Q2 2024 Eaton Corporation PLC Earnings Call Transcript
Key Points
- Eaton Corp PLC (ETN) delivered record adjusted EPS of $2.73, up 24% from the prior year.
- Record segment margins of 23.7%, up 210 basis points from last year.
- Strong order growth with electrical orders up 9% and aerospace orders up 4% on a rolling 12-month basis.
- Raised full-year guidance for organic growth, segment margins, adjusted EPS, and cash flow.
- Significant investments in capacity expansion, including $1 billion in incremental capital to support growth, particularly in North America.
- Weakness in the European electrical market, particularly in residential and machine OEM segments.
- Aerospace segment operating margin down 100 basis points year-over-year due to operating inefficiencies and higher costs.
- Electrical Global segment faced FX headwinds and regional weaknesses, particularly in EMEA.
- Concerns about the impact of macroeconomic conditions on smaller projects and machine OEM markets.
- Potential challenges in ramping up new manufacturing capacity, which could impact short-term margins.
Ladies and gentlemen, thank you for standing by, and welcome to the Eaton Second Quarter 2024 conference call. (Operator Instructions) And as a reminder, today's call is being recorded.
I would now like to turn the conference over to your host, Yan Jin. Please go ahead.
Hey, good morning. Thank you all for joining us for Eaton's Second Quarter 2024 earnings call. With me today are Craig Arnold, our Chairman and CEO, and elevate now. 90 Executive Vice President and Chief Financial Officer. Our agenda today includes opening remarks by Craig and I will turn it over to Olivier, who will highlight the Company's performance in the second quarter as we have done in our past calls, we'll be taking questions at the end of Craig's closing commentary.
The press release and the presentation we'll go through today have been posted on our website this presentation, including adjusted earnings per share, adjusted free cash flow and other non-GAAP measures that are reconciled in the appendix. A webcast of this call is
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