Earnings Performance - Hubbell reported quarterly earnings of $4.93 per share, exceeding the Zacks Consensus Estimate of $4.36 per share, and up from $4.37 per share a year ago, representing an earnings surprise of +13.07% [1] - The company posted revenues of $1.48 billion for the quarter ended June 2025, which was 1.4% below the Zacks Consensus Estimate, and compared to $1.45 billion in the same quarter last year [2] Stock Performance and Outlook - Hubbell shares have increased by approximately 4.6% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $4.99 on revenues of $1.56 billion, and for the current fiscal year, it is $17.38 on revenues of $5.92 billion [7] - The trend of earnings estimate revisions for Hubbell was mixed prior to the earnings release, which may change following the report [6] Industry Context - The Manufacturing - Electrical Utilities industry, to which Hubbell belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Hubbell reported a 2% increase in net sales for Q2 2025, with organic growth also at 2%[4]. - Adjusted diluted EPS for Q2 2025 was $4.93, up from $4.56 in Q2 2024, reflecting strong operational performance[4][10]. - Net sales for the three months ended June 30, 2025, were $1,484.3 million, an increase from $1,452.5 million in the same period of 2024, representing a growth of 2.2%[29]. - Net income attributable to Hubbell for Q2 2025 was $244.2 million, a 12% increase from $217.5 million in Q2 2024[35]. - Adjusted net income for the first half of 2025 reached $446.7 million, up 5% from $424.9 million in the same period of 2024[35]. - Basic earnings per share for the three months ended June 30, 2025, increased to $4.58 from $4.04 in 2024, representing a rise of 13.4%[29]. - Net income for the three months ended June 30, 2025, was $245.5 million, representing a 12% increase from $219.1 million in 2024[41]. - For the six months ended June 30, 2025, net income rose 15% to $410.0 million compared to $357.5 million in 2024[41]. Segment Performance - The Utility Solutions segment achieved 7% organic growth, while the Electrical Solutions segment saw 4% organic growth, driven by demand in datacenter markets[3][9]. - The Utility Solutions segment's operating income increased to $218 million, or 23.3% of net sales, compared to $197 million, or 21.3% in the prior year[8]. - Electrical Solutions segment's operating income rose to $118 million, or 21.5% of net sales, up from $109 million, or 20.7% in Q2 2024[9]. - Utility Solutions segment net sales for Q2 2025 were $935.5 million, a 1% increase from $926.5 million in Q2 2024[37]. - Electrical Solutions segment net sales for Q2 2025 were $548.8 million, a 4% increase from $526.0 million in Q2 2024[37]. Cash Flow and Liquidity - Free cash flow for Q2 2025 was $221 million, compared to $206 million in Q2 2024, demonstrating improved cash generation[11]. - Free cash flow is emphasized as a key measure for evaluating the company's ability to generate cash without external financing, aiding in investments and strategic acquisitions[22]. - Cash and cash equivalents at the end of the quarter were $382.6 million, up from $329.1 million at the beginning of the year, showing an increase of 16.2%[33]. - Net cash provided by operating activities for the six months ended June 30, 2025, was $298.0 million, down from $331.8 million in 2024[45]. - Free cash flow for the three months ended June 30, 2025, was $220.7 million, compared to $205.7 million in the same period of 2024[45]. Margins and Profitability - Operating margin for Q2 2025 was 22.7%, with adjusted operating margin at 24.4%, indicating margin expansion[4]. - Operating income as a percentage of net sales improved to 22.7% for the three months ended June 30, 2025, up from 21.1% in the same period of 2024[29]. - Adjusted operating income for Q2 2025 was $362.2 million, reflecting an 8% increase from $336.5 million in Q2 2024[37]. - The operating margin for Q2 2025 improved to 22.7%, up 160 basis points from 21.1% in Q2 2024[37]. - Adjusted EBITDA for the same period increased by 8% to $384.6 million, up from $355.9 million year-over-year[41]. Outlook and Guidance - The company raised its 2025 diluted EPS outlook to a range of $16.25-$16.75 and adjusted diluted EPS to $17.65-$18.15, anticipating mid-single-digit organic growth[5][12]. - Hubbell anticipates total sales growth and organic net sales growth of 4-6% for the full year 2025[13]. - The company anticipates continued growth in net sales and operating income across its segments in the upcoming quarters[49]. Assets and Liabilities - Total assets as of June 30, 2025, were $7,149.0 million, an increase from $6,847.7 million at the end of 2024, indicating growth of 4.4%[31]. - Total liabilities increased to $3,650.2 million as of June 30, 2025, from $3,437.1 million at the end of 2024, reflecting a rise of 6.2%[31]. - Total debt as of June 30, 2025, was $1,847.1 million, up from $1,568.1 million at the end of 2024, resulting in a total debt to total capital ratio of 35%[44]. Restructuring and Costs - The company incurred restructuring costs related to business transformation initiatives, which are classified as non-GAAP measures to provide a clearer view of operational performance[23]. - The company reported restructuring costs of $4.0 million for the three months ended June 30, 2025, compared to $3.4 million in 2024[42]. - The impact on net income available to common shareholders from restructuring and related costs was $2.5 million for the three months ended June 30, 2025[42].

