Craig Arnold
Chairman And Chief Executive Officer at Eaton
Okay. Thanks, Yan. So we'll start on page three, like we normally do, with highlights of the quarter. And I'll summarize by saying that we had another very strong quarter with -- we're seeing significant increases, obviously, in our market. And as a result of that, we're taking our '21 guidance up for the second time. Our teams continue to perform at a very high level despite significant supply chain disruptions and rising commodity costs.
Q2 adjusted earnings of $1.72 were Q2 record, 15% above the midpoint of our guidance; and earnings were up nearly a 100% versus last year, and importantly, 20% sequentially. Our sales were $5.2 billion, up 35%, 27% organically, and above the midpoint of our guidance. For the second quarter in a row, we delivered record segment margins. Q2 margins were 18.6%, up 390 basis points from prior year and up 90 basis points sequentially.
We're also pleased with our incremental margins of 30%. We think, strong results given the material cost headwinds that we're facing. Our order growth was perhaps the biggest highlight of the quarter. Orders were up more than 40% in each of our electrical segments, and both ended the quarter with record backlog. And our portfolio transformation continues. We closed the acquisition of Cobham Mission Systems and our 50% ownership in Jiangsu YiNeng Electric business in China.
We're also pleased to have completed the sale of Hydraulics to Danfoss yesterday for $3.3 billion. The sale of Hydraulics is certainly a successful outcome for Eaton, our shareholders and for Danfoss, who we think will be an excellent owner of the business. We want to thank our former Hydraulics employees for their loyal service to Eaton, and we wish them well under the leadership of Danfoss.
Lastly, we continue to make strong progress on our strategic growth initiatives, and I'll point out just a few highlights on the next slide. So turning to page four. You've heard us talk about the three most important secular growth trends for the company: electrification, energy transition and digitalization. We're making significant progress in all three areas, and we're seeing strong results.
Highlighting a few notable examples, I'll begin with electrification where we've had significant wins in both our Electrical and Vehicle businesses. In Vehicle, we delivered $50 million of new wins for electric vehicle powertrains, which includes EV transmission, EV gearing and EV differentials. And I'm noting this example because it demonstrates that even in an area where many of you think about as our traditional vehicle business, electrification is creating very large growth opportunities for the company.
In Electrical, as you would expect, our team secured attractive wins tied to renewable energy and residential applications. In this case, we're noting a win with a leading solar and energy storage OEM. In energy transition, we recently won a large distributed energy management project for a leading financial services company. This is a greenfield project and a great example of building as a grid solution. Eaton will be providing the low and medium voltage switchgear, our Foreseer electrical power monitoring software, and our microgrid controller.
In digitalization, our Brightlayer team delivered a win in the industrial market with a leading global chemical processing company to provide remote monitoring software solution. In this application, our solutions really leverage Eaton's portfolio of electrical hardware, along with our expertise in power management, to provide the customer with real-time operational data, alarms and insights that are delivered directly to their mobile devices.
In addition to the operating benefits, the customer will be able to use Brightlayer's industrial trending and measurement data to optimize energy usage. So it's an exciting time to be at the center of these three growth trends, and we'll certainly keep you updated as we continue to progress in this area. Moving to page five, we summarize our Q2 results, and I'll point out just a couple of highlights here. First, on 35% total revenue growth, we delivered a 71% increase in operating profit.
So very strong operating leverage. Second, our adjusted earnings of $690 million increased by 99%, and we're also effectively managing our corporate cost. Overall, our teams are certainly executing at a very high level. They're efficiently managing supply chain constraints, increasing productivity and delivering the expected benefits from our multiyear restructuring program, and a trend that we expect to continue for the balance of the year.
Turning to page six, we summarize the results of our Electrical Americas segment. Revenues were up 15% organically, driven by strength in residential and data center markets, but we also had solid growth in commercial and institutional markets as well. The acquisition of Tripp Lite added 8%, and favorable currency added 1%. Looking at our sequential growth, we were up 8% over Q1. And historically, we would have seen a 5% lift between the quarters, so I'd say our growth rate is accelerating here. Our operating margins increased 60 basis points to 21.3%, a Q2 record.
