Eaton Corp PLC

Thank you for standing by and welcome to the second quarter 2025 earnings results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. 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, Investor Relations. Please go ahead, sir.

Good morning. Thank you all for joining us for Eaton's second quarter 2025 earnings call. With me today are Paulo Ruiz, Chief Executive Officer, and Olivier Leonetti, Executive Vice President and the Chief Financial Officer. Our agenda today includes opening remarks by Paulo. Then he will turn it over to Olivier will highlight the company's performance in the second quarter. As we have done on our past course, we'll be taking questions at the end of Paulo's closing commentary. The price release and the presentation we'll go through today have been posted on our website. This presentation including adjusted earning per share, free cash flow, and other non-GAAP measures. The reconciling appendix. A webcast of this course is accessible on our website, and it will be available for replay. I would like to remind you that our comments today will include statements related to expected future results of the company and are therefore forward-looking statements. Our actual results may differ materially from our forecasted projections due to the wide range of risks and uncertainties that are described in our earnings release and the presentation. With that, I will turn it over to Paulo.

Thanks, Jian, and thanks, everyone, for joining us. I'm really pleased with the first half of the year. Our team delivered a strong set of results. Among the Q2 highlights, our adjusted earnings per share were up 8% versus Q2 2024. Our segment margins hit the Q2 record, up 20 base points versus 2024. Organic growth for the quarter was 8%, driven by growth in the electrical Americas, aerospace, and electrical global. On a rolling 12-month basis, our orders accelerated in Electric Americas, now up 2% from down 4% last quarter. Our Electric Americas backlog grew 17% year-over-year, hitting a new all-time record. Demand in our aerospace business remains very strong. We had order growth of 10% on a rolling 12-month basis and a backlog expansion of 16% year over year. As a result, our book-to-bill for the combined segments increased to 1.1. And we continue to deliver robust growth in the data center market as well. Our orders jumped approximately 55%, and our sales were 50% up versus Q2 2024. A final highlight, we are raising 2025 guidance for organic growth and adjusted EPS at the midpoint. Olivier and I will dive into Q2 and the full year outlook in just a minute. But first, let's go to page four to have a conversation about our investments to grow the company. So on page four, I told you at our investor conference in March, we laid out our bold new strategy. It's anchored by three pillars, lead, invest, and execute for growth. All three are designed to accelerate our growth and create sustained value for our shareholders. Those three pillars also align very well with the key megatrends we've discussed for the last few years with you. Today, we'll focus on the middle pillar, invest for growth. We executed strategic investments this quarter with key acquisitions, breakthrough technologies, and transformative partnerships. This momentum is unlocking growth opportunities across our portfolio. So we are accelerating our focus on high growth and high margin markets to maximize the opportunities ahead. And let's start with an acquisition on page five. We signed an agreement in June to acquire Ultra PCS. We are very excited about this deal and we expect it to close in the first half of 2026. This acquisition strengthens our opposition to fast-growing next-generation aerospace and defense markets. It ties in very well with our 2020 acquisition of Cobham Mission Systems. Ultra-PCS expands our exposure to both increasing global defense expanding and expanding the European defense market. We anticipate cost and sales synergies, particularly from growing aftermarket services and securing new program opportunities. We expect this business to post high single digits through low teams growth over the next several years with immediate margin accretion to our space segment. Now moving to slide six, we highlight our most recent acquisition, resilient power systems. This is a great example of how Eaton is investing for growth through cutting edge innovation. This is a game changer for data center customers and other DC power applications. Resilient makes solid state transformer technology to replace traditional copper windings. It is a critical building block in the future high power AI center designs, as well as EV charging and battery storage. Our customers see this capability as critical and a very critical competitive advantage for us. It will accelerate and simplify the construction of AI data centers. But we're also investing for growth through strategic partnerships. You see three examples here on page seven, NVIDIA, Siemens Energy, and ChargePoint. We've partnered with NVIDIA to transform the infrastructure of data centers. NVIDIA understands the design is cheap out, and they recognize we are a partner they need. We bring incredible expertise and capabilities in power distribution architecture, including higher voltage DC power. So we are developing power management solutions for the high density GPUs and solving other problems in the rack. We've also joined forces with Siemens Energy. This partnership unlocks opportunities where utilities can't provide enough power to data center operators. In this case, Siemens handles the on-site power generation, and it takes care of the modular power distribution. Together, we deliver flexible distributed power with no dependency on the grid, which means shorter project timelines and greater operational flexibility to our customers. Finally, we formed a partnership with ChargePoint, a leading EV charging provider. And jointly, we are developing global integrated EV charging power distribution, and software solutions. It enables vehicle electrification at scale. Broadly speaking, if I think about the portfolio, I hope you agree that we made strong progress in a short period of time. So we demonstrated strong commitment and resolve to execute on our portfolio strategy. We'll continue to double down, investing on high growth and high margin businesses. And I'm proud of my team that delivered on our short-term commitments and at the same time took decisive steps in our portfolio. Now, I'll turn it over to Olivier, who will walk us through our financial performance. Olivier? Thanks, Paolo.