Eaton, a leading intelligent power management company, has recently announced its plan to spin off its mobility group into an independent, publicly traded company. This strategic move is in line with Eaton's 2030 growth strategy, which aims to enhance focus on higher growth, higher margin electrical and aerospace businesses directly aligned with secular megatrends.
The separation of the mobility group is expected to be immediately accretive to Eaton's organic growth and operating margin. Upon completion of the separation, Eaton will be able to prioritize the allocation of capital on higher-growth, higher-margin businesses with more earnings consistency, bolstered by recent acquisitions such as Ultra PCS and the announced acquisition of Boyd Thermal.
The mobility group, which will become an independent entity, is a key player in providing mission-critical and safety-critical engineered solutions for commercial vehicle, automotive, and off-highway OEMs. It holds a strong market position and industry-leading technologies, positioning it as a global engineered solutions partner in its field.
This separation is expected to enable both Eaton and the mobility group to benefit from increased focus on core businesses and strategic priorities, tailored capital allocation strategies, improved ability to adapt quickly to evolving market dynamics, and distinct investment profiles that unlock greater long-term sustainable value for each company.
The transaction is anticipated to be completed by the end of the first quarter of 2027, subject to customary legal and regulatory requirements and approvals. Eaton will announce its fourth quarter 2025 earnings on Tuesday, February 3, 2026, before the opening of the New York Stock Exchange, and senior management will discuss the separation transaction and review fourth quarter 2025 earnings results on a conference call at 11:00 a.m. ET on the same day.
Eaton is being advised by Morgan Stanley & Co. LLC as its financial advisor on the transaction, with legal counsel provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Hogan Lovells. Joele Frank, Wilkinson Brimmer Katcher is serving as Eaton's strategic communications advisor.
Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of its stakeholders. With revenues of nearly $25 billion in 2024, the company serves customers in more than 160 countries. Following these announcements, the company's shares moved 3.09%, and are now trading at a price of $343.75. For the full picture, make sure to review Eaton Corp's 8-K report.
