overall, the Aerospace segment’s performance indicates a positive trajectory characterized by increasing profitability and sales. The consistent profit margin suggests effective cost management alongside revenue growth.
Segment Profit Margin: Vehicle
Eaton Corp. plc; Vehicle; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit (loss) ÷ Net sales
= 100 × ÷ =
The Vehicle segment demonstrated fluctuating performance between 2021 and 2025. Segment operating profit exhibited an initial increase followed by a decline, while net sales showed a different pattern of growth and subsequent contraction. The segment profit margin, calculated from these figures, mirrored the underlying volatility.
- Segment Operating Profit
- Segment operating profit increased modestly from $449 million in 2021 to $453 million in 2022. Further growth was observed in 2023, reaching $482 million, and continued into 2024 with a peak of $502 million. However, 2025 saw a notable decrease, with operating profit falling to $419 million. This represents a decline of approximately 16.5% from the 2024 peak.
- Net Sales
- Net sales for the Vehicle segment increased from $2,579 million in 2021 to $2,830 million in 2022, and continued to rise to $2,965 million in 2023. A decrease was then recorded in 2024, with net sales falling to $2,790 million. This downward trend continued into 2025, with net sales reaching $2,505 million, representing a decrease of approximately 10.2% from 2023.
- Segment Profit Margin
- The segment profit margin began at 17.41% in 2021, decreased to 16.01% in 2022, and then experienced a slight recovery to 16.26% in 2023. A more substantial increase was observed in 2024, with the margin reaching 17.99%. In 2025, the segment profit margin decreased to 16.73%, aligning with the decline in operating profit despite the continued decrease in net sales. The margin in 2025 remains above the levels seen in 2022 and 2023, but below the peak in 2024.
The interplay between operating profit and net sales suggests potential shifts in cost structure or pricing strategies within the Vehicle segment. The decline in both metrics during 2024 and 2025 warrants further investigation to determine the underlying causes and potential impacts on future performance.
Segment Profit Margin: eMobility
Eaton Corp. plc; eMobility; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit (loss) ÷ Net sales
= 100 × ÷ =
The eMobility segment experienced fluctuating financial performance between 2021 and 2025. While net sales generally increased over the period, segment profitability remained negative, though with some improvement. A detailed examination of the segment operating profit and resulting profit margin reveals key trends.
- Segment Operating Profit
- Segment operating profit began at a loss of US$29 million in 2021. This improved to a loss of US$9 million in 2022, before worsening to a loss of US$21 million in 2023. A notable improvement occurred in 2024, with the loss decreasing to US$7 million. However, the segment experienced a slight increase in losses in 2025, reporting a loss of US$14 million.
- Net Sales
- Net sales demonstrated a consistent upward trend from 2021 to 2024. Sales increased from US$343 million in 2021 to US$538 million in 2022, and continued to grow to US$636 million in 2023 and US$662 million in 2024. A slight decrease in net sales was observed in 2025, with sales totaling US$604 million. Despite this decrease, sales remained significantly higher than the 2021 level.
- Segment Profit Margin
- The segment profit margin was negative throughout the analyzed period. In 2021, the margin was -8.45%. It improved to -1.67% in 2022, but then deteriorated to -3.30% in 2023. A substantial improvement was seen in 2024, with the margin reaching -1.06%. The margin slightly worsened again in 2025, ending at -2.32%. The trend suggests increasing, but still negative, profitability as a percentage of sales, followed by a minor setback in the most recent year.
The increasing net sales figures suggest growing market acceptance or expansion within the eMobility segment. However, the persistent negative operating profit and profit margin indicate that the segment is not yet generating sufficient revenue to cover its costs. While the margin improved significantly in 2024, the slight decline in 2025 warrants further investigation to determine the underlying causes and potential impact on future performance.
Segment Return on Assets (Segment ROA)
Eaton Corp. plc, ROA by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Electrical Americas | |||||
| Electrical Global | |||||
| Aerospace | |||||
| Vehicle | |||||
| eMobility |
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).
Segment Return on Assets (ROA) exhibited varied performance across the reporting periods. Significant differences are apparent when comparing the segments, and notable trends emerge within each segment over the five-year timeframe.
- Electrical Americas
- The Electrical Americas segment demonstrated a consistent upward trend in ROA from 2021 to 2024, increasing from 49.80% to a peak of 70.04%. A slight decrease was observed in 2025, with ROA settling at 63.22%. This segment consistently maintained the highest ROA among those reported.
- Electrical Global
- Electrical Global experienced a more moderate increase in ROA between 2021 and 2022, rising from 40.09% to 42.66%. However, subsequent years showed a downward trend, declining to 34.35% in 2025. This segment’s performance suggests increasing challenges in asset utilization or profitability relative to its asset base over the latter part of the period.
- Aerospace
- The Aerospace segment’s ROA fluctuated over the five years. It increased from 33.55% in 2021 to 37.92% in 2022, then decreased to 34.27% in 2023. A modest recovery was seen in 2024 (35.91%), followed by a further increase to 37.74% in 2025. The segment’s ROA remained relatively stable compared to other segments, despite the fluctuations.
- Vehicle
- The Vehicle segment’s ROA showed a generally improving trend. After starting at 22.62% in 2021 and a dip in 2022 (20.31%), it increased to 25.26% in 2024 before decreasing slightly to 21.32% in 2025. This segment’s performance indicates potential sensitivity to external factors, with gains followed by a partial reversal.
- eMobility
- The eMobility segment consistently reported negative ROA throughout the observed period. While the losses decreased from -13.18% in 2021 to -1.11% in 2024, ROA became more negative again in 2025, reaching -1.88%. This suggests ongoing challenges in generating returns from assets deployed in this segment, despite some improvement in loss reduction prior to 2025.
Overall, the segment performance varied considerably. Electrical Americas consistently outperformed other segments, while eMobility continued to require investment to achieve profitability. The trends observed suggest differing levels of success in asset utilization and operational efficiency across the various business units.
Segment ROA: Electrical Americas
Eaton Corp. plc; Electrical Americas; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Identifiable assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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).
