Second Quarter 2024 Earnings Release

Craig Arnold & Olivier Leonetti | August 1, 2024

© 2024 Eaton. All rights reserved. 1

 Forward-looking statements and non-GAAP financial information

This presentation or the comments we make on our call today contain forward-looking statements concerning, among other matters, full year
and third quarter 2024 adjusted earnings per share, organic revenue growth and segment operating margins; full year 2024 operating cash flow,
free cash flow, and anticipated share repurchases; assumptions about the impact on the foregoing of currency translation, tax rate, corporate
expenses and capital expenditures; and end markets growth. These statements should be used with caution and are subject to various risks
and uncertainties, many of which are outside the company’s control. The following factors could cause actual results to differ materially from
those in the forward-looking statements: potential global pandemics, such as COVID -19, unanticipated changes in the markets for the
company’s business segments; unanticipated downturns in business relationships with customers or their purchases from us; competitive
pressures on sales and pricing; continued supply chain disruptions, unanticipated changes in the cost of material, labor and other production
costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or
marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest at Eaton or at our customers or
suppliers; the performance of recent acquisitions; unanticipated difficulties closing or integrating acquisitions; unexpected difficulties completing
divestitures, new laws and governmental regulations; interest rate changes; stock market and currency fluctuations; geo-political tensions, war,
civil or political unrest or terrorism; and unanticipated deterioration of economic and financial conditions in the United States and around the
world. We do not assume any obligation to update these forward-looking statements.

This presentation includes certain non-GAAP measures as defined by SEC rules, including the following: adjusted earnings, adjusted earnings
per share, adjusted earnings per share guidance for the third quarter and full year 2024, free cash flow, and free cash flow guidance for full year
2024. These non-GAAP measures are reconciled to their nearest GAAP equivalent in the Appendix to this presentation.

© 2024 Eaton. All rights reserved. 2

Highlights
Record adjusted earnings per share of $2.73, up 24% versus 2Q23.

Record segment margins of 23.7%, up 210 bps versus 2Q23.

Order growth of 9% in Electrical and 4% in Aerospace on a rolling 12-month basis.

Electrical and Aerospace backlog up 27% and 14% in 2Q24 with book-to-bill ratio at 1.1 and 1.1, respectively.

Raising 2024 Eaton guidance for organic growth, segment margins, adjusted EPS and cash flow.

© 2024 Eaton. All rights reserved. 3

Key drivers of Eaton’s long term growth outlook
Key Markets

Commercial & Data Residential Legacy

Megatrends Institutional Center
Industrial
Buildings
Utility Aerospace e-Mobility
Vehicle

Electrification

Energy Transition

Digitalization

Infrastructure Spending

Reindustrialization

Green Regulations

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Electrification, energy transition, and reindustrialization are driving
growth across ~75% of our end markets

Key Markets

Commercial & Data

Industrial Utility Aerospace e-Mobility
Institutional Center

% of 2023 Eaton
20% 14% 12% 11% 15% 3%
Sales

Previously reported end market CAGRs

Growth
9% 25% 7% 11% 12% 24%
Note: Compound annual growth rate (CAGR)

© 2024 Eaton. All rights reserved. 5

Leading to a dramatic change in the number of mega project announcements

2Q’24 totals exceed $118B on 36 projects

Backlog has grown by ~$800B

$1.4T Mega projects represented 15% of total

nonresidential construction starts in 2023
in cumulative
North America Only 15% of these projects have started
mega projects construction – multi-year runway
since Jan. 2021
Data Center and Power Generation represent
~40% of announcements in the last twelve months

Win rate of approximately 40%

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Commercial & Institutional end markets are also seeing significant growth

Key Drivers: Commercial & Institutional (C&I) End Market

Indexed Growth
• Increased electrification with smart/connected
Americas C&I Market
assets & hardware and digitized services

• Zero-carbon mandates, CO2 reduction targets,

sustainability compliance and certification

• Emergence of distributed energy resources

(DER) requires load management solutions

• Direct funds, grants, and rebates

2023 2024 2025 2026

In the first half of 2024, Commercial & Institutional negotiations pipeline up 34% YoY
Note: Compound annual growth rate (CAGR) from 2023 to 2026.

