Shelton, Connecticut-based Hubbell Incorporated (HUBB) is a leading manufacturer of electrical and utility infrastructure products. Valued at a market cap of $23.3 billion, the company provides a wide range of solutions, including wiring devices, connectors, lighting and controls, enclosures, and high-voltage utility components such as insulators, arresters, and grid-equipment hardware. Companies worth $10 billion or more are typically classified as “large-cap stocks,” and HUBB fits the label perfectly, w ...

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We came across a bullish thesis on Hubbell Incorporated on Quality Value Investing’s Substack by David J. Waldron. In this article, we will summarize the bulls’ thesis on HUBB. Hubbell Incorporated's share was trading at $427.85 as of December 1st. HUBB’s trailing and forward P/E were 26.76 and 21.93 respectively according to Yahoo Finance. Raytech (RAY) Soars to New High, but Gives up Gains on Profit-Taking allstars/Shutterstock.com Hubbell Incorporated (HUBB) is a dividend-paying industrial conglomera ...

Hubbell (HUBB) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual investors oft ...

Company Overview - Hubbell Incorporated (HUBB) has a market cap of $21.6 billion and operates as a global designer, manufacturer, and seller of electrical and utility solutions, serving various markets including industrial, commercial, institutional, and utility [1] Stock Performance - Over the past 52 weeks, HUBB shares have decreased by 10.6%, while the S&P 500 Index has increased by 10.5%. Year-to-date, HUBB shares are down 2.6%, compared to an 11.2% gain for the S&P 500 [2] - HUBB has also underperformed the Industrial Select Sector SPDR Fund (XLI), which returned 5.6% over the same period [3] Recent Financial Results - In Q3 2025, HUBB reported revenue of $1.5 billion, which was weaker than expected. However, shares rose by 4.9% following the announcement due to an adjusted EPS of $5.17, which exceeded estimates. The company raised its full-year adjusted EPS guidance to a range of $18.10 - $18.30 [4] - Analysts project a 9.6% year-over-year growth in adjusted EPS for the fiscal year ending December 2025, estimating it to be $18.16. The company's earnings surprise history shows mixed results, with three out of the last four quarters exceeding consensus estimates [5] Analyst Ratings and Price Targets - Among 13 analysts covering HUBB, the consensus rating is a "Moderate Buy," consisting of six "Strong Buy" ratings and seven "Holds" [5] - Barclays raised its price target for HUBB to $456 while maintaining an "Equal Weight" rating. The mean price target of $488.90 indicates a 20% premium to current price levels, with the highest target at $530 suggesting a potential upside of 30.1% [7]

Core Viewpoint - Hubbell Incorporated has successfully priced an offering of $400 million in senior notes with a 4.80% interest rate, maturing in 2035 [1] Group 1: Offering Details - The offering is expected to close on November 14, 2025, pending customary closing conditions [2] - Net proceeds from the offering will be used to fully redeem the outstanding 3.350% Senior Notes due 2026, also amounting to $400 million, and to cover any premium and accrued interest [2] - BofA Securities, HSBC Securities, and J.P. Morgan Securities are acting as joint book-running managers for the offering [3] Group 2: Company Overview - Hubbell Incorporated is a leading manufacturer of utility and electrical solutions, with 2024 revenues reported at $5.6 billion [6] - The company is headquartered in Shelton, Connecticut, and focuses on enabling customers to operate critical infrastructure safely and efficiently [6]

Company Overview - Hubbell Incorporated is a significant player in the electrical and utility solutions industry, providing a variety of products and services such as electrical wiring devices, lighting fixtures, and power systems [1] - The company competes with industry leaders like Eaton Corporation and Schneider Electric, focusing on innovation and strategic growth to maintain its market position [1] Financial Performance - On October 29, 2025, Seaport Global set a price target of $515 for Hubbell, indicating a potential price increase of approximately 9.53% from the current trading price of $474.48 [2][5] - The stock has experienced a trading day range between $458.96 and $474.95, with a current price reflecting a 4.20% increase today, equivalent to a $19.14 rise [2][5] - Hubbell's market capitalization is approximately $25.21 billion, showcasing its substantial presence in the market [4][5] - Over the past year, the stock has seen a high of $481.35 and a low of $299.43, indicating volatility in its stock price [4] Earnings Call Insights - The recent Q3 2025 earnings call, led by President, CEO, and Chairman Gerben Bakker, along with Executive VP and CFO William Sperry, provided valuable insights into the company's financial health [3] - Analysts from major financial institutions, including JPMorgan Chase & Co., attended the call, emphasizing the significance of Hubbell's strategic direction and financial performance [3]