1 2025 Calculation
Segment ROA = 100 × Segment operating profit (loss) ÷ Identifiable assets
= 100 × ÷ =
The Electrical Americas segment demonstrated a consistent pattern of growth in both profitability and asset base between 2021 and 2025. Segment operating profit increased steadily throughout the period, while identifiable assets also exhibited a rising trend. This positive performance is reflected in the segment’s Return on Assets (ROA), which showed substantial improvement over the five years.
- Segment Operating Profit
- Segment operating profit increased from US$1,495 million in 2021 to US$3,972 million in 2025. The growth was consistent year-over-year, with the largest absolute increase occurring between 2022 and 2023 (US$762 million). The rate of increase slowed slightly between 2023 and 2025, but remained positive.
- Identifiable Assets
- Identifiable assets grew from US$3,002 million in 2021 to US$6,283 million in 2025. Similar to operating profit, asset growth was consistent annually. The largest absolute increase in identifiable assets also occurred between 2023 and 2024 (US$770 million), indicating a period of significant investment or acquisition activity.
- Segment ROA
- Segment ROA increased from 49.80% in 2021 to a peak of 70.04% in 2024, before decreasing slightly to 63.22% in 2025. The consistent rise in ROA from 2021 to 2024 suggests increasing efficiency in asset utilization and profitability. The decrease in 2025, while still representing a strong ROA, warrants further investigation to determine the underlying cause. The substantial asset growth in 2024 may have contributed to the slight ROA decline in 2025, as profitability did not increase at the same rate.
Overall, the Electrical Americas segment exhibited strong financial performance between 2021 and 2025. The combination of increasing operating profit, growing asset base, and a high ROA indicates effective management and a healthy business environment. The slight decrease in ROA in 2025 should be monitored in future periods to assess its sustainability.
Segment ROA: Electrical Global
Eaton Corp. plc; Electrical Global; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Identifiable assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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).
1 2025 Calculation
Segment ROA = 100 × Segment operating profit (loss) ÷ Identifiable assets
= 100 × ÷ =
The Electrical Global segment demonstrated consistent operating profitability between 2021 and 2025. Segment operating profit increased from US$1,034 million in 2021 to US$1,323 million in 2025, with fluctuations observed in intervening years. Identifiable assets within the segment exhibited a steady upward trajectory throughout the period, rising from US$2,579 million in 2021 to US$3,852 million in 2025.
- Segment Return on Assets (ROA)
- Segment ROA began at 40.09% in 2021 and increased to 42.66% in 2022, representing the highest value observed during the analyzed period. A subsequent decline was noted, with ROA decreasing to 41.00% in 2023, then to 35.54% in 2024, and finally to 34.35% in 2025. While operating profit increased overall, the growth in identifiable assets outpaced the growth in operating profit, resulting in the observed decrease in ROA.
The increase in identifiable assets suggests potential investments in growth initiatives or acquisitions within the Electrical Global segment. Despite the increasing asset base, the declining ROA indicates diminishing returns on those assets. Further investigation into the composition of the asset increases and the factors influencing operating profit would be beneficial to understand the drivers behind this trend.
The segment maintained strong profitability, but the decreasing ROA warrants monitoring to ensure efficient asset utilization and continued value creation.
Segment ROA: Aerospace
Eaton Corp. plc; Aerospace; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Identifiable assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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).
1 2025 Calculation
Segment ROA = 100 × Segment operating profit (loss) ÷ Identifiable assets
= 100 × ÷ =
The Aerospace segment demonstrated consistent growth in both operating profitability and asset base over the five-year period. Segment Return on Assets (ROA) exhibited a generally positive trajectory, though with some fluctuation.
- Segment Operating Profit
- Segment operating profit increased steadily from US$580 million in 2021 to US$1,013 million in 2025. This represents a substantial overall increase, indicating improved operational performance within the segment. The growth was consistent year-over-year, with no significant reversals.
- Identifiable Assets
- Identifiable assets within the Aerospace segment also increased consistently throughout the period, rising from US$1,729 million in 2021 to US$2,684 million in 2025. This growth in assets suggests investment in the segment’s capabilities and expansion of its operations.
- Segment ROA
- Segment ROA began at 33.55% in 2021, increased to 37.92% in 2022, then experienced a slight decrease to 34.27% in 2023. It subsequently recovered, reaching 35.91% in 2024 and further improving to 37.74% in 2025. Despite the minor dip in 2023, the overall trend for ROA is upward, indicating increasing efficiency in asset utilization to generate profits. The ROA remained within a relatively narrow range, suggesting stable profitability relative to the asset base.
The concurrent increases in operating profit and identifiable assets, coupled with a generally improving ROA, suggest a healthy and growing Aerospace segment. The slight decrease in ROA during 2023 warrants further investigation, but the subsequent recovery indicates it was likely a temporary fluctuation.
Segment ROA: Vehicle
Eaton Corp. plc; Vehicle; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Identifiable assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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).
1 2025 Calculation
Segment ROA = 100 × Segment operating profit (loss) ÷ Identifiable assets
= 100 × ÷ =
The Vehicle segment demonstrated fluctuating performance between 2021 and 2025. Segment operating profit exhibited an initial increase followed by a decline, while identifiable assets experienced a period of growth before contracting. Segment Return on Assets (ROA) mirrored these trends, showing volatility over the five-year period.
- Segment Operating Profit
- Segment operating profit increased modestly from $449 million in 2021 to $453 million in 2022. Further growth was observed in 2023, reaching $482 million, and continued into 2024 with a peak of $502 million. However, 2025 saw a decrease, with operating profit falling to $419 million. This suggests potential challenges in maintaining profitability towards the end of the analyzed period.
- Identifiable Assets
- Identifiable assets within the Vehicle segment increased from $1,985 million in 2021 to $2,230 million in 2022, and continued to rise slightly to $2,251 million in 2023. A subsequent decrease was noted in 2024, with assets falling to $1,987 million, and this downward trend continued into 2025, reaching $1,965 million. The decline in assets may indicate divestitures, depreciation exceeding acquisitions, or changes in working capital management.
