イートン（ETN）2026年第3四半期決算説明会：電気部門の成長加速によりガイダンスを上方修正

イートンの2026年第3四半期決算説明会では、過去最高の売上高および調整後EPS、電気関連需要の加速、受注残高の拡大、そして通期の有機的成長率および業績予想（ガイダンス）の今年3回目となる上方修正が強調されました。

主要なポイント

• 売上高は前年同期比28%増の89億ドルと過去最高を記録しました。これには19%の有機的成長と、買収による8ポイントの寄与が含まれます。
• 調整後EPSは前年同期比20%増の3.68ドルと過去最高を更新し、イートンの自社予想レンジの上限を0.12ドル上回りました。
• エレクトリカルの南北アメリカ部門の有機的売上高は22%増加し、グローバル部門の有機的売上高は27%増加しました。電気関連事業の合計受注残高は前年同期比46%増の200億ドルを超えました。
• データセンター関連の売上高は65%増加し、過去12か月累計の受注高は100%以上増加しました。経営陣はまた、産業機械OEM、公益事業、商業および公共施設市場全体での幅広い需要を強調しました。
• イートンは2026年の有機的成長率のガイダンスを13%〜15%に、調整後EPSのガイダンスを13.70ドル〜13.80ドルに引き上げました。これは今年3回目の上方修正となります。
• ボイド・サーマル（Boyd Thermal）は前年同期比でほぼ3桁の成長を達成しました。イートンはボイドの通期売上高見通しを19億ドルに引き上げ、同事業が2027年には少なくとも27億ドルに達すると見込んでいます。

主要財務データ

事業・稼働状況

エレクトリカルの南北アメリカ部門

有機的売上高はデータセンター向けの54%増、産業機械OEMおよび商業・公共施設市場での好調な伸びが牽引し、22%増加しました。セグメント利益率は前四半期比で230ベーシスポイント、第1四半期比で400ベーシスポイント以上上昇し、29.8%に達しました。

受注高は50億ドルを超えました。過去12か月累計の受注高は39%増加し、BBレシオ（受注出荷比率）は1.3を維持、受注残高は33%増加して過去最高を更新しました。イートンによると、商談パイプラインは年初来で約55%拡大しました。

経営陣は利益率の回復について、設備投資による産出量の増加、価格調整策、および執行力の向上によるものとしています。一時的な原材料コストの上昇が前年同期比で引き続き重荷となったものの、第3四半期の価格・コスト差益（プライス・コスト）は金額ベースでプラスとなりました。

エレクトリカルのグローバル部門

全売上高は58%増加しました。これには27%の有機的成長と、ボイドによる31ポイントの寄与が含まれます。経営陣によると、アジア太平洋（APAC）の有機的売上高は50%近く増加し、欧州・中東・アフリカ（EMEA）およびグローバル・イノベーション・ソリューションズはそれぞれ約20%増加しました。

エンド市場別では、エレクトリカル・グローバルのデータセンター向け売上高が97%増、産業機械OEM向け売上高が29%増、公益事業向け売上高が21%増となりました。過去12か月累計の受注高は51%増加し、受注残高は前年同期比で2倍以上に拡大しました。ボイドを除いた受注残高も76%増となっています。

営業利益率は全地域での改善に伴い、前年同期比で200ベーシスポイントの上昇となる21.1%となりました。経営陣はエレクトリカル・グローバルについて、欧州での構造改革、アジアでの生産能力増強、およびグローバル顧客との連携拡大に支えられ、持続的な成長フェーズに入ったと述べています。

データセンターとボイド・サーマル

全社ベースのデータセンター向け売上高は65%増加し、9四半期連続で35%を超える成長を記録しました。受注高は101%増加しました。イートンが追跡している発表済みのデータセンタープロジェクトは、既存の設置基盤（50ギガワット）に対し、現在合計366ギガワットに達しているとのことです。

ボイド・サーマルの売上高は前年同期比でほぼ3桁の成長を記録し、第2四半期比で24%増加したほか、受注残高はほぼ3倍になりました。経営陣はこの好業績について、AIインフラへの投資加速と顧客による水冷（液冷）アーキテクチャの採用によるものとしています。

イートンは、ボイドの熱管理機能と自社の電気関連製品ポートフォリオを統合し、より高度に統合された電力・冷却システムを提供しています。同社はボイドの2026年の売上高見通しを19億ドルに引き上げ、そのうち16億ドルが今年度中にイートンの業績として計上される見込みです。

エアロスペースとモビリティ

エアロスペース（航空宇宙）部門の有機的売上高は6%増加し、四半期ベースで過去最高の売上高およびセグメント利益を達成しました。Ultra PCSが5ポイントの成長寄与を果たし、引き続き利益率向上に貢献しました。エアロスペースのセグメント利益率は24.9%で、前四半期比で200ベーシスポイント以上上昇したものの、製品ミックスの影響で前年同期比では100ベーシスポイント低下しました。

エアロスペースの受注高は20%増加し、これには防衛OEM向け受注の36%増が含まれます。BBレシオは1.2でした。

モビリティ部門の売上高は10%増加しました。これには9%の有機的成長と為替による1ポイントのプラス寄与が含まれます。利益率は370ベーシスポイント拡大して2018年以来の最高水準となる17.2%に達し、限界利益率は50%を超えました。

経営陣による業績予想（ガイダンス）

イートンは、全社ベースの2026年有機的成長率予想を前回の11%〜13%から13%〜15%へと引き上げ、中間値ベースで200ベーシスポイントの上方修正を行いました。この引き上げは主に電気関連需要の更なる高まりを反映したものです。

経営陣は通期のキャッシュフロー予想を据え置きました。また、2027年にイートンのエンド市場で縮小が見込まれる分野はないと述べました。ポートフォリオの約90%は拡大が見込まれる市場に属しており、住宅分野および小型車分野は横ばいで推移すると予想されています。

イートンは、2027年のエンド市場全体で合計約11%成長し、同社はそれを上回る成長（アウトパフォーム）を実現できると推計しています。データセンター、分散型IT、および民間航空宇宙分野は力強い2桁成長を達成する見込みです。なお、これらの発言は正式な2027年のガイダンスではなく、初期の計画フレームワークを示すものです。

