What does Hubbell do and what are its main business segments?

What is the revenue and EPS growth rate for Hubbell year over year?

What is Hubbell's gross profit margin?

Did Hubbell beat or miss consensus estimates last quarter?

What guidance did Hubbell's management provide for the next earnings period?

What were the key takeaways from Hubbell's earnings call?

What is Hubbell's latest dividend and current dividend yield?

What were the key takeaways from Hubbell’s earnings call?

**Key Takeaways:**
- **Revenue Growth**: Q3 2025 EPS guidance raised to $18.10-$18.30, driven by 10% Electrical Solutions growth and Grid Infrastructure recovery.
- **Strategic Acquisitions**: $825M DMC Power acquisition to boost 2026 EPS by $0.20, leveraging high-margin substation solutions.
- **Margin Expansion**: 140bps margin improvement in Electrical Solutions, with 2025 tax rate benefiting from restructuring.
- **2026 Outlook**: 4-6% organic growth target, with double-digit earnings growth via inorganic contributions and margin expansion.
- **Risks & Uncertainties**: Grid Automation normalization timing; meters/AMI recovery in 2026.

**【CEO Summary Section】**
- **Q3 2025 Performance**: Hubbell reported double-digit adjusted earnings growth, driven by strong organic growth in Electrical Solutions (high single-digit) and Grid Infrastructure (high single-digit). Utility Solutions saw a 1% sales increase, with Grid Automation declining due to project roll-offs.
- **Segment Highlights**: Electrical Solutions grew 10% organically, driven by data center and light industrial demand. Grid Infrastructure showed broad-based strength across transmission, substation, and distribution markets. Utility Solutions' Grid Automation segment faced headwinds but expected normalization in Q4.
- **Strategic Moves**: Acquired DMC Power for $825M, contributing $0.20 EPS accretion in 2026. CFO Bill Sperry retiring, succeeded by Joe Capozzoli.
- **2026 Outlook**: Anticipates strong organic growth across segments, with focus on grid modernization and electrification trends.

**【CFO Financial Commentary】**
- **Q3 Financials**: Adjusted EPS of $18.20 (midpoint), up 12% YoY. Free cash flow of $254M, 34% YoY growth. Tax rate benefited from international restructuring.
- **Segment Performance**: Electrical Solutions delivered 10% sales growth and 140bps margin expansion. Utility Solutions' Grid Infrastructure grew high single-digit, offsetting Grid Automation decline.
- **Guidance Update**: Raised full-year EPS to $18.10-$18.30, driven by margin expansion and tax rate improvement.
- **2026 Vision**: Targets 4-6% organic growth, 25-30% incremental margins, and double-digit earnings growth through inorganic contributions.

**【Q&A Highlights】**
- **Utility Growth Concerns**: Q4 2025 visibility strong due to normalized Grid Automation compares and September/October order strength. 2026 could see double-digit utility growth if trends sustain.
- **Tax Rate Sustainability**: 2025 tax rate benefit project-specific; 2026 rate expected to normalize.
- **Segment Risks**: Grid Automation lumpy but improving; meters/AMI expected to recover in 2026.
- **Acquisition Impact**: DMC's 40%+ EBITDA margins and integration potential with existing portfolio.
- **Pricing & Margin Management**: 3%+ pricing realization in 2025, with productivity initiatives offsetting cost inflation.

Hubbell Incorporated (HUBB) Q3 2025 Earnings Call Transcript

- **EPS Guidance Raised**: Full-year EPS range increased to $17.65-$18.15, driven by 4-6% organic growth and 120bps margin expansion.
- **Grid Infrastructure Strength**: Transmission/substation growth (+15%+ orders YTD) and data center demand fuel 7% segment growth.
- **Tariff Mitigation Success**: 2-3pts of price in H2 offsetting incremental costs, FIFO timing provides 1-2q lag for margin impact.
- **Sustainable Growth Drivers**: Mid-single-digit electrical distribution growth post-channel destock, Aclara turnaround in Q4 2025.

