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HUBB · Hubbell

28 filings

10-K

HUBB 10-K Annual Reports

Hubbell - 28 annual reports

Filing record · 2016–202610-K1110-Q338-K110

2025
Hubbell Annual Report, Year Ended Dec 31, 2025
Hubbell Incorporated's 2025 results show net sales of $5,844.6 million, up 3.8% (or $216 million) from $5,628.5 million in 2024, with organic net sales up 3.3% on low single digit price realization and low single digit unit volume growth. Operating income rose to $1,208.8 million (20.7% of net sales) from $1,093.1 million (19.4%), and net income attributable to Hubbell increased 13.9% to $887.1 million. Diluted earnings per share were $16.54, up 14.9%. Management's adjusted diluted EPS, a non-GAAP measure, rose 9.8% to $18.21 on an adjusted basis as reported in the filing's reconciliation table. The Utility Solutions segment (63% of 2025 consolidated revenues) grew net sales 2.0% to $3.67 billion, while Electrical Solutions (37%) grew 7.1% to $2.17 billion with organic growth of 7.2%. The company spent $958.3 million on acquisitions in 2025, principally Ventev, Nicor and DMC Power, with DMC Power acquired October 1, 2025 for approximately $829 million net of cash acquired. Operating cash flow was $1,029.8 million and free cash flow was $874.7 million, a non-GAAP measure. Total debt rose to $2,325.4 million at December 31, 2025 from $1,568.1 million, funded partly by a $600 million term loan and a $400 million 4.800% Senior Notes due 2035 issued in November 2025, which were used to redeem the $400 million 3.350% notes due 2026. Total debt to total capital was 38% versus 32% a year earlier. Shareholders received $286.6 million in dividends, the quarterly dividend rate was raised from $1.32 to $1.42 per share, and $225.0 million of shares were repurchased, with $500.0 million of authorization outstanding at year end. The filing also discloses a change in inventory accounting from LIFO to FIFO for certain U.S. inventories in the second quarter of 2025, applied retrospectively to prior periods. Backlog of firm orders was $2,159 million at December 31, 2025, compared with $1,898 million a year earlier. Investors should note the exposure to tariff-related material cost inflation, which the filing says contributed to margin contraction, and the disclosed risk from trade policy changes affecting imports from Canada, Mexico, China and Europe.
Feb 12, 2026
2024
Hubbell Annual Report, Year Ended Dec 31, 2024
Hubbell Incorporated (HUBB) reported 2024 Net sales of $5,628.5 million, up $255.6 million, or 4.7%, from $5,372.9 million in 2023. Organic net sales were flat, with a low single digit increase in price realization partially offset by a low single digit decrease in unit volume. Acquisitions net of divestitures contributed 4.8% to growth. Operating income rose to $1,091.6 million from $1,038.5 million, and net income attributable to Hubbell increased 2.4% to $777.8 million. Diluted earnings per share from continuing operations were $14.37, up 2.3%. Adjusted operating income, a non-GAAP measure, was $1,232.7 million, or 21.9% of net sales, versus 21.0% in 2023, and adjusted diluted EPS was $16.57 versus $15.33. The Utility Solutions segment generated $3,600.7 million of net sales (64% of consolidated revenues), up 10.4%, largely from the Systems Control and other acquisitions, while organic sales declined 2.4% on lower enclosure volumes tied to telecom weakness. The Electrical Solutions segment's net sales fell 3.9% to $2,027.8 million, reflecting the first-quarter 2024 sale of the residential lighting business for a cash price of $131 million, although organic sales grew 3.8%. Backlog at December 31, 2024 was $1,898 million, compared with $2,328 million a year earlier. Cash flow from operations from continuing operations was $991.2 million, and free cash flow was $810.8 million. Long-term debt fell to $1,442.7 million from $2,023.2 million after the $600 million Term Loan was repaid in the fourth quarter of 2024. Total debt to total capital was 32%, and net debt to total capital was 24%. The Company paid $267.3 million in dividends, raised its quarterly dividend to $1.32 from $1.22 per share, and repurchased $40.0 million of shares in 2024. On February 12, 2025, the Board approved a new $500.0 million repurchase program, in addition to the $260.0 million remaining under the October 2022 program.
Feb 13, 2025
2023
Hubbell Annual Report, Year Ended Dec 31, 2023