リスクと注視点

• エレクトリカルの南北アメリカ部門は依然として高いインフレ環境下で稼働しており、原材料コストの上昇が前年同期比で一時的な利益率の押し下げ要因となっています。
• データセンター業界における交流（AC）から直流（DC）アーキテクチャへの移行時期はイートンの制御が及ばない領域ですが、経営陣はいずれのアーキテクチャにも対応したパワートレイン製品を供給可能であると述べています。
• エアロスペース部門では、一部の資材・部品においてサプライヤーによる供給上の制約に直面しています。イートンはサプライヤーの生産能力増強支援、セカンドソースの開拓、一部生産の内製化を進めていますが、サプライヤーの変更には顧客の承認が必要です。
• 新たな生産能力の確立には着実な実行が引き続き求められます。イートンは25の拡張プロジェクトのうち18を完了しており、大型三相変圧器の製造施設を含む6つの拡張プロジェクトが現在進行中です。
• 経営陣は、配電事業などを中心に季節的要因が存在するため、第4四半期のエレクトリカル南北アメリカ部門の利益率を単に年換算することに対して注意を促しました。

アナリスト質疑応答のハイライト

次世代データセンター向け電力アーキテクチャ

イートンによると、同社の15kV・2メガワットのソリッドステート変圧器が10月に該当するUL規格試験に合格しました。また、欧州およびアジア市場向けの別途の屋内型ユニットもTÜVの試験を完了しました。同社は10件の実証実験（パイロット）を並行して実施中であり、2026年には複数のプロジェクトで出荷を開始し、2027年には本格的な量産展開を見込んでいます。

経営陣はイートンについて、ソリッドステート変圧器、直流遮断器（DCブレーカー）、電力品質管理、高度な冷却システムまで幅広く網羅する技術力を持ち、どのようなアーキテクチャにも柔軟に対応可能（アーキテクチャ・アグノスティック）であると位置づけました。

データセンター以外の需要

経営陣によると、第3四半期の有機的売上高は商業・公共施設向けで10%台半ば、産業機械OEM向けで30%台半ば、産業プラント施設向けで2桁台の伸びを記録しました。過去12か月累計の受注高は、公益事業向けで約20%増、住宅向けで25%増、産業機械OEM向けで55%増となりました。

モジュール型データセンターシステム

イートンは、変圧器、スイッチギア（配電盤）、回路遮断器、UPS（無停電電源装置）機器にわたる自社の垂直統合モデルを強調しました。経営陣は、サードパーティによる組み立てを主とするモデルに比べ、コスト、リードタイム、および供給体制の面で高い管理能力を発揮できると述べました。

ファイバー・ボンド（Fiber Bond）の売上高は、イートン傘下に入った初年度の3億7500万ドルから6億ドルへと拡大し、利益率はエレクトリカル南北アメリカ部門全体の押し上げに寄与しています。イートンは既存拠点の生産能力を2倍に増強しており、2029年に稼働開始予定のアーカンソー州の新施設も計画しています。

M&Aの優先順位

イートンはこれまでに買収へ140億ドルを投入しており、最近のM&A取引は初期の査定（引受）予想を上回る成果を上げていると述べました。経営陣は今後12か月間にボイド規模の大型買収を行うことは想定しておらず、統合と実行を最優先事項としています。

同社は北米市場において大きなポートフォリオ上の欠落はないと見ていますが、欧州やアジアで比較的小規模な電気関連の補強目的（ボルトオン）の買収を推進する可能性があります。イタリアを拠点とするCOLグループ（COL Group）の買収合意は、欧州における技術、機能、および生産能力の強化を目的としています。

2027年の予備的見通し（フレームワーク）

経営陣は、2027年にイートンのエンド市場が少なくとも11%成長する可能性があり、同社は通常市場成長を上回る計画を策定していると述べました。また、限界利益率は2026年の約23%から改善すると見込んでいます。正式な2027年のガイダンスは、事業計画の完了後、2月に発表される予定です。

決算説明会 文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Thank you for standing by, and welcome to the Eaton Third Quarter 2026 Earnings Results Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Yan Jin, Senior Vice President of Investor Relations. Please go ahead, sir.

Yan Jin

Good morning. Thank you all for joining us for Eaton's Third Quarter 2026 Earnings Call. With me today are Paulo Ruiz, Chief Executive Officer and Dave Foster, Executive Vice President and Chief Financial Officer.

Our agenda today includes operating remarks by Paulo. Then I will turn it over to Dave, who will highlight the company's performance in the third quarter. As we have done in our past calls, we'll be taking questions at the end of the Paulo's closing commentary. The press release and the presentation we'll go through today, including reconciliations to non-GAAP measures have been posted on our website and a replay of this webcast will be accessible on our website after the call.

Before we begin, I would like to remind you that our commentary today will include forward-looking statements with respect to sales, earnings and other matters. Our actual results will differ materially from our forecasted projections due to a wide range of risks and uncertainties that are described in our recent SEC filings.

With that, I will turn it over to Paulo.

Paulo Sternadt

Thanks, Yan, and thanks, everyone, for joining us. Starting on Page 3, our very strong third quarter shows the power of demand meeting execution. We said the second half would show the benefit of our capacity investments. And in Q3, our teams delivered on that promise. We came in above the high end of our guidance on every key metric.

Organic growth was 19%. The segment margins were all-time record at 25.3%. Our adjusted EPS was $3.68, an all-time record and $0.17 above the midpoint of our guidance. Revenue reached a record of $8.9 billion, up 28%. Our strategy is working, and Electrical Americas is a strong proof point. Organic growth accelerated to 22% and margins reached 29.8%, up 230 basis points from Q2.

Our new capacity is now turning into output and into margin. Growth in Electrical Global was even stronger with 27% organic growth and strength across all end markets. And across the business, demand is both accelerating and broadening. Our Electrical and Aerospace combined book-to-bill remained strong at 1.2 with Americas strong at 1.3 and Aerospace at 1.2. While demand is broad-based across end markets, you can see here that the data center orders for the 12 months rolling are over 100% and revenues up 65% remained really strong.

Overall, accelerating orders and growing backlogs are a clear proof point that our customers are choosing Eaton because we bring end-to-end critical power solutions. Our performance in the year give us confidence to raise our guidance for the third time this year. We are raising organic growth by 200 basis points to a midpoint of 14% and our adjusted EPS midpoint by $0.25 to $13.75.

