Hubbell(HUBB) - 2025 Q4 - Annual Report

Revenue Segmentation - The Utility Solutions segment accounted for 63% of consolidated revenues in 2025, 64% in 2024, and 61% in 2023[13] - The Electrical Solutions segment represented 37% of consolidated revenues in 2025, 36% in 2024, and 39% in 2023[15] - The Utility Solutions segment accounted for 63% of consolidated revenues in 2025, up from 61% in 2023, while the Electrical Solutions segment represented 37% of revenues in 2025, down from 39% in 2023[13] Order Backlog - The backlog of orders at December 31, 2025, was $2,159 million, up from $1,898 million at December 31, 2024[26] - The backlog of orders at December 31, 2025, was $2,159 million, an increase from $1,898 million at December 31, 2024, with substantial backlog expected to be shipped in 2026[26] Sales and Business Operations - The company sold its residential lighting business for a cash purchase price of $131 million, which generated $187.1 million in sales in 2023[17] - The company generated $187.1 million in sales from its residential lighting business in 2023, which was sold for a cash purchase price of $131 million[17] - Hubbell's products are primarily sold through distributors and directly to utilities, with a focus on electrical distribution and utility markets[14] - The Electrical Solutions segment products are primarily sold through distributors and retail outlets, catering to various markets including industrial and telecommunications[18] Customer Base - Approximately 42% of net sales are attributed to the top ten customers[21] - Top ten customers account for approximately 42% of the company's net sales, indicating a diversified customer base[21] Employee Information - As of December 31, 2025, Hubbell had approximately 18,000 employees, with 61% located in the United States[32] - As of December 31, 2025, Hubbell had approximately 18,000 employees, with 61% (about 10,900) located in the United States[32] - In 2025, over 87% of Hubbell's employees participated in the Elevate Employee Experience Survey, indicating strong engagement[37] - The company provides U.S. employees with up to 8 hours of paid time off annually for volunteer work with eligible charities[35] - Hubbell has expanded its leadership development programs to enhance career development opportunities for employees at all levels[34] - The company considers its labor relations satisfactory, with approximately 2,425 U.S. employees represented by 8 labor unions[32] - Hubbell's commitment to employee development includes competitive compensation and health programs tailored to local markets[31] Safety and Health Programs - The company has implemented a comprehensive safety program to protect employee health and safety, utilizing an enterprise-wide data management system[36] - Hubbell's myLife program offers competitive benefits aimed at supporting employees' health and well-being[36] Intellectual Property - The company has approximately 3,250 active patents covering its products[23] - The company has approximately 3,250 active patents, which it deems valuable but does not consider its business to be dependent on patent protection[23] International Operations - The company maintains operations in multiple countries, including the United States, Canada, and China[9] - The company operates several international facilities, including in Canada, Mexico, China, and the UK, to manufacture and market its products[9] Environmental Considerations - The company anticipates that environmental claims and costs will not materially affect its financial condition or competitive position[29] Product Segmentation - The Utility Solutions segment includes critical components for energy transmission and distribution, while the Electrical Solutions segment focuses on power management across various industries[10][15] Financial Performance - The company recorded a pre-tax loss of $5.3 million on the sale of its residential lighting business, which is included in total other expenses[17] - The company is not materially dependent on any single supplier for raw materials, which include steel, aluminum, and copper[22]