- Segment ROA
- Segment ROA began at 22.62% in 2021, decreased to 20.31% in 2022, and then recovered to 21.41% in 2023. A significant increase was observed in 2024, with ROA reaching 25.26%. However, this was followed by a decline in 2025, with ROA falling to 21.32%. The ROA fluctuations correlate with the changes in operating profit and identifiable assets, indicating that the segment’s efficiency in generating profit from its assets varied considerably during the period. The peak in 2024 suggests improved asset utilization or profitability, while the 2025 decline warrants further investigation.
Overall, the Vehicle segment’s financial performance was characterized by instability. While operating profit generally increased until 2024, the subsequent decline, coupled with decreasing identifiable assets, raises questions about the segment’s long-term sustainability and efficiency. The ROA trend reinforces this observation, highlighting the need for a deeper understanding of the factors driving these changes.
Segment ROA: eMobility
Eaton Corp. plc; eMobility; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit (loss) | |||||
| Identifiable assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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).
1 2025 Calculation
Segment ROA = 100 × Segment operating profit (loss) ÷ Identifiable assets
= 100 × ÷ =
The eMobility segment experienced consistent operating losses throughout the analyzed period, though the magnitude of these losses fluctuated. Simultaneously, identifiable assets within the segment demonstrated a clear upward trend. Consequently, the segment’s Return on Assets (ROA) remained negative across all years, exhibiting a volatile pattern but generally showing improvement towards the end of the period.
- Segment Operating Profit (Loss)
- The eMobility segment reported an operating loss of US$29 million in 2021. This loss decreased to US$9 million in 2022, before increasing to US$21 million in 2023. A significant improvement was observed in 2024, with the loss reduced to US$7 million. However, the loss widened again in 2025, reaching US$14 million.
- Identifiable Assets
- Identifiable assets increased steadily from US$220 million in 2021 to US$402 million in 2022, representing a substantial increase. This growth continued in subsequent years, reaching US$563 million in 2023, US$633 million in 2024, and US$743 million in 2025. The consistent rise in assets suggests ongoing investment within the eMobility segment.
- Segment ROA
- The segment ROA began at -13.18% in 2021, reflecting the substantial operating loss relative to the asset base. It improved to -2.24% in 2022, coinciding with the reduced operating loss. ROA then worsened to -3.73% in 2023 as the operating loss increased. A notable improvement occurred in 2024, with ROA reaching -1.11%. However, the ROA slightly deteriorated to -1.88% in 2025, despite the continued asset growth, indicating the operating loss grew at a faster rate than the asset base.
The increasing asset base, coupled with persistent operating losses, suggests that the eMobility segment is in a growth phase requiring significant capital investment. While the ROA shows some signs of improvement, sustained profitability is yet to be achieved. The recent widening of the operating loss in 2025, despite continued asset growth, warrants further investigation.
Segment Asset Turnover
Eaton Corp. plc, asset turnover by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Electrical Americas | |||||
| Electrical Global | |||||
| Aerospace | |||||
| Vehicle | |||||
| eMobility |
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).
Segment asset turnover ratios exhibit varied performance across the reporting periods. Generally, the ratios indicate the efficiency with which each segment utilizes its assets to generate revenue. Fluctuations within each segment, and differences between segments, warrant further investigation.
- Electrical Americas
- The Electrical Americas segment demonstrates a relatively stable asset turnover, beginning at 2.41 and decreasing to 2.11 over the five-year period. While fluctuations occur, the trend suggests a slight decline in asset utilization efficiency. The ratio decreased from 2.41 in 2021 to 2.32 in 2022, increased slightly to 2.43 in 2023, decreased again to 2.32 in 2024, and then decreased more noticeably to 2.11 in 2025.
- Electrical Global
- The Electrical Global segment shows a consistent downward trend in asset turnover. Starting at 2.14, the ratio declines to 1.77 by 2025. This indicates a decreasing efficiency in asset utilization within this segment. The decline is gradual between 2021 and 2023, but accelerates between 2023 and 2025.
- Aerospace
- The Aerospace segment maintains a consistently low asset turnover ratio, fluctuating between 1.50 and 1.63 throughout the period. A slight upward trend is observed from 2023 to 2024, followed by a minor increase in 2025, but overall, the ratio remains relatively stable. This suggests a consistent, but comparatively lower, level of asset utilization compared to other segments.
- Vehicle
- The Vehicle segment’s asset turnover exhibits some volatility. The ratio begins at 1.30, dips to 1.27, rises to 1.40 in 2024, and then falls back to 1.27 in 2025. This suggests fluctuating asset utilization efficiency, potentially influenced by market conditions or internal operational changes. The 2024 peak is notable, but the return to the initial level in 2025 indicates this may not be a sustained improvement.
- eMobility
- The eMobility segment demonstrates the most significant decline in asset turnover. Starting at 1.56, the ratio decreases substantially to 0.81 by 2025. This represents a considerable reduction in asset utilization efficiency and may warrant detailed investigation into the factors driving this decline, such as increased investment in assets without a corresponding increase in revenue, or changes in the segment’s business model. The decline is consistent year-over-year, accelerating in the later periods.
Overall, the segment asset turnover ratios suggest varying levels of operational efficiency. The eMobility and Electrical Global segments experienced the most pronounced declines, while Aerospace maintained a consistently lower ratio. Electrical Americas and Vehicle segments showed more moderate fluctuations.
Segment Asset Turnover: Electrical Americas
Eaton Corp. plc; Electrical Americas; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Identifiable assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Identifiable assets
= ÷ =
The Electrical Americas segment demonstrated consistent growth in both net sales and identifiable assets between 2021 and 2025. However, the segment asset turnover ratio exhibited a more nuanced pattern over the same period.
- Net Sales
- Net sales for the Electrical Americas segment increased steadily from US$7,242 million in 2021 to US$13,276 million in 2025. This represents a substantial overall increase, indicating strong revenue generation within this segment.