Dave and I will walk you through Q3 and the rest of the year outlook. But first, let's turn to Slide 4. We continue to drive Eaton forward with our bold strategy to lead, invest and execute for growth. The strategy is working, and we are transforming our company at fast pace. All 3 pillars are designed to accelerate our growth and create sustained value for our shareholders.

Today, we will talk about how our strategy is fueling growth in the Americas and Global and we'll conclude with a short update on Boyd. Now starting with Electrical Americas. This Page 5 shows what we are seeing right now. Demand is strong and broad-based well beyond data centers and every leading indicator is pointing up. First, customer investment keeps building. Mega project announcements are up 85% so far this year. These are large multiyear infrastructure and electrification projects, and they will turn into demand for our products and solutions.

Second, our negotiations pipeline is up about 55% year-to-date. That's our earliest signal of future orders, and it's broad across every end market we serve. Third, backlog is up 33% to another record and is still growing even as we grow top line at 22% rate. Demand continues to run ahead of what we can convert. Finally, orders up 39% on a 12-month basis with book-to-bill of 1.3.

Orders can be lumping quarter-to-quarter, as you know, but the pipeline and the backlog keep building. Taken together, this is a business that continues to benefit from powerful secular trends, utility investment, grid modernization, industrial reshoring AI-driven data center expansion and broader ratification. We remain focused on execution and bringing new capacity online.

Our strong pipeline orders and backlog give us the confidence in the durability of growth in Electrical Americas, and that's a great growth story for Eaton.

Turning now to Slide 6. Electrical Global continues to outperform expectations. We now expect organic growth about 16% in 2026 well above our prior guidance and more than double the 7% we delivered in 2025. This acceleration is no accident. It reflects the liberate strategic moves we made over the past few years. We took the lessons we learned and applied the pillars of our lead, invest and execute for growth strategy to our global business, and we are growing with better margins. There are the 4 moves behind this performance.

First, we restructured early. We realigned Europe well ahead of the demand acceleration, building a leaner organization that's closer to our customers, and centered on solving their biggest challenges. Those efforts are now paying off. Second, we scale globally, our brand, our trusted technology and our relationships with global customers travel with us.

Our differentiated solutions let us compete in complex applications where reliability, safety and performance are critical. And we are following our global customers whatever they build. Third, we shifted our portfolio to high-growth areas. We are in the right markets at the right time, data centers but also utility and machine OEM. So we expanded in modular power with Nordic ePod and our agreement to acquire COL Group will add even more scalable technologies, capabilities and capacity in Europe.

Finally, we are winning share through strong execution. Growth is broad-based with revenue and orders rising together, and we are outgrowing our markets in GIS, EMEA and APAC. We are seeing the strongest competitive growth in APAC, and that gives us real confidence in what's ahead. And there is more to come. Starting March 27, Boyd Thermal becomes part of organic growth, adding 1 of the fastest-growing business in the data center market to organic base.

Taken together, these strengths give us confidence not only in 2026 but in our long-term ambitions. Our current target for Electrical Global growth is 5%, 5-year CAGR from 2026 to 2030 with Boyd Thermal organic and the strength we continue to see across global, we expect to update that target in 2027.

Turning to Page 7. Boyd Thermal is an important accelerator for Electrical Global. Since our last update, Boyd has continued to significantly outperform our expectations, reinforcing the strategic rationale for the acquisition and validating the strength of Eaton's position in the data center infrastructure market. The business delivered nearly triple-digit year-over-year growth with demand remaining exceptionally strong across the portfolio.

Growth has been supported by accelerating customer investments in AI and next-generation data center infrastructure. And orders continue to accelerate at similar rates as well highlighting strong customer adoption of liquid cooling, architectures and Boyd's differentiated capabilities in thermal management. Demand strength is also reflected in the backlog, which saw 3x growth year-over-year providing strong visibility into future growth and reinforcing confidence in the long-term outlook.

Beyond the near-term financial performance, we are increasingly seeing the strategic benefits of combining Boyd with Eaton. Boyd's industry-leading thermal management capabilities, combined with Eaton's global scale, balance sheet strength channel reach and supply chain capabilities are creating opportunities to accelerate growth beyond Boyd's stand-alone potential.

So this momentum is why we are raising Boyd's full year revenue outlook again. The third increase this year to $1.9 billion. Specifically, Eaton is helping expand Boyd's customer access through our global sales channels, accelerating commercialization of new solutions and enabling broader participation in large-scale data center projects. At the same time, our combined expertise in electrical power and thermal management position us to help customers to move towards more integrated power and cooling architectures, an increasing important requirement as AI workloads drive higher power densities.

Overall, Boyd strengthens Eaton's ability to deliver differentiated grid to chip solutions while increasing our exposure to some of the fastest-growing segments of the data center market.

Now I'll pass it on to Dave to walk through the financials.

David Foster

Thanks, Paulo. I'll start by providing a brief summary of our strong Q3 results on Page 8. Total revenue grew by 28%, with a strong contribution of 8 points from acquisitions. Our acquisitions continue to deliver at or above our expectations for growth and margins.

Organic growth for the quarter was 19%, driven by strength in Electrical Americas and Electrical Global. Excluding mobility, our organic growth would have been 21%. Adjusted EPS of $3.68 was an all-time record, up 20% over prior year and $0.12 above the high end of our guidance. We generated a strong $0.32 segment profit beat versus our guidance with incremental margins of 26%, stepping up from 19% last quarter.

Now let's move to the segment details. On Slide 9, we highlight our Electrical Americas segment. Organic sales growth accelerated to 22% driven by strength in data centers up 54% and along with strong growth in machine OEM and commercial and institutional. Our sequential margin improvement continues. Margins reached 29.8%, up 230 basis points from Q2 and more than 400 basis points since Q1. A clear sign our Execute for Growth strategy is working. From a year-over-year perspective, the majority of the margin decline was driven by temporary commodity cost headwinds.

The pricing actions we took in Q2 and early Q3 are working as price/cost was positive on a dollar basis in Q3. Demand keeps building. We had record orders of over $5 billion. Our negotiations pipeline was up 55% year-to-date and rolling 12-month orders were up 39% with book-to-bill held at 1.3. Electrical Americas is exiting 2026 with real momentum, and we are well positioned for a strong 2027.

