May. 6 at 10:05 PM
$ETN The company reported record revenue of
$7.45B, up 17% YOY. Q1 earnings showed robust momentum in data center orders, which surged 240% during the quarter. The backlog reached 228 GW, representing roughly 12 years of business at current build rates. FCF increased by 245% YOY.
Analysts noted that management is aggressively "fixing the tail" of the portfolio by exiting low-margin vehicle businesses to focus on high-growth electrical and aerospace sectors. Aerospace achieved record margins of 26.7%, driven by strong demand in defense and commercial aftermarkets. Electrical revenue grew 21% to a record
$1.9B, with expanded operating margins. Analysts expressed concerns over "conservative" guidance and near-term margin pressure.
This is a long position for me, up 224%. It pays a dividend of
$1.10/share. Next Ex-Div date is May 8th.
