Hubbell(US:HUBB)2025-10-28 12:11Financial Performance - Hubbell reported Q3 2025 diluted EPS of $4.77 and adjusted diluted EPS of $5.17, reflecting strong performance [4]. - Net sales for Q3 2025 increased by 4% to $1.50 billion, with organic growth of 3% [4]. - Net income attributable to Hubbell for Q3 2025 was $255.5 million, a 13% increase from $226.2 million in Q3 2024 [38]. - Adjusted net income for Q3 2025 reached $276.6 million, up 11% from $249.7 million in Q3 2024 [38]. - The company reported a diluted earnings per share of $4.77 for the three months ended September 30, 2025, compared to $4.18 in the same period of 2024, reflecting an increase of 14.1% [32]. - Net income for the three months ended September 30, 2025, was $256.7 million, a 13% increase from $227.8 million in 2024 [44]. - Adjusted EBITDA for the nine months ended September 30, 2025, reached $1,041.9 million, reflecting a 5% growth compared to $992.2 million in 2024 [44]. Sales and Growth - The Utility Solutions segment net sales rose 1% to $944 million, while the Electrical Solutions segment net sales increased 10% to $559 million [7][8]. - Grid Infrastructure achieved 8% organic growth, while Grid Automation sales decreased by 18% due to weak project activity [3]. - Hubbell expects full year 2025 total sales growth and organic net sales growth of 3-4% [13]. - 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% [32]. - The company reported a 1% increase in net sales for the nine months ended September 30, 2025, totaling $4,351.9 million compared to $4,294.2 million in the same period of 2024 [40]. - Organic net sales growth for Q3 2025 was $46.7 million, reflecting a 3.2% increase compared to Q3 2024 [41]. Cash Flow and Assets - Free cash flow for Q3 2025 was $254 million, up from $189 million in the same period of 2024 [11]. - Free cash flow for the nine months ended September 30, 2025, was $582.3 million, compared to $558.8 million in 2024, indicating an increase of 4.2% [36]. - Cash and cash equivalents rose to $666.8 million as of September 30, 2025, compared to $329.1 million at the end of 2024, showing a significant increase of 102.5% [34]. - Total assets increased to $7,526.9 million as of September 30, 2025, from $6,847.7 million at the end of 2024, representing a growth of 9.9% [34]. - Operating cash flow for the nine months ended September 30, 2025, was $582.3 million, compared to $558.8 million in 2024 [48]. Margins and Expenses - The operating margin for Q3 2025 was 22.0%, with an adjusted operating margin of 23.9% [4]. - Operating income as a percentage of net sales improved to 22.0% for the three months ended September 30, 2025, compared to 21.7% in the same period of 2024 [32]. - Adjusted operating income for Q3 2025 was $358.4 million, a 4% increase from $343.7 million in Q3 2024 [40]. - Interest expense, net for the three months ended September 30, 2025, decreased to $13.6 million from $18.7 million in 2024, indicating improved financial efficiency [44]. Tax and Restructuring - The effective tax rate decreased to 17.5% in Q3 2025 from 21.0% in Q3 2024, primarily due to a significant tax benefit from international restructuring [9]. - The company anticipates approximately $20 million in restructuring and related investment for 2025 [13]. - Restructuring costs for the three months ended September 30, 2025, amounted to $4.2 million, up from $2.2 million in 2024 [45]. - The company incurred restructuring and related costs, which are non-GAAP measures, primarily associated with business transformation initiatives [25]. Debt and Financial Position - Long-term debt decreased to $1,044.8 million as of September 30, 2025, from $1,442.7 million at the end of 2024, a reduction of 27.6% [34]. - Total debt as of September 30, 2025, was $1,996.3 million, resulting in a total debt to total capital ratio of 35%, up from 32% at the end of 2024 [47]. - Net debt as of September 30, 2025, was $1,215.6 million, with a net debt to total capital ratio of 21%, down from 23% at the end of 2024 [47].