ETN - Earnings call transcript Q4 2024

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Operator

Good day, and thank you for standing by. Welcome to the Eaton Fourth Quarter 2024 Earnings Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Yan Jin, Senior Vice President of Investor Relations.

Yan Jin

Hey, good morning. joining Eaton's for Earnings Quarter all Call. you us Fourth for XXXX Thank are Chairman Leonetti, Arnold, Ruiz, me Craig With today our and Financial Chief Officer; President President Operating and and Vice Olivier Executive Chief Officer. and Paulo CEO;

remarks fourth the turn to quarter. will today who Then company's our over Craig. opening agenda he by Our performance Olivier, highlight includes will it in the

turn the full then it over guidance year QX will who provide to We will the for and XXXX. Paulo,

on calls, we're done at our end of commentary. questions have close the we As past taking our

and the today and per flow release This appendix. share, on press presentation, the been website. in cash free other The presentation non-GAAP we'll through our earnings adjusted have measures, go including they adjusted the reconciled posted are

of related website is commentary future for the webcast remind this available be like statements our our results you the forward-looking I and that will the to on replay. include accessible are and would therefore today company statements. expected of will to call A

Our forecasted wide projection in presentation. actual earnings uncertainties and release due from are our that our materially of risks a and range to the may differ results described

I'll Craig. to With it turn that, over

Craig Arnold

pleased strong out in proud to And year with the another quarter. the Okay. Yan. how our Thanks, quarterly we're especially I'm executed results. close of team

Electrical and we you business. industry of strikes lingering the the [indiscernible] Americas aerospace know, have the impact our As hurricane, to overcome of the in impact the which

we XX% quarter, the QX for from up For a $X.XX, record year. EPS adjusted generated prior of

activity. see the high And our points of up basis above last record we strong than year guidance. delivered margins and of We market XX.X%, segment continue to also end XXX

above XX% orders Electrical and up of outstanding growing and were basis, Electrical by led results again up XX% Aerospace, This up ratios were in and led in a orders up quarter Electrical both Americas XX-month X up businesses. backlogs with in record once another book-to-bill Aerospace. in On with Americas, XX%, to XX% orders rolling XX% with

you will double-digit another strong we're the see another EPS. cash but set in XXXX. in expansion, organic Paulo you increases can markets, walk our healthy expect margin from and growth, guidance, for free As improving end of do flow chart, adjusted through year strong year we

Page of Turning and in how X. once an again providing to We're our driving megatrends growth markets. overview they're end

with provide You're how an to by these versus very we performed XXXX want familiar in this but overview did of chart expectations. markets our now,

context our in provide expectations these and and than of This Paulo weakness Americas centers growth is end for in Electrical, offset will the strength X areas residential today our XXXX markets. in OEM the performed March. later In better markets especially in and meeting data in unplanned some market. investor Strong our relevant that to than in outlook more at due

was grew line weakness a markets a nicely was In includes which with this Aerospace, offsetting and the market, with vehicles, mixed the and bit of Boeing plan, eMobility. our despite better-than-planned strike. And in in vehicle commercial market performance light in bag vehicle

on markets our as perhaps to evidenced note for Eaton secular by most growth megatrend post in to should you drivers come. attractive see we to continue here the this why and of the that Overall, growth megatrends is growth X And you chart secular important expect in presentation. see years Slide

or in project [indiscernible] January point more, an of a XXXX. and with announced As of is value begins our a project billion reminder, reference $X

we've conclusion now, reported a this know, changed. our few hasn't you As for quarters data and

$XXX a dollar higher a increasing values Each QX quarter, value another with we're projects, number than billion. of of and record backlog. was at an XX projects growing seeing announced more

started, approximately of projects up the QX, expect $X.X projects XX% XX% at from a year. a XXXX. cumulative trillion, starts number XXX in Through have $X.X QX, last and of value we're Through record we stands trillion, backlog and of with at these now now

To question have you to the have which about XX% we well. as monitor of continue levels. below asked actually rates, cancellations and been well date, cancellation historical Many modest, around

Eaton-specific pieces of A couple data. of

that won in a projects billion $X.X have over $X.X content. XX%, and of on of rate almost negotiations with orders active started, For Electrical billion we've we're another win

the to as of can math, our stage, reached grow. So expect you see these haven't we from projects most to negotiation and orders a continue

why business. a heightened on confidence our so much to wanted includes the and to this largest for center training centers continued take Given cloud data data backlog business inference. X centers a category. and on on-prem colos, discussions and our The categories growth. summarizes moment our the by margin, for major cloud, week, in And It I is outlook and our orders hyperscale, the we data wide highlight negotiations, information Slide still, data have center sales, of

the but data, accelerate As to negotiations ahead read of continuing you from can rate a points. with see numbers of few speak themselves, they the not that you we'll as orders growth note is for each the of I'll sales. and ask well

XX% increasing, their Our all billion capital was And up CapEx rapidly customers alone Hyperscale almost investments. seen, forecast XXXX. over you've to backlog for is XXXX. in XX% continue spend which customers expect over prior year, XXXX, up from $XXX as in XX% to up increase

the 'XX. on build years And XXXX the and backlog. take consume to And build page 'XX X center perhaps doubled number to At rate X reference current the the the between would rates, most data it notable years. is construction

notion is market simply the will not slow So seeing. of down that we're with consistent data this any any that

will if and industry history, industry technology be the of The will reduce doubt continue for good accelerator growth. to And by an see and innovation this no developments that judged costs.

years expect previous strongest by our forecast, growth. come, and for assumed we to For market be data stand our double-digit to XXXX centers and strong which

I'll Olivier results take for Now the turn to financial quarter. it to us the over through

