Eaton Expands High-Margin Defense Portfolio Through Ultra PCS Deal Worth $1.55 Billion
Eaton Corp. (NYSE:ETN) announced Monday that it has agreed to acquire Ultra PCS Limited from the Cobham Ultra Group for $1.55 billion. The U.K.-based company specializes in mission-critical aerospace technologies for defense and commercial applications.
Eaton said the acquisition will enhance its next-generation aerospace capabilities and contribute to long-term earnings growth, given Ultra PCS’s strong position in high-margin markets.
Headquartered in Cheltenham, U.K., with operations in both the U.K. and the U.S., Ultra PCS develops advanced systems such as electronic controls, sensors, stores ejection mechanisms, and data processing tools. The company expects to generate approximately $240 million in revenue in 2025.
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President of Eaton’s Aerospace Group, John Sapp, said combining Ultra PCS’s offerings with Eaton’s portfolio will deliver more customized and future-ready solutions for aerospace customers. “Combining Ultra PCS products and aftermarket services with Eaton’s will enable us to better serve our customers’ needs,” he said.
The company said the acquisition supports its broader strategy focused on digitalization, electrification, and sustainable growth. The deal is expected to close in the first half of 2026.
Eaton held cash of $1.77 billion as of March 31, 2025.
In other recent developments, Eaton secured $25 million in contracts to upgrade the electrical infrastructure at Hartsfield-Jackson Atlanta International Airport as part of its $12.8 billion ATLNext expansion.
The company will supply advanced power distribution systems, real-time monitoring tools, and engineering services to boost energy efficiency, reliability, and future scalability using its Brightlayer digital platform.
Related ETFs: iShares U.S. Aerospace & Defense ETF (BATS:ITA), Industrial Select Sector SPDR Fund (NYSE:XLI)
Price Action: ETN shares are trading higher by 3.44% to $334.81 at last check Monday.
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