- Deliberations over the separation of the vehicle unit are ongoing and there is no certainty Eaton will separate the unit, as per the report.
- Revenue at Eaton’s vehicle unit has been struggling over the past couple of years.
- Eaton has been on a dealmaking spree under its new CEO Paulo Ruiz, who took the reins in June 2025.
Eaton Corp. (ETN) is reportedly considering strategic options for its vehicle unit as the electrical equipment maker shifts its focus to high-growth businesses under its new chief executive officer.
As per a report from Bloomberg News, Eaton is working with an adviser to explore a sale or spinoff of the unit. The unit could be worth as much as $5 billion, the report said, citing people familiar with the matter.
Deliberations over the separation of the vehicle unit, which makes products like controls and transmission systems, are ongoing and there’s no certainty Eaton will separate the unit, the report added.
Shares in the company edged higher by almost 1% during after hours of trading at the time of writing.
Eaton’s Vehicle Unit
Revenue at Eaton’s vehicle unit has been struggling over the past few years. In the third quarter (Q3) of 2025, revenue was at $639 million, down 8%, even as group sales for the period rose, as per its earnings release.
Meanwhile, revenue at Eaton’s three other main units — electrical Americas, electrical global and aerospace — all grew by double-digit percentages in the same period.
Dealmaking Spree Under New CEO
Eaton has been on a dealmaking spree under its new CEO Paulo Ruiz, who took the reins in June 2025. Soon after, the company agreed to buy liquid-cooling specialist Boyd Thermal for $9.5 billion to capitalize on growing demand related to artificial intelligence data centers.
The acquisition gave Eaton a portfolio of thermal-management products, designed to control excess heat from data centers or in other applications across the industrial and aerospace sectors.
How Did Stocktwits Users React?
Retail sentiment around ETN stock trended in the ‘neutral’ territory amid ‘high’ message volume.
Shares in the company have fallen nearly 4% over the past 12 months.