Now I will summarize the strong results for our Electrical Global segment on Slide 10. Total growth of 58% and included organic growth of 27% from strength in data center, utility and machine OEM, along with 31% attributed to the Boyd acquisition. Organic revenue growth was broad in all regions with particular acceleration in APAC up nearly 50%. Boy continues to outperform. Sales grew 24% from Q2, with triple-digit growth year-over-year. Backlog nearly tripled year-over-year giving us strong visibility into the liquid cooling demand ahead.

Operating margin of 21.1% was up 200 basis points over prior year, driven largely by higher sales. Each region posted strong year-over-year margin improvement. Demand in Global is accelerating fast. We had record orders in the quarter as rolling 12-month orders were up 51% and with momentum across our end markets and exceptional strength in data centers. Electrical Global is built for this moment and with orders and backlog at these levels, we see a long runway of above-market growth ahead. Before moving on to our industrial businesses, I'd like to briefly recap the combined electrical segment's performance.

For Q3, we posted organic growth of 24% and total growth of 34%. The a great third quarter. Segment margins were 26.4%, 190 basis points higher than Q2. On a rolling 12-month basis, orders accelerated up 43%, and our book-to-bill ratio for our electrical sector was 1.2. Our total electrical backlog reached another record of more than $20 billion, up 46% from last year.

Page 11 highlights our Aerospace segment's performance for the quarter. Organic sales growth of 6% resulted in Q3 record sales and segment profit with particular strength in commercial OEM. Ultra PCS added 5 points of growth this quarter with margins well above the segment average, it continues to be accretive to Aerospace. Total aerospace margins were 24.9% and up more than 200 basis points from Q2. Year-over-year, margins were down 100 basis points, driven by mix.

Demand in aerospace has never been stronger with record orders driving backlog expansion and book-to-bill remaining a strong 1.2. We are well positioned to convert that backlog into growth in earnings.

Moving to our mobility segment on Page 12. Mobility had a strong quarter. Sales grew 10% with 9% organic growth and 1 point from currency, a clear return to growth. Meanwhile, margins increased 370 basis points to 17.2%, the highest level since 2018, driving incremental margins of more than 50%.

Now I will turn it back to Paulo to discuss our updated guidance and close out the presentation.

Paulo Sternadt

Thanks, Dave. Moving to Page 13, we summarize our updated 2026 organic growth and margin guidance. Following another strong quarter, we now expect total company organic growth to be between 13% and 15%, up 200 basis points at the midpoint from the prior 11% to 13% range. This increase is driven by strength in Electrical Americas, up 400 basis points to a midpoint of 19% and Electrical Global, up 400 basis points to a midpoint of 16%. We are maintaining our total segment guidance range of 24.1% to 24.5%.

On the next page, we have the balance of our guidance for '26 and Q4. For 2026, we are raising our adjusted EPS guide. Now we expect full year EPS to be between $13.70 and $13.80, $13.75 at the midpoint, up 14% from 2025. We also reaffirmed our cash flow expectations for the year. Additionally, we have provided guidance for Q4 on this page. As a reminder, we also provide supplemental guidance, which includes raising Boyd's full year revenue to $1.9 billion, of which $1.6 billion will be Eaton's books for the year.

Continued strength across end markets combined with our record backlog provides strong visibility into our outlook for the year. This is the third time we've raised organic growth and adjusted EPS guidance this year. With the industry best positioned portfolio, and demand steel building, we are not just finishing 2026 strong. We are carrying real momentum into 2027 and beyond.

So now shifting our perspective ahead to 2027 on Page 15, we provide our view of our end market growth assumptions for the next year. I won't go line by line, but the key take way here is simple. None of our end markets are expected to decline in 2027. Approximately 90% of our portfolio is in markets we expect to grow and the rest being residential and light vehicles should hold flat. Data centers and distributed IT along with commercial aerospace remain our strongest markets, both expected to grow strong double digits.

Together, that's roughly 1/3 of our sales. All in, that adds up to about 11% growth across our end markets in total with some outgrowth on top of that, 2027 growth would be well ahead of our 2026 to 2030 organic growth target of 6% to 9% CAGR. Let me be clear, that's double-digit market growth again in 2027. We have the right portfolio in the right markets at the right time, and we expect 2027 to be another year of differentiated growth and strong returns for our shareholders.

Now let me wrap on Page 16. This quarter showed what Eaton can do when robust demand meets strong execution, and we are just getting started. First, demand is accelerating and broadening Electrical orders are up 43% and backlog is up 46%. Let's not forget, this isn't just data centers. We are seeing strength across commercial and institutional, utilities, industrial facilities, machine OEM and residential. We are winning at a pace we've never seen before.

Second, execution is compounding. Electrical Americas margins reached 29.8%, up 230 basis points sequentially in a single quarter. and 18 of our 25 expansion projects are complete, with the steepest part of the ramp behind us. The results are clear, new capacity is turning into output and output into earnings. Third, our lead invest and execute strategy is working and is gathering pace. We are transforming our portfolio and evolving our culture. We are positioning the company to capture strong demand to accelerate growth and to beat our own short and long-term commitments, so we can deliver meaningful value creation for our shareholders.

And finally, when you put it all together, strong demand, improving execution, higher shipments and growing earnings it gives us real confidence in both our near-term outlook and our long-term commitments. You can see that in the organic growth and EPS guidance we are raising today for the turn time this year, and we are remaining focused staying close to customers, innovating with speed, leading and investing in growth and executing with discipline. So the best years are still ahead of us.

With that, let's open up for your questions.

Yan Jin

Thanks, Paulo. Moving to the Q&A, we ask you to please limit your opportunity just 1 question per person. We appreciate your cooperation. So we can accommodate as many participants as possible today.

With that, I will turn it over to the operator for guidance.

Operator

And our first question for today comes from the line of Nigel Coe from Wolf.

質疑応答

Nigel Coe

So it is just 1 question. Maybe just Paul, maybe talk about where we are in sort of the transition to next-generation interval DC solutions. I think the sidecar kind of back based solutions for the first half of next year. Just wondering -- are you starting to see orders for kind of facility level DC power at this point? And where are we on the sole transformer commercialization and production?

Paulo Sternadt

Thanks, Nigel. Thanks for the question, is also top of mind for investors. We get that question all the time. So thanks for that. So we remain, I would say, this, I'll leave the tagline. We remain a strong leading position for our solid-state transformers both in U.S. and globally.

