Feb 3 (Reuters) - Power management company Eaton ETN.N forecast 2026 profit below analysts' expectations on Tuesday, as demand for industrial equipment remains weak amid geopolitical and macroeconomic uncertainty, sending shares down nearly 5% in premarket trading.
Large industrial customers have been slow to place orders as trade restrictions and ongoing geopolitical tensions have clouded demand visibility, forcing them to keep costs in check.
Eaton, which makes electrical components, wiring and other power equipment, expects 2026 adjusted profit per share between $13.00 and $13.50, the midpoint of which is far below analysts' expectations of $13.48 per share, according to data compiled by LSEG.
Last week, Eaton said it would spin off its vehicle and eMobility unit into a separate, publicly listed company, allowing it to focus on more profitable businesses such as AI-driven power systems, aerospace and defense.
Sales in the company's vehicle segment fell 9% during the quarter ended December 31, while eMobility sales were down 15%.
Adjusted profit per share for the quarter stood at $3.33, compared with analysts' estimates of $3.29.
Total quarterly revenue came in at $7.06 billion, up from $6.24 billion a year ago, but marginally missing estimates of $7.09 billion.
(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Jonathan Ananda)
((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com;))
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