Power management company Eaton Corp said on Monday it will spin off its Vehicle and eMobility businesses into a separate, publicly listed company, sharpening its focus on its electrical and aerospace segments.
The Dublin-based company said the spin-off, structured as a tax-free transaction, is expected to be completed by the end of the first quarter of 2027.
The two businesses, together known as Eaton’s Mobility Group, make technologies that manage and distribute power across propulsion systems.
Products include transmissions and clutches for commercial trucks and high-voltage components for electric vehicles, including fuses and valve control systems.
Eaton said the separation is expected to lift its organic growth and operating margins once completed.
The move will allow Eaton to focus on its core businesses, which are benefiting from long-term trends including electrification, artificial intelligence and rising aerospace and defense demand, Chief Executive Paulo Ruiz said.
Shares of the company were up 2.7 per cent in premarket trading.
The Mobility Group reported an 8 per cent sales decline to $639 million in the third quarter of 2025.
Eaton did not disclose additional financial details for the planned standalone Mobility Group.
