Financial Data and Key Metrics Changes - The first quarter sales were $1.365 billion, a decrease largely due to the divestiture of residential lighting, with flat growth otherwise [12] - Operating profit was $264 million, with margins down 40 basis points, impacted by $10 million drag from material inflation and tariffs [13] - The company maintained its full year 2025 outlook, expecting adjusted EPS in the range of $16.85 to $17.35, with organic growth of 6% to 8% [30][32] Business Line Data and Key Metrics Changes - Electrical Solutions segment delivered mid single-digit organic growth, with strong performance in data centers contributing significantly [5][20] - Utility Solutions segment sales were $857 million, down 4% year-over-year, with Grid Automation experiencing a 15% contraction [14] - Grid Infrastructure returned to organic growth, driven by strong demand in transmission and substation markets, with double-digit growth [6][15] Market Data and Key Metrics Changes - The macroeconomic environment has become more dynamic, but the company sees no net change to its prior near-term and long-term views [8] - Recent order trends in distribution markets are encouraging, indicating a normalization from previous inventory destocking [6][16] - The company reported double-digit growth in grid infrastructure orders year-over-year, indicating strong underlying market dynamics [37] Company Strategy and Development Direction - The company is focused on mitigating cost inflation and macroeconomic uncertainty through proactive cost management and operational efficiencies [7][8] - Hubbell aims to capitalize on long-term investment cycles in grid modernization and electrification, supported by strong positions in key markets [38][39] - The company is poised for active investment and shareholder returns, with a strong balance sheet and a focus on acquisitions to enhance product positioning [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating near-term uncertainties while maintaining financial commitments for 2025 [39] - The company anticipates a strong ramp-up in the second half of the year, supported by a solid order book and easier year-over-year comparisons [86] - Management highlighted the resilience of utility markets, which tend to perform well even in challenging macroeconomic conditions [52] Other Important Information - The company has implemented price increases to offset the impact of tariffs and raw material inflation, with expectations to neutralize these costs within 2025 [25][31] - The company has reduced its exposure to China by about half over the past several years, focusing on diversifying its supply chain [108][110] Q&A Session Summary Question: Clarification on guidance and sensitivity analysis - Management confirmed that the guidance range reflects a $0.50 sensitivity due to potential tariff impacts, but actions are in place to neutralize this [43][48] Question: Insights on Q2 margins and cost mitigation - Management provided insights indicating a typical seasonal sequential growth in sales, with expectations of a $20 million LIFO headwind in Q2 [46][47] Question: Expectations on utility budgets and spending - Management noted that utility budgets are increasing, with a focus on grid hardening and load growth, indicating a positive outlook for utility spending [50][52] Question: Price elasticity and customer feedback on price increases - Management indicated low elasticity for the first round of tariff-related price increases, with expectations of successful implementation [70][72] Question: Outlook for telecom and grid automation segments - Management reported that the telecom segment is showing signs of improvement, with sales declines flattening and order books growing [117] Question: Competitive landscape in utility T&D - Management identified key competitors in the utility T&D space, including Eaton's Cooper division and ABB's Thomas and Betts [81]

