Manufacturers

Hubbell Reports Fourth Quarter 2024 and Full Year Results

SHELTON, Conn. — Hubbell Incorporated today reported operating results for the fourth quarter and full year ended December 31, 2024.

“Hubbell delivered double-digit growth in operating profit, earnings per share and free cash flow in the fourth quarter,” said Gerben Bakker, Chairman, President and CEO. “While organic growth was below our expectations in the quarter, continued operational execution resulted in significant margin expansion and we delivered earnings per share ahead of our prior outlook range.”

Bakker continued, “On a full year basis, Hubbell delivered strong financial results and demonstrated our ability to compound off a multi-year base of significant outperformance. We made strong progress in unifying our HES segment to compete collectively, achieved attractive growth across key utility and electrical verticals, proactively managed price/cost/productivity and drove significant shareholder value creation through portfolio transformation and strategic capital allocation.”

Bakker concluded, “We are confident in our ability to deliver on our initial 2025 outlook which anticipates continued attractive growth in net sales, operating margin, operating profit and free cash flow. Our outlook is consistent with our long-term financial framework which we believe will deliver differentiated performance for shareholders in 2025 and beyond.”

FINANCIAL HIGHLIGHTS

The comments and year-over-year comparisons in this segment review are based on fourth-quarter results in 2024 and 2023.

Utility Solutions segment net sales in the fourth quarter of 2024 increased 4% to $847 million compared to $811 million reported in the fourth quarter of 2023. Organic net sales decreased 5% compared to the fourth quarter of 2023, while acquisitions added 9%. Grid Infrastructure net sales increased approximately 12% and Grid Automation net sales decreased by approximately 11%. Segment operating income in the fourth quarter of 2024 was $166 million, or 19.6% of net sales, compared to $143 million, or 17.6% of net sales in the same period of 2023. Adjusted operating income was $194 million, or 22.9% of net sales, in the fourth quarter of 2024 as compared to $174 million, or 21.4% of net sales in the same period of the prior year. Changes in operating income and operating margin were primarily due to the impact of acquisitions, price/cost/productivity management, prior year investments, and favorable business mix, partially offset by volume declines.

Electrical Solutions segment net sales in the fourth quarter of 2024 decreased to $487 million compared to $534 million in the fourth quarter of 2023. Organic net sales decreased 1% in the quarter, while a divestiture reduced segment net sales by 8%. Segment operating income in the fourth quarter of 2024 was $92 million, or 19.0% of net sales, compared to $83 million, or 15.5% of net sales in the same period of 2023. Adjusted operating income was $97 million, or 20.0% of net sales, in the fourth quarter of 2024 as compared to $88 million, or 16.5% of net sales in the same period of the prior year. Changes in operating income and operating margin were driven primarily by portfolio transformation and favorable business mix, price/cost/productivity management and business simplification initiatives.

Adjusted diluted EPS in the fourth quarter of 2024 excludes $0.44 of amortization of acquisition-related intangible assets and $0.02 of transaction, integration, and separation costs. Adjusted diluted EPS in the fourth quarter 2023 results exclude $0.32 of amortization of acquisition-related intangible assets and $0.21 of transaction, integration, and separation costs.

Net cash provided by operating activities was $432 million in the fourth quarter of 2024 versus $346 million in the comparable period of 2023. Free cash flow was $364 million in the fourth quarter of 2024 versus $284 million reported in the comparable period of 2023.

SUMMARY & OUTLOOK

For the full year 2025, Hubbell anticipates total sales growth and organic sales growth of 4-5%. Hubbell expects 2025 GAAP diluted earnings per share from continuing operations in the range of $16.00 to $16.50 and adjusted diluted earnings per share from continuing operations (“Adjusted EPS”) in the range of $17.35 to $17.85. Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.35 per share for the full year. The Company believes Adjusted EPS is a useful measure of underlying financial performance in light of our acquisition strategy.

The diluted earnings per share and Adjusted EPS ranges are based on an adjusted tax rate of 22.0 to 22.5% and include approximately $20 million of anticipated restructuring and related investment. The Company expects full year 2025 free cash flow conversion of 90% or greater on adjusted net income.

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