Craig Arnold
Chairman and Chief Executive Officer at Eaton
Thanks, Yan. Let's start on Page 3 with a few highlights of the quarter, and I'll begin by saying that, despite what's now very well publicized and ongoing supply chain issues, our team delivered solid results in the quarter and a record performance for the year. And in Q4, we generated adjusted EPS of $1.72, a fourth quarter record. Our sales of $4.8 billion, up 6% organically. And I'd say here, we had particular strength in residential, data centers and in industrial markets.
And I'd say also our aftermarket businesses in both commercial aerospace and vehicle continued to deliver strong growth. We were certainly impacted by supply chain constraints, which had an impact on our revenue, and I'd say, especially in our Electrical Americas and our Vehicle segment. The good news is the markets remain strong. Order growth accelerated in the quarter, and we ended the year with a record backlog.
For our combined Electrical business, orders were up 21% on a rolling 12-month basis and our backlog was up 56%. Our Aerospace business also had a significant increase in orders, up 19% on a rolling 12-month basis, and the backlog was up 16%. We also continue to post strong segment margins, 19.3% in the quarter and a Q4 record. And I'd say here, the actions that we've taken to mitigate inflation, our portfolio changes and the restructuring savings are all contributing to the strong incremental margin performances.
I'd also note that we benefited from favorable mix in the quarter. And I'd say that our portfolio changes continue to be an important part of our strategy. We're pleased to have completed the Royal Power Solutions transaction a few weeks ago. And the addition of Royal Power will allow us to accelerate our growth in eMobility and actually in the broader electrical market as the economy continues to adopt more electric solutions. So I'd say, I think you'd agree that we're not sitting still. We're managing the things that we can control operationally, while continuing to advance our strategic agenda.
Moving to Page 4. I'll highlight a few additional points on our quarterly results. First, total revenues of up 2%, we increased operating profit by 14%. So continue to demonstrate strong operating leverage. Second, acquisitions increased revenues by 7%, which was more than offset by the sale of Hydraulics, which was a 10% headwind. And while not complete, we're certainly pleased with our progress on the portfolio. We continue to drive changes to support our overall goals of creating a company with higher growth, higher margins and more earnings consistency.
Third, I'd just point out that our margins of 19.3%, as I noted, were above the guidance range of 18.8% to 19.2% and I think a good indicator of our team's ability to execute operationally, while once again, managing the things that are in our control. And lastly, we noted both adjusted EPS of $1.72, and second, margins of 19.3% were Q4 records in the face of the significant supply chain constraints that we've been dealing with.
Next on Page 5, we show the financial results of our Electrical Americas segment. Revenues were up 13%, 5% organic and 8% from the Tripp Lite acquisition. The organic sales growth was really driven by strength in residential, industrial and data center markets. And on a sequential basis, our organic growth did step up from 1% in Q3 to 5%. So we're making progress. But still, as I noted, continue to be impacted by supply chain constraints. In some cases, our ability to meet demand was also impacted by labor availability as we had the spike in the Omicron version certainly at the end of the year.
Operating margins of 19.2% were down 190 basis points year-over-year, and the decline was driven really by higher input costs, labor and supply chain inefficiencies and disruptions in our facilities. And on price recovery, we're making good progress. We made good progress in the quarter, but certainly not fast enough to prevent some margin erosion on the net between inflation and price in the way that plays through to operating margins.
And as noted in my opening remarks, market demand remained strong, which was reflected in orders and the growth in our backlog. On a rolling 12-month basis, orders were up some 20%, accelerating from up 17% in Q3 and 13% in Q2. And our backlog reached another record, up 57% from last year, and that's 7% higher than it was in Q3. The strongest markets continue to be residential and data centers. And I'd say here also, beyond orders, we also have strong momentum in our negotiation pipeline, which was up some 11% in the quarter.
