We will start on page 3 with recent highlights and first I'd just say we had a terrific quarter and we're significantly increasing our full year guidance as you saw.
Q1 adjusted earnings per share of $1.44 were solid 15% percent increase year-over-year and 18% above the midpoint of our guidance.
Our Q1 revenues of $4.7 billion were up 0.5% organically, which was well above the high end of our guidance range of down 3%.
We also posted a Q1 record for segment margins of 17.7%.
And looking at our incrementals, we generated $73 million of higher profits despite having $97 million of lower revenues.
Our adjusted operating cash flow increased by 42% and our adjusted free cash flow increased by 62%.
And finally, we recently announced the agreement to acquire 50% of Jiangsu YiNeng meaning electric's busway business in China, an important part of our growth strategy for the Asia Pacific region.
They make cost-effective circuit breakers and contactors and that give us access to Tier 2 and Tier 3 markets in Asia Pacific.
And finally, last week we were pleased to announce the agreement to acquire 50% of Jiangsu YiNeng electric busway business in China.
Moving to page 5, we summarize our Q1 financial results and I'll just note a couple of points here.
First, acquisitions increased sales by 1% but this was more than offset by the divestiture of Lighting which reduced sales by 5.5%.
Second, segment margins of $831 million were 10% above prior year and this is despite a 2% decline in total revenue.
And lastly, our adjusted earnings of 577 million, up 12% and when combined with our lower share count, we delivered a 15% increase in our adjusted EPS.
Turning to page 6, you see the results for our Electrical Americas segment.
Revenues were up 2% organically driven by strength in data centers, residential and utility markets which offset weakness in industrial and commercial markets.
The acquisition of Tripp Lite and PDI added 2% of revenues while the divestiture of Lighting reduced revenues by 14%.
Operating margins, as you can see, increased sharply, up 330 basis points to 20.5%, a quarterly record.
And as you can see, profits were $24 million higher on significantly lower revenues.
We're also pleased with the 11% orders growth in the quarter.
Our backlog was actually up 23% versus last year and due to ongoing strength in once again data center and residential markets.
Next on page 7, we show the results for our Electrical Global segment.
We posted a 5% organic growth with 5% favorable impact from currency largely due to the weaker dollar.
We also delivered 250 basis point increase in operating margins and posted a new Q1 record of 17%.
Our incremental margins in the segment were also strong, more than 40% and were also driven by good cost control measures, saving from actions taken from our multi-year restructuring program.
Orders grew 7% in the quarter, and like sales, the primary contributors to the growth came from data centers, residential and utility markets.
And I say dragged down by the earlier COVID-related declines, orders declined 12% -- 5% on a rolling 12 month basis.
And lastly here, our backlog was up 17% versus last year, driven by the same three end markets.
Moving to page 8, we summarize our Hydraulics segment.
Revenues increased 11% with strong 9% organic growth and 2% positive currency impact.
Operating margin stepped up significantly to 15%, a 420 basis point improvement over last year.
And our Q1 orders were also very strong, up 53% driven primarily by strength in mobile equipment markets.
Turning to page 9, we have the financial results for our Aerospace segment.
Revenues were down 24%, including 26% organic decline driven by the continued downturn in commercial aviation.
Currency, as you can see, added 2% to revenues.
And as you can also see, operating margins were down 310 basis points to 18.5%, down, but still at very attractive levels overall.
Our team, I give them a lot of credit, they moved quickly to flex the business and we're able to really deliver better than normal decrementals margins of approximately 30%.
Orders were down 36% on a rolling 12-month basis, once again due to the ongoing downturn in commercial aerospace markets.
However, I would add on a sequential basis, we are starting to see some improvement as orders were up 14% from Q4.
Next on page 10, we show the results of our Vehicle segment.
As you can see, revenues increased 9% and were much stronger than anticipated.
Just is a point of reference here, NAFTA Class 8 production was up some 12%.
Operating margins also improved significantly here to 17.3%, another quarterly record and a 380 basis point increase with incremental margins of nearly 60%.
And despite volumes that were still below pre-pandemic levels, this business is approaching our target segment margins of 18%.
Turning to page 11, we summarize our eMobility segment.
Here, revenues increased 15%, 13% organic and 2% from currency.
Operating margins were a negative 8.4% as we continued to invest heavily in R&D.
This award represents $33 million in material revenue sales and we hope to be awarded additional vehicle platforms using the same technology.
We now expect overall Eaton organic growth to be up 7% to 9% and this is up from 4% to 6% previously.
Vehicle has increased by 600 basis points.
Electrical Global has increased by 400 basis points and all other segments have increased by 300 basis points.
Moving to page 13, we show our updated segment margin guidance for the year where we're also significantly increasing our guidance.
For Eaton overall, we're increasing segment margins by 50 basis points at the midpoint with a range of 17.8% to 18.3% and we've raised our margin guidance in each of our segments with the exception of Aerospace and eMobility which are unchanged.
And on page 14, we have the balance of our 2021 guidance.
We're raising our full year adjusted earnings per share by $0.50 to $5.90 to $6.30, a midpoint of $6.10 and this is a 9% increase over our prior guidance and a 24% increase over 2020.
With our recent M&A activities, we now expect a net 4% headwind from acquisitions and divestitures, down from our prior outlook of 8%.
I'd say it's also worth noting here that our segment margin guidance of 18.1% to 18.5% is 190 basis point increase at the midpoint over 2020 and will be an all-time record.
It's also, just as a point of reference, above our pre-pandemic margins of 17.6% which we posted in 2019, which was also an all-time record.
So we're off to a strong start and I'd say well on our way to achieve our longer-term target of getting to 21% segment margins.
We expect to be between $1.45 and $1.55 on earnings for organic revenue to be up 24% to 28% and for segment margins to come in between 17.5% and 17.9%.
And if I could, just finally, on page 15, I'll wrap up with a kind of high-level summary of why we think Eaton remains an attractive long-term investment and I begin with first, our intelligent power management strategy really does position us to capitalize on these key secular growth trends that we've talked about for the last couple of years, electrification, energy transition and digitalization.
We're reaffirming our view that 4% to 6% outlook looks very much in hand.
This accelerated growth plus our, what I call, proven ability to deliver margin expansion will allow us to deliver on average 11% to 13% earnings per share growth per year over the next five years.

Summary:
Q1 adjusted earnings per share of $1.44 were solid 15% percent increase year-over-year and 18% above the midpoint of our guidance.
Just is a point of reference here, NAFTA Class 8 production was up some 12%.
We're raising our full year adjusted earnings per share by $0.50 to $5.90 to $6.30, a midpoint of $6.10 and this is a 9% increase over our prior guidance and a 24% increase over 2020.
With our recent M&A activities, we now expect a net 4% headwind from acquisitions and divestitures, down from our prior outlook of 8%.