Olivier Leonetti

basis up X labor or FX strikes of Hurricane the organically by Thanks, Craig. includes points. record of sales summary billion, X% negatively XXX We Helene providing impacted QX $XX X%, quarter start which Aerospace and our $X.X again including records. in many of a fourth headwind. results, approximately I industry will or QX new posted sales by point million

expanded guidance prior XX%, XXX on Operating record This This $X.X cash record high range. basis XX% EPS by grew of of performance of the and QX resulted our margin Adjusted $X.XX and flow free to operating in record an year-over-year all-time and performance, is increased year. near prior an XX.X%. a of including end profit XX% the all-time flow quarterly XX% basis over up flow billion, billion, versus points year. cash up cash $X.X a segment

margins quarterly The posted execute business a Americas quarter. quarterly Slide operating set We and very delivered detail results. continues our the by and another we new I segment's recap sales. well record year. On QX review profit to will results followed now for of a X, record records and the

impacts Organic institutional sales in the was markets. growth digits. Without been solid disruptions business, commercial the primarily the X% have to growth by of in in driven and would organic the with hurricane along strength center, of double data growth

activity XX.X% in high various continued robust. Operating basis a megatrends. very rolling from XXX year, We particular up a was strength at the XX%, points tailwinds orders -- of benefiting prior versus XX-month at where from demonstrating remains higher the remain level the margin center of market, basis, had data sales. On

and Dodge backlog to about data in based is center in announced rates. starts XXX% out data QX build year-over-year on shows X extend construction U.S. example, data project now estimated center XXXX are For with XXXX years up XX%

which Electrical increased full of for margin Americas organic These XX% year year on X.X year-over-year with book-to-bill record basis. basis year. of a and posted backlog up a rolling of business, the over results XX% out of XX-month ratio billion, revenue XXX $XX.X points prior XX.X%, a closed growth

robust remains as we With well trends, enter the tailwinds capacity coming backlog, Americas Electrical XXXX. incremental positioned from strong execution secular online, and

data X.X%. our and and The included We growth segment. of summarizes Total in of revenue next Electrical tailwind growth utility chart the had FX strength X.X% results organic of markets. Global center X% of

Regionally, continued basis on XX.X% mix. organic was driven Operating XXX a in saw with growth in Orders EMEA. prior year rolling margin were growth high down versus we by basis. APAC points X% of up and single-digit XX-month double-digit organic strength primarily

Similar was a remain continues was growth, center by Backlog the over on increased utility XX% driven rolling sales QX XX-month basis. to to data prior markets. book-to-bill and the strong. X.X strength and year,

the Global X% with growth margins. organic year, For posted full XX.X Electrical

Industrial Before businesses, briefly to our I'd like the moving to recap combined segments. Electrical

segment For and QX, X% up organic which points over margin growth XX.X%, of basis we year. of XXX was posted prior

rolling posted up confident XX-month sector strong growth For basis, ratio year, basis a in for We were of the over for organic business. at X.X. XX%, XXX margins up XX% with Electrical points Electrical of orders our full in our continued very On our positioning XXXX. remains strong remain book-to-bill overall our margins and XX%, growth we segment and

[indiscernible] was aftermarket. end [indiscernible] all posted and We segment. in record with driven Aerospace profit. all growth growth and our highlights for Organic commercial with total operating XX Page sales QX X% markets

the organic impacts higher double of Without Aerospace mostly strikes, the up have been points from digits. margin sales. XX XX.X%, strong was the basis at Operating in growth industry year-over-year, will

up [indiscernible] particular our and basis, On commercial rolling in book-to-bill segment XX%, quarter X% from basis, Aerospace sequentially. X.X. prior military and in was XX-month strong a strength backlog up orders XX% XX-month Year-over-year X% commercial a increased rolling OEM remains for On with at OEM, the aftermarket. our

posted margins. On XX% with the Aerospace organic basis, full growth XX% year

by XX%, revenue In X% Moving on including and Page on decline the organic driven points effects. North light unfavorable was to XX. X weaknesses in markets of and the down our vehicle Vehicle segment EMEA America, APAC total primarily a quarter,

team came down year top prior the year XX.X%, margin well with executed Operating revenue recorded perspective. at Despite improved operating in a line weaknesses, basis, points Vehicle from efficiencies. XX% margins. a XX basis over organic from On margin X% full the

including production million, basis, XX, of revenue profit by of was in launch eMobility X% unfavorable down margin delays On our year XX% quarter. Page negative posted eMobility X.X% business. decline FX. for ramp-up was organic XX%, we customers' Operating driven a $X Total program and our primarily margin. show the organic and growth with X% full On results operating X% resulting a

strong show through $XX.X XX% billion and and Aerospace prior in billion. Aerospace. at be billion Aerospace backlog They Versus also to our $X.X Page Electrical increasing Backlog and XX, Electrical Moving in our of a by at XX% Electrical $XX.X QX. to total for continues have updated sequentially. we backlog grown very backlogs are with year,

X.X, backlog Aerospace respectively. book-to-bill and earlier, of in demand. continued our As Electrical and X.X our noted underscores for The future confidence are in high growth level ratios

pipeline XXXX, next strength page since addition increased growth growth XXXX. negotiations rates. our Electrical the structurally for in our continued organic In shows strong Americas, to Xx backlog the In nearly the higher strong supports and our expectation in pipeline has markets

acceleration grew center, driven utility largely institutional the was XX% fact, markets. increase year-over-year The multiyear versus pipeline and by XX%. year-over-year, showing and of our In data CAGR commercial end

by driven growth business, is government was the growth than in the Electrical forward. and our transportation. stronger education, strength XX% This going Within continued institutional suggests organic and commercial end market, even Americas which

performance. Now to I Craig summarize over will it XXXX pass our to

Craig Arnold

results Thanks, to Page our we compared original summarize guidance. Olivier. XX, XXXX On financial our

You is may execute This occurred goals above well and again for practice a businesses our in in guidance. exceed recall put as external to set guidance. are If position should markets us our we it perform that that stretch expected, our our to XXXX.

to increase raise initial increase demonstrated metrics. growth, above a in flow, our Throughout ability XX% XX% all XX% organic adjusted guidance an in and key guidance. of on all all-time the EPS, delivered the our we record We margins cash and year, X% commitments free exceed

from midpoint $XX.XX were and our XXX versus note, of guidance midpoint year. original guide. segment And of X% prior particular adjusted above was margins Of points the basis up XXX EPS original basis points $XX.XX the

know, way has a delivering and of you uncertainties, unexpected of business deals market number a as every And life with surprises.

way allows the deliver unknown these absorb to more. we So commitments company that the still our headwinds us hopefully and run and

the summary So team's with once say in of business our financial brief record results We again we're Page year like on and in delivered proud XX, another the reinvesting year. of a never that before. while of I'd XXXX execution

the biggest so can But see markets, the while better. We're we're proud do some right creating identified satisfied in opportunities megatrends we the that are because and we'll we're much our lifetime. of in of not our progress,

everywhere. The are opportunities growth

or and record of to evidence place negotiations growth. backlogs in orders strong soon on now faster coming pipeline, the the opportunities. ability even And Our our to are support we convert have capacity

getting focused We better margins. better better, It's businesses. it Eaton EBS, System, keeps efficiency that call running improve everyone our and factories we better how on Business have and expand functions, we

couldn't stage be the I next So now of is time, our and transformation. pleased team with more Eaton's the leading

And the on year. us pass assumptions that over will who Paulo, for guidance our I'll note, it and financial to walk key through

Paulo Sternadt

on end XXXX provide to our XX. attention next growth expectations our view market the on Shifting year. Craig. We Thanks, Page for

can all of attractive markets. we markets As anticipate nearly in end see, you continue to growth

center electrical data in vehicles. growth IT, and commercial aerospace double-digit and distributed expecting We're

remain For breadth of outlook, future constructive data trends. and strength we our centers, given our in the secular

adoption see in to and computing demand of market data training. center We continue of technologies, acceleration strong including AI with cloud and inference the

drive So including as usage technology could more of our electrical higher AI equipment. hardware, in consumption AI our emerge, AI acceleration

solid across other also utility markets. We expect and end in growth growth many our of modest

So resi quarter change see our growth between is X%. we in do But and resi markets. markets. market from end other X% the anticipate weaknesses in we last overall strength and commercial offset outlook in not with in And a change vehicle

of more Overall, XXXX growth significant should our markets be than with XX% end growth. another seeing year of

trends. also supported by strong outlook strong order a growth secular backlog Our book, a record favorable and is

differentiated positioned we to So well growth in XXXX. remain deliver

we support growth with our XX, also revenue expected X% and outlook. markets be Electrical premium in strength healthy add XXXX to is particular summarize XXXX at large continue that to our I'll 'XX XX.X% backlog the midpoint. once to Page guidance. Now again for provide to our and visibility X% end at Americas with Organic And margin between moving combined

XXXX For XX.X% of improvement is our segment an and is all-time range XX basis midpoint at XX%. our XX.X% guidance of points record between margins margins, from

QX. the XXXX next the of guidance and on we balance for Now have page, our

billion, So guidance at billion XXXX, midpoint ] up between is be and for and $XX midpoint. $X.X at to EPS free flow, expected cash XX% XXXX. up from our our $X.X to between $XX.XX, XX% the $XX.XX a And is [ our the

We at this will between billion plenty generation cash outstanding. leave and And M&A. our position also room given the of of shares our year, of to expect $X billion and year end repurchase strong we for strong $X.X the cash strategic our

provided We see. this QX, guidance on you for page can have also as

and conference wanted March Along shown live stream eaton.com. you We to XXXX. XX. from this will senior a XX, myself, with presentations our on be on are leaders New City, that upcoming we'll Slide highlight investor back the to in presentation take We'll Turning minute to page. annual York have also on other here

our about are future talk really we the So including to company, targets. of XXXX the excited outlining

the to and operator With it hand that, back Q&A. I'll Yan for

Yan Jin

Instructions] [Operator you will it Paulo, Thanks, I give the that, the to for to the today. Q&A With over guys operator turn instruction.

Operator

from our Chris Snyder Morgan with [Operator first Instructions] comes And question Stanley.

Christopher Snyder

Olivier. for one with off starting Maybe

then cadence X.X% for, the growth? you guess, drivers the Can So in about of X.X% the guide in organic what adjusted remainder rest of I the we at the talk for year. calls of about midpoint, pickup EPS throughout the should QX the of and 'XX? that And then expect

Olivier Leonetti

your you Thank for question.

cover tag I me and section. revenue on through the Paulo year, guidance EPS first will the the team and Let

second EPS XX% today look the XX%. planning to at you we result, full first and If to have are represent directionally the the half of the guide EPS, for as the a year half

we past, recent and the half XX%. to second at between and look XX% you half of used first a have If mix

second half, first balanced half. well we're So

And the wanted QX decline second of have XX%, recent sequentially our is a Again, past. implied actually EPS to we better expected sequential The similarly half, saw decline guide QX always half, in also Usually, than QX I you QX this decline guide. because of what the about to the talk of over first increases. is experienced X%. merit a decline about XX%.

demand in generation very bullish we about and are our and invest we business, Also, manufacturing.

also in explains the revenue, EPS. decline Paulo? sequential maybe QX on that So And

Paulo Sternadt

thanks Yes, Chris. just question, to for add -- the

and So it's modeling half at half at about X. to I the the fair second the being revenue to think for purposes, assume split, first X think

a capacity will are of we second the one track projects bit color to on I want by those adding. segments. we half the say that in additional And Electrical more can extra Americas I accelerate one. because the you give

far, are So so good. we They coming planned. as

the Electrical that's segment. the Americas, biggest So

year, And very the year. most to see end would business comps also second the recovery We the over the half, up be of will with Electrical flattish Aerospace half, given markets well of that higher Vehicle in in markets. the some tend again Global distributed. is the second the the the in European then probably pick easy

way about the think that's to it. So

Christopher Snyder

really lot Craig. updates one, Really, all that. I follow Really appreciate on up outlook. with Certainly, if good trends of the And Appreciate for helpful. there. out a maybe then demand could

to industry-wide these the product you you wanted We've about ask at guess, side. this to few industry supply in demand? Or lot adds, when a starting just about And the obviously, beyond do industry times availability think [indiscernible]. the still the the I being short lead in you lot I look that near incredibly do But come the that's Are your last heard now, product switch down? to be think gears, could tight enough capacity on years term? meet a

Craig Arnold

It's in frankly, a the Yes. Appreciate question that's we've actually conversation while. question. And a in quite a we've and gotten a it's not not that a been thing. good that internally had while,

coming mean and just disrupted, kind with dealing spending out I on of we of supply calls period supply when weekly constraints. calls massively were daily the got -- we with our suppliers COVID chains

so say part, those most lot a part, where our have back were we And when been, you we're most think pre-COVID constraints for internal the resolved. And the I'd supply of chains. for to about

out gotten of front it. We've in

as We of well as new our place have lots we in capacity in suppliers. as Eaton put [indiscernible]

of And for terms in we it, I fairly suppliers of good so our and I markets, and think responded. piece outlook from the that these think visibility transparency have have

our labor longer-term view outlook, or constraining constrained. think somewhat be world because our about the continues of largely to we're midterm think the we as certainly do Now we

overall at a trades, been think mix industry faster you industries seen about rate have industries, labor our And shift. you've the than an economy. If growing skilled those

industry. the our view quite rate this to potentially going is that we these that see, the it's And think some frankly, still of bottleneck own why But of we if of don't labor we've, growth for constraints the materialize. better is think market constrained

