v3.26.3
RETIREMENT BENEFITS PLANS (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Obligations and Funded Status
Obligations and Funded Status
United States
pension liabilities		Non-United States
pension liabilities		Other postretirement
liabilities
(In millions)202520242025202420252024
Funded status
Fair value of plan assets$2,469 $2,445 $1,722 $1,548 $20 $18 
Benefit obligations(2,650)(2,700)(2,038)(1,863)(194)(196)
Funded status$(181)$(255)$(316)$(315)$(174)$(178)
Amounts recognized in the Consolidated
   Balance Sheets
Other assets$— $— $256 $231 $— $— 
Other current liabilities(9)(29)(42)(31)(13)(14)
Pension liabilities and Other postretirement
  benefits liabilities		(172)(226)(530)(515)(161)(164)
Total$(181)$(255)$(316)$(315)$(174)$(178)
Amounts recognized in Accumulated other
   comprehensive loss (pre-tax)
Net actuarial loss (gain)$847 $904 $738 $678 $(72)$(87)
Prior service cost3 5 15 6 — — 
Total$850 $909 $753 $684 $(72)$(87)
Schedule of Change in Benefit Obligations
Change in Benefit Obligations
United States
pension liabilities		Non-United States
pension liabilities		Other postretirement
liabilities
(In millions)202520242025202420252024
Balance at January 1$2,700 $2,824 $1,863 $2,022 $196 $212 
Service cost16 18 45 46 — 1 
Interest cost135 134 88 85 11 10 
Actuarial loss (gain) 55 (20)13 (82)2 (11)
Gross benefits paid(256)(258)(139)(121)(27)(29)
Currency translation— — 155 (87)1 (3)
Plan amendments— 2 10 (3)— — 
Other— — 3 3 11 16 
Balance at December 31$2,650 $2,700 $2,038 $1,863 $194 $196 
Accumulated benefit obligation$2,650 $2,686 $1,925 $1,766 
Schedule of Change in Plan Assets
Change in Plan Assets
United States
pension liabilities		Non-United States
pension liabilities		Other postretirement
liabilities
(In millions)202520242025202420252024
Balance at January 1$2,445 $2,604 $1,548 $1,633 $18 $17 
Actual return on plan assets250 84 111 (10)2 1 
Employer contributions30 15 94 95 16 18 
Gross benefits paid(256)(258)(139)(121)(27)(29)
Currency translation— — 105 (52)— — 
Other— — 3 3 11 11 
Balance at December 31$2,469 $2,445 $1,722 $1,548 $20 $18 
Schedule of Components of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
The components of pension plans with an accumulated benefit obligation in excess of plan assets at December 31 are as follows:
United States
pension liabilities		Non-United States
pension liabilities
(In millions)2025202420252024
Accumulated benefit obligation$2,650 $2,686 $640 $701 
Fair value of plan assets2,469 2,445 121 209 
Schedule of Components of Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
The components of pension plans with a projected benefit obligation in excess of plan assets at December 31 are as follows:
United States
pension liabilities		Non-United States
pension liabilities
(In millions)2025202420252024
Projected benefit obligation$2,650 $2,700 $738 $772 
Fair value of plan assets2,469 2,445 166 225 
Schedule of Changes in Pension and Other Postretirement Benefits Liabilities recognized in Accumulated Other Comprehensive Income (Loss)
Changes in pension and other postretirement benefit liabilities recognized in Accumulated other comprehensive loss are as follows:
United States
pension liabilities		Non-United States
pension liabilities		Other postretirement
liabilities
(In millions)202520242025202420252024
Balance at January 1$909 $871 $684 $661 $(87)$(93)
Prior service cost arising during the year— 2 10 (3)— — 
Net loss (gain) arising during the year(4)86 30 62 1 (7)
