Eaton, led by Black executive Craig Arnold, posts $6.4 billion sales in Q2 2024

Feyisayo Ajayi -

Key Point

  • Eaton’s Q2 2024 net sales hit $6.35 billion, up 8.3% year-over-year, driven by a 9% rise in organic sales.
  • Electrical Americas segment led growth with a 13% increase in sales to $2.88 billion; Vehicle segment saw a 4% decline.
  • Eaton’s net income rose to $994 million; CEO Craig Arnold remains optimistic, raising full-year guidance for organic sales and cash flow.

Eaton Corporation, an intelligent power management company, led by Black executive Craig Arnold, reported robust financial results for the second quarter of its 2024 fiscal year, with net sales totaling $6.35 billion.

This represents an 8.3 percent increase compared to the same period last year, driven by a 9 percent rise in organic sales.

Segment performance drives growth

Eaton’s success was largely fueled by significant demand in its Electrical Americas segment, which saw net sales rise to $2.88 billion, up 13 percent from $2.54 billion in Q2 2023. The growth in this segment was entirely attributable to organic sales.

The global Electrical segment also experienced modest growth, with sales increasing by 2.36 percent to $1.61 billion. Aerospace and eMobility segments reported net sales of $955 million and $189 million, respectively, marking growth from the previous year.

Conversely, the Vehicle segment faced a 4 percent decline in sales to $723 million due to a drop in organic sales and negative currency impacts.

Profit and outlook remain positive

Eaton’s net income for the quarter rose to $994 million, a significant increase from $745 million in Q2 2023. CEO Craig Arnold highlighted the company’s commitment to investment in key product lines to sustain long-term growth despite economic challenges.

Arnold expressed confidence in Eaton’s future, stating, “We continue to see strong demand across our markets due to electrification, energy transition, and reindustrialization, resulting in record earnings and continued backlog growth. We’re making capacity investments to support structurally higher growth and are increasing our guidance for the year.”

Arnold’s personal investment signals commitment

Craig Arnold, who has led Eaton since June 2016, holds a minority stake of 0.13 percent in the company, amounting to 514,998 shares valued at approximately $150 million. This stake underscores Arnold’s dedication to Eaton’s ongoing success.

For the full year 2024, Eaton has raised its guidance, expecting organic sales growth of 8-9 percent, segment margins of 23.3-23.7 percent, and adjusted EPS between $10.65 and $10.75.

The company also increased its operating and free cash flow guidance, reflecting confidence in its growth driven by key industry trends.