- Identifiable Assets
- Identifiable assets within the Electrical Americas segment also increased consistently, rising from US$3,002 million in 2021 to US$6,283 million in 2025. This growth in assets parallels the increase in net sales, suggesting investment to support revenue expansion.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures the efficiency with which assets are used to generate sales, began at 2.41 in 2021. It decreased to 2.32 in 2022, then recovered slightly to 2.43 in 2023. The ratio then decreased again to 2.32 in 2024, and further declined to 2.11 in 2025.
- While net sales and assets both grew, the decreasing asset turnover ratio from 2021 to 2025 suggests a diminishing efficiency in asset utilization. The initial dip in 2022 was partially recovered in 2023, but the downward trend resumed in subsequent years. This could indicate that asset growth is outpacing sales growth, or that the segment is investing in assets that have not yet translated into proportional sales increases.
The continued growth in both sales and assets is positive, but the declining asset turnover warrants further investigation to determine the underlying causes and potential strategies for improving asset efficiency within the Electrical Americas segment.
Segment Asset Turnover: Electrical Global
Eaton Corp. plc; Electrical Global; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Identifiable assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Identifiable assets
= ÷ =
The Electrical Global segment demonstrated consistent growth in net sales from 2021 through 2025. However, the growth rate of identifiable assets outpaced that of net sales, resulting in a declining segment asset turnover ratio over the same period.
- Net Sales
- Net sales for the Electrical Global segment increased from US$5,516 million in 2021 to US$6,815 million in 2025. Growth was relatively steady year-over-year, with the largest absolute increase occurring between 2024 and 2025 (US$567 million).
- Identifiable Assets
- Identifiable assets within the segment also increased consistently, rising from US$2,579 million in 2021 to US$3,852 million in 2025. The rate of asset growth accelerated in the later years of the period, particularly between 2022 and 2023 (US$210 million) and again between 2023 and 2024 (US$365 million). This suggests increased investment in the segment’s asset base.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures the efficiency with which assets are used to generate sales, exhibited a downward trend. Starting at 2.14 in 2021, the ratio decreased to 1.77 in 2025. While the ratio remained above 1.7 throughout the period, the decline indicates that the segment is becoming less efficient in utilizing its assets to generate revenue. The most significant decrease occurred between 2023 and 2024, falling from 2.12 to 1.93, and continued into 2025.
The increasing asset base, coupled with a slower growth in sales relative to assets, is the primary driver of the declining asset turnover. Further investigation may be warranted to understand the reasons behind the increased asset investment and whether the expected returns from these investments are being realized.
Segment Asset Turnover: Aerospace
Eaton Corp. plc; Aerospace; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Identifiable assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Identifiable assets
= ÷ =
The Aerospace segment demonstrated consistent growth in both net sales and identifiable assets between 2021 and 2025. However, the segment asset turnover ratio exhibited a more moderate pattern over the same period.
- Net Sales
- Net sales for the Aerospace segment increased steadily from US$2,648 million in 2021 to US$4,249 million in 2025. This represents a cumulative growth of approximately 60.1% over the five-year period. The largest year-over-year increase occurred between 2023 and 2024, with a rise of US$352 million.
- Identifiable Assets
- Identifiable assets within the Aerospace segment also increased consistently, moving from US$1,729 million in 2021 to US$2,684 million in 2025. This signifies a cumulative increase of approximately 55.1%. The largest absolute increase in identifiable assets was observed between 2022 and 2023, adding US$417 million to the asset base.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures the efficiency with which assets are used to generate sales, began at 1.53 in 2021. It increased to 1.63 in 2022, indicating improved asset utilization. However, the ratio decreased to 1.50 in 2023 before recovering slightly to 1.57 in 2024 and 1.58 in 2025. While the ratio remained relatively stable between 1.57 and 1.58 in the final two years, it did not reach the peak observed in 2022. This suggests that while sales growth was strong, asset growth outpaced sales growth in 2023, temporarily reducing efficiency. The subsequent stabilization indicates a potential equilibrium between asset investment and sales generation.
Overall, the Aerospace segment experienced robust sales and asset expansion. The asset turnover ratio suggests a generally efficient operation, although a slight dip in 2023 warrants monitoring to ensure continued optimal asset utilization as the segment continues to grow.
Segment Asset Turnover: Vehicle
Eaton Corp. plc; Vehicle; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Identifiable assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Identifiable assets
= ÷ =
The Vehicle segment experienced fluctuating performance in asset turnover between 2021 and 2025. Net sales demonstrated an initial increase followed by a decline, while identifiable assets showed a more moderate pattern of growth and subsequent reduction. The segment asset turnover ratio, calculated by dividing net sales by identifiable assets, exhibited corresponding variations.
- Net Sales Trend
- Net sales for the Vehicle segment increased from US$2,579 million in 2021 to US$2,830 million in 2022, representing a growth of approximately 9.7%. Sales continued to rise to US$2,965 million in 2023, before decreasing to US$2,790 million in 2024 and further declining to US$2,505 million in 2025. This indicates a weakening sales performance in the latter part of the analyzed period.
- Identifiable Assets Trend
- Identifiable assets within the Vehicle segment increased from US$1,985 million in 2021 to US$2,230 million in 2022, and then to US$2,251 million in 2023. A decrease was then observed in 2024, with assets falling to US$1,987 million, and continued to decline to US$1,965 million in 2025. The asset base experienced a net reduction over the five-year period.
- Segment Asset Turnover Analysis
- The segment asset turnover ratio was 1.30 in 2021, decreasing slightly to 1.27 in 2022. It then increased to 1.32 in 2023, followed by a notable rise to 1.40 in 2024. However, the ratio decreased again in 2025, returning to 1.27. The 2024 peak suggests improved efficiency in utilizing assets to generate sales, but this improvement was not sustained into 2025. The overall trend suggests a moderate level of asset utilization, with fluctuations potentially linked to changes in both sales volume and asset base.
The interplay between declining sales and decreasing assets in the final years of the period resulted in a stabilization of the asset turnover ratio in 2025, despite the continued sales decline. Further investigation would be required to understand the drivers behind these trends, including potential impacts from market conditions, competitive pressures, and internal operational changes.
