Manufacturers

Hubbell Reports Operating Results for Q1 2025

Hubbell Reports Operating Results for Q1 2025
SHELTON, Conn. — Hubbell Incorporated today reported operating results for the first quarter ended March 31, 2025.

“Our results in the first quarter were driven by continued strong operating performance in our Electrical Solutions segment and a return to organic growth in Grid Infrastructure, offset by anticipated softness in Grid Automation and the impact of higher cost inflation,” said Gerben Bakker, Chairman, President and CEO.

Bakker continued, “Electrical Solutions organic growth of 5% was driven by strength in datacenter markets, as well as continued execution on our segment unification strategy to drive outgrowth through innovation and commercial alignment. Execution on this strategy also continued to drive operating margin expansion and adjusted operating profit growth in the quarter. In Utility Solutions, transmission and substation markets remained strong as utility customers invest to interconnect new sources of load and generation. Distribution markets improved sequentially, and orders were strong across each major Grid Infrastructure end market. As anticipated, Grid Automation sales were down double digits in the first quarter on challenging prior year comparisons. Operationally, while we continued to deliver favorable price realization and productivity across both segments, recent cost increases driven by raw material inflation and tariffs resulted in a net price/cost/productivity headwind in the first quarter.”

Bakker concluded, “Hubbell is uniquely positioned in attractive end markets with long-term growth tailwinds from grid modernization and electrification. We are seeing healthy end customer activity across utility and electrical markets, and we are confident in our ability to mitigate recent inflationary impacts through price and productivity initiatives.”

FIRST QUARTER FINANCIAL HIGHLIGHTS

The comments and year-over-year comparisons in this segment review are based on first quarter results in 2025 and 2024.

Utility Solutions segment net sales in the first quarter of 2025 decreased 4% to $857 million compared to $894 million reported in the first quarter of 2024. Organic net sales decreased approximately 4% in the quarter. Grid Infrastructure net sales increased approximately 1% and Grid Automation net sales decreased approximately 15%. Segment operating income was $160 million, or 18.7% of net sales, in the first quarter of 2025 as compared to $158 million, or 17.6% of net sales in the same period of 2024. Segment adjusted operating income was $180 million, or 21.0% of net sales, in the first quarter of 2025 as compared to $195 million, or 21.8% of net sales in the prior year period. Changes in operating income and operating margin were primarily due to lower intangible asset amortization expense, favorable price realization and productivity, partially offset by raw material cost increases and tariffs as well as volume declines.

Electrical Solutions segment net sales in the first quarter of 2025 increased to $508 million compared to $505 million reported in the first quarter of 2024. Organic net sales increased 5% in the quarter, while a 2024 divestiture reduced segment net sales by 4%. Segment operating income was $79 million, or 15.5% of net sales in the first quarter of 2025, compared to $71 million, or 14.1% of net sales in the same period of 2024. Adjusted operating income was $84 million, or 16.5% of net sales, in the first quarter of 2025 as compared to $80 million, or 15.8% of net sales in the same period of the prior year. Changes in operating income and operating margin were driven primarily by volume growth, portfolio transformation and mix, and favorable price realization and productivity, partially offset by raw material cost increases and tariffs.

Adjusted diluted EPS in the first quarter 2025 excludes $0.34 of amortization of acquisition-related intangible assets and $0.01 of transaction, integration, and separation costs. Adjusted diluted EPS in the first quarter 2024 excluded $0.55 of amortization of acquisition-related intangible assets, a $0.22 loss on disposition of the residential lighting business, and $0.10 of transaction, integration, & separation costs.

Net cash provided by operating activities was $37 million in the first quarter of 2025 versus net cash provided by operating activities of $92 million in the 2024 period. Free cash flow was $11 million in the first quarter of 2025 versus $52 million in the comparable period of 2024.

SUMMARY & OUTLOOK

For the full year 2025, Hubbell anticipates diluted earnings per share (“EPS”) in the range of $15.95-$16.45 and anticipates adjusted diluted earnings per share (“Adjusted EPS”) in the range of $17.35-$17.85. Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.40 per share for the full year. The Company believes Adjusted EPS is a useful measure of underlying performance in light of our acquisition and divestiture strategy.

Hubbell anticipates full year 2025 total sales growth and organic net sales growth of 6-8%, inclusive of pricing actions in response to incremental cost inflation. The diluted EPS 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 continues to expect full year 2025 free cash flow conversion of 90% or greater on adjusted net income.

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