Eaton Q3 Report 2023
Eaton Reports Record Quarterly Results With 18% Backlog Growth; Raises Guidance
- Quarterly earnings per share of $2.22 and record quarterly adjusted earnings per share of $2.47, up 22% over 2022
- Record quarterly sales with 9% organic sales growth and record quarterly segment margins of 23.6%, 240 basis points above the third quarter of 2022, with 46% incremental margin
- Third quarter record operating cash flow of $1.1 billion, up 18%
- Raised adjusted earnings per share guidance midpoint to $9.00, reflecting 19% growth over 2022
Sales in the quarter were $5.9 billion, a quarterly record and up 11% from the third quarter of 2022. Organic sales were up 9%, and positive currency translation added 2%.
Segment margins were 23.6%, a quarterly record and a 240-basis point improvement over the third quarter of 2022.
Operating cash flow was a third quarter record $1.1 billion, and free cash flow was $913 million, up 18% and 10%, respectively, over the same period in 2022.
The company’s backlog was up 18% over the third quarter of 2022, up 4% sequentially.
The company narrowed full year organic growth guidance to a range of 11% to 12%, up 50 basis points at the midpoint, and raised adjusted earnings per share guidance to between $8.95 and $9.05, up $0.25 at the midpoint. The company is also raising full year operating cash flow guidance to $3.3-$3.7 billion, up $100 million at the midpoint. For the fourth quarter of 2023, the company anticipates organic growth of 8-10% and adjusted earnings per share of between $2.39 and $2.49.