Segment Asset Turnover: eMobility
Eaton Corp. plc; eMobility; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Identifiable assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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).
1 2025 Calculation
Segment asset turnover = Net sales ÷ Identifiable assets
= ÷ =
The eMobility segment experienced growth in both net sales and identifiable assets between 2021 and 2023, followed by a stabilization and then a decline in sales, while assets continued to increase through 2025. This pattern is reflected in a decreasing segment asset turnover ratio over the analyzed period.
- Net Sales
- Net sales for the eMobility segment increased from US$343 million in 2021 to US$636 million in 2023, representing a significant period of growth. Sales then experienced a slight decrease to US$662 million in 2024 before declining further to US$604 million in 2025. This suggests a potential plateauing or softening of demand after the initial expansion.
- Identifiable Assets
- Identifiable assets within the eMobility segment demonstrated consistent growth throughout the period. Increasing from US$220 million in 2021 to US$743 million in 2025, this indicates continued investment in the segment’s infrastructure and capabilities. The rate of asset growth appears to be accelerating in the later years, despite the sales decline in 2025.
- Segment Asset Turnover
- The segment asset turnover ratio decreased steadily from 1.56 in 2021 to 0.81 in 2025. This decline indicates that the segment is generating less revenue for each dollar of assets invested. The ratio’s decrease is attributable to the combination of slowing sales growth and continued asset accumulation. The most significant drop occurred between 2023 and 2025, coinciding with the sales decline and continued asset expansion. This suggests diminishing efficiency in asset utilization.
The trend in segment asset turnover warrants further investigation. While investment in assets is expected to support future growth, the decreasing turnover ratio suggests a potential need to evaluate the effectiveness of asset allocation and utilization within the eMobility segment.
Segment Capital Expenditures to Depreciation
Eaton Corp. plc, capital expenditures to depreciation by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Electrical Americas | |||||
| Electrical Global | |||||
| Aerospace | |||||
| Vehicle | |||||
| eMobility |
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).
An examination of segment capital expenditures to depreciation reveals varying investment patterns across the reporting periods and business units. Generally, the ratios indicate the extent to which current capital spending exceeds annual depreciation, suggesting investment in growth or modernization. Significant shifts are observed in several segments, warranting further investigation.
- Electrical Americas
- The Electrical Americas segment demonstrates a consistent upward trend in the ratio, increasing from 1.71 in 2021 to 3.11 in 2025. This suggests a sustained increase in capital expenditure relative to depreciation within this segment, potentially indicating significant investment for expansion or technological upgrades. The increase from 2.86 in 2023 to 3.07 in 2024 and then to 3.11 in 2025 indicates accelerating investment.
- Electrical Global
- The Electrical Global segment exhibits more fluctuation. The ratio increased from 1.24 in 2021 to 1.61 in 2022, then decreased slightly to 1.48 in 2023 before rising again to 1.60 in 2024. A more substantial increase is then observed in 2025, reaching 2.31. This pattern suggests periods of increased investment followed by stabilization, culminating in a notable increase in the most recent period.
- Aerospace
- The Aerospace segment shows relative stability with a slight downward trend overall. The ratio peaked at 1.44 in 2022, then decreased to 1.19 in 2024 before recovering slightly to 1.34 in 2025. This suggests a more measured approach to capital expenditure relative to depreciation, potentially reflecting the cyclical nature of the aerospace industry or a focus on maintaining existing assets.
- Vehicle
- The Vehicle segment displays a clear downward trend. Starting at 1.18 in 2021, the ratio consistently decreased to 0.80 in 2025. This indicates a reduction in capital expenditure relative to depreciation, potentially signaling a shift in strategy, reduced investment in this segment, or increased asset utilization. The decline is consistent across the period.
- eMobility
- The eMobility segment initially presented high ratios, starting at 3.38 in 2021, with fluctuations between 3.25 and 3.62 in the following years. However, a significant decrease is observed in 2024 (2.67) and a more dramatic decline in 2025 (0.96). This substantial reduction suggests a potential shift in investment strategy, a maturation of existing assets, or a change in the segment’s growth phase. The decline in the most recent period is particularly noteworthy.
In summary, capital expenditure patterns vary considerably across segments. Electrical Americas demonstrates consistent growth, Electrical Global shows fluctuating investment, Aerospace exhibits relative stability, Vehicle displays a clear decline, and eMobility experienced a significant reduction in capital expenditure relative to depreciation in the latter periods. These trends warrant further investigation to understand the underlying drivers and strategic implications for each segment.
Segment Capital Expenditures to Depreciation: Electrical Americas
Eaton Corp. plc; Electrical Americas; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures for property, plant and equipment | |||||
| Depreciation of property, plant and equipment | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures for property, plant and equipment ÷ Depreciation of property, plant and equipment
= ÷ =
The segment capital expenditures to depreciation ratio for Electrical Americas demonstrates a consistent upward trend over the five-year period. Capital expenditures and depreciation both increased in absolute terms, but capital expenditures grew at a significantly faster rate.
- Capital Expenditures
- Capital expenditures for property, plant and equipment increased from US$180 million in 2021 to US$413 million in 2025. This represents a substantial increase, particularly between 2022 and 2023, and continues through the forecast period. The growth suggests ongoing investment in the segment’s asset base.
- Depreciation
- Depreciation of property, plant and equipment also increased, moving from US$105 million in 2021 to US$133 million in 2025. While increasing, the rate of growth is considerably slower than that of capital expenditures.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation began at 1.71 in 2021 and rose to 3.11 in 2025. This indicates that for every dollar of depreciation expense, the segment invested approximately US$1.71 in capital assets in 2021, increasing to US$3.11 by 2025. The accelerating ratio suggests a growing emphasis on expanding or upgrading the segment’s productive capacity relative to the existing asset base. The increase from 2.86 in 2023 to 3.07 in 2024 and then to 3.11 in 2025 indicates continued, robust investment.
The sustained increase in the capital expenditures to depreciation ratio warrants further investigation to understand the specific drivers of investment and their anticipated impact on future segment performance. The trend suggests a potential for increased future depreciation expense as the newly acquired assets are put into service.
