Eaton has announced plans to spin out its Mobility Group as a separate, publicly traded company.

“The separation of Mobility advances Eaton’s bold new 2030 growth strategy to lead, invest, and execute for growth,” said Paulo Ruiz, Eaton CEO, in a press release.

“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 after-market and defense demand. We are confident that Eaton is exceptionally well‑positioned to capitalize on opportunities to accelerate growth and margin expansion, and to create long‑term value for our shareholders.”

As an independent entity, Ruiz added “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.”

The Mobility Group will continue to serve as a supplier to the heavy-duty and commercial vehicle sectors, including electric vehicles. The company says it will be better positioned to pursue near- and long-term growth opportunities. The spin-off is expected to be completed by the first quarter of 2027.