Eaton Strengthens Aerospace Portfolio with Acquisition of Ultra PCS Limited

DUBLIN – June 16, 2025 – Intelligent power management company Eaton (NYSE: ETN) today announced a significant strategic move to bolster its position in the rapidly expanding aerospace sector. The company has signed a definitive agreement to acquire Ultra PCS Limited from the Cobham Ultra Group for a cash consideration of $1.55 billion. This acquisition is poised to enhance Eaton's capabilities and market presence in critical aerospace applications, serving both military and civilian aircraft platforms.

Ultra PCS is renowned for its innovative solutions in safety and mission-critical aerospace systems. Their product portfolio includes a range of advanced power and control systems, such as power generation, distribution, and conversion technologies, as well as flight control and actuation systems. These solutions are integral to the reliable and safe operation of modern aircraft.

Eaton anticipates that the integration of Ultra PCS will be highly complementary to its existing aerospace business. Eaton's current aerospace segment provides a broad array of products, including hydraulic, fuel, motion control, and engine solutions for commercial and military use. The addition of Ultra PCS's specialized power and control systems will create a more comprehensive offering, enabling Eaton to capture a larger share of the aerospace market value chain.

The acquisition is expected to be accretive to Eaton's earnings, driven by Ultra PCS's strong growth trajectory and high-margin business profile. Ultra PCS has established itself as a key supplier on numerous high-profile aerospace programs, benefiting from long-term contracts and a strong backlog. This provides Eaton with immediate access to attractive, growing markets and strengthens its relationships with major aerospace manufacturers globally.

Strategic Rationale and Market Context

The aerospace market is experiencing robust growth, fueled by increasing air travel demand, modernization of military fleets, and the development of next-generation aircraft. Within this market, there is a growing demand for advanced, efficient, and reliable power management and control systems. The acquisition of Ultra PCS positions Eaton to capitalize on these trends.

• Enhanced Product Portfolio: The combined entity will offer a more complete suite of power and control solutions, providing customers with a single source for critical systems.
• Market Expansion: Ultra PCS's strong presence in specific military and civilian programs will expand Eaton's market reach and customer base.
• Technological Synergies: The integration of Ultra PCS's innovative technologies with Eaton's R&D capabilities is expected to accelerate the development of future aerospace solutions.
• Financial Benefits: The acquisition is anticipated to contribute positively to Eaton's revenue growth, profitability, and cash flow, supporting the company's long-term financial targets.

Investment Insights

For investors, this acquisition represents a strategic investment by Eaton into a high-growth, high-margin sector. The aerospace market offers significant long-term potential, and Ultra PCS's established position within this market provides a solid foundation for future growth. Investors should consider the following:

• Growth Potential: The acquisition provides Eaton with increased exposure to the secular growth trends in the aerospace industry.
• Accretive Impact: The expected accretive nature of the deal suggests potential for positive impact on Eaton's earnings per share.
• Integration Risk: As with any acquisition, there is a degree of integration risk. Investors should monitor the company's progress in integrating Ultra PCS and realizing the anticipated synergies.
• Valuation: The $1.55 billion purchase price represents a significant investment. Investors should evaluate the valuation of Ultra PCS in the context of its growth prospects and profitability.

The acquisition is subject to customary closing conditions, including regulatory approvals. Eaton expects the transaction to close in the second half of 2025. This move underscores Eaton's commitment to strategic portfolio management and its focus on expanding in attractive, high-growth end markets.