Segment Capital Expenditures to Depreciation: Electrical Global
Eaton Corp. plc; Electrical Global; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures for property, plant and equipment | |||||
| Depreciation of property, plant and equipment | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures for property, plant and equipment ÷ Depreciation of property, plant and equipment
= ÷ =
The segment capital expenditures to depreciation ratio for Electrical Global demonstrates a generally increasing trend over the five-year period. Capital expenditures for property, plant and equipment and depreciation both increased during this time, but capital expenditures grew at a faster rate, driving the ratio higher.
- Capital Expenditures
- Capital expenditures for property, plant and equipment increased from US$120 million in 2021 to US$249 million in 2025. A notable acceleration in spending is observed between 2024 and 2025, with an increase of 53%.
- Depreciation
- Depreciation of property, plant and equipment exhibited a more moderate increase, rising from US$97 million in 2021 to US$108 million in 2025. The growth was relatively consistent year-over-year, with the smallest increase occurring between 2021 and 2022.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio began at 1.24 in 2021 and rose to 2.31 in 2025. The ratio increased from 2021 to 2022, decreased slightly in 2023, and then increased again in 2024 before experiencing a substantial increase in 2025. This suggests that investments in property, plant, and equipment are outpacing the depreciation of existing assets, potentially indicating a period of significant growth or modernization within the segment.
The increasing ratio suggests a growing investment in the segment’s asset base relative to the expense recognized for the use of those assets. This could be due to strategic initiatives to expand capacity, improve efficiency, or introduce new technologies.
Segment Capital Expenditures to Depreciation: Aerospace
Eaton Corp. plc; Aerospace; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures for property, plant and equipment | |||||
| Depreciation of property, plant and equipment | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures for property, plant and equipment ÷ Depreciation of property, plant and equipment
= ÷ =
The segment capital expenditures to depreciation ratio for Aerospace demonstrates fluctuation over the five-year period. Capital expenditures for property, plant and equipment exhibited an overall increasing trend, while depreciation showed a more moderate increase. This interplay drives the observed ratio behavior.
- Capital Expenditures
- Capital expenditures for property, plant and equipment increased from US$78 million in 2021 to US$92 million in 2022, representing a significant year-over-year increase. Growth continued to US$97 million in 2023 before decreasing to US$83 million in 2024. A subsequent rise to US$103 million is noted in 2025, marking the highest value within the observed period.
- Depreciation
- Depreciation of property, plant and equipment decreased from US$69 million in 2021 to US$64 million in 2022. It then recovered to US$69 million in 2023 and remained relatively stable at US$70 million in 2024. A further increase to US$77 million is observed in 2025, representing the largest year-over-year change in the series.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio increased from 1.13 in 2021 to 1.44 in 2022, indicating that capital investments were growing at a faster rate than the depreciation of existing assets. The ratio remained elevated at 1.41 in 2023. A decrease to 1.19 occurred in 2024, coinciding with the decline in capital expenditures. The ratio then increased again to 1.34 in 2025, driven by both increased capital expenditures and depreciation.
The ratio peaked in 2022 and 2023, suggesting a period of substantial investment relative to the depreciation base. The dip in 2024 may indicate a temporary slowdown in investment, while the 2025 value suggests a return to a higher level of capital expenditure relative to depreciation. The increasing depreciation in 2025 suggests that recent investments are beginning to contribute to the depreciation expense.
Segment Capital Expenditures to Depreciation: Vehicle
Eaton Corp. plc; Vehicle; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures for property, plant and equipment | |||||
| Depreciation of property, plant and equipment | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures for property, plant and equipment ÷ Depreciation of property, plant and equipment
= ÷ =
The segment capital expenditures to depreciation ratio for the Vehicle segment demonstrates a declining trend over the five-year period. Initial values indicate a relatively high level of capital investment compared to depreciation, but this relationship shifts over time.
- Capital Expenditures
- Capital expenditures for property, plant, and equipment within the Vehicle segment decreased from US$112 million in 2021 to US$76 million in 2025. A noticeable decrease occurred between 2021 and 2022, followed by relative stability between 2022 and 2024, and then a more substantial decline in 2025.
- Depreciation
- Depreciation of property, plant, and equipment remained relatively stable, fluctuating between US$89 million and US$95 million throughout the period. Depreciation increased slightly from 2021 to 2023, and then remained consistent through 2025.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio began at 1.18 in 2021, signifying that capital expenditures exceeded depreciation by 18%. This ratio decreased to 1.07 in 2022, indicating a narrowing gap between capital expenditures and depreciation. The ratio continued to decline, reaching 0.99 in 2024, and further decreasing to 0.80 in 2025. This final value suggests that depreciation now exceeds capital expenditures by 20% within the Vehicle segment.
The observed trend suggests a shift in investment strategy within the Vehicle segment. The initial period of higher capital expenditures may have been focused on expansion or modernization. The subsequent decline in capital expenditures, coupled with stable depreciation, indicates a potential focus on utilizing existing assets and reducing the need for significant new investments. This could be due to factors such as increased efficiency, a change in market conditions, or a strategic decision to prioritize other areas of the business.
Segment Capital Expenditures to Depreciation: eMobility
Eaton Corp. plc; eMobility; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures for property, plant and equipment | |||||
| Depreciation of property, plant and equipment | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures for property, plant and equipment ÷ Depreciation of property, plant and equipment
= ÷ =
The segment capital expenditures to depreciation ratio for eMobility demonstrates a fluctuating pattern over the five-year period. Initial values indicate significant investment relative to depreciation, followed by a decline towards parity.
- Capital Expenditures
- Capital expenditures for property, plant and equipment increased substantially from $27 million in 2021 to $52 million in 2022, and continued to rise to $76 million in 2023. A decrease to $64 million was observed in 2024, followed by a significant reduction to $27 million in 2025, returning to the level seen in 2021.
