Eaton faces risks from fluctuating interest rates, currency exchange rates, and commodity prices, managed through derivatives. Legal proceedings, including Brazilian tax cases, and potential asbestos-related claims, pose uncertain costs. Economic downturns, customer financial issues, supply chain disruptions, and competitive pressures are also noted risks. The company's reliance on suppliers and the SCF program also presents potential risks.
Financial Upside
Eaton's organic sales growth is up 8% in Q3 2024 and 8% in the first nine months of 2024, driven by strength in commercial and institutional markets, data centers, and utilities. Acquisitions (Exertherm, Jiangsu Ryan Electrical Co. Ltd., NordicEPOD AS) are expected to generate synergies. The company is increasing capital expenditures to support growth. Improved operating efficiencies and higher sales contribute to increased gross profit margins.
