Why invest in Eaton

Built on a foundation of shared values and vision, we deploy advanced technologies that deliver real value for our customers and shareholders.

Who we are

We are an intelligent power management company, uniquely positioned to capitalize on some of the most important secular growth trends of our lifetime. 

  • Sustainability is at the core of what we do, and we believe that what’s good for the planet and for people is also what’s good for our business. 
  • Digitalization impacts nearly every element of our strategy and is key to opening new business models through the interconnectivity of products and systems.
  • The Energy Transition from fossil fuels to renewables, driven by climate change, is leading to an unprecedented growth in electrification. Electrical content is growing in every part of our lives: in electric cars, as well as in commercial vehicles, homes, buildings—just about everywhere.

These trends are accelerating our growth and enabling the company to deliver higher and more consistent earnings.

Driving long-term value for shareholders

Driving long-term value for shareholders

At Eaton, we’ve transformed the company to deliver higher growth, higher margins and more earnings consistency. As a result, our businesses are well-positioned for the future. Our track record of margin expansion, attractive cash flow and smartly deploying capital has allowed us to return cash to shareholders through dividend and share repurchases, while growing our businesses through strategic acquisitions. 

Our fundamentals

Our strategy

Eaton is delivering on the 5-year financial targets outlined in 2015, and our businesses are well-positioned to perform as we enter a period of attractive market growth. Our strategy for improving our business and cost structure is working, as we continue to increase margins and grow our earnings per share. Our cash flow remains strong, allowing us to return cash to shareholders through dividend and share repurchases, while growing our businesses through strategic acquisitions. We are also investing in the future of our businesses to accelerate organic growth through research and development and capital spending. Over the past 5 years, we have improved our balance sheet. Our credit rating is strong with a split A-/BBB+ rating from the agencies. In addition, our pension funds are well funded, with our US qualified pension funding exceeding 95 % at the end of the third quarter of 2018.   

Eaton is in the right markets, executing on the right strategy and uniquely positioned at this time for strong earnings growth over the period 2018-2020.

Here's more on what Eaton is doing to drive long-term value for our shareholders: 

Strategic growth initiatives – Organic growth continues to play a central role in how we define success across our company. We are focused in three areas that we believe will drive significant growth in the future: technology differentiation, leveraging our channel and service strengths, and delivering superior product value for our customers. We’re investing in emerging technologies and intelligent products – the building blocks of the Internet of Things – where we have strategic advantages that will allow us to win in our increasingly connected world. In these products, we are going beyond collecting and reporting data; we’re working to create value for our customers by improving reliability, safety, and efficiency. In addition, our eMobility business, which combines elements of our Electrical and Vehicle businesses to deliver electric vehicle systems, is poised for growth as consumer demand increases and vehicle manufacturers are looking to strengthen their product portfolios.


Expanding margins through operational efficiency – We’ve expanded our margins by reducing structural costs, improving how we run our operations and leveraging the scale of our global enterprise. This trend is expected to continue beyond 2020.


Disciplined capital allocation – We are generating strong cash flow that enables us to invest in the business, pursue strategic acquisitions and consistently return cash to our shareholders through a dividend that grows with earnings and share repurchases. Eaton has paid dividends on its common shares every year since 1923.

 

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By 2030 our goal is to reduce GHG emissions from our operations by 50 % from 2018 levels
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By 2030 our goal is to have all of our manufacturing sites zero waste-to-landfill certified
$3 bn
Our investment in R&D targeted at creating sustainable solutions by 2030