Eaton to Spin Off Vehicle, eMobility Segments

Eaton announced Monday it plans to spin off its Vehicle and eMobility businesses, known as the Mobility Group, into an independent company. The separation will allow Eaton to focus on the growth of its Electrical and Aerospace businesses.

“The separation of Mobility advances Eaton’s bold new 2030 growth strategy to lead, invest and execute for growth,” says Eaton Chief Executive Officer Paulo Ruiz. “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 aftermarket and defense demand.”

The spin-off will enable Eaton and Mobility to better adapt to rapidly changing market dynamics, according to the company. The separation is expected to be completed by the end of Q1 2027.

“As an independent company, Mobility will be able to build on its strong foundation as a leading supplier across the globe and have the strategic focus and agility to allocate capital and resources to best serve its customers, pursue independent growth opportunities and drive innovation,” says Ruiz.

In another move to strengthen its Electrical segment, Eaton announced late last year it will acquire Boyd Thermal to help meet the growing demands of data centers.