Financial Performance - Net income for the three months ended September 30, 2025, was $256.7 million, an increase of 12.7% compared to $227.8 million for the same period in 2024[9]. - Comprehensive income attributable to Hubbell Incorporated for the three months ended September 30, 2025, was $259.5 million, up from $246.2 million in 2024, reflecting a growth of 5.4%[9]. - For the nine months ended September 30, 2025, net income reached $666.7 million, representing a 13.9% increase from $585.3 million in 2024[10]. - Basic earnings per share for the three months ended September 30, 2025, were $4.80, up from $4.46 in the same period of 2024, reflecting a growth of 7.6%[19]. - Net income attributable to Hubbell Incorporated for the three months ended September 30, 2025, was $255.5 million, compared to $226.2 million for the same period in 2024, representing an increase of 12.9%[76]. - Basic earnings per share for the three months ended September 30, 2025, was $4.80, up from $4.21 in 2024, reflecting a growth of 14.0%[76]. - Nine-month net income available to common shareholders for 2025 was $661.8 million, compared to $579.7 million in 2024, marking an increase of 14.2%[76]. Assets and Liabilities - Total assets as of September 30, 2025, amounted to $7,526.9 million, a significant increase from $6,847.7 million at the end of 2024[13]. - Total liabilities as of September 30, 2025, were $3,833.9 million, up from $3,437.1 million at the end of 2024, reflecting a rise of 11.5%[13]. - Total current assets as of September 30, 2025, were $2,790.0 million, with total liabilities of $3,833.9 million[20]. - Total current liabilities increased significantly to $2,054.3 million from $1,274.2 million, reflecting a 61.0% rise[13]. - Long-term debt decreased to $1,044.8 million from $1,442.7 million, a reduction of 27.6%[13]. - The carrying value of long-term debt as of September 30, 2025, was $1,444.5 million, slightly up from $1,442.7 million on December 31, 2024[96]. - Non-current liabilities increased to $734.8 million as of September 30, 2025, compared to $720.2 million at December 31, 2024, reflecting a rise of 2.9%[68]. Cash Flow and Operating Activities - The company reported a net cash provided by operating activities of $582.3 million for the nine months ended September 30, 2025, compared to $558.8 million in 2024, indicating a 4.2% increase[15]. - The company reported a net cash provided by operating activities of $558.8 million for the nine months ended September 30, 2024[20]. - The company reported a net cash used in financing activities of $42.6 million for the nine months ended September 30, 2025, significantly improved from $476.4 million in 2024[15]. Acquisitions and Investments - The company made acquisitions totaling $129.1 million during the nine months ended September 30, 2025, compared to a net cash inflow of $5.9 million from acquisitions in 2024[15]. - The company acquired Alliance USAcqCo 2, Inc. (Ventev) for approximately $73 million, recognizing intangible assets of $34.5 million and goodwill of $40.0 million[29]. - In the third quarter of 2025, the company acquired Nicor, Inc. for approximately $56 million, with recognized intangible assets of $18.6 million and goodwill of $26.4 million[30]. - The company completed the acquisition of DMC Power for approximately $825 million on October 1, 2025, financed through a $600 million unsecured term loan and commercial paper[34][35]. Inventory and Accounting Changes - The change in inventory accounting method from LIFO to FIFO resulted in a cumulative effect adjustment increasing inventory by $167.1 million as of January 1, 2024[19]. - Total inventories increased to $1,053.7 million as of September 30, 2025, up from $1,010.4 million at December 31, 2024, representing a growth of approximately 4.3%[61]. Equity and Dividends - The company’s total equity as of September 30, 2025, was $3,693.0 million[20]. - Total equity increased to $3,681.3 million as of September 30, 2025, up from $3,396.2 million at December 31, 2024, indicating a growth of 8.4%[70]. - Cash dividends declared per share were $2.64 for the nine months ended September 30, 2025, totaling $141.2 million[70]. Segment Performance - Total net sales for the three months ended September 30, 2025, were $1,502.4 million, an increase from $1,442.6 million in the same period of 2024, representing a growth of 4.2%[46]. - Utility Solutions segment net sales for the three months ended September 30, 2025, were $943.8 million, slightly up from $933.1 million in 2024, while Electrical Solutions segment net sales increased to $558.6 million from $509.5 million[46]. - The Company reported a gross profit of $544.3 million for the three months ended September 30, 2025, compared to $506.0 million in 2024, reflecting a gross margin improvement[58]. - Operating income for the three months ended September 30, 2025, was $330.6 million, up from $312.7 million in the same period of 2024, indicating a year-over-year increase of 5.0%[58]. Pension and Benefits - The net periodic benefit cost for pension and other benefits for the nine months ended September 30, 2025, was $14.4 million, compared to $10.6 million in 2024, indicating a rise of 36.0%[78]. - The net periodic benefit cost for pension and other benefits for Q3 2025 was $4.7 million, an increase from $3.4 million in Q3 2024, indicating a 38.2% rise[78]. - Interest cost for pension benefits increased to $26.4 million for the nine months ended September 30, 2025, compared to $25.0 million in 2024[78]. - The company contributed $20.0 million to its U.S. qualified plans and $1.4 million to foreign pension plans during the nine months ended September 30, 2025[79]. Legal and Contingencies - The Company recognized a liability for contingencies that are probable of occurrence and can be reasonably estimated, reflecting ongoing legal proceedings[97].

