Eaton to Spin Off its Mobility Group

Paulo Ruiz, Eaton CEO, said in the press release, "The separation of Mobility advances Eaton’s bold new 2030 growth strategy to lead, invest, and execute for growth. Our team will have a sharpened focus on our core Electrical and Aerospace businesses, which are driven by powerful megatrends including in electrification, digitalization and AI, reindustrialization, infrastructure spending and growth in the aerospace after-market and defense demand. We are confident that Eaton is exceptionally well‑positioned to capitalize on opportunities to accelerate growth and margin expansion, and to create long‑term value for our shareholders.

"We are incredibly proud of what our Mobility team has built and believe that now is the right time to separate that business. As an independent company, Mobility will be able to build on its strong foundation as a leading supplier across the globe and have the strategic focus and agility to allocate capital and resources to best serve its customers, pursue independent growth opportunities, and drive innovation."

Upon completion of the separation, Eaton says it will be positioned to execute on the Company’s 2030 growth strategy by prioritizing allocation of capital on higher-growth, higher-margin businesses with more earnings consistency. Eaton will have a focused portfolio, strengthened by the recent acquisition of Ultra PCS and the announced acquisition of Boyd Thermal, primed to capitalize on strong demand in data center, utility, commercial and institutional markets, as well as Aerospace’s growing position in defense industry and commercial aftermarket.

The separation of the Mobility Group builds on Eaton’s track record of value creation and portfolio transformation and follows the divestitures of Lighting in 2020 and Hydraulics in 2021. The separation of the Mobility Group is expected on closing to be immediately accretive to Eaton’s organic growth and operating margin.