Operator

with of from comes next Our question America. Andrew Bank Obin

Andrew Obin

question a Craig. for maybe Just

Electrical about and Americas mega talked You project impact.

just in actually So can your business can an about or on you talk mega how you have projects impact much quantify 'XX? did

Craig Arnold

than And as of seen the our historically. Yes. reasons was this size the saw what mega ago shift world have of been started one years we've larger of rebuild Appreciate just question, this that massive we going CapEx couple the through industry Andrew. why in and fundamental we projects a much reporting cycle, the the projects

And so of the externally and an dramatically giving of way And in as in data take was growing a our this we're great business. you we indication reflected share to as it thought it what numbers seeing we the presentation. PowerPoint are

But XXXX, our to XXXX to in projects around mega over your point doubled $XXX million. business specifically in

up Our XX%. negotiation the pipeline And up it's business, you some if XX%. overall recall, for

continue we So of number an projects. to increasing see

of And that grow. us. projects size cycle showing of number most And really is you expansion with in world. a of out said U.S. the the through as And sure, mega significant CapEx projects times, in we're many news, is of benefit going -- the good continue the mega the in as around and up in data, the fairly it's it And front just saw the we've really projects. but projects associated for the these to these still

Paulo Sternadt

color. And add I'll some

XXXX, that a actually XXXX $XXX started Craig XX projects over is forecast said, in just And for Andrew, billion that we going XXX this year, to to Just, forward And reinforce billion for at Dodge we're and in in projects. total. you around look there data. $XXX were just XXXX, their what the reach look in for just

believe at XXXX. starts, tend we haircut -- we So it's doubled all in rate don't don't almost we even the in the if we starts, to saw

of is the that the growth think the longevity cycle point Craig, think I ahead us. message I of the So from key

think it. think I good a to way about that's

Andrew Obin

constraint supply the more are on them chain, just And maybe to to the over chain are your guys just chain, U.S. state need to supply we heard from the electrical is how what saying, better better and the particular sort watching, maybe capacity. incentivizing a capacity of effectively you on unpack it And is but certainly sucking you all components the is adding in pricing, appreciate incentivize capacity, have components? leaders question capacity recently us supply a comment Could at world. of you're supply chain the supply to side was industry up that that critical I margin chain, are the bottleneck, add market at capacity, while still it you that you a for

Craig Arnold

suppliers Maybe that nature just growth earlier, we're that them commentary is building with support forecasting. of the investments on certainty and make they I think providing really to to today, need my the visibility the the the our that conversations

any And with which we our providing closely working so we're terms working are and that customers. our more multiyear particularly multiyear agreements through up also in specific financial are visibility not of but incentives, we backed suppliers much have by with agreements,

the world. to for balance But is That's thing demand Eaton. to good that say, of economy And me, large, for up U.S. of there's capacity real that a us. probably by U.S. so that a much we're growth capacity the rest significant -- I'd clearly, comment because this the -- this flowing world, stronger the is. where seeing sucking rest notion but but surprise doesn't from to simply the in and and is That's much the the actually good compared truth more some a

Operator

comes from Our Tusa question Steve next JPMorgan. with

C. Stephen Tusa

pipeline projects, this growing, about anyway, of for backlog year? and that the talked guys keeps flattish orders this as The forward But pipeline does it's course -- these in what mean obviously, you you look here. this mean massive. over the mega is is I

book-to-billing a like like visibility what and actually the that reacceleration converting on another into mega like in been You've projects but orders? these X, things bit is above

Paulo Sternadt

forecast orders I to But bit It mega a I be Steve. very that Thanks, for is what speculative. we're This give can will say it's on seeing. you Paolo. a would projects. difficult sense

that's negotiation with mentioned, us the gives confidence. Craig pipeline XX%, what growing As

said and see projects our in now for start it's that Craig those the 'XX, are between 'XX. takes announcement effect. years, And to to the revenues we It 'XX be projects sales said, Those as 'XX, past. expected following mega versus since doubled in what large we time between X in projects. we started and And X

very -- Now that entry difficult, make to it. for I want be and don't to to would speculate pinpoint on order the

the cycle and the continue help way understand the you pipelines how evolving. you negotiation for to is that are best So mega see of us the tell this projects to to we longevity

C. Stephen Tusa

then on lastly, And this nearly Okay. -- starts -- thing, your data order up I this on about the in is doubling talked you 'XX, XX%. guess, say center you

I the the big blanket when distribute you So like to starts? order they are Or have then to guys? much getting you do gets middle a are orders from hyperscalers like the where shipping how in to shipping and built? go? Or to mean of you shipping are add as as to point it you're they some project visibility Like these number the you as actually they

Paulo Sternadt

Yes.

for thanks again. question So the

suppliers. forecast I best we to to about the way on give answer the the forecast. think our is was way the -- Craig your multiyear we visibility talking question have

were We also In giving commitment we to as them. forecast. from the a supplier some hard a center data big operators, have we case,

that's So visibility we the have.

UPS construction project and going terms as the we and the the to sending could the site the We don't server ready, data the center. later. product, comes and of the that, by products goes transformers, then earlier, switch some come the our inside gear, follow saying what product And In room is of like if of send the not we're ship requires. the

project, phases in the So I say. of would different

Craig Arnold

start. [indiscernible]

when shovel start, So talk goes in it's start, the yes. when ground. a about we a When -- that

that And going that's a you truly that's project completed. real. likely so point. shipping be a on [indiscernible] as And we're project at when a not can as becomes to count project anything But it

Operator

from Jeffrey Research. Our next Sprague with question comes Vertical

Jeffrey Sprague

on coming in did when not others billion more talking because right, data pipeline. include we've about data centers Maybe just doing billion mega this we that maybe me, for other things. now, $XX historically, one got [indiscernible]. just it projects, Amazon example, of But and $X in there's the campus Mississippi for also, But centers were

today sense have now much mega give number with of on how the could that? you're project visibility you a data if wonder you is us Just that center us sharing in if

Craig Arnold

-- absolutely of center projects. into Yes. I the thesis them of don't your that projects of all, mega bigger, these have The some falling are as data exact is number, Jeff, category first correct, now become

we're percentage category clearly, so as show in seeing handy. And well. have I exact don't centers data up that the

Yan Jin

We roughly actually it slide. XX%. the said on It's

Craig Arnold

XX%.

Okay.

