Aureus
AExcellent

Eaton Corporation, PLC(ETN)

A

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin12.9%Free Cash Flow / Revenue
Cash Conversion109.4%Operating CF / Net Income
Free Cash Flow$3.6B
Revenue$27.4B
Net Cash-$9.9BNet debt position
Debt / FCF3.0xManageable debt load
Current Ratio1.32Adequate short-term liquidity
YoY FCF Growth+17.2%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (12.9%, 3.0x)
→
+1Strong YoY FCF growth (17.2% YoY)
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (12.9%)
  • Excellent cash conversion (109%)
  • FCF trend is improving

Concerns

  • Net debt position ($9.9B) — 3.0x FCF, manageable

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin12.9%
Net Margin14.9%
Operating CF Margin16.3%
CapEx Ratio3.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$9.9BNet debt position
Debt / FCF3.0xManageable debt load
Current Ratio1.32Adequate liquidity
Debt / Equity0.54Low leverage

Quarterly FCF Trend

+17.2% YoYImproving (+17.2%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameEaton Corporation, PLC
SectorIndustrials
Free Cash Flow$3.6B
Revenue$27.4B
Net Income$4.1B
Operating Cash Flow$4.5B
Capital Expenditure$919.0M
FCF Margin12.9%
Cash Conversion Rate109.4%
Net Margin14.9%
Total Debt$10.5B
Total Cash$622.0M
Net Cash-$9.9B
Current Ratio1.32
Debt / Equity0.54
Debt / FCF3.0x
YoY FCF Growth+17.2%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance