SHELTON, Conn. — Hubbell Incorporated (NYSE: HUBB) today reported operating results for the third quarter ended September 30, 2025.
“Hubbell delivered double digit adjusted earnings per diluted share growth in the third quarter, driven by strong organic growth in Electrical Solutions and Grid Infrastructure products within our Utility Solutions segment, as well as a lower year-over-year tax rate” said Gerben Bakker, Chairman, President and CEO.
Mr. Bakker continued, “In our Utility Solutions segment, Grid Infrastructure achieved 8% organic growth in the quarter. T&D markets remained strong as utility customers invest to interconnect new sources of load and generation on the grid, while aging infrastructure continued to drive solid hardening and resilience activity. Grid Automation sales were down 18% in the quarter, driven by weak meter and AMI project activity, while protection and controls products contributed solid growth. In Electrical Solutions, 8% organic growth was driven by strength in datacenter and light industrial markets. Execution on our segment unification strategy continues to drive growth through innovation and commercial alignment, along with operating efficiencies and margin expansion. Operationally, price and productivity exceeded cost inflation across both segments in the quarter, driven by Hubbell’s strong positions in attractive markets and execution in proactively managing our cost structure.”
Mr. Bakker concluded, “We are raising our 2025 adjusted earnings per share outlook, which anticipates 3-4% organic growth, strong adjusted operating margin expansion and a lower full year tax rate than previously anticipated.”
THIRD QUARTER FINANCIAL HIGHLIGHTS
The comments and year-over-year comparisons in this segment review are based on third quarter results in 2025 and 2024.
Utility Solutions segment net sales in the third quarter of 2025 increased 1% to $944 million compared to $933 million reported in the third quarter of 2024. Organic net sales increased approximately 1% in the quarter. Grid Infrastructure net sales increased approximately 9% and Grid Automation net sales decreased approximately 18%. Segment operating income was $219 million, or 23.2% of net sales, in the third quarter of 2025 as compared to $219 million, or 23.5% of net sales in the same period of 2024. Segment adjusted operating income was $242 million, or 25.7% of net sales, in the third quarter of 2025 as compared to $245 million, or 26.2% of net sales in the prior year period. Changes in operating income and operating margin were primarily due to favorable price realization and productivity as well as strong volume growth in Grid Infrastructure, offset by volume declines in Grid Automation as well as higher cost inflation, raw material costs and tariffs.
Electrical Solutions segment net sales in the third quarter of 2025 increased 10% to $559 million compared to $510 million reported in the third quarter of 2024. Organic net sales increased 8% in the quarter, while an acquisition contributed 1%. Segment operating income was $111 million, or 19.9% of net sales in the third quarter of 2025, compared to $94 million, or 18.4% of net sales in the same period of 2024. Adjusted operating income was $116 million, or 20.8% of net sales, in the third quarter of 2025 as compared to $99 million, or 19.4% of net sales in the same period of the prior year. Changes in operating income and operating margin were driven primarily by volume growth and favorable price realization and productivity, partially offset by higher cost inflation, raw material costs and tariffs.
The effective tax rate in the third quarter of 2025 decreased to 17.5% as compared to 21.0% in the third quarter of 2024, primarily due to a large income tax benefit in the third quarter of 2025 from an international restructuring.
Adjusted diluted EPS in the third quarter 2025 excludes $0.35 of amortization of acquisition-related intangible assets and $0.05 of transaction, integration, and separation costs. Adjusted diluted EPS in the third quarter 2024 excluded $0.39 of amortization of acquisition-related intangible assets and $0.04 of transaction, integration, & separation costs.
Net cash provided by operating activities was $284 million in the third quarter of 2025 versus net cash provided by operating activities of $227 million in the 2024 period. Free cash flow was $254 million in the third quarter of 2025 versus $189 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 $16.55-$16.75 and anticipates adjusted diluted earnings per share (“Adjusted EPS”) in the range of $18.10-$18.30. Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.45 per share for the full year, and approximately $0.10 of transaction, integration and separation costs. 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 3-4%. The diluted EPS and Adjusted EPS ranges are based on an adjusted tax rate of 20.5% to 21.0% and include approximately $20 million of anticipated restructuring and related investment. The Company expects full year 2025 free cash flow conversion of approximately 90% on adjusted net income.