Yan Jin

X-X. XX%, Yes,

Craig Arnold

But balance XX%. and the earnings calls track the the other [indiscernible]. We're growth $X we to we from slide in shared would but categories. these projects of trend mega we one this projects, the thing of seeing well segment which $XX million billion seeing earlier in $X I also billion. we're group, just as that same above, that So track tremendous And in of is in projects other

balance significant we're seeing segment well. of so growth as projects, And in we more seeing clearly, mega but in the are, in fact, very the growth strong

Jeffrey Sprague

global But there's forward what franchise. share most ever us. kind over Paulo, the the to you the in to can what be and margins improve just of to improve an us Americas save with the of margins about you want economic of just there gap in big you your it know in March. Electrical looking Electrical least be Global maybe Global Americas? brother versus about specifically. that for advantages view the thinking have replicated Great. then to could narrow done But and the just maybe Obviously, Obviously, can't at scale aspiration to And I time.

Paulo Sternadt

Thanks question. for the

about every all, XXXX of first for into talking March, our long-range in commitments be segment. to going we're So

only report. going to clarity on we not but you're Electrical have every Global, So segment

the this hit restructuring an based the we is To your improvement, actions. One question starting and to benefits on start biggest XXXX, working is that on already on the of group see margins, X of more side the also up. help and is that from as we're we specifically, the other coming large going have productivity the orders on gains have data volume shipping those And center to P&L start part the we in us.

also There continue in we are build step-by-step, One same to to and will complete is many operations. drive do. other things we portfolio to can have but North the our and strength thing America, continue we

get As done do. for there's There's said, to never only We there, us go drive still even satisfied. in lot always never we improvements. to a be We a but lot Electrical Americas, not are Craig complacent. global,

Craig Arnold

And some headwind being has around hurt When would commentary, business MOEM the a that Olivier's they the add as which that you down I data have, is the as tends Europe, Paulo's percentage profitability. I only from heard of been that and thing manufacturing markets particular the there. that bit absolutely in a region you obviously, our to really see, much well for think to that, our mix higher segment, in a be of of those in business the segment, a to right, extent

that and begins we well. there should to normalize profitability in a as as natural recover, see So improvement market also

Operator

next comes RBC. Deane with question from Our Dray

Deane Dray

I realtime you've through a is tariffs, gone a already? But preparation moving target. here, talk just this can and you it's story about potential realize vulnerabilities, impact,

Paulo Sternadt

Yes, that, I talk can about Deane.

it. first So are top of we of all, on

We are what exactly we trigger. from potentially know We what on ready. -- to know depending is announced,

importantly the we time. We production our a consumption side. much have to than have over I philosophy moved -- more We think that, closer

decreases that the So impact of tariffs. the

before. We've playbook. that a have we But done

if fully we're force, where actions -- But not apply commercial we'll to do. with and actions. compensate come We to know if compensate where necessary. to the commercial necessary. are going commercial We'll Hopefully ready. We and they actions, to exactly comply, we're going with

Deane Dray

questions. be And data staying tuned more right, is center Great. there was That's there. helpful. Jeff then all We'll

got those about -- well. also helpful. heard And I loved just was all, have that you've that in the -- Monday center. we of really appreciated as so would Page first it data specifics. the Craig, But have I confidence today that all Appreciate today. X prospects I on growth long-term expressed to So

Just terms of share the of at watching past team change the is for been fine watching the expectations. for check in Those any growth, weeks. mean hyperscale in us kind we're margin CapEx you for, of what box. build-out can I the have couple and

customers have X-year But how been you about supply asking your agreements. for

any just whether not those anything how take-or-pay, those indicators those you're out been of us, And or remind watching Just how up? reporting. there's are play -- other you think are set

Paulo Sternadt

our our from the of I Deane. customers that and technology to to that in accelerate Yes. order accelerate would solutions comes can Thanks say model whatever for question, we our could terms build. that also do the

Craig heard out, build today. are accelerate of they the backlog but sitting on X which as that great, ways is still industry of found You years what said to

done more there's be So there. to

agreements, it's cancellation the but take sizable. years, terms for And last are not we a the single exactly say, would that penalties back here. order seen haven't pay, there look or as cancellations In of are we pretty I

continue news build. So to we And developing distraction including as the invest, this negotiation is well. continuing week news and after our no you how this discussions is our see in have, development week, the the pipeline on to about most backlog of

So the I continues forward to accelerate think build-outs. the be way to

Craig Arnold

The that, in to add supply about will still concerned we labor absolutely Paulo site that's and I'd be right. chain. around is Yes. we're Monday, there prior thing only about whether The that's today that's whether to or things constraints constraints whether concerned were where that availability, power the availability availability,

could market the what we're into than anticipating. that this believe customers numbers higher baking do our forecast. And that we much mentioned, are from getting we're the I frankly, grow faster as much we're And our quite numbers than

to But way. we constraints do along things be prior worried the believe about the still were those will about. things that are worried we're that we were Monday. there Those And

DeepSeek, how repeats of on could be my and it's But think to the that I a way it I commentary, itself, early in it evolution should adoption, influence will what mean know [indiscernible]. this I said happened faster faster think Monday as market. if with history growth, good too

Operator

comes Research. Coe Nigel Our Wolfe next question from with

Nigel Coe

detail. for Thanks the

appreciate really these end market So I perspectives. all

to switching maybe Aerospace. Just gears

of So too. fourth quarter, the out third impact obviously the the called the strike in quarter Boeing you and

given and a still [indiscernible] military. are very, here, deceleration have ], what very OE to versus we XX% us moving commercial versus for pieces that I the healthy. can But [ if perhaps give in maybe forecasting baking wondered some just you're You just you aftermarket

Paulo Sternadt

Okay. Thanks for the question.