This is 190 basis points above pre-pandemic levels in Q2 of 2019. Our portfolio changes, the sale of Lighting and the acquisition of Tripp Lite, solid execution and benefits, once again, from our multiyear restructuring program, all contributed to the improvement. We're also pleased with the 43% growth in orders in the quarter, a 13% increase on a rolling 12-month basis. This led to also a 43% increase in our backlog, which now sits at record level.
We had broad order strength in all end markets, with particular strength once again in data centers, residential and commercial and institutional. You'll recall that at the end of Q1, we started to see some large orders in select commercial markets. This pattern strengthened in Q2, and our negotiation pipeline in the commercial market was up significantly. Data, all data would suggest that the second half of the year and really going into 2022 should see solid growth. Turning to page seven. You'll see the financial summary of our Electrical Global segment.
And as you can see, we had strong organic growth here, up 22%, and currency added some 6%. Like the Americas, organic revenue growth was driven by residential and data center markets, but we also have broad-based strength in commercial and institutional and utility and in industrial markets as well. We posted strong operating margins of 18.3%. Once again, a Q2 record, up 230 basis points from last year and up 130 basis points sequentially. Incremental margins on an organic basis were solid at 32%.
Result, once again, of good cost control and benefits from our multiyear restructuring program. Orders were also very strong, up some 46% from last year and up 10% on a rolling 12-month basis. Once again, we had strength across all markets, with particular strength in data center and residential markets. And we ended the quarter with record backlog, up from 50% from last year. Moving to page eight, we show the results of our Aerospace segment.
While we have a long way to go, we're starting to see signs of recovery in this market, which posted 17% growth in the quarter. As you know, we closed the Cobham transaction on June 1, and the business delivered solid results in the month of June, adding 16 to our quarterly revenue. Currency also added 3%. Operating margins were 21%, up 600 basis points from last year and 250 basis points sequentially. With improving volumes, the team executed extremely well, delivering 50% incremental margins on an organic basis.
Orders on a rolling 12-month basis are still down from 16%, but this is an improvement from down 36% in Q1. In fact, sequentially, orders were up 12%. The commercial industry is seeing increase in leisure travel, especially in domestic markets. But international travel continues to be down sharply. We think the market will grow over the next several years, but we don't expect it to return to 2019 levels until 2024. Lastly, our backlog here has stabilized and was flat with last year. Next on page nine, you see the financial results of our Vehicle segment.
Organic revenues more than doubled with strength in all regions. Operating margins were 17.9%, and we delivered very strong incremental margins, which were over 40%. The margin performance was driven by higher volume, certainly, but also once again from the benefit from the multiyear restructuring program. And despite volume still being down from 10% to 15% below pre-pandemic levels, the business is really already sitting on the cusp of achieving our long-term margin target of 18%. Now turning to page 10. We show a summary of our eMobility business.
Revenues were up 57%; 54% organically, 3% from positive currency. The organic revenues were driven by strong growth really in all eMobility markets around the world. Operating margins were negative 6.8%, and they continue to be depressed by heavy investments in new programs. As you know, we're investing in this segment in high-voltage power electronics and power distribution and power protection. But you should also be aware that we have significantly expanded our view of the market here. We now see large opportunities for our traditional business in the eMobility segment.
These technologies include EV gearing, EV transmissions and torque control solutions. As I noted earlier -- and we already have wins in these areas. In fact, our traditional products have increased the size of the addressable market for eMobility, we think, some $5 billion. And so it continues to be a really exciting segment and a big part of the company's future. Moving to page 11. We've updated our guidance for 2021 on organic revenue.