Let me just give you an update on what happened in the last quarter. In the U.S., for example, in October, our 15 kV 2-megawatt unit, the [indiscernible] transformer successfully passed all the UL tests. There's a norm. And to our knowledge, we are the first multi-megawatt unit that successfully cleared all those tests, which is a great thing. And I would say this more importantly than being the first -- the system is truly unique. That's the most important part. It's unique in the market. It's the only system in the market, which is, at the same time, liquid coal it's multiport, meaning you have a CNDC port that gives maximum flexibility to customers. It is also outdoor ready.

So this provides with customers the most flexible and compact brings, as you will, for the next generation of either complete the architectures or to your question, to hybrid architectures with AC and DC playing together. And then also in parallel, our teams. Our global teams also advanced our technology here. So in the EIC markets, which are the European and the Asian markets, they eat an indoor unit also pass all the tests, this time with the TOV, the tube, the German Institute, which is a global third-party testing certification organization.

So we're really excited that we are pushing this leadership even further in this case. For me, the good thing for us to keep in mind is that this direction of travel in terms of migrating from AC to DC is real because of the large power savings that the customers see in this new technology. But the timing of that transition is not under our control. So the industry is definitely moving to the distribution as an alternative to AC because of those savings. And I remind you that you asked about solid state transformer, which is a key part of this new architecture, but it's only one of the 4 key building blocks that you need to have to win in this new era. And I would say Eaton is leading all other 3 as well.

And now name them again, so you guys can remember. So the other one is DC breaker technology. The third one is power quality. So think about electronics and UPS in distribution and advanced cooling with void. So we are leading all 4 of them. And then the other thing I want you and investors to have in mind is that the current architecture, the AC architectures are not that, and we are fine either way. Eaton's positions that will sell powertrain in both architectures -- we are architecture-agnostic and we win either path.

So we want you to frame this as an opportunity more than a bad and a good option for us in the future. So specifically on the pilots we are running, we have 10 pilots running parallel and multiple 150 kV projects that we're going to ship this year, and we expect this to turn into volume moving to next year. And here, the conclusion for us is very simple. We are a leader today in the current data center architectures and will continue to be a leader in the future. We are ready for that future with the DC portfolio we are building.

Operator

And our next question comes from the line of Nicole DeBlase from Deutsche Bank.

Nicole DeBlase

Clearly, data center markets remain robust. We all see that. But how are the balance of your electrical end markets performing in terms of growth?

Paulo Sternadt

Yes. Thanks for the question. Let me make a comment on data centers first because we keep checking this market and keeps surprising us on the upside. So data centers continue to represent an enormous opportunity for us -- we track the process that were announced, and now they amount to 366 gigawatt in contrast to the last update we gave you in the earnings call was [ $307 million. ] So that keeps building. So that's good for us. Just think about contrast that with the installed capacity of 50 gigawatts is an enormous buildout in my opinion, this will last for many years to come. But if you look beyond that, we are doing really well in that market in data centers.

We grew 65% sales and it's the ninth consecutive quarter, we printed growth beyond 35%, which is amazing. And orders were up 101%. So we remain very excited about this business. I will just recall in our long-term plan, we baked 17% growth in our long-term plan. And year-to-date, we grew 60%. So it's an incredible opportunity for us. But the beauty to the core of your question, Nicole, the beauty of our strategy in our portfolio is that we are anchored on secular trends that are even broader than data centers.

So we have meaningful growth opportunities beyond data centers. So just to give you some examples here, if you look at organic revenue -- we have mid-teens for commercial institution. Institutional, which remains a big segment for us. So mid-teens growth there. mid-30s growth, incredible growth for machine OEM in the quarter, double digits for industrial facilities, mid- to high single-digit growth for other markets like utilities, resi and distributor IT.

So that's the look back. If you try to have a look forward on markets that are not data center, we better look at our orders here. So our Q3 orders were also very strong on a 12-month basis utility orders were up around 20%, RESI, 25% and machine OEM 55%. So just to conclude here, I think it's very clear to everyone that demand is strong and is broadening much beyond data centers.

Unknown Executive

Yes. I would even add, Paulo, commercial and institutional were both up north of 25% in the quarter.

Operator

And our next question comes from the line of Andrew Obin from Bank of America.

Andrew Obin

It's been a popular topic this quarter is modular capabilities. Can we just talk about what it is you guys have? And what's your competitive differentiation in terms of modular on data centers?

Paulo Sternadt

Great. Great question. Thanks for the question here. I think the most important thing is that to highlight first that our business is doing really well in terms of execution. And there's a great pull from customers. That's why you're asking this question. because we take labor away from their job sites and we pushed this activity to our factories, which is much better and better controlled. But also increase the speed of deployment for this incredible backlog or customers have that I just mentioned. And last but not least, when the models are put outside the data hall, you also free up space for for the servers where our customers generate revenue.

So it's a great value proposition for our customers to start with. What differentiates Eaton from most other players is that we actually are experts in everything that goes inside those models, inside those boxes, right? Think about everything we design and manufacture because we do that not only for the models, but we design and manufacture the transformers, the switchgear, the circuit breakers and the UPSs that go inside those models. Then we can and we always do integrate them both in enclosed solutions but also skidded solutions. And many of the companies that talk about model today they are integrators or assemblers. They don't make the breakers or the transformers that go inside, and that's a big difference.

So when you have all those elements that go inside the model, like Eaton, this vertical integration gives us the cost position, the lead time control and also supply certainty. If you think about hyperscale and colocation customers, that's what they're looking for. And for the customers, those customers, it means 1 vendor, 1 warranty, on commissioning team, few interfaces and fewer single points of failure. So that's the biggest differentiation between us and other players. And then just to give you a proof point here, Fiber bonds, we acquired them April last year in the first year at $375 million in revenue in the first year of us owning the business, they jumped already to $600 million and margins are accretive to Electrical America.

