Financial Data and Key Metrics Changes - Hubbell reported a 4% increase in sales to approximately $1.5 billion and a 4% increase in operating profit to $358 million for Q3 2025 [12][13] - Adjusted diluted EPS rose by 12%, and free cash flow increased by 34% to $254 million [14][15] - The company raised its full-year 2025 outlook, anticipating stronger margin performance to offset lower organic growth [7][21] Business Line Data and Key Metrics Changes - The utility segment saw sales increase by 1% to $944 million, with operating profit remaining stable at $242 million [15][16] - Grid infrastructure within the utility segment achieved high single-digit organic growth, while grid automation sales declined by 18% [4][5] - The electrical segment experienced double-digit sales growth of 10% and a 17% increase in operating profit, with 8% organic growth across end markets [18][19] Market Data and Key Metrics Changes - Strong performance was noted in T&D markets, driven by utility investments in grid interconnections and aging infrastructure [4][16] - The telecom and enclosures markets returned to growth after previous declines due to overstock situations [16] - The company anticipates robust project pipelines in utility solutions, particularly in substation and transmission markets [29] Company Strategy and Development Direction - Hubbell's acquisition of DMC Power is aimed at enhancing its utility connector offerings and is expected to contribute approximately $0.20 to adjusted EPS in 2026 [8] - The company is focused on capital allocation strategies to acquire high-growth, high-margin businesses [8] - Hubbell aims to leverage its strong market positions and proactive cost management to drive long-term margin expansion [6][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance in 2026, driven by megatrends in grid modernization and electrification [7][29] - The company noted that supply chain normalization dynamics are expected to improve as they exit 2025 [25] - Management highlighted the importance of managing pricing and productivity to offset cost inflation [6][21] Other Important Information - Bill Sperry, the CFO, announced his retirement at the end of the year, with Joe Capozzoli set to succeed him [9][10] - The company has successfully managed cost inflation through pricing and productivity actions [6][14] Q&A Session Summary Question: Insights on 2026 utility growth expectations - Management acknowledged the potential for strong growth but emphasized a prudent approach to planning resources [33][34] Question: Clarification on September-October order strength - Management noted broad-based order strength in T&D markets, indicating a positive outlook for future growth [40][41] Question: Sustainability of the lower tax rate into 2026 - Management indicated that the lower tax rate is project-driven and expected to normalize next year [42] Question: Recovery pace for utility segment - Management confirmed that the organic guidance reduction was entirely within the utility segment, with recovery timing shifting as expected [47][50] Question: Pricing dynamics and market elasticity - Management reported strong price realization and constructive discussions with channel partners regarding pricing [71][72]

Financial Data and Key Metrics Changes - The company reported a 4% increase in sales to approximately $1.5 billion and a 4% increase in operating profit to $358 million [11][12] - Adjusted diluted EPS rose by 12%, and free cash flow increased by 34% to $254 million [12][14] - The overall performance was driven by strong growth in the electrical segment and grid infrastructure, despite a decline in grid automation sales [12][16] Business Line Data and Key Metrics Changes - In the utility segment, sales increased by 1% to $944 million, with operating profit remaining stable at $242 million [15] - The grid infrastructure unit grew at high single digits, with strong performance across transmission, substation, and distribution markets [15][16] - The electrical segment saw double-digit sales growth of 10% and a 17% increase in operating profit, with 8% organic growth across end markets [18][19] Market Data and Key Metrics Changes - The utility market is experiencing robust project pipelines, particularly in substation and transmission markets, while distribution markets benefit from ongoing hardening and resiliency activities [27] - The electrical solutions market is expected to remain strong in data centers and light industrial sectors, although macroeconomic uncertainty may impact non-residential construction and heavy industrial segments [27] Company Strategy and Development Direction - The company is focused on capital allocation strategies that include acquiring high-growth, high-margin businesses, exemplified by the recent acquisition of DMC Power [7] - The strategy emphasizes simplifying operations to drive productivity and long-term margin expansion [5][6] - The company is positioned at the intersection of grid modernization and electrification, anticipating strong performance driven by megatrends [6][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong performance in 2026 and beyond, citing normalization of supply chain dynamics and robust market positions [6][26] - The company raised its full-year 2025 outlook, expecting operational improvements to offset lower organic growth [6][20] - Management highlighted the importance of managing costs effectively while maintaining pricing power in the face of inflation [5][12] Other Important Information - The company announced the retirement of CFO Bill Sperry at the end of the year, with Joe Capozzoli set to succeed him [8][9] - The DMC Power acquisition is expected to contribute approximately $0.20 to adjusted earnings per share in 2026 [7] Q&A Session Summary Question: Insights on 2026 growth expectations - Management acknowledged the potential for strong growth in 2026 but emphasized a cautious approach to planning resources based on long-term guidance [30][31] Question: Details on September-October order strength - Management noted broad-based order strength in the T&D sector, indicating a positive trend for future growth [40][41] Question: Sustainability of the lower tax rate into 2026 - The lower tax rate is driven by an international acquisition restructuring and is expected to normalize next year [42] Question: Clarification on utility segment recovery - Management confirmed that the organic revenue guidance reduction was entirely within the utility segment, with recovery timing shifting as expected [45] Question: Commentary on pricing and margin expectations for next year - Management indicated that pricing for the year is expected to be in the 3% range, with balanced contributions from both segments [51][62]