Hubbell(HUBB) - 2025 Q2 - Quarterly Results

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].