So it's a great business, growing at fast pace with great margins. So we decided to double the capacity we had for fiber bone in their existing sites. They had 1 site and now we're going to double that again with the facility we announced in Arkansas, which comes online in 2029. So if you think about the business we already had before Boyd and the business we have with Boyd, [indiscernible] business only in the Americas, that business is going to reach $1 billion in revenue already in 2026. And just to conclude, let's not forget mother isn't new for us. We invested in Nordic ePod in EMEA in 2024. So we have a partner there. We have a joint venture. And we acquired -- we acquired fiber [indiscernible] in '25 and in Asia, we have multiple partners that we can also work with the modular solutions. And now as you think about the white space, we're going to start exploring as a company. We can take that expertise all the way down to the white space as well. So it's a great moment for us. Thanks for the question.

Operator

And our next question comes from the line of Scott Davis from Melius Research.

Scott Davis

Paulo, I wanted to follow up a little bit on that and talk about M&A a bit because you've been busy. You just mentioned the fiber bond deal and the partnership with Nordic ePod, the COL that was announced today did Boyd probably some stuff that not even remembering. But seems like you're going down a strategy of trying to fill in some product gaps, perhaps more aggressively than if you look in the history of Eaton I assume that is a strategy, so I'm asking that as part of the question. And are the remaining product gaps, I guess, is the better way to ask it? And if so, do you -- are you guys kind of done with the M&A stuff? Or are you going to be equivalently aggressive over the next 12 months or so.

Paulo Sternadt

Well, thanks, Scott. We remain very consistent with what we shared with you in New York during our Investor Day, we would put our M&A dollars to work in electrical and aerospace, and that's exactly what we did.

So our pipeline stays active mostly on the Electrical side this time. But let me set expectations to be very clear. I think that's the core of your question. We've already put $14 billion to work in our acquisitions. And as you heard from Dave, we are happy that every acquisition we made is delivering better numbers. than what we initially forecasted. We underwrote for the deals. We have great, great performance for all the acquisitions we made. And we always talk about the organic growth. But if you look at our total growth for the company, incredible 28%.

So that's another mark we would like to highlight in Q3, very strong number and better margins, accretive margins for the company. So great moves so far. So for now, I would say the big deals are behind us. We don't see any large acquisitions in the short term. I think is the core of your question. And honestly, we are in this integration phase. We have a lot of organic inorganic growth to deal with right now. and executing on this growth is our top priority. We are executing on it. We'll continue to execute on it. On GAAP, which was the second part of your question, we don't see any gaps in North America. Just look at our data center portfolio. It goes all the way from the grid to the chip. So we don't see any product gap here. Where I would like to scale more if we find the right deal, the right bolt-on will be in Europe and perhaps in Asia as well. And the agreement we just made with COL to acquire this company based in Italy is a good example, he adds this bolt-on adds technologies, capabilities and capacity in Europe to accelerate the organic plans we had in -- on the deck anyways. So -- you should expect more bolt-ons on the logical side. We'll keep this flexibility if something comes along, but don't expect any Boyd sized deal in the next 12 months. I think that's the key takeaway.

Operator

And our next question comes from the line of Jeffrey Sprague from Vertical Research Partners.

Jeffrey Sprague

Maybe a pick up on Boyd actually. It looks like your revenue forecast for Q4 is roughly flat sequentially. And you made the point about it's going to flip into organic can be a growth driver into next year. So just looking at that revenue trajectory, is this particular business, capacity constraints at this point. Do you have new capacity coming on? And maybe give us an early thought on how 2027 may play out in that business.

Paulo Sternadt

Yes. So it was breaking up. So I think you are inquiring about Boyd's growth, right, in Q4 next year. So the first thing I want to say is this team is always surprising us on the upside every quarter is the same. And the reason is that they are winning with a number of different platforms. And since they engage early in the design phase, the rent process is pretty smooth. It's not easy.

No business grows at the pace they are growing without problems, but they are always ahead of the other competitors. So we remain excited -- so on Q4, I wouldn't be surprised if, again, they beat their own numbers, to be honest, and as we think about 2027, I think that's the core of your question. We see at least a $2.7 billion business for next year, which is roughly 50% growth over our previous 1.8% guide. So strong growth once again. They have the design wins they have, the orders and the backlogs to sustain that. And we're really excited to keep winning on new platforms or things that are going to come live '28 and beyond. So strong performance, winning new business and ramping at speed. So we are confident here.

Operator

And our next question comes from the line of Andrew Buscaglia from BNP Paribas.

Andrew Buscaglia

I wanted to touch on what caught my eye this quarter. Electrical Global accelerated 27%. So that's last quarter, it was up about 18%. So I'm wondering what's beyond that step change? And then should we assume the segments now kind of entered in an elevated growth base?

Paulo Sternadt

Yes. No, thanks for the question. I'm glad you raised that point because this segment really, really surprised all of us on the upside this quarter. But all the actions behind that growth were delivered. It was not an accident. So if you look at the growth rates of this business, we started Q1 at 9% and then Q2, 18% growth and now Q3, 27%.

So incredible progression here. And just to remind you, the last question I got from Jeff Sprague was on Boyd. Boyd is not included in those numbers. So Boyd, actually adds 31 points of growth to a total of 58% growth and will become organic in March '27. So I think if you look at the legacy Electrical Global business we have is accelerating specifically across the complete portfolio and Boyd adds significant organic growth on top of it.

So a really exciting platform. I'm going to go to the sustainability of that growth in a minute. If you cut this growth and you look at the growth regionally, business by business, I will lead with the affirmation that every business inside Electrical Global did the work. APAC led with a fantastic almost 50% organic growth guys in EMEA both grew around 20%, which is clearly ahead of the market. If you think about this Asian performance, we are bidding local players on growth. And in Europe and Asia, we are winning with the same hyperscale customers and multi-tenant customers we serve in North America, which is great news. They want us to be successful with them everywhere they built. We talked about that in the past.

Now the reality is here to prove us right in that case. And then if you -- I made the cut by business, if you cut by end market and you look at the performance by end market, -- also a very strong performance. Our data center business grew almost 100% in global, so 97% and machine OEM 29% and utilities 21%. So really broad-based here as well. So with that in mind that every business is doing well and every end market is doing well, we believe -- we truly believe this electrical global business has entered what we call a sustained growth phase and the order book sustains that with our orders are up 51% on a 12-month basis.