-- out, as pointed So we really you growing. market the is

aftermarket. here, specific important low see give it's a double see digit in be digit in breakdown. we To see and single we low OE, digits we commercial. and double And -- both OEM that single high think military I for then in we the

we customers terms doing. in are of what build-out, the watch our And

got also we ramp, Craig ready But including for and got prepared Airbus' said, as ramp Boeing's We -- it -- ramp. [indiscernible] internally. the also we we are for

We face take value. also take build-outs some We their externally. caution in what as don't we forecast

a are more So our in we cautious forecast. little

the in strikes, that year reason year. all with So commitments industry the was in in that, and the XXXX for met our the the that difficulties in we still full growth for

Nigel Coe

conclude [indiscernible] too? did sorry, I'm that aftermarket,

Paulo Sternadt

couldn't repeat question? I hear. you your Can

Nigel Coe

comments, comments? Did but about sorry, you aftermarket the what -- OE the heard I

Paulo Sternadt

high be digits. single will Aftermarket

Nigel Coe

double for follow-on a seems to time. then normalizing it's utility. like XXXX. And helpful. single-digit It my down long It's Okay. That's is running around been digits like a for range high just

of online, some you're maybe just bit potential wondering, reaccelerate more as that end on is And kind that perspective backlog? Just what comes for you as maybe of just your capacity there to [indiscernible] markets. in utility about thinking utility a expansion can that seeing

Paulo Sternadt

steps. thanks I question in say for again. the Okay. answer I'd X would Well,

and going to The one, what at Eaton. to everyone going first you and the utilities, I'm then remind I'm the drives effects industry about talk

in would So of growth heard say in infrastructure probably distribution of [indiscernible] we utility I play, the what aging drives you where first a there's replacement that about. part,

thing second the that resilience of the the also part. drives is hardening The growth

more natural ready all cetera. et to resilient about think So the are getting hurricanes, [indiscernible] to floods, those fires, issues. be face events,

The And third the increase to that that is about also story, part piece data consumption. energy is center also, of a there's it. more but increased

industry how the that's So plays.

in U.S. you our the to are Eaton company, network. weighted heavily that to of we If effects the distribution you that that and know move

or in to we it's single digits, the consistent a So expect third-party cetera. EEI, et like be forecast high CapEx with S&P this and

more see electrical because I of which to as is it's to we other growth of even this in this high think we do. double-digit most end market, give high the Eaton high see digit, you we what players, I strong single important we within offers, the -- single-digit clarity want compare And of think many

about think switchgear, regulators, So capacitor. recloser,

there value transformers market -- poll the offset grow piece equipment, those on the more on pretty of the of line on. competitors will single-phase continue or related lower are which to is an digits. is part the strongly And that our double than more focused to So hardware add some installation of transformers, chain, the

side not high like of a so So it's the double-digit single-digit part the that growth we other But most, market fastly. and there's growing us. a the is for

size. look if to generation, in global, It's renewables consumption If you also for country say is invest continues and America, in very And big China and go increasing a very outside of heavily I both at you transmission North would in X%. distribution right, electricity China. that in in utility,

growth So coming the world we strong of a that also from side expect as well.

of our could a And do we data serve we go terms capacity, into also utilities. a into In like could We that a transformer fashion. also in that investments, are other we as We about capacity. can way in -- do talked of to go part capacity utility. adding center, that modular markets it

Some in of feel prospects be are the can investments we good end and switchgear markets, can use but used the we -- about our other making.

Operator

question Deutsche comes Nicole Bank. Our from next DeBlase with

Nicole DeBlase

going getting tougher XX XXXX you like margins where expand to Maybe there these bps on levels? going just little again just yet expansion a the with point best-in-cost guess of from this XX only to there talk are about Americas, bit maybe some margin embeds conservatism embedded? be them it's there? expansion. impressive Could what's to I to year-on-year Is a guidance really starting Or quarter.

Paulo Sternadt

Thanks, Nicole.

and I for Electrical for always valid say Americas. there's also it's us So would space to improve margins,

also more there can that. all we generate on about the manufacturing us Just is other are the still do adding business, to go we for to facilities, think efficiencies facilities existing the but

don't the This I think margin reiterate this for top will that. So the I is is one. segment.

the come volume. growth from For XXXX, most of will

year, be starting to you our last to breakdown, in is growth. had for pricing normalizes which consider already expected. to year than for as our is compared This will the in year, volume volume So composition more be prior something pricing vast majority

year, and in as dozen start-ups the X capacity this we are And projects, inefficiencies dealing we're costs. of with adding start-up

makes a So this comparable said Electrical ourselves the internally. as and before, strong Americas to not is not different we basis that's number, for But drive always Craig what so year-over-year. higher

Nicole DeBlase

That Could of prepared greatest interest? makes And little bit mentioned the talk you current appetite in the areas remarks. then pipeline and M&A sense. you for about a

Paulo Sternadt

to and Aerospace. areas major our say would I utilities centers, -- of continue be interest We Aerospace, data so Sure. Electrical and

in the of in the acquisitions our accelerate what And to short midterm the strategy. terms of organic interested at acquisitions, look in can that size and is bolt-on we're doing

focus moved since like bigger a company and bolt-on a as be would time well the but be answer. more team. Aerospace to be over have of the and Electrical a bolt-on. And bigger a And continues So will the Eaton it the make for we size point, evaluation, to definition

Operator

with Goldman Sachs. next Ritchie Our Joe from question comes

Joseph Ritchie

So my on I'll focus Electrical questions both of Americas margins.

ended ago, go XXX clock, in And XXXX. margins year we you were a you to so up basis and the if where points -- back expecting lower be about wind than we

really slightly this of curious, drove better, what So expansion I'm past the levers just year? I was kind other know growth margin but that

Paulo Sternadt

Yes.

really that super First well. proud of executing I'm I very would of team. all, say They're

well the I well also They're they're in line. top think the say. thing And I to first executing want that's executing their on operations.

the So in they run thing. This expected, than operations. one the is business what we right, better

results. chain And supply to our we also continue better to drive

overall, And operational for business the as well. drove that's that extra performance are an So margin. the it's we wired for this year improvement how

been capacity team own beat They've ramp-ups, with their would well. which But those are they there, is going and they're We again, cannot disappointed the well. focused be if numbers. very dealing developing they

spirit is the the same. So still

Joseph Ritchie

Got one I it. helpful, That's Paulo. guess just And then follow-up.

margins backlog ago, mouth. it's your the want to XX% up but mean months today the lower backlog backlog imagine to XX is words don't put in I the So the year-over-year. margins in that are I the than hard in

in the kind what like the year any can look ago? how there margins color a you backlog of give is us today versus So on --

Paulo Sternadt

they No, what in printing are with are line in today, They in are largely line. we line.

