Hubbell Incorporated Reports Fourth Quarter and Full Year 2024 Results

Hubbell Incorporated, a leading manufacturer of utility and electrical solutions, has released its financial results for the fourth quarter and full year ending December 31, 2024. The company reported strong performance in several key financial metrics, despite some challenges in organic growth.

Financial Highlights

For the fourth quarter of 2024, Hubbell reported diluted earnings per share (EPS) of $3.64, with adjusted diluted EPS of $4.10, marking an 11% year-over-year increase. Net sales for the quarter were slightly down by 1%, with organic net sales decreasing by 3% and net mergers and acquisitions (M&A) contributing a 3% increase. The operating margin for the quarter stood at 19.3%, with an adjusted operating margin of 21.8%, up 240 basis points year-over-year.

For the full year 2024, the company reported diluted EPS of $14.37 and adjusted diluted EPS of $16.57. Looking ahead to 2025, Hubbell expects diluted EPS to range between $16.00 and $16.50, with adjusted diluted EPS projected to be between $17.35 and $17.85.

Business and Operational Highlights

In the Utility Solutions segment, net sales for the fourth quarter of 2024 increased by 4% to $847 million compared to the same period in 2023. However, organic net sales in this segment decreased by 5%, while acquisitions added 9%. The Electrical Solutions segment saw a decrease in net sales to $487 million, down from $534 million in the fourth quarter of 2023, primarily due to an 8% reduction from divestitures.

Adjusted operating income for the Utility Solutions segment was $194 million, or 22.9% of net sales, while the Electrical Solutions segment reported adjusted operating income of $97 million, or 20.0% of net sales.

Strategic Initiatives and Corporate Developments

Hubbell has been actively managing its portfolio through acquisitions and divestitures. The company completed several acquisitions in 2023, including EI Electronics LLC, Indústria Eletromecânica Balestro Ltda., and Northern Star Holdings, Inc. Additionally, Hubbell divested its residential lighting business, recognizing a $5.3 million pre-tax loss on the disposition in the first quarter of 2024.

The company also reported significant free cash flow of $364 million in the fourth quarter of 2024, up from $284 million in the same period of 2023.

Management's Perspective

Gerben Bakker, Chairman, President, and CEO of Hubbell, commented on the results, stating, "Hubbell delivered double-digit growth in operating profit, earnings per share, and free cash flow in the fourth quarter. While organic growth was below our expectations, continued operational execution resulted in significant margin expansion, and we delivered earnings per share ahead of our prior outlook range."

Bakker also highlighted the company's progress in unifying its HES segment, achieving growth across key utility and electrical verticals, and driving shareholder value through portfolio transformation and strategic capital allocation.

Future Outlook

For the full year 2025, Hubbell anticipates total sales growth and organic sales growth of 4-5%. The company expects GAAP diluted EPS from continuing operations to be in the range of $16.00 to $16.50, with adjusted diluted EPS projected to be between $17.35 and $17.85. The company also expects free cash flow conversion of 90% or greater on adjusted net income for the year.

SEC Filing: HUBBELL INC [ HUBB ] - 8-K - Feb. 04, 2025