- Depreciation
- Depreciation of property, plant and equipment exhibited a consistent upward trend throughout the period. Starting at $8 million in 2021, depreciation increased to $16 million in 2022, $21 million in 2023, $24 million in 2024, and reached $28 million in 2025. This indicates a growing asset base subject to depreciation.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio began at 3.38 in 2021, suggesting capital expenditures were more than three times the level of depreciation. It remained relatively stable at 3.25 in 2022 and increased slightly to 3.62 in 2023, indicating continued high levels of investment. A notable decrease to 2.67 was observed in 2024, and a substantial decline to 0.96 in 2025. This final value suggests that capital expenditures and depreciation were nearly equivalent in 2025, representing a significant shift from the earlier period of higher investment relative to asset depreciation.
The decreasing trend in the ratio from 2023 to 2025 suggests a potential stabilization of the asset base or a shift in investment strategy within the eMobility segment. The substantial drop in capital expenditures in 2025, coupled with continued depreciation increases, is the primary driver of this change.
Net sales
Eaton Corp. plc, net sales by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Electrical Americas | |||||
| Electrical Global | |||||
| Hydraulics | |||||
| Aerospace | |||||
| Vehicle | |||||
| eMobility | |||||
| Total |
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).
Overall net sales demonstrate a consistent upward trajectory from 2021 through 2025. While individual segment performance varies, the aggregate growth indicates positive momentum. The most substantial contributions to this growth originate from the Electrical Americas and Aerospace segments.
- Electrical Americas
- Net sales for Electrical Americas exhibit strong and consistent growth, increasing from US$7.242 billion in 2021 to US$13.276 billion in 2025. This represents a significant expansion over the five-year period, suggesting increasing demand or market share within this region.
- Electrical Global
- Electrical Global demonstrates more moderate growth, rising from US$5.516 billion in 2021 to US$6.815 billion in 2025. While positive, the rate of increase is considerably slower than that of Electrical Americas.
- Hydraulics
- Information regarding net sales for the Hydraulics segment is incomplete, with values missing for 2022, 2023, 2024, and 2025. This lack of information prevents any meaningful trend analysis for this segment.
- Aerospace
- Aerospace net sales show a steady increase from US$2.648 billion in 2021 to US$4.249 billion in 2025. This growth is consistent and contributes meaningfully to the overall company sales expansion.
- Vehicle
- The Vehicle segment experienced initial growth from US$2.579 billion in 2021 to US$2.965 billion in 2023, but then declined to US$2.505 billion in 2025. This suggests potential challenges or shifts in market dynamics affecting this segment’s performance.
- eMobility
- eMobility net sales increased from US$343 million in 2021 to US$662 million in 2023, indicating rapid growth in this emerging market. However, sales decreased slightly to US$604 million in 2025, potentially signaling a stabilization or temporary slowdown in growth.
- Total Net Sales
- Total net sales increased from US$19.628 billion in 2021 to US$27.449 billion in 2025, representing a substantial overall increase. The growth rate appears to be accelerating in the later years of the period.
The observed trends suggest a company increasingly reliant on the growth of its Electrical Americas and Aerospace segments. The decline in Vehicle segment sales and the stabilization of eMobility warrant further investigation. The absence of information for the Hydraulics segment limits comprehensive analysis.
Segment operating profit (loss)
Eaton Corp. plc, segment operating profit (loss) by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Electrical Americas | |||||
| Electrical Global | |||||
| Hydraulics | |||||
| Aerospace | |||||
| Vehicle | |||||
| eMobility | |||||
| Total |
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).
Segment operating profit demonstrates a generally positive trajectory across the observed period. Significant growth is evident in several segments, while one segment consistently reports operating losses. Overall, the total operating profit increases steadily from 2021 to 2025.
- Electrical Americas
- This segment exhibits strong and consistent growth in operating profit, increasing from US$1,495 million in 2021 to US$3,972 million in 2025. The rate of increase appears to accelerate over time, suggesting increasing profitability or market share within this region.
- Electrical Global
- Operating profit for Electrical Global shows modest growth, rising from US$1,034 million in 2021 to US$1,323 million in 2025. While positive, the growth rate is considerably slower than that of Electrical Americas, and the segment experienced a slight decrease in operating profit between 2023 and 2024.
- Hydraulics
- Operating profit information for the Hydraulics segment is only available for 2021, reporting US$177 million. No subsequent figures are provided, preventing any trend analysis.
- Aerospace
- The Aerospace segment demonstrates consistent growth in operating profit, increasing from US$580 million in 2021 to US$1,013 million in 2025. The growth appears relatively steady throughout the period.
- Vehicle
- Operating profit for the Vehicle segment shows initial growth from US$449 million in 2021 to US$502 million in 2024, but then declines to US$419 million in 2025. This suggests potential challenges or decreased profitability in this segment towards the end of the observed period.
- eMobility
- The eMobility segment consistently reports operating losses throughout the period, ranging from US$9 million to US$29 million. While the losses remain relatively stable, they represent a drag on overall profitability. The loss increased to US$14 million in 2025.
- Total Operating Profit
- Total operating profit increases substantially from US$3,706 million in 2021 to US$6,713 million in 2025. This growth is primarily driven by the strong performance of the Electrical Americas and Aerospace segments, offsetting the consistent losses in eMobility and the late-period decline in Vehicle segment profitability.
Identifiable assets
Eaton Corp. plc, identifiable assets by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Electrical Americas | |||||
| Electrical Global | |||||
| Aerospace | |||||
| Vehicle | |||||
| eMobility | |||||
| Total |
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).
The reported identifiable assets demonstrate varied growth patterns across the segments analyzed between December 31, 2021, and December 31, 2025. Overall, total identifiable assets increased consistently throughout the period. However, the rate of increase differs significantly by segment.
- Electrical Americas
- Identifiable assets within Electrical Americas exhibited substantial growth, increasing from US$3,002 million in 2021 to US$6,283 million in 2025. This represents a more than doubling of assets over the five-year period, indicating significant investment or expansion within this segment. The growth rate appears to accelerate in later years.
- Electrical Global
- Electrical Global also experienced growth in identifiable assets, though at a more moderate pace than Electrical Americas. Assets increased from US$2,579 million in 2021 to US$3,852 million in 2025. The growth appears relatively consistent year-over-year, but less dramatic than the Americas segment.
