WASHINGTON (dpa-AFX) - Eaton Corp. (ETN), a power management company, on Monday announced plans to separate the Vehicle and eMobility businesses into an independent, publicly traded company. The move allows the company to sharpen focus on its core Electrical and Aerospace operations as part of the 2030 growth strategy.
Eaton said the planned separation is expected to be immediately accretive to Eaton's organic growth and operating margin upon completion. Following the spin-off, the company will concentrate its capital allocation on the Electrical and Aerospace segments, which are well-positioned to benefit from the growing demand in data center, utility, and aerospace markets.
The Mobility business, which provides power management components for commercial and heavy-duty vehicles, including transmissions, clutches and electric vehicle technologies, is expected to gain greater flexibility to pursue near- and long-term growth opportunities across its markets.
Paulo Ruiz, Eaton's Chief Executive Officer, stated, '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.'
Eaton expects to complete the spin-off by the end of the first quarter of 2027.
Eaton shares were up more than 2% in pre-market trading after closing at $331.22, down 0.84%.
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