Currency translation— — 54 (18)1 — 
Less amounts included in expense during the year(55)(50)(25)(18)13 13 
Net change for the year(59)38 69 23 15 6 
Balance at December 31$850 $909 $753 $684 $(72)$(87)
Schedule of Benefits Expense
The components of retirement benefits expense (income) are as follows:
United States
pension benefit expense		Non-United States pension benefit expenseOther postretirement
benefits expense (income)
(In millions)202520242023202520242023202520242023
Service cost$16 $18 $19 $45 $46 $43 $— $1 $1 
Interest cost135 134 142 88 85 85 11 10 10 
Expected return on plan assets(190)(190)(195)(128)(134)(121)(1)(1)(1)
Amortization15 9 4 16 11 7 (13)(13)(17)
(24)(29)(30)21 8 14 (3)(3)(7)
Settlements, curtailments, and special termination benefits40 41 34 9 7 4 — — — 
Total expense (income)$16 $12 $4 $30 $15 $18 $(3)$(3)$(7)
Schedule of Assumptions Used to Determine Pension Plans Expense
Pension Plans
United States
pension plans		Non-United States
pension plans
202520242023202520242023
Assumptions used to determine benefit obligation at year-end
Discount rate5.34 %5.61 %5.14 %5.11 %4.92 %4.52 %
Rate of compensation increase3.05 %3.32 %3.40 %3.13 %3.16 %3.17 %
Interest rate used to credit cash balance plans4.56 %4.79 %4.01 %2.50 %2.01 %1.59 %
Assumptions used to determine expense
Discount rate used to determine benefit obligation5.61 %5.14 %5.47 %4.92 %4.52 %4.83 %
Discount rate used to determine service cost5.76 %5.24 %5.54 %5.90 %6.00 %5.90 %
Discount rate used to determine interest cost5.29 %4.98 %5.33 %4.71 %4.47 %4.80 %
Expected long-term return on plan assets7.00 %6.50 %6.50 %6.63 %6.79 %6.32 %
Rate of compensation increase3.32 %3.40 %3.33 %3.16 %3.17 %3.12 %
Interest rate used to credit cash balance plans4.79 %4.01 %3.67 %2.01 %1.59 %2.32 %
Schedule of Assumptions Used to Determine Other Postretirement Benefits Obligations and Expense Assumptions used to determine other postretirement benefits obligations and expense are as follows:
Other postretirement
benefits plans
202520242023
Assumptions used to determine benefit obligation at year-end
Discount rate5.24 %5.57 %5.11 %
Health care cost trend rate assumed for next year6.50 %6.70 %7.70 %
Ultimate health care cost trend rate4.75 %4.75 %4.75 %
Year ultimate health care cost trend rate is achieved203520342033
Assumptions used to determine expense
Discount rate used to determine benefit obligation5.57 %5.11 %5.46 %
Discount rate used to determine service cost5.84 %5.25 %5.53 %
Discount rate used to determine interest cost5.29 %4.96 %5.32 %
Initial health care cost trend rate6.70 %7.70 %7.10 %
Ultimate health care cost trend rate4.75 %4.75 %4.75 %
Year ultimate health care cost trend rate is achieved203420332031
Schedule of Employer Contributions to Pension Plans
Contributions to pension plans that Eaton expects to make in 2026, and made in 2025, 2024 and 2023, are as follows:
(In millions)
Expected in 2026
202520242023
United States plans$9 $30 $15 $16 
Non-United States plans89 94 95 97 
Total contributions$98 $124 $110 $113 
Schedule of Expected Pension and Other Postretirement Benefit Payments and Expected Subsidy
The following table provides the estimated pension and other postretirement benefit payments for each of the next five years, and the five years thereafter in the aggregate. For other postretirement benefits liabilities, the Company expects minor subsidy receipts related to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 that would reduce the estimated payments listed below.