Hubbell Incorporated reported 2023 net sales of $5,372.9 million, up $425.0 million, or 8.6%, from $4,947.9 million in 2022. Organic net sales rose 6.6%, driven by price realization partially offset by modestly lower volumes. Operating income increased to $1,038.5 million (19.3% of net sales) from $709.1 million (14.3%), and net income from continuing operations attributable to Hubbell was $759.8 million, or $14.05 diluted EPS, versus $9.43 in 2022. Adjusted diluted EPS from continuing operations was $15.33 versus $10.62, a non-GAAP measure the company reconciles to GAAP in the filing. The year was dominated by acquisitions. Hubbell completed three deals for about $1.2 billion net of cash, including Northern Star Holdings (Systems Control) for approximately $1.1 billion in December 2023, funded partly by a $600 million unsecured term loan and $100 million of commercial paper. Long-term debt rose to $2,023.2 million from $1,437.9 million, and total debt to total capital reached 43% versus 38% in 2022. Operating cash flow from continuing operations was $880.8 million and free cash flow was $715.1 million, while the company paid $245.5 million in dividends and repurchased $30.0 million of shares. Looking ahead, the filing notes a pending sale of the residential lighting business for $131 million, expected to close in the first quarter of 2024, and a backlog of firm orders of $2,328 million at year-end versus $2,463 million a year earlier. Management cites ongoing inflation, trade-policy changes and tariffs, and the higher debt load following the Systems Control acquisition as key risks.
Feb 8, 2024
2022
Hubbell Annual Report, Year Ended Dec 31, 2022
Hubbell Incorporated reported 2022 net sales of $4,947.9 million, up $753.8 million, or 18.0%, from $4,194.1 million in 2021, driven by favorable price realization and higher unit volume. Organic net sales grew 17.5%. Operating income rose to $709.1 million from $532.3 million, and operating margin increased 160 basis points to 14.3%. Net income from continuing operations attributable to Hubbell was $511.3 million, up 40.1%, and diluted earnings per share from continuing operations were $9.43, up 41.6%. Adjusted diluted EPS from continuing operations, a non-GAAP measure, was $10.62, up 31.9%. The company completed the sale of its Commercial and Industrial Lighting business to GE Current, a Daintree Company, on February 1, 2022, for net cash consideration of $332.8 million, and acquired PCX Holdings, Ripley Tools and REF for an aggregate $177.1 million. Free cash flow from continuing operations was $506.9 million, up from $423.5 million. Hubbell paid $229.6 million in dividends and repurchased $182.0 million of shares in 2022. Its backlog of firm orders at December 31, 2022 was $2,463.4 million, compared with $1,848.0 million a year earlier. Management identifies inflation, supply chain disruptions, tariffs, COVID-19 effects and goodwill impairment risk as key concerns. Goodwill and other intangible assets totaled approximately $2,640.4 million at year-end. Total debt was $1,442.6 million, and net debt was $921.9 million, or 24% of total capital.
Feb 9, 2023
2021
Hubbell Annual Report, Year Ended Dec 31, 2021
Hubbell Incorporated's 2021 10-K reports net sales of $4,194.1 million, up $511.6 million or 13.9% from 2020, with organic Net sales up 9.7% on favorable price realization and higher volume. Operating income rose to $532.3 million, but operating margin declined 70 basis points to 12.7%, as material cost inflation exceeded price realization and freight, logistics and manufacturing costs increased. Net income attributable to Hubbell was $399.5 million, and diluted EPS was $7.28 (continuing operations diluted EPS of $6.66, up 10.3%). Adjusted diluted EPS from continuing operations rose 12.7% to $8.05, excluding acquisition-related intangible amortization and other non-core items. The Electrical Solutions segment (44% of 2021 consolidated revenues) grew net sales 16.0% to $1.86 billion, while Utility Solutions (56%) grew 12.3% to $2.33 billion, with its operating margin falling to 12.2% from 14.7%. Free cash flow from continuing operations was $423.5 million, down from $520.1 million, and the company paid $216.9 million in dividends and reduced debt by $144.8 million. Backlog at December 31, 2021 was $1,848.0 million versus $1,065.8 million a year earlier. Subsequent to year end, Hubbell completed the sale of its Commercial and Industrial Lighting business to GE Current on February 1, 2022 for a cash purchase price of $350 million, and anticipates a pre-tax gain of $80 million to $100 million in the first quarter of 2022. The filing also notes ongoing supply chain shortages, cost inflation, and COVID-19 related regulatory uncertainty as risks that may persist through 2022.
Feb 11, 2022
2020
Hubbell Annual Report, Year Ended Dec 31, 2020
