Eaton to spin off Mobility Group into independent company

The separation is part of Eaton’s 2030 growth strategy, allowing the company to focus on its core Electrical and Aerospace businesses. Eaton said these areas are supported by trends in electrification, digitalisation and AI, reindustrialisation, infrastructure spending, and growth in the aerospace after-market and defence sectors. The company expects the move to accelerate growth and improve operating margins.

Mobility Group provides engineered solutions for commercial vehicles, passenger cars, and off-highway vehicles, including heavy-duty truck transmissions and clutches in the Americas, as well as high-voltage EV fuses and valve actuation technologies globally. Eaton said the separation will allow Mobility to pursue growth opportunities more independently and allocate resources to innovation.

The company expects the spin-off to enhance its focus on high-margin businesses and stable earnings. Eaton recently acquired Ultra PCS and announced the acquisition of Boyd Thermal, aiming to capitalise on demand in data centres, utilities, commercial and institutional markets, as well as the growing Aerospace aftermarket and defence segment.

The separation is expected to be immediately accretive to Eaton’s organic growth and operating margin. It is anticipated to be completed by the end of the first quarter of 2027, subject to regulatory and board approvals.

“We are incredibly proud of what our Mobility team has built and believe that now is the right time to separate that business. 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,” Paulo Ruiz, Eaton chief executive officer, says in a press release.