Hubbell(US:HUBB)2026-02-03 13:03Financial Performance - Q4 2025 diluted EPS was $4.19, with adjusted diluted EPS of $4.73, representing a 15% year-over-year increase[4]. - For FY 2025, diluted EPS was $16.54, and adjusted diluted EPS was $18.21, reflecting a 10% year-over-year growth[4]. - The company expects FY 2026 diluted EPS in the range of $17.30 to $18.00, and adjusted diluted EPS between $19.15 and $19.85[12]. - Net income attributable to Hubbell for Q4 2025 was $224.2 million, a 13% increase from $198.2 million in Q4 2024, with a total net income of $887.1 million for the year, up 14% from $779.0 million in 2024[36]. - Adjusted net income for Q4 2025 reached $253.5 million, reflecting a 13% increase compared to $223.4 million in Q4 2024, with an annual adjusted net income of $976.8 million, a 9% rise from $898.0 million in 2024[36]. - The diluted earnings per share (GAAP measure) for Q4 2025 was $4.19, a 14% increase from $3.66 in Q4 2024, with annual diluted earnings per share of $16.54, a 15% increase from $14.39[36]. - The company reported a net income of $891.9 million for the twelve months ended December 31, 2025, a 14% increase from $784.7 million in 2024[42]. Sales Growth - Q4 2025 net sales increased by 12%, with organic sales growth of 9% and M&A contributing 3%[4]. - Net sales for Q4 2025 were $1,492.7 million, a 12% increase from $1,334.3 million in Q4 2024, with total annual net sales of $5,844.6 million, up 4% from $5,628.5 million in 2024[38]. - Utility Solutions segment net sales in Q4 2025 increased 10% to $936 million, with organic sales up 7%[8]. - Electrical Solutions segment net sales in Q4 2025 rose 14% to $557 million, with organic sales growth of 13%[9]. - Organic net sales growth for Q4 2025 was $118.8 million, an 8.9% increase compared to a decline of $40.5 million in Q4 2024, with annual organic net sales growth of $185.8 million, a 3.3% increase from $2.0 million in 2024[40]. Operating Performance - Q4 2025 operating margin was 20.9%, with adjusted operating margin at 23.4%, up 140 basis points year-over-year[4]. - Adjusted operating income for Q4 2025 was $349.3 million, a 19% increase from $292.9 million in Q4 2024, with an annual adjusted operating income of $1,325.4 million, a 7% increase from $1,234.2 million in 2024[38]. - The operating income for the twelve months ended December 31, 2025, was $1,208.8 million, representing an increase from $1,093.1 million in 2024, with an operating income margin of 20.7%[30]. - The operating margin for Q4 2025 was 20.9%, up 140 basis points from 19.5% in Q4 2024, while the adjusted operating margin was 23.4%, also up 140 basis points from 22.0%[38]. Cash Flow and Investments - Free cash flow for Q4 2025 was $388.8 million, compared to $364.4 million in Q4 2024[11]. - Free cash flow for the twelve months ended December 31, 2025, was $874.7 million, an increase from $810.8 million in 2024[47]. - Net cash provided by operating activities for Q4 2025 was $447.5 million, compared to $432.4 million in Q4 2024[47]. - The company incurred $1,094.6 million in net cash used in investing activities for the twelve months ended December 31, 2025, primarily due to acquisitions[34]. Assets and Liabilities - Cash and cash equivalents increased to $482.5 million as of December 31, 2025, up from $329.1 million in 2024[32]. - Total assets grew to $8,228.8 million in 2025, compared to $6,847.7 million in 2024, indicating a significant increase in the company's asset base[32]. - Total debt as of December 31, 2025, was $2,325.4 million, compared to $1,568.1 million in 2024, resulting in a total debt to total capital ratio of 38%[47]. - Net debt (non-GAAP measure) as of December 31, 2025, was $1,729.1 million, up from $1,138.2 million in 2024, resulting in a net debt to total capital ratio of 28%[47]. Other Financial Metrics - Free cash flow is a non-GAAP measure that indicates the company's ability to generate cash without external financing, which is crucial for investments and strategic acquisitions[22]. - Organic net sales, a non-GAAP measure, provides a clearer view of underlying operating results by excluding the effects of acquisitions, divestitures, and foreign currency fluctuations[25]. - Depreciation and amortization for Q4 2025 was $61.5 million, compared to $53.3 million in Q4 2024[42]. - Restructuring and related costs (non-GAAP measure) for Q4 2025 totaled $3.4 million, consistent with $3.6 million in Q4 2024[44]. - The company incurred restructuring costs (GAAP measure) of $9.9 million for the twelve months ended December 31, 2025, compared to $9.3 million in 2024[44].