Shelton, CT, Oct. 01, 2025 (GLOBE NEWSWIRE) -- Hubbell Incorporated (NYSE: HUBB) (“Hubbell”) today announced that it has completed its acquisition of DMC Power, LLC (“DMC Power”) from an affiliate of Golden Gate Capital. Hubbell financed the acquisition and related transactions with net proceeds from borrowings under a new unsecured term loan facility in the aggregate principal amount of $600 million and issuances of commercial paper. DMC Power is a designer and manufacturer of connector technology systems ...

Hubbell Incorporated (NYSE:HUBB) is one of the stocks on Jim Cramer’s radar. A caller asked if the stock is currently a buy, hold, or sell, and mentioned the company’s recent appointment of a new CFO. In response, Cramer said: “I just want to stay long. No need to buy it up here because this thing has been such a rocket ship. We have to wait for it to come down a little. But yeah, Hubbell remains just a fantastic American industrial company.” 10 stocks receiving a massive vote of approval from Wall Str ...

Company Overview - Hubbell Incorporated (HUBB) has a market cap of $23.1 billion and is based in Shelton, Connecticut, focusing on electrical and utility solutions [1] - The company operates through two main segments: Utility Solutions and Electrical Solutions, serving various industries including utilities, data centers, commercial, and residential markets [1][2] Stock Performance - HUBB currently trades 10% below its all-time high of $481.35 recorded on November 6, 2024, with a stock surge of 10.8% over the past three months, outperforming the Dow Jones Industrial Average's 9% rise [3] - Year-to-date, HUBB stock has increased by 3.4%, underperforming the Dow Jones Industrial Average's 8.2% increase, and has gained 5.3% over the past 52 weeks, also underperforming the Dow's 10.6% returns [4] Earnings Report - In the second quarter earnings released on July 29, HUBB's net sales rose 2.2% year-over-year to $1.5 billion, which was below Wall Street expectations by 1.4% [5] - The company reported adjusted EPS of $4.93, an 11% increase, beating consensus estimates by 13.1% [5] Analyst Ratings - Among the 12 analysts covering HUBB stock, the consensus rating is a "Moderate Buy," with a mean price target of $465.67, indicating a 7.5% upside potential from current price levels [6]

Group 1: Opendoor Technologies Inc. - Jim Cramer recommended selling Opendoor Technologies Inc. shares, stating "We don't want to be in a meme stock" [1] - Opendoor shares experienced a decline of 13.8%, settling at $9.07 [5] Group 2: TeraWulf Inc. - TeraWulf announced major expansion plans and new financing initiatives related to its role in AI infrastructure on August 18 [2] - TeraWulf shares increased by 1.1%, closing at $10.76 [5] Group 3: Hubbell Incorporated - Cramer advised investors to stay long on Hubbell Incorporated, suggesting to wait for a price drop before buying [2] - Stephens & Co. analyst Tommy Moll reiterated an Overweight rating for Hubbell with a price target of $500 [2] - Hubbell shares fell by 3%, settling at $437.43 [5] Group 4: Lumentum Holdings Inc. - Cramer recommended selling half of Lumentum Holdings Inc. stock [3] - Barclays analyst Tom O'Malley maintained an Overweight rating for Lumentum and raised the price target from $135 to $165 [3] - Lumentum shares fell by 1.1%, closing at $163.02 [5] Group 5: Summit Therapeutics Inc. - Cramer indicated that it is time to move on from Summit Therapeutics [3] - Summit Therapeutics revealed updated overall survival results from the global Phase 3 HARMONi trial at the 2025 World Conference on Lung Cancer [3] - Summit Therapeutics shares rose by 1.8%, settling at $18.94 [5]

Group 1 - The company has transitioned from being a GDP grower to targeting mid-single-digit through-cycle growth, influenced by secular trends in the electrical and utility sectors and a strategic shift towards higher growth verticals [1] - Despite the target of mid-single-digit growth, the company has experienced growth below this level for several quarters, raising questions about future performance [1] - Over the past five years, the company has achieved a compounded growth rate of 10% along with significant margin expansion [3]