And as you can see, we are significantly increasing our organic revenue growth for the second time this year with an increase in most segments. In fact, we're raising the midpoint of our organic growth guidance by 400 basis points from 8% to 12%. And this is on top of a 300-basis-point increase that we took in Q1. The largest increases are in Electrical Global and Vehicle, with smaller increases, as you can see, in the Americas and eMobility. With very strong first half, robust order book and a growing backlog, we're comfortable with 11% to 13% growth outlook for the year.
This is despite, quite frankly, some of our markets that remain in the week saying we're in the early stages of recovery, notably, commercial construction, industrial, oil and gas and Commercial Aerospace. We expect to see certainly continued recovery in these markets over the balance of this year, and we think it bodes well for 2022. Next, on page 12, we show an update on our segment margin guidance for the year. For Eaton overall, we're increasing segment margins by 30 basis points at the midpoint, from 18.3% to 18.6%, which will once again be an all-time record for the company.
The 30-basis-point increase, as you know, follows the 50-basis-point increase that we reported following our Q1 earnings call. And we've raised the margin guidance in each of our segments with the exception of eMobility. We continue to expect organic incremental margin of around 30%, and for price and commodity costs to be approximately neutral for the year. Our team has certainly been very effective at managing through these complexities related to price increases and supply chain constraints, and we would expect this to continue through the balance of the year.
And on page 13, we have the remaining items of our 2021 guidance. We're raising our full year adjusted earnings per share by $0.53 to a range of $6.58 to $6.88. At the midpoint, $6.73. This is an increase of 10% over our prior guidance and a 37% increase over 2020. You'll recall that we raised guidance by $0.50 in Q1. With this increase, we're now forecasting a 20% increase from the midpoint of our original guidance, which was $5.60.
With our recent M&A activities, we now see net headwinds of 1% from acquisitions and divestitures, and this is down from our prior outlook of 4%, and we now expect positive currency of $350 million, up from our prior forecast of $200 million. And we're also raising our guidance for adjusted operating cash flow and adjusted free cash flow, both up $200 million at the midpoint.
The increase is really driven by a combination of higher profits on organic growth and sales, the timing of acquisitions and divestitures, but also partially offset by some investments that we're making in working capital given the current constrained supply chain environment. The remaining components of our full year guidance remain unchanged. And lastly, our Q3 guidance is as follows: We expect earnings to be $1.72 to $1.82, organic revenues to be up 11% to 13%, and for segment margins to come in between 19% and 19.4%.
And lastly, I'll wrap up the presentation on page 14. You've heard us talk for the last few years about Eaton's transformation into an intelligent power management company. This strategy is built on the belief that there's a few secular growth trends: electrification, energy transition and digitalization, that allow the company to grow at a much faster rate than we have historically. And every day, we get confirmation that we're on the right path. We're seeing it in the growing importance of sustainability initiatives in society. We're seeing it in government spending. And we're certainly seeing it in our opportunities and in our win.
We're pleased with the progress that we've made on the portfolio. Each move has been consistent with our objectives of delivering a company that has faster growth, higher margins and better earnings consistency. And you've seen our track record on margin expansion. The Eaton Business System is what provides the consistent approach to how we run the company, how we execute and how we expand margins and it's working. And this enables us to be on track to expand margins by the 400 to 500 basis points over the 5-year planning period.
And as you can see, we're running ahead of plan. And we're committed to our sustainability goals. They reflect the right thing to do for society, but just as importantly, sustainability is at the core of what's driving our growth. I'd also note that we published our 2020 sustainability report and our first task force on climate-related financial disclosure reports at the end of June. I encourage those of you who have a special interest in sustainability to read it.
I think they're extremely well done and reflect the direction that the company's headed in. Lastly, we continue to generate very attractive cash flows -- we'll continue to generate very attractive cash flow. Over $9 billion through 2025, which will allow us to return cash to shareholders and also make investments to grow the company. And as you can see, we're off to a very strong start in 2021. At the midpoint of our guidance, once again, revenue is expected to grow 12% and earnings by 37%.
So with that, I'll turn it back to Yan and open the line for questions.