(In millions)Estimated
United States
pension payments		Estimated
non-United States
pension payments		Estimated other postretirement
benefit payments
2026$276 $135 $15 
2027259 135 19 
2028250 136 18 
2029241 141 17 
2030226 144 17 
2031 - 2035
1,008 757 75 
Schedule of Fair Value of Pension Plan Assets
A summary of the fair value of pension plan assets at December 31, 2025 and 2024, is as follows:
(In millions)TotalQuoted prices
in active
markets for
identical assets
(Level 1)		Other
observable
inputs
(Level 2)
Unobservable
inputs
(Level 3)1
2025
Common collective trusts
Non-United States equity and global equities$211 $— $211 $— 
Fixed income32 — 32 — 
Fixed income securities1,647 — 1,647 — 
United States treasuries258 255 3 — 
Real estate248 100 32 116 
Cash equivalents49 25 24 — 
Exchange traded funds105 105 — — 
Other419 — 50 369 
Common collective and other trusts measured at net asset value
1,287 
Money market funds measured at net asset value2 
Pending purchases and sales of plan assets, and interest
    receivable		(67)
Total pension plan assets$4,191 $485 $1,999 $485 
1 These pension plan assets include private equity, private credit and private real estate funds that generally have redemption notice periods of six months or longer and are often not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately $158 million at December 31, 2025, which will be satisfied by a reallocation of pension plan assets.
(In millions)TotalQuoted prices
in active
markets for
identical assets
(Level 1)		Other
observable
inputs
(Level 2)
Unobservable
inputs
(Level 3)1
2024
Common collective trusts
Non-United States equity and global equities$241 $— $241 $— 
Fixed income28 — 28 — 
Fixed income securities1,582 — 1,582 — 
United States treasuries461 453 8 — 
Real estate212 63 25 124 
Cash equivalents83 55 28 — 
Exchange traded funds91 91 — — 
Other402 — 40 362 
Common collective and other trusts measured at net asset value
978 
Pending purchases and sales of plan assets, and interest
    receivable		(85)
Total pension plan assets$3,993 $662 $1,952 $486 
1 These pension plan assets include private equity, private credit and private real estate funds that generally have redemption notice periods of six months or longer, and are often not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately $128 million at December 31, 2024, which will be satisfied by a reallocation of pension plan assets.
Schedule of Fair Value Measurement of Plan Assets using Significant Unobservable Inputs
The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2025 and 2024 due to the following:
(In millions)Real estateOtherTotal
Balance at January 1, 2024$199 $370 $569 
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end
(24)29 5 
Purchases, sales, settlements - net
(51)(37)(88)
Transfers into or out of Level 3— — — 
Balance at December 31, 2024124 362 486 
Actual return on plan assets:
Gains (losses) relating to assets still held at year-end
14 32 46 
Purchases, sales, settlements - net
(22)(25)(47)
Transfers into or out of Level 3— — — 
Balance at December 31, 2025$116 $369 $485 
Schedule of Fair Value of Other Postretirement Benefits Plan Assets
A summary of the fair value of other postretirement benefits plan assets at December 31, 2025 and 2024, is as follows:
(In millions)TotalQuoted prices
in active
markets for
identical assets
(Level 1)		Other
observable
inputs
(Level 2)		Unobservable
inputs
(Level 3)
2025
Cash equivalents$3 $3 $— $— 
Common collective and other trusts measured at net asset value
17 
Total other postretirement benefits plan assets$20 $3 $— $— 
(In millions)TotalQuoted prices
in active
markets for
identical assets
(Level 1)		Other
observable
inputs
(Level 2)		Unobservable
inputs
(Level 3)
2024
Cash equivalents$3 $3 $— $— 
Common collective and other trusts measured at net asset value
15 
Total other postretirement benefits plan assets$18 $3 $— $— 
Schedule of Employer Contributions to Defined Contribution Benefit Plans, Charged to Expense The total contributions related to these plans are charged to expense and are as follows:
(In millions)
2025$239 
2024220 
2023201