Turning to Page 6. We summarize our Electrical Global segment. And as you can see, we delivered really strong results in this segment. Organic growth was 15% with strength in all regions and particular strength in commercial, data center and industrial markets. We also delivered significant operating leverage with operating margins of 19.5% and incremental margins of 40%. We did have a little bit of favorable mix here from our exposure to industrial end markets, but we do expect this to continue.
Like the Americas, orders remained strong, a 22% increase on a rolling 12-month basis and a step-up from the 17% number we posted in Q3. And our growth -- and our backlog remained above 50%. In this segment, order strength was especially strong in data centers, residential and utility markets. Yeah, so I'd say overall, I'd say that our Electrical Global business had a very strong quarter on top of a strong year and is really carrying a lot of strong momentum into 2022.
Moving to Page 7, we summarize the results for our Aerospace segment. As you can see, we had a strong quarter. The industry recovery has certainly begun. Revenues increased 40%, 4% organic, 37% from the acquisition of Cobham Mission Systems and currency had a 1% negative impact. [Technical Issue] aftermarket and biz jet. This was partially offset by weakness in military markets. Operating margins were 24.9%, an all-time record and up 660 basis points from prior year. In the quarter, we had solid incremental margins of more than 40%, which were helped by favorable mix, particularly the growth in aftermarket and by our portfolio actions. Another bright spot in the quarter was the growth in orders in backlog. On a rolling 12-month basis, orders turned positive in Q3 and were up 19% in Q4 with particular strength in commercial markets. Commercial transport, biz jets and commercial aftermarket were all up significantly. And lastly, our backlog was up 16% from last year.
Next, on Page 8, we show the financial results of our vehicle business. Revenue was down 2%; 1% organic, 1% from currency. We had strong organic growth in North America truck and in our South America business, which was offset by weakness in global light vehicle markets. As you're aware, we had certainly significant supply chain constraints in this segment, including a number of customer shutdowns that impacted our revenue. We do have -- we think the worst is behind us here, and we'll see improvement in supply chain-related disruptions this year. Overall, I think our team executed well, delivering solid margins of 16.4% and decremental margins of 30%.
Turning to Page 9. We have the results for our eMobility business. Revenues were up 4% with growth in North America and Asia, partly offset by weakness in Europe. Like our vehicle business, we experienced significant supply chain constraints and customer shutdowns in this segment. And operating margins were negative 9.1% as we continue to invest heavily in R&D and start-up costs associated with new program wins.
As I mentioned earlier, we acquired Royal Power Solutions in January and it will be reported within the eMobility segment. This is an important acquisition. It's part of our strategy to improve the long-term growth rate of Eaton. First, it expands our addressable market for eMobility with a portfolio of highly engineered terminal connectors for electrical applications. Second, Royal Power has a strong track record of profitable growth and will continue to grow as the electrical content in vehicles continued to expand.
And third, Royal will allow us to offer a more complete their products with our own power protection and power conversion products that we're selling in eMobility markets. And I'd say here, with organic growth momentum, the completion of Royal Power acquisition, we're well positioned to realize our long-term objective here, which is building a new $2 billion to $4 billion eMobility business inside of Eaton. And our cumulative new program wins are now at $800 million of material revenue when you include the impact of new wins from Royal Power.
Moving to Page 10, I'll just take a minute to recap 2021 performance before we turn our focus to 2022. First, we delivered strong organic growth for the year, up 10% with significant strength in our Electrical Global segment, up 15%; Vehicle up 21%; and eMobility up 16%. And I'm especially proud of the team for delivering record segment margins of 18.9%, a 250 basis point improvement over 2020 despite the challenging supply chain environment.
Our team executed at a high level and delivered incremental margins of 43%. We also had one of the most transformative years in the history of the company when you think about the portfolio. We completed $8 billion of portfolio actions towards our goal of building this high growth, higher margin company with more earnings consistency. And we're off to a good start in 2022 with another value-enhancing acquisition in Royal Power.