- Aerospace
- The Aerospace segment showed consistent, but comparatively slower, growth in identifiable assets. Increasing from US$1,729 million in 2021 to US$2,684 million in 2025, the segment’s asset growth is steady, but less pronounced than the Electrical segments.
- Vehicle
- Identifiable assets in the Vehicle segment initially increased from US$1,985 million in 2021 to US$2,230 million in 2022, but subsequently decreased to US$1,965 million by 2025. This represents a net decrease in assets over the period, suggesting potential divestitures, asset write-downs, or a shift in investment strategy within this segment. The decline is particularly noticeable in the later years.
- eMobility
- The eMobility segment demonstrated the highest percentage growth in identifiable assets, albeit from a smaller base. Assets increased significantly from US$220 million in 2021 to US$743 million in 2025. This substantial growth suggests significant investment and expansion in this emerging market segment.
- Total Identifiable Assets
- Total identifiable assets increased from US$9,515 million in 2021 to US$15,527 million in 2025. This overall growth is primarily driven by the substantial increases in Electrical Americas and eMobility, partially offset by the decline in the Vehicle segment. The consistent upward trend indicates a general expansion of the company’s asset base.
The differing growth rates across segments suggest a strategic allocation of capital, with increased investment in higher-growth areas like Electrical Americas and eMobility, and a potential restructuring or reduced investment in the Vehicle segment.
Capital expenditures for property, plant and equipment
Eaton Corp. plc, capital expenditures for property, plant and equipment by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Electrical Americas | |||||
| Electrical Global | |||||
| Hydraulics | |||||
| Aerospace | |||||
| Vehicle | |||||
| eMobility | |||||
| Total |
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).
Capital expenditures for property, plant and equipment demonstrate a generally increasing trend across reportable segments between 2021 and 2025. However, the pattern of investment varies significantly by segment.
- Electrical Americas
- Capital expenditures within Electrical Americas exhibited a consistent upward trajectory, increasing from US$180 million in 2021 to US$413 million in 2025. This represents a substantial increase over the period, suggesting significant investment in this segment’s infrastructure and capacity.
- Electrical Global
- Electrical Global also showed an increase in capital expenditure, rising from US$120 million in 2021 to US$249 million in 2025. While there was a slight decrease from 2022 to 2023, the overall trend is positive, indicating growing investment in global electrical operations.
- Hydraulics
- Capital expenditure information for the Hydraulics segment is only available for 2021, registering at US$34 million. No subsequent investment figures are reported, making trend analysis impossible.
- Aerospace
- Aerospace capital expenditures remained relatively stable between 2021 and 2024, fluctuating between US$78 million and US$97 million. A moderate increase to US$103 million is observed in 2025.
- Vehicle
- The Vehicle segment experienced a decrease in capital expenditure from US$112 million in 2021 to US$76 million in 2025. Investment peaked in 2021 and has generally declined since, potentially indicating a shift in strategic focus or project completion.
- eMobility
- eMobility demonstrated significant growth in capital expenditure from US$27 million in 2021 to US$76 million in 2023, before decreasing to US$27 million in 2025. This suggests a period of rapid expansion followed by a potential pause or reallocation of investment.
- Total Capital Expenditure
- Total capital expenditure across all segments increased from US$551 million in 2021 to US$868 million in 2025. This overall growth is primarily driven by substantial increases in Electrical Americas and Electrical Global, despite the decline in Vehicle and the fluctuating investment in eMobility.
The observed patterns suggest a strategic prioritization of investment within the Electrical segments, while investment in Vehicle appears to be decreasing. The lack of reported capital expenditure for Hydraulics beyond 2021 warrants further investigation.
Depreciation of property, plant and equipment
Eaton Corp. plc, depreciation of property, plant and equipment by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Electrical Americas | |||||
| Electrical Global | |||||
| Aerospace | |||||
| Vehicle | |||||
| eMobility | |||||
| Total |
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).
Depreciation expense for property, plant, and equipment exhibited an overall increasing trend across the analyzed period. While fluctuations occurred within individual segments, the aggregate amount rose from US$374 million in 2021 to US$441 million in 2025. This suggests a growing asset base subject to depreciation, potentially reflecting ongoing investments in operational capacity.
- Electrical Americas
- Depreciation within this segment demonstrated a generally upward trajectory, increasing from US$105 million in 2021 to US$133 million in 2025. A slight decrease was noted between 2021 and 2022, but subsequent years showed consistent growth. This indicates continued investment in, or acquisition of, depreciable assets within this geographic region.
- Electrical Global
- The depreciation expense for Electrical Global remained relatively stable between 2021 and 2023, fluctuating around the US$95-97 million mark. A moderate increase was observed in 2024 and 2025, reaching US$108 million. This suggests a more consistent level of depreciable assets compared to the Americas segment, with recent incremental additions.
- Aerospace
- Aerospace depreciation experienced a slight dip from US$69 million in 2021 to US$64 million in 2022, followed by a recovery and subsequent increase to US$77 million in 2025. This pattern could be attributed to asset retirements, changes in production levels, or the introduction of new, more efficient equipment. The overall trend is positive, albeit less pronounced than in other segments.
- Vehicle
- Depreciation in the Vehicle segment decreased from US$95 million in 2021 to US$89 million in 2022, then stabilized around US$92-95 million for the remainder of the period. This relative stability suggests a mature asset base with consistent depreciation patterns.
- eMobility
- The eMobility segment exhibited the most significant percentage increase in depreciation expense. Starting at US$8 million in 2021, it rose substantially to US$28 million in 2025. This rapid growth strongly correlates with the expansion of operations and investment in assets supporting the eMobility business line. This segment’s depreciation increase is disproportionately high compared to other segments.
The total depreciation expense increase of US$67 million over the five-year period is largely driven by the growth in the Electrical Americas and eMobility segments. The consistent increases across most segments suggest a continued commitment to maintaining and upgrading the company’s asset base to support operational activities and future growth.