Eaton to acquire Ultra PCS Limited for $1.55 billion

DUBLIN - Intelligent power management company Eaton (NYSE:ETN), currently trading above its InvestingPro Fair Value with a "GOOD" financial health rating, has signed an agreement to acquire Ultra PCS Limited from the Cobham Ultra Group for $1.55 billion, the company announced Monday based on a press release statement.

Ultra PCS Limited, headquartered in Cheltenham, U.K., with operations in the U.K. and U.S., produces electronic controls, sensing, stores ejection and data processing solutions for aerospace customers. The company estimates 2025 sales of approximately $240 million, a modest addition to Eaton’s substantial $25.31 billion in trailing twelve-month revenue.

The acquisition aims to expand Eaton’s portfolio in military and civilian aircraft systems. According to the company, Ultra PCS’s solutions for safety and mission critical aerospace systems will complement Eaton’s existing offerings.

"Combining Ultra PCS products and aftermarket services with Eaton’s will enable us to better serve our customers’ needs with tailored, next-generation aerospace solutions," said John Sapp, president of Eaton’s Aerospace Group.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2026.

Eaton, founded in 1911 and headquartered in Dublin, reported revenues of nearly $25 billion in 2024 and serves customers in more than 160 countries. The company develops products for various markets including data centers, utilities, industrial, commercial, residential, aerospace, and mobility sectors.

The company stated it expects the acquisition to be accretive to Eaton’s margins, citing Ultra PCS’s position in high-margin business segments.

In other recent news, Eaton Corporation reported record first-quarter earnings, surpassing analyst estimates and raising its full-year outlook. The company posted adjusted earnings per share of $2.72, exceeding the consensus of $2.70, with revenue rising 7% to $6.38 billion, above expectations of $6.26 billion. Eaton’s Electrical Americas segment led the growth, with sales increasing 12% to $3.0 billion, while its Aerospace segment also saw a 12% rise in sales to $979 million. In addition, Eaton secured contracts worth approximately $25 million to upgrade the electrical infrastructure at Hartsfield-Jackson Atlanta International Airport as part of the ATLNext expansion initiative. The company is also investing $18.5 million to expand its Orchard Park, New York, facility, adding 50,000 square feet and creating 77 new jobs to meet the growing demand for aerospace mission systems. Analyst firm Bernstein has rated Eaton as Outperform, highlighting its position to benefit from anticipated capital expenditure growth in the utility sector. These developments reflect Eaton’s ongoing efforts to enhance its operations and capitalize on market opportunities.

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