The result of our disciplined execution, the transformative portfolio of actions allowed us to deliver 35% growth in adjusted EPS. And importantly, our shareholders were well rewarded for their commitment to Eaton with a total shareholder return of 47% for the year. Our 2021 results certainly set a high bar for what we expect of ourselves and I'm sure what you expect others of us as well. But we're up for the challenge, and we think the best years are still in front of us.
So let's just turn our focus to 2022. On Page 11, we show organic growth and margin guidance by segment. Overall, we expect organic growth to be 7% to 9%. Starting with our Electrical businesses, Americas and Global are both expected to grow 7% to 9%. And we expect these businesses to see growth really across all end markets, with particular strength continuing in data centers, distributed IT and industrial markets.
In Aerospace, we expect organic growth of 10% to 12% with strong growth in both commercial OE and aftermarket channels. Our base assumption here is that travel continues to expand from the COVID impact, the downturns without any significant new variant. And we expect low-single-digit growth in military markets. For Vehicle, we're anticipating organic growth of 7.5% to 9.5% with strength in both light motor vehicles and truck markets. And in eMobility, we're expecting organic growth to be 11% to 13% driven by the continued strength in electric vehicles. And just turning to segment margins, we expect Eaton to be between 19.9% and 20.3%. At the midpoint, this is a 120 basis point improvement over our record margins that we delivered in 2021. And we expect to see margin expansion in all of our segments.
Turning to Page 12, we cover the balance of our 2022 guidance. Organic growth, as we noted, is expected to be 7% to 9% with acquisitions and divestitures subtracting 3.5% and currency is expected to be flat. We're also forecasting cost to be flat and our tax rate to be between 16% and 17%. Adjusted EPS is projected to be in a range of $7.30 to $7.70 at the midpoint of $7.50, a 13% increase. Operating cash flow is expected to be between $3 billion and $3.2 billion and capex will be approximately $650 million.
At the midpoint, our operating cash flow is expected to increase 15% versus last year. Our free cash flow is expected to be between $2.4 billion and $2.6 billion and at the midpoint of $2.5 billion also a 15% increase. This represents free cash flow to sales of approximately 12% and free cash flow to net income of approximately 100%. And we expect share repurchases to be between $200 million and $300 million, and this really reflects our pivot to what we think is going to be a higher priority on tuck-in acquisitions. And lastly, our Q1 guidance is as follows. We expect adjusted EPS be between $1.55 and $1.65, organic revenue growth to be up 7% to 9%, segment margins to come in between 18.4% and 18.8%, and we expect our tax rate to be between 15% and 16%.
If you'd just allow me for a moment, if I could just close with once again Page 13, which is a brief summary on how we think you should think about the company. I'd say, first, our top-line is supported by strong secular growth trends. And I'd say of note, most of this growth impact is just beginning to show up in our revenue. So most of it's still out in front of us. We've proven that we know how to expand margins and are comfortable with our ability to deliver 11% to 13% EPS growth over our planning horizon. We also have clear capital allocation priorities and a disciplined approach to M&A, which we think is paying off.
As a result, I'd say we're a different company today. We've transformed our portfolio. We're now a company that will deliver higher growth, better margins, more earnings consistency. And I'd say, once again, we're not done. We also have a long-standing commitment to ESG. It remains at the forefront of what we do every day. In fact, the sustainability for us is really a part of how we drive growth in the company. Many of you have gotten to know our Chief Sustainability Officer, Harold Jones, and you'll be hearing more from him at our investor meeting next month.
In the short-term, you can count on us to continue to manage through these operating challenges as a result of COVID, the supply chain disruptions and labor shortages by managing the things we can control. 2021 we think was an important proof point on our journey to transform the company, and we're proud of our results. More importantly, we're ready to do it again this year.
Now, I'll turn it back to Yan, and we'll be happy to address your questions.