Operator

next question with Research. Our from Davis Melius comes Scott

Scott Davis

here, sense a the us that up can give a million -- maintenance? way versus rest about think the growth -- maintenance? we've Guys, that but I I don't just $XXX CapEx, cleanup past. is how XXX of in XXX, of items it? to think Is at in it growth, a you Is couple carved the that a much

Olivier Leonetti

to going doing that actually CapEx. is large be The going good gross CapEx of XXX to team rationalizing growth. the proportion job a The be our Largely, investments. is is

that We years. Craig that has number principle been has the of have implemented managed for a tail a

the XX%. growth. say most CapEx I So of would would be

Scott Davis

-- completely gosh, have I there a is X -- can't data segment X make sounds That does or XX%. like, sense most conversation eMobility But it from -- a to guys, first today that standalone to the your remember it -- maybe the was years sense years the it but seems different it's operationally it as as ago and still does standalone? it have when did still today, standalone ago. Okay, right. about when still as make Does same

Olivier Leonetti

X are there questions. So

of the From first And X how one those have run we separate reporting a our margin Again, X to same different investors businesses question. is that. very show standpoint, how different those That's dynamic profile, a are growth want the The evolving. different. they do businesses we profile. -- is to

So externally, today. we do we will what keep doing

Paulo Sternadt

long And and we use to it one run for internally, But one experienced maximizing we could we on run. lower on Electrical SG&A Vehicle the savings. are But give transparency engine years we programs We way you ago. internal combustion your business continue benefit businesses, to the synergies, believe we the giving started we then in demand also another. and the for our the point, you EVs, hedging

all. be I for think beneficial it will

Craig Arnold

the technology more it is is our than Vehicle ways to to business. business [indiscernible] mind in keep in Electrical our akin synergy And many

is from greater customer obviously, piece, to with affinity product legacy connectivity the but greater Vehicle, the there much a Electrical much so a business. And and technology standpoint,

Operator

comes Our Barclays. from with question next Julian Mitchell

Julian Mitchell

been short. I'll so hour, keep I know these it's an questions

I number growth again. the side. XX% double center left-hand data just X just sales one on First the to wanted Slide on check

was $X.X growth think which on know sort XXXX I that number revenue from I to? you've center, of all for before. it data applied imply broader sales of billion base that check given wanted But the was Because growth the Just to than figure XX% sort a that. based what Electrical would

of help that, So please? sort any around

Craig Arnold

No, appreciate the question, Julian.

Sometimes channel. math, percentage terms in thing, data as only the report the that centers, a [indiscernible] first we provide point the but data it's make when not on segments, of all of data clarification tough it numbers probably to of It's the but you IT the includes we company. total

businesses take way what extrapolate about the what and I businesses the that was balance is think think the balance only growth center to not of to the So data because center in what is the the But you're it, strip to when out that in can't you data number data that you of trying happens segment. number centers. get the

what where covered utility. I we in my saw good in high in very much low performed numbers our like And in chart presentation we my you I expectations, relative would these tell growth single-digit like -- commercial and about that single, talked high how institutional. to markets We numbers. had double-digit We

industrial, in It It growth mid-single, MOEM. good declines in by offset by offset offset the saw business. We in more that's declines residential. was legacy but some by was Vehicle declines in

what I really with again, And consistent much in it deck. out very on is, the Slide laid so once X

in numbers. to math the appreciate we make it's has [indiscernible]. line know performed business sometimes with do market because the difficult question But those we largely Our

Julian Mitchell

as of about XXXX you capacity in a that the center, guide, in revenue very sort That's this of helpful. based sort is the the And of strong year data when on about center expansions thinking we're well? growth data assuming strength sort orders' Electrical rate talked very growth and similar-ish

Paulo Sternadt

Yes. is True. answer The yes.

Craig Arnold

very year, but this We may of not rate experienced as be growth. growth same counting strong on very, the we still

Julian Mitchell

it. color X this Any one. to the margins please? Got expand year. last on drivers, years, then for And guided Aerospace, flat one [indiscernible]

Paulo Sternadt

went with Sure. our way is industry the run facilities. the difficulties whole -- operational The satisfied think not performance. last year. We the our we driver Julian, were in also I through biggest here

up. still to there's for if even we look go difficult what inefficiencies with. time over did in managed So you environment, us at deal margins Vehicle more But we in to move

predictable in on Aerospace, So that's to more do the biggest in new the than the orders. same count we mandate did exactly management the with advantage in much we team Aerospace of Vehicle the

here. we and own drive We large have backlog, our a can very destiny

we for to our appointed who Aerospace, the lead their that our the So in in do. industrial leaders why And but sector. forward the homework the improvement I led appointed business be margin of that's will think moving to [indiscernible] mandate. also That's reason John we most before we Vehicle need

Operator

Our next question comes from Chad Dillard Bernstein. with

Charles Albert Dillard

as does pace it at intensity [indiscernible] X Or from use So training know I center between debate but how and which we to differ happens, and does content can these Electrical cases? AI data inferencing, the at look, all? different the shift maybe like

sell understand cloud of data maybe would more this you of question, depending what how And like of less are use answer trying I'm AI? sales you versus cases. products on to your or guess much before the center I your

Paulo Sternadt

Okay.

So clarify the me let question.

DeepSeek we whether the what before You question the change asked of second part us versus would like part? sell. that first the changes Is

Charles Albert Dillard

shift from the to It's Yes. inferencing. like training

content intensity to trying products. Just in like Electrical understand the difference

Paulo Sternadt

Okay.

So great.

see I -- comment that like expected. us, would breakthroughs the be on first thing are coming DeepSeek That's We'll those for So I say. as I more this to say of would would up.

right, adoption, within And are But the data we suggesting, [indiscernible] data same when as more believe probably there to centers. center, inference exact portfolio. is we're more we exact same have you portfolio, centers than saw data going the

actually will forecast built are too the data making could you faster, of away. create data bottlenecks adoption centers for because what an the early. the interesting headache here industry go operators But inference and have if it's most center data biggest not -- And higher that centers, vastly I'm the be

be UPS gear. much be accommodate It's and server But switch consuming the be gigawatts smaller the transformers, to inference as the trying the well. very no centers, training it will could there. the will of hall same the and good It that basically, energy cetera. disruption same thing would inside the it Instead a accommodate be us et accelerate, same can you if same could centers, for build software, portfolio,

with we to tenant hyperscale the building backlog how way. said are data able help is be working and That's closely builds X actually them, and we in develop Having our faster, a their years large growing centers where really that, do focus. nice this

Nothing forward. after got with our keep same. we But We sentiment The calls is Monday. key still pushing customers changed. the

Charles Albert Dillard

just some lead expect adds they today, that know you time the of where capacity but go? talked I time one are the this second the one. lead where transformers? like online Maybe super Got in That's for has once a little helpful. quick to half core come of bit been like products like year, it. switchgear And

Paulo Sternadt

Yes.

we So we have X dozen -- we projects. as before, commented

are plants. Some of our expansion

plants that Some there the building. new are that more single cliff large event one although second that in coming we facility will a of capacity of online And move no see we is needle, the are half.