Summary of Conference Call Company Overview - The company discussed is Hubbell, which has transitioned from being a GDP grower to targeting mid-single-digit through-cycle growth, driven by secular trends in electrical and utility sectors and portfolio high-grading [1][2][3]. Core Growth Insights - Over the last five years, Hubbell has achieved a compounded growth rate of 10% and a 20% compounded growth in earnings per share, indicating confidence in medium-term growth and margin expansion [2][4]. - The company anticipates 25% to 30% incrementals to help grow margins, aiming for 8% earnings per share growth, with a long-term expectation of mid-single-digit top-line growth [4][3]. Market Dynamics - The electrical distribution market is expected to grow at a low to mid-single-digit rate, while transmission and substation markets are projected to grow at double-digit rates, driven by demand from data centers [8][9][10]. - The smart meter segment has faced contraction but is expected to flatten and begin modest growth in the fourth quarter [11][12]. Utility Sector Insights - Utilities are committing to larger capital budgets, which is beneficial for Hubbell as it indicates increased spending on distribution, transmission, and substations [14][15]. - Load growth in the utility sector is seen as a positive indicator for Hubbell, although quantifying its impact on spending remains complex [16][17]. Portfolio Management - Hubbell has focused on high-grading its portfolio, reducing exposure to commercial and residential sectors while increasing focus on industrial and data center markets [19][18]. - The company has been actively acquiring businesses in high-growth, high-margin areas, particularly in the electrical segment [19][25]. Margin Expansion Strategy - Margin expansion has been achieved through portfolio management, restructuring, and increased capital investment, with CapEx now nearly double the historical levels [21][22]. - The strategy includes consolidating factories and streamlining operations to enhance productivity and efficiency [22]. Recent Acquisition - Hubbell announced the acquisition of DMC Power for $825 million, which is expected to contribute significantly to growth and profitability due to its high voltage transmission connector business [31][32]. - DMC Power is projected to grow at 20%, with a high margin due to its cost-effective technology [32][33]. Pricing Strategy - The company has successfully managed pricing in a high-inflation environment, with prices sticking well despite concerns about pricing fatigue [37][38]. - Communication with distributor partners has been crucial in maintaining price inelasticity [44]. Future Outlook - The order book for electric distribution is improving, leading to expectations of steady growth in the coming years [47]. - The company is optimistic about exiting the year with a healthier order book, setting a solid foundation for growth in 2026 and beyond [47].

Shelton, CT, Sept. 10, 2025 (GLOBE NEWSWIRE) -- Hubbell Incorporated (NYSE: HUBB) today announced that Bill Sperry will retire as Chief Financial Officer effective December 31, 2025 after 17 years of distinguished service to the company, including 14 years as CFO. Joseph Capozzoli, Vice President, Finance of the company’s Electrical Solutions segment, has been appointed to succeed Bill as Senior Vice President and Chief Financial Officer, effective January 1, 2026.   “Bill’s financial and strategic leadersh ...