Core Viewpoint - Hubbell (HUBB) reported quarterly earnings of $3.50 per share, missing the Zacks Consensus Estimate of $3.73 per share, and showing a decline from $3.60 per share a year ago, resulting in an earnings surprise of -6.17% [1][2] Financial Performance - The company posted revenues of $1.37 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.42%, and down from $1.4 billion year-over-year [2] - Over the last four quarters, Hubbell has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Performance - Hubbell shares have declined approximately 13.3% since the beginning of the year, compared to a decline of -5.3% for the S&P 500 [3] - The current Zacks Rank for Hubbell is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.66 on revenues of $1.5 billion, and for the current fiscal year, it is $17.52 on revenues of $5.85 billion [7] - The trend of estimate revisions for Hubbell is mixed, which could change following the recent earnings report [6] Industry Context - The Manufacturing - Electrical Utilities industry, to which Hubbell belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Q1 2025 diluted EPS was $3.15, with adjusted diluted EPS at $3.50[4] - Q1 2025 net sales decreased by 2%, with organic sales down 0.6% and net M&A impact of -1.2%[4] - Q1 2025 operating margin was 17.5%, while adjusted operating margin was 19.3%[4] - Full year 2025 diluted EPS outlook is projected between $15.95 and $16.45, with adjusted EPS between $17.35 and $17.85[12] - Free cash flow for Q1 2025 was $11 million, down from $52 million in the same period of 2024[11] - Organic net sales for the three months ended March 31, 2025, were $1,365.2 million, a decrease from $1,399.1 million in the same period of 2024[29] - Net sales for Q1 2025 were $1,365.2 million, a decrease of 2% compared to $1,399.1 million in Q1 2024[37] - Adjusted operating income for Q1 2025 was $263.9 million, down 4% from $275.2 million in Q1 2024[37] - The operating margin for Q1 2025 was 19.3%, a decrease of 40 basis points from 19.7% in Q1 2024[37] - Adjusted EBITDA for Q1 2025 was $285.7 million, a slight decrease of 1% from $288.4 million in Q1 2024[42] Segment Performance - Electrical Solutions segment achieved organic growth of 5%, driven by strength in datacenter markets[3] - Utility Solutions segment net sales decreased 4% to $857 million, with Grid Automation sales down approximately 15%[8] - Segment operating income for Utility Solutions was $160 million, or 18.7% of net sales, compared to $158 million, or 17.6% in Q1 2024[8] - Adjusted operating income for Electrical Solutions was $84 million, or 16.5% of net sales, up from $80 million, or 15.8% in Q1 2024[9] - The operating income for the Utility Solutions segment was $160.0 million, a 2% increase from $157.5 million in Q1 2024[37] Income and Cash Flow - Net income attributable to Hubbell Incorporated increased by 15% to $169.7 million in Q1 2025, compared to $147.8 million in Q1 2024[35] - Basic earnings per share for Q1 2025 were $3.16, a 15% increase from $2.75 in Q1 2024[35] - Net income for Q1 2025 rose to $171.0 million, a 15% increase from $149.1 million in Q1 2024[42] - Net cash provided by operating activities was $37.4 million in Q1 2025, down from $92.2 million in Q1 2024[33] - Free cash flow for Q1 2025 was $11.4 million, significantly lower than $51.9 million in Q1 2024[47] Balance Sheet - Total assets as of March 31, 2025, were $6,922.1 million, up from $6,679.1 million at the end of 2024[31] - Cash and cash equivalents increased to $346.9 million from $329.1 million at the end of 2024[31] - The company reported a total current liabilities of $1,938.3 million as of March 31, 2025, compared to $1,274.2 million at the end of 2024[31] - Total debt increased to $1,860.1 million as of March 31, 2025, up from $1,568.1 million at the end of 2024, resulting in a total debt to total capital ratio of 36%[46] Sales Growth and Acquisitions - Anticipated total sales growth for 2025 is 6-8%, including pricing actions to address cost inflation[13] - The impact of acquisitions on net sales growth was $4.5 million (0.3%) in Q1 2025, compared to $108.5 million (8.4%) in Q1 2024[39]

Core Insights - Hubbell Incorporated reported first quarter 2025 results, highlighting strong performance in the Electrical Solutions segment and a return to organic growth in Grid Infrastructure, despite challenges in Grid Automation and inflationary pressures [2][3]. Financial Performance - Total net sales for Q1 2025 were $1.365 billion, a decrease of 2% from $1.399 billion in Q1 2024 [26]. - Utility Solutions segment net sales decreased by 4% to $857 million compared to $894 million in Q1 2024, while Electrical Solutions segment net sales increased slightly to $508 million from $505 million [5][6]. - Q1 diluted EPS was $3.15, with adjusted diluted EPS at $3.50, reflecting a year-over-year increase of 15% [7][27]. Segment Analysis - Electrical Solutions achieved organic growth of 5%, driven by strong datacenter markets and strategic execution [3]. - Utility Solutions segment operating income was $160 million, or 18.7% of net sales, compared to $158 million, or 17.6% in the prior year [5]. - Grid Automation sales saw a decline of approximately 15% due to challenging comparisons from the previous year [5]. Cash Flow and Balance Sheet - Net cash provided by operating activities was $37 million in Q1 2025, down from $92 million in Q1 2024, with free cash flow at $11 million compared to $52 million in the prior year [10]. - Total assets increased to $6.922 billion as of March 31, 2025, from $6.679 billion at the end of 2024 [29]. Outlook - For the full year 2025, Hubbell anticipates diluted EPS in the range of $15.95-$16.45 and adjusted diluted EPS between $17.35-$17.85, with total sales growth and organic net sales growth projected at 6-8% [11][12].

Core Viewpoint - Analysts project that Hubbell (HUBB) will report quarterly earnings of $3.73 per share, reflecting a year-over-year increase of 3.6%, while revenues are expected to decline by 1% to $1.38 billion [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 0.4% in the past 30 days, indicating a reassessment by covering analysts [2]. - Prior revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3]. Key Metrics Projections - Analysts estimate 'Net Sales- Electrical Solutions' at $500.19 million, a decrease of 1% from the prior-year quarter [5]. - 'Net Sales- Utility Solutions' is forecasted to reach $889.24 million, reflecting a decline of 0.5% from the year-ago quarter [5]. - 'Adjusted operating income- Utility Solutions' is projected at $196.34 million, slightly up from $195.20 million in the previous year [5]. - 'Adjusted operating income- Electrical Solutions' is expected to be $86.84 million, compared to $80 million reported in the same quarter last year [6]. Market Performance - Shares of Hubbell have returned +8% over the past month, contrasting with the Zacks S&P 500 composite's -0.2% change, indicating a stronger performance relative to the market [7].