I the I think you. that's best give answer can

And yes, on continue lead we them. -- we to today, with work times,

they competitive, want but them we are down. higher I remain think drive historical to levels, than and we

Operator

comes Kaplowitz Citi. Our Andy from with question next

Andrew Kaplowitz

last starting think you about out. to from and obviously, you assumptions bottom I your 'XX builders talked negative for initial residential Europe machine growth. in to like But quarter, residential moved

to China you. worse markets those QX? alternatively, again for up just looks then And recovering not yet? did get through So Are they it like continues hold

there. seeing you over think Maybe else I mentioned anything that utilities. you're

Craig Arnold

as of the at the us end happened has And what resi, frankly, interest in market and cut rates, of Fed the expected everyone that, terms which know. consumers. we in improvement translate hasn't to an residential that for costs say happened incrementally I'd year, enthusiastic Yes. as borrowing quite that to all less the in

think. rates resi And bullish some less that fact the recovery, on margin, weaker say the specifically And stubbornly on remained And say there more in in so are given I'd on become have the out, But or I'd the MOEM shoots maybe QX. we've MOEM. segment, a green got we bit bottoming resi resi, less interest during high.

Andrew Kaplowitz

Electrical Americas up end of That's backlog helpful. And the XX% as then this year.

was slowing versus it organic time you're I in year up hurricane XX% or quarter? longer with there slower projects lower disruption at that slightly the larger think conservatism then in this slowed revenue anything just But last a was bit. duration? a I revenue some else know And in you modestly the 'XX reflection had growth forecast yet is forecasting of 'XX. QX maybe

Paulo Sternadt

low Craig we in And had of to look we continue for count our would the as cycle we we say I most growing forward, the had mentioned, some markets nicely. weaknesses -- as on QX, business. resi in Yes.

have would are better, for plants We we the I our strong putting we confident XX.X% And reiterate the midpoint. with and a the that. in running very backlog. at are the have the ones outlook we expansions, out capacity,

Craig Arnold

we've getting historically, quite earlier number point living the I'll actually, our just more are from look increases our years. is his going we were in growth and that And to an as We prior inflationary other those contributing were And growth price simply frankly, price, it most in raise and mentioned more of and we anniversaried volumes mentioned a environment. we forward, forward. commentary, Olivier as our of

So a big historically. we because as also amount in we're as relative difference the of experiencing the we've business much is price don't simply had that inflation have

Operator

comes next Our question ISI. David from with Raso Evercore

David Raso

'XX. I and don't we on then think year know should being degree full in it's ever added, sorry. I'll 'XX you be percent impact I capacity any coming Electrical quantify is the do actually to The across you've heard of be can capacity amount second quick. half late, across what think what of Electrical?

don't next businesses, at volume the this organic capacity as describing add say, normalized couple multiple to of When sales recovery more thinking growth sort if And years on Is a businesses. there the of any then I plays of already on this rate structurally be see some now can other to the for, dovetail for cyclical off -- comment we'll you're reason 'XX company something in hinting that think to out see what years? is willingness and Electrical you story. you're pricing, of do your in the your how it

Craig Arnold

this last question had We quarter well, as Yes. Dave.

we've you're on of of a increase capacity of not additions. percentage And the capacity So right, question our capacity. in around it expressed I base total appreciate terms the

at numbers the It's industries. constraints, that more and our when have facilities said in or investments are it just -- I facilities in capacity look our the But made cover those we of have manufacturing world. some multiyear is forecast capacity become more meaningless where XXX you than provide context the around think growth that we investments those for we to what that capacity total

going data today to that made we're cover we've commitments we're capacity so to view center we us a transformers, need. multiyear And products where the allow tight sizable of where and are investments like markets that in like to and

good company, we time, so And committed the we're last as shape. in

upside these than that markets talked growth into be will cover to about We bottleneck $X.X We're billion forecast will in making businesses. and tend stronger And industry. of the capacity we're We that not be our bit the if incremental provide a forecasting. investments. what the we're capacity putting

Paulo Sternadt

And the well to just talk see Day. that March imply, really segments, the in the breakdown Investor forward going XXXX. about that to complement -- in going explained We're Craig to you we're we give of the to how look world until you're and trying our the

Operator

Phil And Berenberg. Buller with from last our comes question

Philip Buller

some part the been some soft, been obviously which have for if business time. of There's very not soft

resi talk autos? from in you're seeing machine the share to or have can green what European on there Electrical, shoots OEMs, ground, any So market that quarter European been this or gains perhaps you

but in to the Andy's to but can what talked talk please? you side, question perhaps more or Craig, that, you're to of think U.S. on some specifically I seeing non-U.S. Europe you

a discussed Aero. I and just strategy but M&A a be was was focused to this Electrical follow-up, that And as on it going call, appreciate isn't

I to in So looking -- to at Investor strategic on that I'm talk you're the wondering to something guess if March. is exposure the of importance be automotive the going Day

Craig Arnold

you're weak. quite shoot that to has Germany right, industrial some Europe maybe relates Most for Europe, data and to the coming So specifically specifically of out green been soft the be and of on time. question it as just continues market

incrementally little of better market And our in expect that, recovery of are be own do and in our we in outlook to was terms having that XXXX. as in XXXX numbers forecast, machinery a see OEM saw Although in the bit it you our than we in said seeing you market.

we We the there seeing the a growth. residential but are macroeconomic forecasting little on still But not are recovery see. and bit think remain at cautious given I -- point, we of this And wait European business, Europe, where to have the some pieces of there. so specifically in of we'll environment growth

the they, It's we're seeing from are driving the They, same are And that benefiting data the from happening because in market, too, centers. their what's accelerating. some too, benefiting in those they're business in largely of market. U.S. megatrends growth utility are of seeing some macro and

Paulo Sternadt

the going We're our eMobility I'll about Yes. Investor second your Day. Vehicle, question. in it in part the That to talk about was of talk March.

Yan Jin

Thanks, guys. We do appreciate everybody's questions.

As be team for to your good Have Thanks a joining address questions. us. will our day. available always, follow-up

Operator

you concludes for you. conference. participation. the your Thank Thank This

disconnect. now may You

Eaton (ETN) 31 Jan 252024 Q4 Earnings call transcript