**【CEO Summary Section】**
- Hubbell reported double-digit adjusted EPS growth (15%) in Q2 2025, driven by 7% organic growth in Grid Infrastructure and mid-single-digit growth in Electrical Solutions.
- Full-year EPS guidance raised to $17.65-$18.15, reflecting 4-6% organic growth and margin expansion.
- Transition to FIFO accounting improves timing of cost recognition, with $0.30 EPS benefit in H1.
- Grid modernization trends (transmission/substation growth) and data center demand are key growth drivers.

**【CFO Financial Commentary】**
- Q2 sales: $1.5B (2% growth), with Grid Infrastructure up 7% and Electrical Solutions up 4%.
- Adjusted operating profit: $362M (8% growth), margin +120bps to 24.4%.
- Free cash flow: $225M (90% of net income), tracking to 90%+ conversion for the year.
- Tariffs and raw material inflation offset by price/cost productivity, with 2-3pts of price in H2.

**【Q&A Key Highlights】**
- **Grid Automation Recovery**: Aclara segment expected to return to growth in Q4 2025 after sequential flattening.
- **Electrical Distribution Growth**: Mid-single-digit growth sustainable post-channel destock, driven by grid hardening.
- **Tariff Management**: 2-3pts of price in H2 to offset incremental costs, FIFO timing provides 1-2q lag for margin impact.
- **M&A Activity**: Small bolt-on acquisitions (e.g., water utility enclosures) to strengthen T&D and data center positions.
- **Long-Term Outlook**: 4-6% organic growth target achievable with price/volume balance, 120-150bps margin expansion over 3 years.

Hubbell Incorporated (HUBB) Q2 2025 Earnings Call Transcript

- **Topline Resilience**: Q1 revenue of $1.365B reflects strong Electrical Solutions growth (+5%) and grid infrastructure recovery, offsetting grid automation decline. 
- **Margin Management**: Adjusted operating margin down 80bps YoY due to $10M tariff/material drag, but 70bps expansion in Electrical segment signals underlying strength. 
- **Tariff Mitigation**: $135M annualized cost headwind neutralized via price increases; reciprocal tariffs sensitivity capped at $0.50 per share. 
- **Long-Term Growth**: 6-8% organic growth target supported by T&D multi-year plans up 10%, data center expansion, and utility modernization. 
- **Cash Flow Strength**: Free cash flow target of 90%+ net income; $3.5B+ 3-year free cash flow for M&A and shareholder returns. 
- **Key Risks**: LIFO lag in tariff recognition, grid automation softness, and telecom normalization.

**【CEO Opening Remarks】**
- **Electrical Solutions Segment**: Mid-single-digit organic growth, driven by data center expansion and strong core profit growth. Adjusted operating margin expanded due to cost efficiency and segment unification efforts.
- **Utility Solutions Segment**: Grid infrastructure returned to organic growth (double-digit in transmission/substation), offsetting grid automation decline. Order trends in distribution markets indicate emerging normalization.
- **Cost Management**: Implemented price increases and productivity measures to offset $135M in raw material and tariff headwinds. Reciprocal tariffs will be neutralized through similar actions.
- **Long-Term Outlook**: Confident in 6-8% organic growth driven by grid modernization and electrification trends. T&D markets entering long-term investment cycle with utility customers revising multi-year plans upward by ~10%.

**【CFO Financial Highlights】**
- **Q1 2025 Results**: 
  - Total revenue: $1.365B (down 2% YoY, excluding divestiture). 
  - Adjusted operating profit: $264M (down 80bps YoY due to material/tariff costs). 
  - Non-GAAP EPS: $1.08 (exceeds expectations). 
- **Segment Performance**: 
  - **Utility Solutions**: $857M (-4% YoY), 15% contraction in grid automation offset by infrastructure growth. 
  - **Electrical Solutions**: $508M (+5% YoY), 70bps margin expansion driven by data center and industrial growth. 
- **Tariff Impact**: $135M annualized cost headwind ($10M Q1 drag). Price increases implemented in April/May expected to neutralize impact by end-2025. Reciprocal tariffs sensitivity: $0.50 per share if LIFO lag persists.
- **Free Cash Flow**: Targeting 90%+ of net income conversion. 
- **Capital Deployment**: $3.5B+ free cash flow (2025-2027) for M&A, share buybacks, and dividends. Recent $125M buyback reflects attractive valuations.

