Eaton Corp plcETN
Eaton Corp plc Segments Disclosure
BUSINESS SEGMENT INFORMATION
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. The Company's chief operating decision maker is the chief executive officer.
During the first quarter of 2026, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable segment is Mobility, which consists of the legacy Vehicle and eMobility segments. Financial information for this new reportable segment has not been provided as the re-segmentation occurred subsequent to the year ended December 31, 2025. The Company expects to provide financial information for this new reportable segment in the Quarterly Report on Form 10-Q for the period ended March 31, 2026. Eaton’s segments as of December 31, 2025 are as follows:
Electrical Americas and Electrical Global
The Electrical Americas segment consists of electrical components, industrial components, power distribution and assemblies, residential products, single phase power quality and connectivity, three phase power quality, wiring devices, circuit protection, utility power distribution, power reliability equipment, and services that are primarily produced and sold in North and South America. The Electrical Global segment consists of electrical components, industrial components, power distribution and assemblies, single phase and three phase power quality, and services that are primarily produced and sold outside of North and South America; as well as hazardous duty electrical equipment, emergency lighting, fire detection, intrinsically safe explosion-proof instrumentation, and structural support systems that are produced and sold globally. The principal markets for these segments are commercial & institutional, data centers and distributed IT, industrial, utilities, residential, and machinery OEMs. These products are used wherever there is a demand for electrical power in data centers, utilities, industrial and energy facilities, commercial buildings, apartment and office buildings, hospitals, factories, and residencies. The segments share certain common global customers, but a large number of customers are located regionally. Sales are made through distributors, resellers, and manufacturers’ representatives, as well as directly to original equipment manufacturers, utilities, and certain other end users.
Aerospace
The Aerospace segment is a leading global supplier of aerospace fuel, hydraulics, and pneumatic systems for commercial and military use, as well as filtration systems for industrial applications. Products include hydraulic power generation systems for aerospace applications including pumps, motors, hydraulic power units, hose and fittings, electro-hydraulic pumps; controls and sensing products including valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems and nose wheel steering systems; fluid conveyance products, including hose, thermoplastic tubing, fittings, adapters, couplings, sealing and ducting; fuel systems including air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, valves, adapters and regulators; mission systems including oxygen generation system, payload carriages, and thermal management products; high performance interconnect products including wiring connectors and cables. The Aerospace segment also includes filtration systems including hydraulic filters, bag filters, strainers and cartridges; and golf grips. The principal markets for the Aerospace segment are manufacturers of commercial and military aircraft and related after-market customers, as well as industrial applications. These manufacturers and other customers operate globally. Products are sold and serviced through a variety of channels.
Vehicle
The Vehicle segment is a leader in the design, manufacture, marketing, and supply of: drivetrain, powertrain systems and critical components that reduce emissions and improve fuel economy, stability, performance, and safety of cars, light trucks, and commercial vehicles. Products include transmissions and transmission components, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the global vehicle industry. The principal markets for the Vehicle segment are original equipment manufacturers and aftermarket customers of heavy-, medium-, and light-duty trucks, SUVs, CUVs, passenger cars, construction, and agricultural equipment.
eMobility
The eMobility segment designs, manufactures, markets, and supplies mechanical, electrical, and electronic components and systems that improve the power management and performance of both on-road and off-road vehicles. Products include high voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution, fuel tank isolation valves, and commercial vehicle hybrid systems. The principal markets for the eMobility segment are original equipment manufacturers and aftermarket customers of heavy-, medium-, and light-duty trucks, SUVs, CUVs, passenger cars, construction, agriculture, material handling and mining equipment.
Other Information
No single customer represented greater than 10% of net sales in 2025, 2024 or 2023, respectively.
The accounting policies of the business segments are generally the same as the policies described in Note 1, except that, as described further in the following paragraph, certain items are not allocated to the businesses. Intersegment sales and transfers are accounted for at the same prices as if the sales and transfers were made to third parties. These intersegment sales are eliminated in consolidation. Operating profit (loss) includes the operating profit from intersegment sales.
The chief operating decision maker uses segment operating profit (loss) as an input to assess segment performance and determine appropriate resource allocations, including capital, financial, and employee resources. Segment operating profit (loss) results are regularly evaluated versus annual profit plan, forecast and/or prior year.
Other segment items are primarily comprised of Cost of products sold, Selling and administrative expense, Research and development expense, depreciation of property, plant and equipment, and certain items included in Other expense (income) - net on the Consolidated Statements of Income. The Company's chief operating decision maker manages these items on a consolidated basis.
Corporate includes all the Company's amortization of intangible assets, interest expense - net and restructuring program charges (Note 16) and the non-service cost portion of pension and other postretirement benefits income. Other expense - net includes all the Company's costs associated with acquisitions, divestitures, and gains and losses on the sale of certain businesses and other items that are of a corporate or functional governance nature. For purposes of business segment performance measurement, a portion of corporate costs, excluding amortization of intangibles assets, acquisition integration and divestiture costs, and restructuring program charges, are allocated to the businesses. These allocations are periodically adjusted to pass on year-over-year cost savings or increases to the businesses in a manner that is consistent with how the chief operating decision maker assesses performance. Identifiable assets of the business segments exclude goodwill, other intangible assets, and general corporate assets, which principally consist of certain cash, short-term investments, deferred income taxes, certain accounts receivable, certain property, plant and equipment, and certain other assets.
Business Segment Information
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Net sales | |||||||||||||||||
| Electrical Americas | $ | 13,276 | $ | 11,436 | $ | 10,098 | |||||||||||
| Electrical Global | 6,815 | 6,248 | 6,084 | ||||||||||||||
| Aerospace | 4,249 | 3,744 | 3,413 | ||||||||||||||
| Vehicle | 2,505 | 2,790 | 2,965 | ||||||||||||||
| eMobility | 604 | 662 | 636 | ||||||||||||||
| Total net sales | $ | 27,448 | $ | 24,878 | $ | 23,196 | |||||||||||
| Other segment items | |||||||||||||||||
| Electrical Americas | $ | 9,304 | $ | 7,981 | $ | 7,423 | |||||||||||
| Electrical Global | 5,492 | 5,099 | 4,908 | ||||||||||||||
| Aerospace | 3,236 | 2,885 | 2,633 | ||||||||||||||
| Vehicle | 2,086 | 2,288 | 2,483 | ||||||||||||||
| eMobility | 618 | 669 | 657 | ||||||||||||||
| Total other segment items | $ | 20,735 | $ | 18,919 | $ | 18,103 | |||||||||||
| Segment operating profit (loss) | |||||||||||||||||
| Electrical Americas | $ | 3,972 | $ | 3,455 | $ | 2,675 | |||||||||||
| Electrical Global | 1,323 | 1,149 | 1,176 | ||||||||||||||
| Aerospace | 1,013 | 859 | 780 | ||||||||||||||
| Vehicle | 419 | 502 | 482 | ||||||||||||||
| eMobility | (14) | (7) | (21) | ||||||||||||||
| Total segment operating profit | 6,713 | 5,959 | 5,093 | ||||||||||||||
| Corporate | |||||||||||||||||
| Intangible asset amortization expense | (486) | (425) | (450) | ||||||||||||||
| Interest expense - net | (241) | (130) | (151) | ||||||||||||||
| Pension and other postretirement benefits income | 19 | 40 | 46 | ||||||||||||||
| Restructuring program charges | (133) | (202) | (57) | ||||||||||||||
| Other expense - net | (941) | (675) | (654) | ||||||||||||||
| Income before income taxes | 4,932 | 4,566 | 3,827 | ||||||||||||||
| Income tax expense | 841 | 768 | 604 | ||||||||||||||
| Net income | 4,090 | 3,798 | 3,223 | ||||||||||||||
| Less net income for noncontrolling interests | (3) | (4) | (5) | ||||||||||||||
| Net income attributable to Eaton ordinary shareholders | $ | 4,087 | $ | 3,794 | $ | 3,218 | |||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Identifiable assets | |||||||||||||||||
| Electrical Americas | $ | 6,283 | $ | 4,933 | $ | 4,163 | |||||||||||
| Electrical Global | 3,852 | 3,233 | 2,868 | ||||||||||||||
| Aerospace | 2,684 | 2,392 | 2,276 | ||||||||||||||
| Vehicle | 1,965 | 1,987 | 2,251 | ||||||||||||||
| eMobility | 743 | 633 | 563 | ||||||||||||||
| Total identifiable assets | 15,526 | 13,178 | 12,121 | ||||||||||||||
| Goodwill | 15,769 | 14,713 | 14,977 | ||||||||||||||
| Other intangible assets | 5,054 | 4,658 | 5,091 | ||||||||||||||
| Corporate | 4,902 | 5,833 | 6,243 | ||||||||||||||
| Total assets | $ | 41,251 | $ | 38,381 | $ | 38,432 | |||||||||||
| Capital expenditures for property, plant and equipment | |||||||||||||||||
| Electrical Americas | $ | 413 | $ | 362 | $ | 309 | |||||||||||
| Electrical Global | 249 | 163 | 142 | ||||||||||||||
| Aerospace | 103 | 83 | 97 | ||||||||||||||
| Vehicle | 76 | 94 | 96 | ||||||||||||||
| eMobility | 27 | 64 | 76 | ||||||||||||||
| Total | 868 | 766 | 721 | ||||||||||||||
| Corporate | 52 | 42 | 36 | ||||||||||||||
| Total expenditures for property, plant and equipment | $ | 919 | $ | 808 | $ | 757 | |||||||||||
| Depreciation of property, plant and equipment | |||||||||||||||||
| Electrical Americas | $ | 133 | $ | 118 | $ | 108 | |||||||||||
| Electrical Global | 108 | 102 | 96 | ||||||||||||||
| Aerospace | 77 | 70 | 69 | ||||||||||||||
| Vehicle | 95 | 95 | 92 | ||||||||||||||
| eMobility | 28 | 24 | 21 | ||||||||||||||
| Total | 441 | 409 | 386 | ||||||||||||||
| Corporate | 36 | 37 | 43 | ||||||||||||||
| Total depreciation of property, plant and equipment | $ | 477 | $ | 446 | $ | 429 | |||||||||||
Geographic Region Information
Net sales are measured based on the geographic destination of sales. Long-lived assets consist of property, plant and equipment - net.
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Net sales | |||||||||||||||||
| United States | $ | 17,122 | $ | 15,151 | $ | 14,071 | |||||||||||
| Canada | 1,083 | 1,058 | 949 | ||||||||||||||
| Latin America | 1,461 | 1,680 | 1,549 | ||||||||||||||
| Europe | 5,078 | 4,530 | 4,339 | ||||||||||||||
| Asia Pacific | 2,704 | 2,459 | 2,288 | ||||||||||||||
| Total | $ | 27,448 | $ | 24,878 | $ | 23,196 | |||||||||||
| Long-lived assets | |||||||||||||||||
| United States | $ | 2,344 | $ | 1,990 | $ | 1,773 | |||||||||||
| Canada | 42 | 31 | 31 | ||||||||||||||
| Latin America | 524 | 465 | 476 | ||||||||||||||
| Europe | 935 | 790 | 797 | ||||||||||||||
| Asia Pacific | 472 | 453 | 453 | ||||||||||||||
| Total | $ | 4,316 | $ | 3,729 | $ | 3,530 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.