Core Insights - Hubbell Incorporated reported strong earnings for the quarter ending October 28, 2025, with an EPS of $5.17, surpassing the estimated $4.98 and showing a significant improvement from last year's EPS of $4.49 [2][3] - The company experienced a slight miss in revenue expectations, reporting $1.5 billion against an estimated $1.54 billion, but still achieved a 4.2% increase in revenue compared to the same period last year [2] Financial Metrics - Hubbell's financial metrics indicate stability and growth potential, with a P/E ratio of approximately 27.21, a price-to-sales ratio of about 4.08, a debt-to-equity ratio of approximately 0.54, and a current ratio of around 1.36 [3] - The optimistic profit forecast for 2025 is driven by robust demand for electrical equipment, particularly from data centers, reflecting confidence in the technology sector's growth [3]

Financial Data and Key Metrics Changes - Hubbell reported a 4% increase in sales to approximately $1.5 billion and a 4% increase in operating profit to $358 million [12][13] - Adjusted diluted EPS rose by 12%, and free cash flow increased by 34% to $254 million [14][15] - The company raised its full-year 2025 outlook, anticipating stronger margin performance to offset lower organic growth [7][21] Business Line Data and Key Metrics Changes - The utility segment saw sales increase by 1% to $944 million, with operating profit remaining stable at $242 million [15][16] - Grid infrastructure within the utility segment achieved high single-digit growth, while grid automation sales declined by 18% [5][16] - The electrical segment experienced double-digit sales growth of 10% and a 17% increase in operating profit, with 8% organic growth across end markets [18][19] Market Data and Key Metrics Changes - Strong performance was noted in the T&D markets, driven by utility investments in grid interconnections and aging infrastructure [4][16] - The company observed a return to growth in telecom and enclosures after previous overstock issues [16] - The order book for the utility segment showed significant acceleration in September and October, indicating strong future growth potential [16][23] Company Strategy and Development Direction - Hubbell's acquisition of DMC Power is expected to enhance its utility connector offerings and contribute approximately $0.20 to adjusted EPS in 2026 [8][9] - The company aims to simplify its HES segment to drive productivity and operating efficiencies, positioning itself well for long-term margin expansion [6][19] - Hubbell is focused on capital allocation strategies that target high-growth, high-margin businesses in attractive markets [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong performance in 2026, driven by megatrends in grid modernization and electrification [7][29] - The anticipated normalization of supply chain dynamics is expected to support continued growth [25][26] - Management acknowledged the challenges faced in the utility segment but remains optimistic about future recovery and growth [32][70] Other Important Information - Bill Sperry, the CFO, announced his retirement at the end of the year, with Joe Capozzoli set to succeed him [9][10] - The company has successfully managed cost inflation through pricing and productivity actions, which have positively impacted price-cost productivity [6][7] Q&A Session Summary Question: Insights on 2026 utility growth expectations - Management indicated that while there is potential for strong growth, a conservative approach will be taken in planning resources for 2026 [32][34] Question: Details on September-October order strength - Management noted broad-based order strength in T&D markets, with expectations for continued growth [38][40] Question: Sustainability of the lower tax rate into 2026 - The lower tax rate is project-driven and is expected to normalize next year [42] Question: Clarification on utility segment recovery - The recovery shape is as expected, with timing shifted but still showing positive signs [47][50] Question: Pricing dynamics and market pushback - Pricing has been strong, with constructive discussions with channel partners, indicating good stickiness [71][72] Question: Insights on behind-the-meter infrastructure investments - The company sees strong opportunities in data center investments, particularly on the electrical side [78][80] Question: Visibility on grid automation and meter performance - Management acknowledged that while performance has been below expectations, they are focused on improving the business [84]