Why invest in Eaton
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.
Our businesses
Our market-leading businesses are in mission-critical industries where these trends are accelerating growth and making power safe, reliable and efficient. Our portfolio is made of up four segments—electrical, aerospace, vehicle and eMobility. Our broad array of highly engineered products help our customers meet stringent code and regulatory requirements, while also protecting people and assets and improving productivity. And our large installed base of equipment around the world creates opportunities for predictable, high-margin aftermarket sales.
What we do
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
Our strategy is built around doing three things very well.
- Organic growth: We are investing in technology, partnerships and value creation for our customers to accelerate organic growth in high-growth and high-margin areas of our businesses.
- Expand margins: We have a track record of expanded margins by deploying the Eaton Business System, driving operational excellence in our factories and functions, and through smart capital deployment on those areas of the business that deliver the best returns.
- Disciplined capital allocation: We employ a disciplined approach to capital allocation that has enabled us to invest in our businesses, consistently return capital to our shareholders, and improve our portfolio through strategic acquisitions and divestitures.
All three elements of our strategy are enhanced by the digitalization initiative taking place across the company.
Here's more on what Eaton is doing to drive long-term value for our shareholders:
Advancing digital transformation
We have built momentum around digital transformation—a critical step in our evolution into an intelligent power management company. We created the Eaton Digital Office and introduced Brightlayer, our market-facing platform that allows us to monetize data through new insights and software.
Transforming by strategic portfolio moves
We actively manage our portfolio of businesses using stringent criteria, including an ability to lead in large global markets, above-average growth potential, high returns on capital and consistent profitability. This has allowed us to continually transform to embrace the realities of a changing world and remain strong.
Leading on ESG
We are committed to industry-leading ESG practices. We've joined the global movement to limit the increase of the world’s temperature to 1.5°C—an effort that begins with our commitment to aggressive, science-based targets. We've also committed to modeling inclusion and diversity throughout our operations. Two-thirds of Eaton’s Board of Directors are either women or U.S. minorities. And 54% of our global leadership team are U.S. minorities.