Shelton, CT, July 29, 2025 (GLOBE NEWSWIRE) -- HUBBELL REPORTS SECOND QUARTER 2025 RESULTS Utility Solutions segment net sales in the second quarter of 2025 increased 1% to $936 million compared to $927 million reported in the second quarter of 2024. Organic net sales increased approximately 1% in the quarter. Grid Infrastructure net sales increased approximately 7% and Grid Automation net sales decreased approximately 13%. Segment operating income was $218 million, or 23.3% of net sales, in the second quar ...

Group 1 - The Board of Directors of Hubbell Incorporated declared a regular quarterly dividend of $1.32 per share on the Company's common stock [1] - The dividend will be paid on September 15, 2025, to shareholders of record on August 29, 2025 [1] Group 2 - Hubbell Incorporated is a leading manufacturer of utility and electrical solutions [2] - The company reported revenues of $5.6 billion for the year 2024 [2] - Hubbell's solutions are designed to energize economies and electrify communities [2]

Core Viewpoint - Hubbell (HUBB) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending June 2025, with actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on July 29, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus estimate for quarterly earnings is $4.36 per share, reflecting a year-over-year decrease of 0.2%, while revenues are projected to be $1.51 billion, representing a 3.6% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.11% higher, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Hubbell is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.32%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Hubbell currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Hubbell was expected to post earnings of $3.73 per share but delivered $3.50, resulting in a surprise of -6.17% [13]. - Over the past four quarters, the company has exceeded consensus EPS estimates three times [14]. Conclusion - While Hubbell is positioned as a potential earnings-beat candidate, other factors may also influence stock performance, making it essential to consider the broader context beyond just earnings results [15][17].

Core Viewpoint - Hubbell Incorporated will release its second quarter 2025 financial results on July 29, 2025, prior to market opening, followed by an Analysts' Conference Call at 10:00 AM ET to discuss the results [1]. Company Information - Hubbell Incorporated is a leading manufacturer of utility and electrical solutions, enabling customers to operate critical infrastructure safely, reliably, and efficiently [4]. - The company reported revenues of $5.6 billion for the year 2024, indicating its significant role in electrifying economies and energizing communities [4]. - The corporate headquarters is located in Shelton, CT [4]. Access to Information - The full text of the press release announcing the financial results will be available on Hubbell's corporate website under the Press Release section [2]. - Live audio of the conference call and accompanying materials will be accessible through the Events and Presentations section on the company's website [3].

Group 1 - Industrial stocks are currently receiving less attention from investors, despite the presence of strong businesses in the sector [1] - Hubbell Inc. (NYSE: HUBB) is highlighted as a company that may be overlooked by many investors [1]

Group 1 - The company Hubbell (NYSE: HUBB) provides utility and electrical solutions across the utility market, including smart meters, communications systems, electrical transmission, light industrial, and wireless communications [1] - The company is expected to benefit from megatrends such as electrification, grid upgrades, and data center expansions [1]

Summary of Hubbell (HUBB) FY Conference Call - May 21, 2025 Company Overview - **Company**: Hubbell (HUBB) - **Industry**: Utility Infrastructure and Electrical Solutions Key Points and Arguments Financial Performance and Market Trends - **Order Growth**: Orders in utility infrastructure increased by double digits in Q1 2025, continuing into April, indicating a positive trend in bookings and shipping rates [5][6][11] - **Destocking Phase**: The company has moved past the destocking phase, with evidence from customer dialogues and improved order rates [8][11] - **MRO Spending**: There has been some deferral in Maintenance, Repair, and Operations (MRO) spending, but the distribution market remains healthy [14] - **Rate Case Renewals**: Many utilities have undergone rate case renewals, providing clarity and certainty, which is beneficial for the company [15] Market Segments - **Transmission vs. Distribution**: Transmission remains the strongest segment, with confidence in project-based work and lead times [18] - **Telecom Sector**: The telecom segment has seen a decline of about 30%, but there are signs of recovery in bookings, suggesting potential growth in the second half of the year [19][21] - **Electrical Solutions**: The commercial market is soft, while light and heavy industrial markets are performing well. Data centers are a significant growth driver [32][33] Margin and Pricing Strategy - **Margin Expansion**: The company aims for margin expansion despite previous margin dilution due to cost and price offsets. There is optimism for organic margin improvement moving forward [37][38] - **Capital Allocation**: The company has over $2 billion in deployable cash for acquisitions and plans to increase share repurchases, indicating a proactive approach to capital deployment [46][49] Acquisition Strategy - **M&A Pipeline**: The company is actively looking for acquisition opportunities, particularly in transmission, distribution, and data center spaces, with a focus on growth and margin enhancement [48] - **Control House Assets**: The value of control house assets is increasing due to their ability to reduce labor costs and improve project delivery times, which aligns with industry trends [51][52] Future Outlook - **Growth Projections**: The company anticipates mid-single-digit growth in utility infrastructure volumes in Q2 2025, with expectations for a stronger second half of the year [16] - **Sustainable Levels**: The company expects to maintain a durable level of performance in the communications segment, focusing on smaller customers and competitive wins [27][28] Additional Important Insights - **Operational Efficiency**: The company is working on improving operational efficiency by reducing redundancy in corporate segments, which could lead to significant margin improvements [40][41] - **Customer Engagement**: Positive customer dialogues and competitive wins in smaller projects are seen as indicators of future growth potential [28][52] This summary encapsulates the key insights from the Hubbell FY Conference Call, highlighting the company's performance, market trends, strategic initiatives, and future outlook.

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