$ETN

Eaton Corp plc

CIK:0001551182|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 8,531	$ 7,028	$ 15,982	$ 13,404
Cost of products sold	5,676	4,431	10,476	8,361
Selling and administrative expense	1,236	1,149	2,506	2,197
Research and development expense	227	192	437	390
Interest expense - net	201	71	307	103
Other expense (income) - net	47	(1)	6	(10)
Income before income taxes	1,144	1,186	2,251	2,363
Income tax expense	321	203	561	415
Net income	823	982	1,690	1,947
Less net income for noncontrolling interests	(1)	(1)	(3)	(2)
Net income attributable to Eaton ordinary shareholders	$ 821	$ 982	$ 1,687	$ 1,945
Net income per share attributable to Eaton ordinary shareholders
Diluted (USD per share)	$ 2.11	$ 2.51	$ 4.33	$ 4.96
Basic (USD per share)	$ 2.11	$ 2.52	$ 4.34	$ 4.97
Weighted-average number of ordinary shares outstanding
Diluted (in shares)	389.5	391.4	389.4	392.5
Basic (in shares)	388.5	390.3	388.4	391.2
Cash dividends declared per ordinary share (USD per share)	$ 1.10	$ 1.04	$ 2.20	$ 2.08

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net income	$ 1,690	$ 1,947
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	671	493
Deferred income taxes	135	123
Pension and other postretirement benefits expense	23	20
Contributions to pension plans	(48)	(58)
Contributions to other postretirement benefits plans	(6)	(9)
Changes in working capital	(833)	(1,397)
Other - net	2	37
Net cash provided by operating activities	1,634	1,156
Investing activities
Capital expenditures for property, plant and equipment	(446)	(349)
Cash paid for acquisition of businesses, net of cash acquired	(11,079)	(1,450)
Proceeds from sales of property, plant and equipment	39	53
Investments in nonmarketable securities	(85)	0
Sales (purchases) of short-term investments - net	(43)	1,343
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges - net	1	(21)
Other - net	(48)	(65)
Net cash used in investing activities	(11,661)	(490)
Financing activities
Proceeds from borrowings	9,871	1,058
Payments on borrowings	(1,143)	(713)
Short-term debt - net	2,088	1,111
Debt issuance costs	(64)	(8)
Cash dividends paid	(858)	(818)
Exercise of employee stock options	35	29
Repurchase of shares	0	(1,307)
Employee taxes paid from shares withheld	(53)	(46)
Other - net	(2)	(3)
Net cash provided by (used in) financing activities	9,874	(697)
Effect of currency on cash	13	(126)
Total decrease in cash	(139)	(157)
Cash at the beginning of the period	622	555
Cash at the end of the period	$ 483	$ 398

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash	$ 483	$ 622
Short-term investments	212	181
Accounts receivable - net	6,673	5,387
Inventory	5,417	4,721
Prepaid expenses and other current assets	1,987	1,444
Total current assets	14,772	12,355
Property, plant and equipment
Land and buildings	2,526	2,361
Machinery and equipment	8,011	7,667
Gross property, plant and equipment	10,537	10,028
Accumulated depreciation	(5,834)	(5,712)
Net property, plant and equipment	4,702	4,316
Other noncurrent assets
Goodwill	20,229	15,769
Other intangible assets	12,611	5,054
Operating lease assets	855	768
Deferred income taxes	592	707
Other assets	2,419	2,281
Total assets	56,181	41,251
Current liabilities
Short-term debt	2,091	1
Current portion of long-term debt	11	1,136
Accounts payable	5,421	4,168
Accrued compensation	630	644
Other current liabilities	3,755	3,421
Total current liabilities	11,909	9,370
Noncurrent liabilities
Long-term debt	18,509	8,758
Pension liabilities	601	702
Other postretirement benefits liabilities	158	161
Operating lease liabilities	715	637
Deferred income taxes	2,139	265
Other noncurrent liabilities	1,850	1,889
Total noncurrent liabilities	23,972	12,412
Shareholders’ equity
Ordinary shares (388.4 million outstanding in 2026 and 387.9 million in 2025)	4	4
Capital in excess of par value	12,867	12,837
Retained earnings	11,530	10,702
Accumulated other comprehensive loss	(4,146)	(4,118)
Shares held in trust	0	0
Total Eaton shareholders’ equity	20,254	19,425
Noncontrolling interests	45	44
Total equity	20,299	19,469
Total liabilities and equity	$ 56,181	$ 41,251