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 Eaton offers the broadest portfolio of solutions for ​
Commercial & Institutional buildings Brightlayer Buildings suite software
• Energy management system
Power
Low-voltage motor • Cybersecurity services
distribution unit
control centers • Charging network manager
Power
distribution Panelboards and
Busway unit switchboards
Uninterruptible
power supplies (UPS)

Low-and medium-voltage
switchgear
Energy storage

Low-voltage
Microgrid switchboard and
switchgear Services
microgrid controller

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We’re investing in incremental capacity investments to support
structurally higher growth
Product lines across key end markets
$1B+
Global incremental investment
announced

2M+
Data
Center Industrial Utility

Utility: three-phase transformers & voltage regulators,

line insultation & protection equipment Additional
Square footage
Data Center, Commercial & Institutional and

25+
Industrial: low & medium voltage assembly,
switchboards and panelboards
Commercial & Institutional: circuit breakers
Operational sites impacted

© 2024 Eaton. All rights reserved. 9

We made a strategic investment in NordicEPOD AS, expanding reach
into the European data center market

Completed strategic investment in NordicEPOD, a

Norwegian company that designs and assembles
standardized power modules for data centers

Co-invested with CTS Nordics, a high-growth company

with strong reputation in Nordics data center market

Focused on reducing complexity, costs and lead times

for large modular data centers

Power modules are increasingly the preferred approach

for many data center customers in Europe

Eaton will supply the majority of critical power products

and services

© 2024 Eaton. All rights reserved. 10

Financial Summary
(M) 2Q ‘24 2Q ‘23 V ‘23

Sales $6,350 $5,866 8%

Segment Operating Profit 1,502 1,264 19%

Segment Operating Margin 23.7% 21.6% 210 bps

Adjusted Earnings 1,096 886 24%

Adjusted EPS $2.73 $2.21 24%

$6,350M Record
Quarterly Sales
Sales Growth:
Organic 9%
$1,502M Record Quarterly
Segment operating profit Acquisition --
Forex (1)
23.7% Record Quarterly
Segment operating margin
Total 8%

© 2024 Eaton. All rights reserved. 11

Electrical Americas Segment
(M) 2Q ‘24 2Q ‘23 V ‘23

Sales $2,877 $2,538 13%

Operating Profit 859 669 28%

Operating Margin 29.9% 26.4% 350 bps

Record sales, operating profit and margin.

Sales Growth:
Orders up 11% on a rolling 12-month basis. Organic 13%
Acquisition --
Backlog up 29% year-over-year. Forex --
Total 13%
Book-to-bill ratio of 1.2 on rolling 12-month basis.

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Electrical Global Segment
(M) 2Q ‘24 2Q ‘23 V ‘23

Sales $1,606 $1,569 2%

Operating Profit 305 290 5%

Operating Margin 19.0% 18.5% 50 bps

Orders up 7% on a rolling 12-month basis. Sales Growth:

Backlog up 16% year-over-year. Organic 3.5%

Forex ~(1.5)%
Book-to-bill ratio of 1.1 on a rolling 12-month basis. Total 2%

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Aerospace Segment
(M) 2Q ‘24 2Q ‘23 V ‘23

Sales $955 $848 13%

Operating Profit 206 191 8%

Operating Margin 21.5% 22.5% 100 bps

Record sales, Q2 record operating profit.

Sales Growth:
Backlog up 14% year-over-year. Organic 13%
Forex --
Book-to-bill ratio of 1.1 on a rolling 12-month basis.
Total 13%
$2B+ Life of Program wins in the quarter.