So that gives us the confidence. And if you look at the backlog as a result of that, even with the strong organic growth, they more than doubled the backlog in a year-over-year basis. And even if we exclude the Board backlog, I always get that question. It's still 76% up. So everywhere you look, end market, business by business, [indiscernible] with [indiscernible] see it come to the same conclusion. So those drivers, in our opinion, are structural. They are not cyclical. And again, didn't happen by accident. We restructured Europe well ahead of this demand. We were early. We are adding capacity in Asia we are focusing on winning share and not looking at PMIs. That's the way this team is wired. They really want to win, and we want to grow faster than the market. So let's not forget, once again, Boyd will add to that when it becomes part of the organic and just to conclude, we are rigorously applying our strategy, the 3 pillars of our strategy here in the global business. And we are all proud of this team because we believe we turned this segment into another high-growth platform for Eaton.

So we continue to deliver the strong growth moving forward, and we keep expanding margins for Electrical Global.

Unknown Executive

Yes. So I want to add to that. If you look at the [indiscernible] business, and you talk about Execute for growth, the expanded margins almost 400% from H1 to H2. And through price, cost out and productivity. So really executing the global playbook that Paulo just talked about 400 bps,100 bps, yes, I'm sorry.

Operator

And our next question comes from the line of Steve Tusa from Wells Fargo.

Unknown Analyst

Just on the margin, I think your 4Q incremental in EA is like -- I know it's a bit of a range, but something in the 40% to 45% range. Can you just talk about how you kind of feel about that next year. There's probably an easy comp in the first half, a little bit tougher in the second half? And then somewhat related to that, on pricing strategy, are you guys pricing similar products within the data center channel the same way as you would be pricing them if it's the same product like in a more standard application like in a C&I application or something like that. Maybe just talk about how you manage that price across the channels as well?

Paulo Sternadt

Great question. So on the ESA margin, I will leave with the bottom line message here that we are in line with the full year margin guidance range and 3 quarters under our belt give us the confidence to make that point. And as you know, we are still operating in a very high inflationary environment. So we are managing that very well, I would say. If you look at the performance quarter by quarter and first half versus second half. And on your point on incremental discussions for ESA, we will continue to improve our incrementals from Q3 to Q4.

So we had high 20s in Q3. That's going to get high 30s to close to 40% incrementals moving to Q4. So that's going in the right direction again. And that, for us, I would say, again, I'm proud of the team because taking that the way they did and the margin development from -- if you look at the margin development from the first half to the second half, the progression will be over 400 basis points, which is a great result in this environment, specifically. And then specifically on the question about pricing, I would say this, we have pricing power, and we have also good contracts in place where we have correction for commodities, et cetera. And we see that we are leading with pricing announcements as well when required on price list and we negotiate pretty well with our project by project as well. So we have, in this environment, the pricing power and also the good relationship with the customers to have those debates.

Unknown Executive

Yes. The only thing I would add to that is, in October, we finalized negotiations with 2 of our large customers. We have a handful to finalize in Q4. I kind of talked about this in the last earnings call that we'd have discrete price negotiations with larger customers. And then we just announced today that we would have general price increases in ESA, EMEA and GIS effective January 2. So it's going to be a combination of those going forward, and that's how we're going to price in the market. And we are on the right trajectory. And just to make a short commentary on October, we just got the top line it looks really strong. So it's a good start of the quarter as well.

Operator

And our next question comes from Amit Barotrafrom UBS.

Unknown Analyst

Great. I guess I just wanted to follow up on that question. It was nice to see the DA margins. in the quarter and will from the fourth quarter that the sort of 3-phase transformer plant that's coming online, I think, in the first half of next year. So is there any -- any color initially that you can provide on 7, I assume it's going to be better than the full year -- but just trying to think about the headwind from this big 3-phase transfer plan [indiscernible]

Paulo Sternadt

Okay. It was breaking up a lot. But I think you're inquiring about margin development to '27 and also the fact that we have a new consumer plant coming online, correct?

Unknown Analyst

Yes. Just the size of that 3 space transformer facility, I think is orders of magnitude larger than sort of the 18 that's been put up over the last 1.5 years and focused on understand what transformation.

Paulo Sternadt

Yes. So first of all, so we are really excited about the margin development for Electrical Americas, as I said before, I would just caution you not to take Q4 and multiply it by 4 because there's some seasonality with the business, especially in the distribution business, et cetera. So there's some seasonality there. But the direction of travel is very clear. We have a strong start. We have record backlogs.

So we feel really good about it. On a specific question about the transformer facility, yes, it's larger than the other ones we did, but we also learned our lessons. We hired early. We hired our workers early. We are training them in our Wisconsin plants already. So when we start to ramp with a -- it's going to be a learning curve in the new facility, but they're already trained in a facility that runs those products today.

So we are taking lessons here. I would also tell you that we are dealing with 6 expansions now versus '18. So it's a much easier setup and we have a much stronger team dealing with this expansion. So we learned our lessons is less disruptive than it was for the full year last year in the first half of this year. And I think we have a good team around it. So we feel confident as we meet with them every week to check progress.

Operator

And our next question comes from the line of Andy Kaplowitz from Citi.

Andrew Kaplowitz

Can you give us more color into the health of the aero markets, and in particular, your aero supply chain at this point? I would see since you didn't change your organic revenue guidance for the year that you think you have your arms around any supply chain issues that revenue growth could even improve a bit in Q4, but maybe you could give us a little more color on the markets and what you're seeing in doing mitigate supply chain risk.

Paulo Sternadt

Yes. Thank you. So I believe it's clear that demand for aerospace is strong. You just look at our orders were up 20% and specifically defense OEMs up 36%. So there's a lot of growth, and we keep growing our backlog as well now to a record of $5.6 billion, which is 33% higher year-over-year.

So the demand signals are clear and very strong. In terms of execution, we faced some specific supplier issues in some commodities. There are [indiscernible] problems. We are working on them. And we are solving them with different strategies, helping those suppliers to ramp is one of them creating second source in partnership with our customers. It's the second type of measure we are taking -- the third one, in some cases, we are in-sourcing where we see some suppliers struggling we have the machining capability and capacity, we are in-sourcing that. So we are taking that holistic approach and partnering with our customers to approve that because in aerospace, you can't shift a supplier without authorization from your customers.

