ETN

Follow the electricity into a data center. Power arrives from the utility grid at high voltage — typically 13.8kV or higher. It enters the building through Eaton's medium-voltage switchgear: large metal-enclosed cabinets that receive the incoming power and distribute it to transformers. Those transformers step the voltage down to 480V, which feeds into Eaton's low-voltage switchgear, then to automatic transfer switches (selecting between utility and backup generators), then to power distribution units (PDUs), which finally deliver power to the server racks. At each step, Eaton equipment protects the electrical system: circuit breakers, surge protectors, and monitoring systems that track power quality across the entire distribution chain.

Eaton is a diversified industrial power management company operating across four segments: Electrical Americas (~48% of revenue, highest growth), Electrical Global (~22%), Aerospace (~15%), and the Vehicle/eMobility segments (~15%, being spun off). The electrical segments are the AI story — Electrical Americas grew 21% organically in Q4 2025, driven by data center construction, grid modernization, and industrial reshoring.

The strategic transformation is accelerating. On January 26, 2026, Eaton announced the spin-off of its Vehicle and eMobility segments into an independent public company ("Mobility Group"), expected to complete by Q1 2027. This sharpens Eaton into a focused electrical infrastructure and aerospace company — the two segments with the strongest secular growth tailwinds and highest margins. Post-spinoff, Eaton will be approximately 75% electrical and 25% aerospace, with data center as the fastest-growing vertical.

The 800V DC architecture is Eaton's most strategically significant development. Traditional data centers use 480V AC distribution, converting power multiple times before it reaches the chip — each conversion losing 2-4% efficiency. NVIDIA's 800V DC reference architecture, co-developed with Eaton and unveiled at GTC, carries power at high voltage directly to the rack using SiC power electronics. Eaton's Beam Rubin DSX platform, showcased at GTC 2026, is purpose-built for this architecture. The 800V transition doesn't just maintain Eaton's position — it increases the dollar content per megawatt of data center capacity by 15-20%.

Eaton is headquartered in Dublin, Ireland (for tax purposes), with primary operations in the US. FY2025 revenue of $27.4B was a record, with adjusted EPS of $12.07 (+12% YoY). The backlog stands at over $19B — Electrical Americas alone is nearly $10B, up 4x since 2019. The company wins approximately 40% of the $3 trillion megaproject backlog in North America.