Eaton’s Electrical Global backlog more than doubled during the second quarter of 2026 as data center infrastructure, electrification, and broader power-management demand accelerated orders across the segment.
Electrical Global backlog increased 103% from the prior year, while the segment’s 12-month rolling average of orders rose 33% organically.
The segment maintained a rolling 12-month book-to-bill ratio of 1.2, indicating that incoming orders continued to exceed recognized sales.
Electrical Global sales surged 44% to a record $2.5 billion.
Organic growth contributed 18 percentage points, the Boyd Thermal acquisition added 25 points, and foreign exchange contributed another percentage point.
Operating profit increased 41% to a record $499 million. Operating margin reached 19.8%, improving 60 basis points sequentially.
Boyd Thermal completed its first full quarter within Eaton’s Electrical Global segment.
The acquired business expands Eaton’s thermal-management capabilities, an increasingly important area as artificial intelligence and other high-density computing systems require more sophisticated cooling infrastructure.
Eaton incurred $1 million of Boyd Thermal transaction costs during the quarter and $36 million during the first half.
Demand strength extended beyond Electrical Global.
Electrical Americas orders increased 41% organically, and its backlog rose 33%. Segment sales increased 18% organically to a record $4 billion, while operating profit reached a record $1.1 billion.
Electrical Americas operating margin improved 190 basis points sequentially to 27.5%.
Aerospace orders increased 17%, while backlog rose 28%. Aerospace sales increased 13% to a record $1.2 billion, including 7% organic growth and 6% from an acquisition.
Aerospace operating profit increased 16% to $278 million, and operating margin expanded 60 basis points to 22.8%.
Companywide sales increased 21% to a record $8.5 billion.
Organic growth contributed 14%, while acquisitions added 7%. Segment margin reached 23.1%, exceeding the high end of Eaton’s guidance but declining 80 basis points from the prior-year quarter.
Adjusted earnings per share reached a second-quarter record of $3.15.
Reported earnings per share were $2.11 after charges involving intangible-asset amortization, acquisitions, divestitures, and Eaton’s restructuring program.
Operating cash flow increased 23% to approximately $1.13 billion, while free cash flow rose 22% to $874 million.
Eaton raised its full-year organic growth outlook to between 11% and 13%.
The company expects adjusted earnings per share of between $13.40 and $13.60, representing approximately 12% growth at the midpoint. Reported earnings per share are projected to range from $10.36 to $10.56.
Eaton is also preparing to separate its Mobility business and combine it with Dana through a Reverse Morris Trust transaction.
Eaton shareholders are expected to own at least 50.1% of the combined business. Eaton is also expected to receive approximately $1.1 billion in cash before the transaction closes, with part of the proceeds potentially used to repay debt.
The separation would increase Eaton’s concentration in its faster-growing Electrical and Aerospace businesses.
Electrical Global’s backlog growth indicates that the segment has substantial future revenue visibility. The combination of a 103% backlog increase, 33% order growth, and a book-to-bill ratio above one suggests customer demand continues to expand faster than Eaton can recognize sales.
KEY QUOTES:
“While data centers remain a key growth driver, we are benefiting from robust demand across our end markets.”
“Reflecting this strong performance and sustained demand, we are raising our full-year organic growth guidance.”
Paulo Ruiz, Chief Executive Officer Of Eaton