**【Q&A Key Takeaways】**
- **2025 Guidance**: Maintained $16.85-$17.35 EPS range despite $0.50 sensitivity to reciprocal tariffs. Sequential price realization expected to accelerate in Q2. 
- **Tariff Mitigation**: Price stick rates >90% for initial increases; reciprocal tariffs being communicated to customers. 
- **Volume Growth**: Back-half loaded with easier comps and strong order trends in T&D. 
- **M&A Pipeline**: Active deal flow in utility/electrical solutions; China sourcing reduced to mid-single digits of COGS. 
- **Telecom Recovery**: Encouraging order trends, flattening sales decline in Q1. 
- **Grid Automation**: Smaller projects/MRO stabilizing business; sequential flattish trend expected. 
- **Share Buybacks**: $600M authorization remains; flexibility to balance M&A and returns.

Hubbell (HUBB)-1 May 25-2025 Q1 Earnings call transcript

- **2024 Performance Highlight**: 9% adjusted operating profit growth, $16.57 EPS, and 90%+ free cash flow conversion, despite telecom/IOU headwinds. 
- **2025 Growth Drivers**: 4-5% organic growth (utility 4-6%, electrical 3-5%), backed by transmission/substation, renewables, and AI-driven data center buildouts. 
- **Key Risks & Mitigations**: Tariff exposure (10-15% COGS from Mexico), offset by pricing and productivity; telecom recovery expected in 2025. 
- **Margin Expansion**: 90 bps in 2024, with continued gains in 2025 via Electrical simplification and Utility volume recovery.

**【CEO Summary Section】**
- Hubbell delivered 9% adjusted operating profit growth in 2024, driven by strong execution across four key levers: Electrical Solutions unification, secular growth in utility markets, price/cost productivity, and strategic M&A (e.g., Systems Control acquisition). 
- Full-year 2024 adjusted EPS of $16.57 exceeded guidance, with margin expansion of 90 basis points. 
- 2025 outlook anticipates mid-single-digit organic growth (4-5%), with continued margin expansion and double-digit EPS growth.

**【CFO Financial Commentary】**
- Q4 2024 adjusted operating profit grew 10%, with 240 basis points of margin expansion, despite flat sales at $1.3B. 
- Free cash flow rose 28% to $800M+ annually, driven by disciplined capital deployment (e.g., doubling CapEx in high-growth areas). 
- Utility segment delivered 12% operating profit growth, while Electrical Solutions saw 10% growth despite headwinds from residential lighting divestiture.

**【2025 Outlook】**
- Organic growth: 4-5% (Utility: 4-6%, Electrical: 3-5%), with focus on transmission/substation, renewables, and data center solutions. 
- Adjusted EPS target: $17.35-$17.85, supported by volume growth and 20%+ CAGR over 5 years. 
- Risks include macroeconomic uncertainty in commercial markets and potential tariff impacts (e.g., 10-15% of COGS from Mexico). 

**【Key Q&A Takeaways】**
- **Inventory Management**: Telecom enclosures down 20% YoY, but muni/co-op growth offsets IOU destocking. Book-to-bill >1 in grid infrastructure signals 2025 recovery. 
- **Tariff Preparedness**: <10% COGS exposure to China post-Lighting divestiture; Mexico tariffs could impact 10-15% of COGS, with pricing and productivity offsets planned. 
- **Pricing Power**: 1-2% price realization in Q4, with focus on high-margin verticals (data centers, renewables). 
- **M&A Pipeline**: Active in $70M+ bolt-ons (e.g., wireless network controls), with balance sheet capacity for larger deals.

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