Core Viewpoint - Hubbell Incorporated will release its first quarter 2025 financial results on May 1st, 2025, prior to market opening, followed by a 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 can be accessed through the Events and Presentations section on the company's website [3].

Core Points - Ron Austin Law has been awarded the Peer AV Preeminent Rating from Martindale-Hubbell, recognizing the firm's excellence in personal injury law [1][2] - The award reflects the firm's commitment to leadership, professionalism, and ethical standards in the legal field [2] - The firm has recovered over $1 billion for clients and boasts a combined 88 years of legal experience, establishing itself as a leading personal injury law firm in Louisiana [3] Company Overview - Ron Austin Law is recognized for its dedication to providing personalized, results-driven legal representation, focusing on client advocacy and ethical standards [5] - The firm aims to expand its legal services while maintaining high ethical standards and ensuring clients feel heard and respected [5] - The Peer AV Preeminent Rating serves as an industry validation of the firm's efforts to drive meaningful change for clients [3][4]

Company Overview - Hubbell Incorporated is a leading manufacturer of utility and electrical solutions, enabling customers to operate critical infrastructure safely, reliably, and efficiently [3] - The company reported revenues of $5.6 billion for the year 2024, indicating a strong market presence [3] - The corporate headquarters is located in Shelton, CT [3] Upcoming Event - Bill Sperry, Chief Financial Officer of Hubbell, will present at the J.P. Morgan 2025 Industrials Conference [1] - The event is scheduled for March 11, 2025, at 12:15 PM ET and will be available via webcast [1] - Live audio of the event can be accessed through Hubbell's Investor Relations section on their website [2]

Revenue Segments - Utility Solutions segment accounted for 64% of consolidated revenues in 2024, up from 61% in 2023 and 58% in 2022[15] - Electrical Solutions segment represented 36% of consolidated revenues in 2024, down from 39% in 2023 and 42% in 2022[18] - The company generated $187.1 million in sales from its residential lighting business in 2023, which was sold for $131 million in December 2023[20] Order Backlog - The backlog of orders at December 31, 2024, was $1,898 million, down from $2,328 million at December 31, 2023[29] Customer Base - Approximately 41% of net sales are attributed to the top ten customers, indicating a diverse customer base[24] - Top ten customers account for approximately 41% of Hubbell's net sales, indicating a diversified customer base[24] Employee Engagement and Development - Over 88% of Hubbell's employees participated in the Elevate Employee Experience Survey in 2024, indicating strong engagement[40] - Hubbell launched "Align 2027" in mid-2024 to help employees understand the company's long-term strategies and their roles[40] - Hubbell has expanded its leadership development programs and learning management system, known as Hubbell University, to enhance employee training and career development[37] - The company provides up to 8 hours of paid time off annually for employees to volunteer with eligible charities, promoting community engagement[38] - Hubbell's labor relations are considered satisfactory, with approximately 2,470 U.S. employees represented by 8 labor unions[35] Patents and Innovation - The company has approximately 3,100 active patents, which are deemed valuable but not critical to its business operations[26] - The company has approximately 3,100 active United States and foreign patents, which cover a portion of its products[26] - The company emphasizes product performance, reliability, quality, and technological innovation as key competitive factors[30] Environmental Compliance - The company is committed to environmental compliance and believes its practices prevent unreasonable risks of environmental damage[32] - Hubbell has incurred costs related to environmental lawsuits and claims but does not anticipate a material adverse effect on its financial condition[33] Supply Chain - The company maintains a diverse supply chain, not materially dependent on any single supplier for raw materials[25] Market Support - The Utility Solutions segment supports various markets, including electrical distribution, transmission, water, gas distribution, telecommunications, and renewable energy[15] - The Utility Solutions segment supports various markets, including electrical distribution, transmission, water, gas distribution, and telecommunications[15] Brand and Distribution - Hubbell's products are sold under various brands, including Aclara®, Hubbell®, and Burndy®, across multiple distribution channels[16][21] Employment Statistics - As of December 31, 2024, the company employed approximately 17,700 employees, with 60% located in the United States[35] - As of December 31, 2024, Hubbell had approximately 17,700 employees, with 60% (about 10,600) located in the United States[35]

Group 1 - Shares of Hubbell Incorporated (NYSE: HUBB) are trading at the lower end of its 52-week range [1] - The recently filed quarterly report showed a slight miss on revenues [1] - The 2025 EPS guidance came in line with consensus expectations [1]