Financial Data and Key Metrics Changes - The first quarter sales were $1.365 billion, a decrease largely due to the divestiture of residential lighting, with flat growth otherwise [12] - Operating profit was $264 million, with margins down 40 basis points, impacted by $10 million drag from material inflation and tariffs [13] - The company maintained its full year 2025 outlook, expecting adjusted EPS in the range of $16.85 to $17.35, with organic growth of 6% to 8% [30][32] Business Line Data and Key Metrics Changes - Electrical Solutions segment delivered mid single-digit organic growth, with strong performance in data centers contributing significantly [5][20] - Utility Solutions segment sales were $857 million, down 4% year-over-year, with Grid Automation experiencing a 15% contraction [14] - Grid Infrastructure returned to organic growth, driven by strong demand in transmission and substation markets, with double-digit growth [6][15] Market Data and Key Metrics Changes - The macroeconomic environment has become more dynamic, but the company sees no net change to its prior near-term and long-term views [8] - Recent order trends in distribution markets are encouraging, indicating a normalization from previous inventory destocking [6][16] - The company reported double-digit growth in grid infrastructure orders year-over-year, indicating strong underlying market dynamics [37] Company Strategy and Development Direction - The company is focused on mitigating cost inflation and macroeconomic uncertainty through proactive cost management and operational efficiencies [7][8] - Hubbell aims to capitalize on long-term investment cycles in grid modernization and electrification, supported by strong positions in key markets [38][39] - The company is poised for active investment and shareholder returns, with a strong balance sheet and a focus on acquisitions to enhance product positioning [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating near-term uncertainties while maintaining financial commitments for 2025 [39] - The company anticipates a strong ramp-up in the second half of the year, supported by a solid order book and easier year-over-year comparisons [86] - Management highlighted the resilience of utility markets, which tend to perform well even in challenging macroeconomic conditions [52] Other Important Information - The company has implemented price increases to offset the impact of tariffs and raw material inflation, with expectations to neutralize these costs within 2025 [25][31] - The company has reduced its exposure to China by about half over the past several years, focusing on diversifying its supply chain [108][110] Q&A Session Summary Question: Clarification on guidance and sensitivity analysis - Management confirmed that the guidance range reflects a $0.50 sensitivity due to potential tariff impacts, but actions are in place to neutralize this [43][48] Question: Insights on Q2 margins and cost mitigation - Management provided insights indicating a typical seasonal sequential growth in sales, with expectations of a $20 million LIFO headwind in Q2 [46][47] Question: Expectations on utility budgets and spending - Management noted that utility budgets are increasing, with a focus on grid hardening and load growth, indicating a positive outlook for utility spending [50][52] Question: Price elasticity and customer feedback on price increases - Management indicated low elasticity for the first round of tariff-related price increases, with expectations of successful implementation [70][72] Question: Outlook for telecom and grid automation segments - Management reported that the telecom segment is showing signs of improvement, with sales declines flattening and order books growing [117] Question: Competitive landscape in utility T&D - Management identified key competitors in the utility T&D space, including Eaton's Cooper division and ABB's Thomas and Betts [81]