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Vehicle Segment
(M) 2Q ‘24 2Q ‘23 V ‘23

Sales $723 $751 (4)%

Operating Profit 130 115 13%

Operating Margin 18.0% 15.3% 270 bps

Sales Growth:
Strong operational performance producing Organic (3)%
higher profit on lower sales year-over-year.
Forex (1)%
Total (4)%

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eMobility Segment
(M) 2Q ‘24 2Q ‘23 V ‘23

Sales $189 $161 18%

Operating Profit / (Loss) 2 (1) --

Operating Margin 1.3% (0.5)% 180 bps

Sales Growth:
New program launches & ramp-ups driving Organic 18%
significant outgrowth versus the market.
Forex --
Total 18%

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Electrical and Aerospace backlogs remain robust and growing

Electrical Sector Historical Backlog Aerospace Segment Historical Backlog

($ blns) ($ blns)
$11.4
$12.00 $4.00

$3.50
$3.5
$10.00

$3.00

$8.00

$2.50

$6.00 $2.00

$1.50 $1.4
$4.00

$2.8 $1.00

$2.00

$0.50

$0.00 $0.00

Q4 '19 Q4 '20 Q4 '21 Q4 '22 Q4 '23 Q2 '24 Q4 '19 Q4 '20 Q4 ' 21 Q4 '22 Q4 '23 Q2 '24

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Eaton’s 2024 end market growth assumptions
% of Total 2023 % of Total 2023
Eaton Sales Eaton Sales

Data Centers & Distributed IT 14% Commercial Aerospace 9%

Utility 11% Defense Aerospace 6%

Industrial Facilities 12% Electric Vehicles 3%

Commercial & Institutional 20% ICE Light Vehicles 4%

Machinery / MOEM 6% Commercial Vehicles 8%

Residential 7%

Declining Flat Modest Growth Solid Growth Strong/Double Digit Growth

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2024 Organic Growth and Operating Margin Guidance
Organic Growth Guidance Operating Margin Guidance
Segment

Electrical Americas 11.5 – 13.5% 28.7 – 29.1%

Electrical Global 2.5 – 4.5% 19.4 – 19.8%

Aerospace 10 – 12% 23.3 – 23.7%

Vehicle (4) – 0% 16.3 – 16.7%

eMobility 17 – 23% 1 – 2%

Eaton 8 – 9% 23.3 – 23.7%

© 2024 Eaton. All rights reserved. 19

2024 Guidance
3rd Quarter Outlook 2024 FY Outlook
Updated Guidance
Adjusted Earnings Per Share $2.73 – $2.83 $10.65 – $10.75

Organic Revenue 8 – 9% 8 – 9%

Segment Operating Margins 23.5 – 23.9% 23.3 – 23.7%

Operating Cash Flow N/A $4.2B – $4.4B

Free Cash Flow N/A $3.4B – $3.6B

Share Repurchases N/A $1.5B to $2.5B

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Summary

Robust project activity tied to megatrends continues

• Reindustrialization, data centers markets and infrastructure spending were strong contributors

We delivered a strong second quarter of financial results

• Record sales, segment operating margin, adjusted earnings and adjusted EPS

Continued strength in orders and record backlog

• Underpins growth expectations for the balance of this year and continued benefits from secular growth

Raising 2024 guidance for organic growth, segment margins, adjusted EPS and cash flow
• Expect strong momentum from the first half to carry forward

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© 2024 Eaton. All rights reserved. 22
Appendix

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2024 Guidance – Additional Modeling Assumptions

3rd Quarter Outlook 2024 FY Outlook

Currency Translation ~flat (~$50)

Corporate Expenses ~flat with 3Q23 $700M

Tax Rate on Adjusted Earnings 16.5 – 17.5% 17 – 18%

Capex N/A $800M

© 2024 Eaton. All rights reserved. 24

© 2024 Eaton. All rights reserved. 25