PART I FINANCIAL INFORMATION This section presents Hubbell's comprehensive financial data, including statements, notes, and management's analysis ITEM 1 Financial Statements (unaudited) This section presents Hubbell's unaudited condensed consolidated financial statements and notes for the reported periods Condensed Consolidated Statements of Income Three Months Ended June 30, 2025 vs 2024 (in millions) | Metric | 2025 | 2024 | Change | % Change | | :--------------------------------- | :----- | :----- | :----- | :------- | | Net sales | $1,484.3 | $1,452.5 | $31.8 | 2.2% | | Gross profit | $552.1 | $513.8 | $38.3 | 7.5% | | Operating income | $336.3 | $306.3 | $30.0 | 9.8% | | Net income attributable to Hubbell Inc. | $244.2 | $217.5 | $26.7 | 12.3% | | Diluted earnings per share | $4.56 | $4.01 | $0.55 | 13.7% | Six Months Ended June 30, 2025 vs 2024 (in millions) | Metric | 2025 | 2024 | Change | % Change | | :--------------------------------- | :----- | :----- | :----- | :------- | | Net sales | $2,849.5 | $2,851.6 | $(2.1) | -0.1% | | Gross profit | $994.7 | $947.4 | $47.3 | 5.0% | | Operating income | $566.7 | $520.7 | $46.0 | 8.8% | | Net income attributable to Hubbell Inc. | $407.4 | $354.6 | $52.8 | 14.9% | | Diluted earnings per share | $7.58 | $6.55 | $1.03 | 15.7% | Condensed Consolidated Statements of Comprehensive Income Three Months Ended June 30, 2025 vs 2024 (in millions) | Metric | 2025 | 2024 | Change | | :------------------------------------------ | :----- | :----- | :----- | | Net income | $245.5 | $219.1 | $26.4 | | Other comprehensive income (loss) | $32.3 | $(17.3) | $49.6 | | Comprehensive income attributable to Hubbell Inc. | $276.5 | $200.2 | $76.3 | Six Months Ended June 30, 2025 vs 2024 (in millions) | Metric | 2025 | 2024 | Change | | :------------------------------------------ | :----- | :----- | :----- | | Net income | $410.0 | $357.5 | $52.5 | | Other comprehensive income (loss) | $51.8 | $(26.6) | $78.4 | | Comprehensive income attributable to Hubbell Inc. | $459.2 | $328.0 | $131.2 | Condensed Consolidated Balance Sheets As of June 30, 2025 vs December 31, 2024 (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :------------------------------------ | :------------ | :----------- | :----- | | Total Current Assets | $2,476.4 | $2,257.9 | $218.5 | | Total Assets | $7,149.0 | $6,847.7 | $301.3 | | Total Current Liabilities | $1,908.4 | $1,274.2 | $634.2 | | Total Liabilities | $3,650.2 | $3,437.1 | $213.1 | | Total Equity | $3,498.8 | $3,410.6 | $88.2 | Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2025 vs 2024 (in millions) | Metric | 2025 | 2024 | Change | | :------------------------------------------------ | :----- | :----- | :----- | | Net cash provided by operating activities | $298.0 | $331.8 | $(33.8) | | Net cash (used in) provided by investing activities | $(140.6) | $56.1 | $(196.7) | | Net cash used in financing activities | $(117.5) | $(319.3) | $201.8 | | Increase in cash and cash equivalents | $53.0 | $60.6 | $(7.6) | Notes to Condensed Consolidated Financial Statements - The Company retrospectively changed its accounting method for certain U.S. inventory from LIFO to FIFO in Q2 2025 to better match costs and revenues, conform to a single accounting method, and improve comparability with peers19 - In Q1 2025, Hubbell acquired Ventev for approximately $73 million, net of cash, adding it to the Electrical Solutions segment to enhance wireless network solutions26 - In July 2025, the Company acquired Nicor, Inc. for approximately $56 million, net of cash, which will be added to the Utility Solutions segment to provide water metering endpoint solutions124 ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations This section analyzes Hubbell's financial condition, results of operations, liquidity, and capital resources Executive Overview of the Business - Hubbell is a global manufacturer of electrical products and utility solutions, serving customers across 'In Front of the Meter,' 'On The Edge,' and 'Behind the Meter' energy infrastructure applications126 - The company's reporting segments are Utility Solutions and Electrical Solutions, with approximately 17,800 employees worldwide as of June 30, 2025126127 - Hubbell's strategy includes organic growth, strategic acquisitions to expand offerings, and maintaining a competitive cost structure through restructuring and productivity programs128129130 Results of Operations – Second Quarter of 2025 compared to the Second Quarter of 2024 - Net sales increased by 2.2% to $1,484.3 million, driven by 2.0% organic sales growth (favorable price realization) and 0.3% from acquisitions139155 - Operating margin expanded by 160 basis points to 22.7%, with adjusted operating margin increasing by 120 basis points to 24.4%, primarily due to operational productivity and favorable price realization141152 - Diluted EPS increased by 14% to $4.56, and adjusted diluted EPS rose by 11% to $4.93153160 Results of Operations – Six Months Ended June 30, 2025 compared to the Six Months Ended June 30, 2024 - Net sales remained flat at $2,849.5 million, with 0.7% organic growth (price realization offsetting volume decline), a 0.4% reduction from divestitures net of acquisitions, and a 0.4% decrease from foreign currency exchange172 - Gross profit margin expanded by 170 basis points to 34.9%, driven by improved operational productivity, favorable pricing, and lower acquisition-related intangible asset amortization173 - Diluted EPS increased by 15.7% to $7.58, and adjusted diluted EPS rose by 5.6% to $8.31169177 Financial Condition, Liquidity and Capital Resources - Net cash provided by operating activities decreased to $298.0 million (vs. $331.8 million in 2024) due to increased working capital and a $20.0 million pension plan contribution, partially offset by higher net income184 - Cash used in investing activities was $140.6 million (vs. $56.1 million provided in 2024), primarily due to the $73.2 million Ventev acquisition in 2025 and the absence of proceeds from the residential lighting business disposition seen in 2024185189 - Cash used in financing activities decreased to $117.5 million (vs. $319.3 million in 2024), reflecting higher net borrowings partially offset by a $205.0 million increase in share repurchases186 - The company has a $1.0 billion committed unsecured revolving credit facility, undrawn as of June 30, 2025, and a total outstanding share repurchase authorization of approximately $535.0 million195198227 Forward-Looking Statements - The report contains forward-looking statements regarding financial results, growth, market conditions, capital resources, and strategic initiatives, which are subject to numerous risks and uncertainties212 - Key risks include trade tariffs, inflation, economic conditions, foreign currency fluctuations, supply chain disruptions, changes in demand, and the ability to integrate acquisitions and manage restructuring costs212215 - Hubbell's long-term strategy focuses on serving customers with reliable and innovative electrical and infrastructure solutions, complementing organic growth with acquisitions, and effective capital allocation to create shareholder value128 - The company continues to invest in restructuring and productivity initiatives to optimize its manufacturing footprint, cost structure, and workforce efficiency, aiming to offset material and administrative cost inflation130131 - In Q1 2025, Hubbell acquired Ventev for $73.2 million, expanding its wireless network solutions within the Electrical Solutions segment135189 ITEM 3 Quantitative and Qualitative Disclosures About Market Risk This section addresses Hubbell's market risk exposures, including currency, raw material prices, and interest rates - Hubbell is exposed to market risks from foreign currency exchange rates, raw material and finished goods availability and prices, foreign sourcing issues, and interest rate changes214 - No significant changes in market risk exposure were reported for the six months ended June 30, 2025214 ITEM 4 Controls and Procedures This section confirms the effectiveness of Hubbell's disclosure controls and procedures, with no material changes - Management, including the CEO and CFO, evaluated the effectiveness of the Company's disclosure controls and procedures as of June 30, 2025217 - The disclosure controls and procedures were concluded to be effective at the reasonable assurance level217 - No material changes in internal control over financial reporting occurred during the most recently completed quarter218 PART II OTHER INFORMATION This section covers additional disclosures, including updated risk factors, equity sales, and exhibits ITEM 1A Risk Factors This section updates risk factors, focusing on adverse impacts from changes in U.S. and international trade policies - No material changes to risk factors were reported, except for those related to U.S. and international trade policies220 - Changes in trade policy, including new tariffs on goods from Canada, China, Mexico, and Europe, could increase prices for imported materials and domestically sourced goods222223 - These trade actions may disrupt supply chains, increase manufacturing costs, reduce demand, and adversely affect revenues and profitability224 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds This section details Hubbell's common stock repurchase activities, including active programs and Q2 2025 repurchases - The 2022 share repurchase program has $35.0 million remaining authorization, expiring in October 2025227 - A new 2025 share repurchase program was approved, authorizing up to $500.0 million of common stock repurchases, expiring in February 2028227 Common Stock Repurchase Activity for Q2 2025 | Period | Total Number of Shares Purchased (000s) | Average Price Paid Per Share | Approximate Value of Shares that May Yet be Purchased Under the Plans (in millions) | | :-------------------------- | :------------------------------------ | :--------------------------- | :-------------------------------------------------------------------------- | | April 1, 2025 - April 30, 2025 | — | $— | $635.0 | | May 1, 2025 - May 31, 2025 | 222 | $382.89 | $550.0 | | June 1, 2025 - June 30, 2025 | 39 | $387.10 | $535.0 | | TOTAL FOR THE QUARTER ENDED JUNE 30, 2025 | 261 | $382.98 | $535.0 | ITEM 5 Other information This section states no director or officer adopted or terminated a Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025230 ITEM 6 Exhibits This section lists exhibits filed with the Form 10-Q, including corporate documents, accounting letters, and certifications - Key exhibits include the Amended and Restated Certificate of Incorporation and By-Laws, Hubbell Incorporated Incentive Award Plan, and a Preferability Letter for the change in accounting principle231 - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are included231 - The financial statements for the quarter ended June 30, 2025, are provided in Inline Extensible Business Reporting Language (iXBRL) format231 Signatures This section contains the signatures of authorized representatives, confirming the report's filing - The report was signed on July 30, 2025, by William R. Sperry, Executive Vice President and Chief Financial Officer, and Jonathan M. Del Nero, Vice President, Controller (Principal Accounting Officer)232
Hubbell(HUBB) - 2025 Q2 - Quarterly Report