Eaton Corporation (NYSE:ETN) shares are trading lower premarket on Friday after the company reported first-quarter 2025 results.

Revenue rose 7% year-over-year (Y/Y) to $6.38 billion, beating the consensus of $6.26 billion. Organic sales growth grew 9% Y/Y.

Electrical Americas segment sales rose 12% Y/Y to $3 billion, aided by organic sales growth of 13% Y/Y. Backlog at the end of the quarter rose 6% Y/Y organically.

Also Read: Eaton’s Growth Targets Look Achievable, Analyst Raises EPS Forecast For 2026 & 2027

Electrical Global segment sales grew 7% Y/Y to $1.6 billion in the quarter. Backlog increased 5% Y/Y organically.

Total segment margins reached 23.9%, an expansion of 80 basis points Y/Y in the quarter. Adjusted EPS rose 13% Y/Y to $2.72, beating the consensus of $2.71.

Operating cash flow stood at $238 million, and free cash flow came in at $91 million in the quarter.

Paulo Ruiz, Eaton president and chief operating officer, said, “Demand in our end markets continues to drive strong organic growth. As we look ahead, we’re confident, even amid broader macroeconomic volatility, we’re prepared to meet that demand with a proven strategy to invest in our businesses, drive operational excellence and continue our path of growth.”

Guidance: For 2025, Eaton reiterated adjusted EPS of $11.80 – $12.20 vs. $11.97 consensus estimate.

The company revised its organic growth outlook to 7.5%-9.5% from 7% – 9% in the prior year quarter.

For the second quarter, the company expects organic growth of 6%-8% and adjusted EPS of $2.85-$2.95, compared to the street view of $2.98.

Investors can gain exposure to the stock via First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID) and TCW Transform Supply Chain ETF (NYSE:SUPP).

Price Action: ETN shares are down 2.14% at $295.39 at the last check Friday.

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