So we are working in collaboration with them. So that's what I would say here. The demand is pretty clear. It's strong. We are winning. We have those platforms for today and tomorrow. And we are dealing with those punctual problems in supply chain there cut across the whole industry and we are both collaborative with customers but also with the supplier base, and we continue to develop in that direction. So we still think our Q4 is going to be a bit better in terms of top line and growth we're just cautious that this situation of the supply chain is fully behind us, then we can start liquidating more of the backlog. We keep winning and just a matter of conversion of that backlog.p

Operator

And our next question comes from the line of David Raso from Evercore ISI.

David Raso

Just trying to get a little more granular on the numbers for '27 versus '26. Can you characterize for us how price cost will play out this year and just what's the base case of how you're thinking about how you're setting pricing now for '27? And also, the level of inefficiencies, you alluded already to obviously a little bit easier to ramp up 6 factories than 18. Maybe just some sense of -- I don't know, Dave, how you might quantify it some way. The inefficiencies in '26 and I would assume less than 27%. And also just any sense of capacity available to you in '27 versus '26 given the ramp you've done on the 18 factors?

Paulo Sternadt

So I'll go first and then Dave can add color. So we're still planning, Dave, we're not ready to share the 2027 guidance yet, but I can give you a good framework for your model as you start thinking about our business in 2027. So you saw from the end market perspective, for example, that we see our end markets growing at at least 11% next year.

You know that we usually plan to outperform the market. So think about a growth path, which is higher than 11% here. We also expect to improve incremental margins from 2026. We are looking at '26 around 23%. So we're certainly going to do something higher here -- but again, it's premature for us to guide -- we're going to do that in February when the complete planning process is done. If you think about adjusted EPS for a moment, when we gave you the targets for the 5-year plan last year, we said we will go every year beyond 12% organic EPS growth. This year, with the guidance we just shared with you for '26, we are aiming at 14% growth of EPS and if you look at the second half of this year, it's a 20% growth. So we are in the right path here as a company. And that embed much of the question you're asking about inefficiencies, capacity turning into earnings, et cetera, most of it is already here, right?

So again, the 2 portfolio items, I want everyone to remind in 2027 that shouldn't be confused with underlying performance and [indiscernible] material for 2027 are the following. First of all, Boyd. We are planning -- I just said -- I got that question around Boyd. We are planning on $2.7 billion for that business, which is 50% growth again next year. And that growth, again, becomes organic after mid-March. So think about 3/4 of this year being organic for us. that would double charge the growth for Electrical Global, the organic growth rate. And on that direction, though, mobility will contribute around $800 million in revenue only reflecting a close with the [indiscernible] transaction around Q1.

So those are things that want you and investors to keep in mind as you start modeling and comparing our 2026 to 2027 framework.

David Foster

Yes. I think, Paolo, you covered really the -- where we are in the process right now. The segments are reviewing it with their leaders this week. I've seen simply looks and I'm feeling good about 2027. Paulo and I will review it here in the third week of November. And -- but that's where we stand right now. Too early to share any real concrete numbers.

Operator

And our next question comes from the line of Chad Dillard from Bernstein.

Unknown Analyst

So my question is on just how you're weighing in Europe on the data center build out. Can you just talk about just like what you're doing from a share perspective? And then maybe if you can share how you're thinking about win rates intellectual global versus what you've been seeing in Electrical Americas?

Paulo Sternadt

So I'm not sure it was really faded. But the question is on EMEA data center is that?

Unknown Analyst

Just on just your win rate and how you're gaining share in that market?

Paulo Sternadt

Yes. So you could see that with those growth rates, we are clearly gaining share in Europe and in Asia, et cetera. The fact -- the actions behind these numbers are that we were traditionally for data centers in Europe, specifically to your question, we were -- and we remain leaders in UPS business. in Europe. And what we are doing today, step by step, we are building the same fortress, the same leadership in our portfolio as we have in the Americas.

So building the power distribution portfolio that we're going to speed up now with the acquisition of COL when that comes to fruition. So we are building that power distribution portfolio. We also, over time, increased our transformer capacity in Turkey in our plant. So think about it, we looked at our strong leadership position in Electrical Americas, and we are taking every action we need to take in Europe to build the same strong portfolio over there. This is something that our customers are requesting us to do because we work with them in the U.S. And as they go overseas and then build over there, they would like to count on our support as well.

So we are building that over time. There are still things for us to go do. So we are far away from being done in that area. And despite all those fantastic growth numbers, no 1 is taking a victory lap in that team. They remain focused. They know what they need to do. So all hands on that, we're going to keep building that portfolio.

Operator

This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Paulo Ruiz for any further remarks.

Paulo Sternadt

No. Thank you. So I mean this is very, very good, Paul, very good questions. Let me add some closing remarks. First, I'd like to thank you all the analysts and investors are on the call for interest in Eaton, your analysis, your deep questions today. I also wanted to thank the Eaton team. I'm pushing you hard guys. I know you're listening to this call. but you keep delivering quarter after quarter. I'm proud of the progress. And we are committed to keep improving, which is the most important thing. No 1 is taking Victory labs here.

We remain focused on a lot of the culture we are building here. And I will lead with this to investors, it's clear that our strategy is working. Our lead investment execute growth strategy is working, is gathering pace -- and you can see the results already, right? Record sales growth, earnings above the high end of our guidance. So we are really happy with the progression we have here. The demand keeps us accelerating and is broadening beyond data centers. We talked about that.

So I think it's important we highlight this. It's cutting across different end markets, which is good to see. And data centers, despite all the discussions on the market today, they have a long runway. They have a very long runway beyond 28 and 29 and many projects. And with this large backlog is going to come in terms of multiple years of work for us. So this is a great platform. And the new Eaton, as we put this all together, this new Eaton is taking shape. Our portfolio moves have structurally transformed the company. And then if you add the future of these technologies in terms of 800 volts, et cetera, we are ready for that transformation. So we feel really good about it. We are also very proud, I think I want to highlight that the Electrical Global is the new growth engine for the company. We restructured early. We're scaling globally. So we turned this business into. The next Gloveplatform, and we all feel really proud of it. And as you look at it, we are really focused on execution as well.

Electrical Americas, you'll see the capacity coming online turning into output and into margins and earnings. So that's great to see as well. And I'm also -- I think this was all a lot of work from the team. We're also satisfied with the third beat and raise this year. This is what we want to do constantly now, give us confidence in '27 in our 2030 commitment. So I will conclude to say thank you once again, and we believe the best years are ahead of us. Have a great day.

Operator

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.