Group 1 - Edward H. Baine has been elected to the Board of Directors of Hubbell Incorporated, effective August 29, 2025, increasing the total number of Directors to eleven, with ten being independent [1] - Mr. Baine is currently the executive vice president of Utility Operations and president of Dominion Energy Virginia, overseeing operations that serve over four million customer accounts [2] - Hubbell's Chairman, President, and CEO, Gerben Bakker, emphasized that Mr. Baine's extensive expertise in the utility industry and operational leadership will enhance Hubbell's focus on critical infrastructure solutions and long-term shareholder value [3] Group 2 - Hubbell Incorporated is a leading manufacturer of utility and electrical solutions, with 2024 revenues reported at $5.6 billion, aimed at enabling safe, reliable, and efficient operation of critical infrastructure [4]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: U.S. Machinery and Electricals - **Focus**: Impact of recent policy changes by the Trump Administration on various sub-sectors including electricals, construction, agriculture, and trucks [1][11] Core Insights and Arguments 1. Policy Impact on Renewables - The Trump Administration's policies are de-prioritizing renewables, negatively impacting companies like Quanta (PWR) which derives 30% of sales from this sector [2][49] - The OBBBA cuts tax credits for renewables, shortening the eligibility timeframe from 2032 to 2027, leading to a projected slowdown in construction activity post-2025 [16][54] - Construction costs are rising due to stricter domestic content requirements and tariffs, which could drive renewables to ex-growth from 2025-2030 [2][18] 2. Construction Sector Stimulus - The reinstatement of 100% bonus depreciation for qualified property under the OBBBA is expected to stimulate construction activity, unlocking nearly $90 billion in additional non-residential construction spending, a 7% increase compared to 2024 levels [3][67] - This change is anticipated to benefit construction OEMs such as OSK, URI, ETN, CAT, TRMB, HUBB, DE, and J [3][12] 3. Agriculture Equipment Demand - Changes in biofuels policy, including a 75% increase in biomass-based diesel production mandated by the EPA, could lead to a 10% increase in agricultural equipment demand [4][84] - The extension of clean fuel tax credits from 2027 to 2029 and increased subsidies for biofuels are expected to positively impact companies like Deere, AGCO, and CNH [4][101] 4. Truck OEM Competitive Landscape - The Section 232 investigation into commercial vehicle manufacturing is likely to favor U.S.-based manufacturers like PACCAR (PCAR) by reversing the current tariff structure that disadvantages U.S. manufacturers [5][104] - Current tariffs create a cost disadvantage for U.S. truck manufacturers, as they face higher costs due to imported components [107][110] Additional Important Insights - The overall economic reorientation towards investment rather than consumption is expected to benefit the machinery and electrical sectors [13] - The anticipated slowdown in renewable energy construction does not imply a complete decline, as electricity demand continues to grow at a CAGR of 1.5-2% [28][40] - Historical context indicates that previous cuts to renewable tax credits led to significant underperformance in the sector, suggesting potential risks ahead [46] - The bonus depreciation changes are expected to lead to mid-single-digit earnings growth for companies like Oshkosh, Eaton, and United Rentals [79][82] Company Ratings and Price Targets - **Outperform Ratings**: Trimble (TP $99), Jacobs (TP $163), PACCAR (TP $118), Eaton (TP $410), Hubbell (TP $511) [7][8] - **Market-Perform Ratings**: AGCO (TP $118), Caterpillar (TP $447), Deere (TP $548), Cummins (TP $385), United Rentals (TP $885), Titan America (TP $15), Oshkosh (TP $132), Quanta (TP $410) [7][8] This summary encapsulates the key points discussed in the conference call, highlighting the implications of policy changes on various sectors and companies within the U.S. Machinery and Electricals industry.

Core Viewpoint - Hubbell Incorporated has announced a definitive agreement to acquire DMC Power, LLC for $825 million in cash, enhancing its Utility Solutions portfolio and addressing growing market demands in utility substation and transmission sectors [2][3][4] Company Overview - Hubbell Incorporated is a leading manufacturer of utility and electrical solutions, with 2024 revenues of $5.6 billion [6] - DMC Power specializes in connector technology systems for high voltage power infrastructure, employing over 350 people across two manufacturing facilities in California and Mississippi [3][8] Acquisition Details - The acquisition is valued at $825 million and will be financed through a combination of cash on hand and debt, with expectations for adjusted EPS accretion in 2026 [2][4][6] - The transaction is anticipated to close by the end of 2025, pending customary closing conditions and regulatory approvals [4] Strategic Rationale - The acquisition is expected to enhance Hubbell's presence in high-growth, high-margin markets driven by load growth, data center buildouts, and aging infrastructure [3][6] - DMC Power's swage connection system complements Hubbell's existing solutions, facilitating faster and more reliable infrastructure buildouts [3][6] Financial Projections - DMC Power anticipates 2026 revenue of approximately $130 million and EBITDA of approximately $60 million [3]