Hubbell Incorporated's 2020 results reflected a sharp pandemic-driven sales decline. Net sales were $4.19 billion, down $405.0 million from $4,591.0 million in 2019, with organic net sales declining 9.1%. Operating income fell 11% to $533.0 million and operating margin declined 30 basis points to 12.7%. Net income attributable to Hubbell declined 12.4% to $351.2 million, and diluted EPS was $6.43, down 12.0%. Adjusted diluted EPS was $7.58, down 6.7%. The Electrical Solutions segment, which accounted for 54% of consolidated revenues, saw net sales fall 13.8% with operating income down about 27%. The Utility Solutions segment, 46% of revenues, saw net sales fall 2.2%, but operating income rose 8% to $298.2 million, with adjusted operating margin up 160 basis points to 18.2%. Cash generation was strong. Operating cash flow was $648.0 million and free cash flow was $559.6 million, versus $497.7 million in 2019. The company paid $201.4 million in dividends, raised its quarterly dividend from $0.91 to $0.98 per share, and repurchased $41.3 million of stock. It also spent $239.6 million on acquisitions, including Armorcast, Beckwith Electric and AccelTex in the fourth quarter. Total debt was $1.59 billion, debt to total capital was 43%, and net debt to total capital was 34%. The company fully repaid its $500 million Term Loan from the Aclara acquisition in 2020 and had $750.0 million of available capacity under its revolving credit facility at year-end. Management highlighted several forward-looking items. Backlog at year-end was approximately $1,065.8 million, compared with $1,037.0 million a year earlier. The company is consolidating its Electrical segment into Electrical Solutions and moving its Gas Connectors business to Utility Solutions effective January 1, 2021. Risks flagged in the filing include COVID-19 disruption, tariffs and trade policy, Brexit, and the goodwill and intangible base of about $2.7 billion.
Feb 11, 2021
2019
Hubbell Annual Report, Year Ended Dec 31, 2019
Hubbell Incorporated (HUBB) reported 2019 net sales of $4.59 billion, up from $4.48 billion in 2018, driven by higher organic volume and a full extra month of Aclara contribution. Operating income rose to $596.6 million from $556.9 million, with operating margin of 13.0% versus 12.4%. Net income attributable to Hubbell was $400.9 million, and diluted EPS was $7.31 versus $6.54. On an adjusted basis (a non-GAAP measure that excludes acquisition-related intangible amortization and other items), adjusted diluted EPS was $8.12 versus $7.77. The Power segment drove growth, with net sales of $1.97 billion, while the Electrical segment's net sales were $2.63 billion, slightly down from $2.66 billion. Cash generation was solid: operating cash flow was $591.6 million and free cash flow (a non-GAAP measure) was $497.7 million. Hubbell paid $186.6 million in dividends, raised its quarterly dividend from $0.84 to $0.91 per share, and made a $200 million discretionary term loan prepayment. Total debt fell to $1,571.4 million from $1,793.2 million, and debt to total capital declined to 45% from 50%. Backlog was $1,037.0 million at December 31, 2019, down from $1,250.8 million a year earlier, and the company has a $325.0 million remaining share repurchase authorization. Key risks cited in the filing include trade tariffs affecting steel and aluminum costs, Brexit, the ongoing ERP and restructuring programs (with $37.0 million of restructuring and related costs in 2019 and $16.3 million more expected), and the leverage added by the 2018 Aclara acquisition, which cost approximately $1.1 billion.
Feb 14, 2020
2018
Hubbell Annual Report, Year Ended Dec 31, 2018
Hubbell Incorporated's 2018 results were driven by the February 2018 acquisition of Aclara (Meter Readings Holding Group, LLC) for approximately $1.1 billion. Net sales rose 22.2% to $4.5 billion ($4,481.7 million) from $3,668.8 million in 2017, with acquisitions adding 17.8 percentage points and organic volume, including favorable price realization, contributing 4.4%. Gross margin declined to 29.0% from 31.5%, reflecting Aclara's lower gross margin, $29.5 million of Aclara acquisition-related costs in cost of goods sold, and material cost and tariff pressures. Operating income increased seven percent to $556.9 million, with operating margin of 12.4%; on an adjusted basis (excluding $50.3 million of Aclara acquisition-related and transaction costs), operating income was $607.2 million and adjusted diluted EPS was $7.29, up 29%. Reported diluted EPS was $6.54, up 49% from $4.39, helped by a lower effective tax rate of 21.6% versus 43.6% in 2017, which included the $56.5 million provisional TCJA charge. The acquisition increased leverage. Total debt rose to $1,793.2 million from $1,055.2 million, debt to total capital reached 50% (39% in 2017), and net debt to total capital reached 43% (23% in 2017). Operating cash flow was $517.1 million and free cash flow was $420.9 million, compared with $299.3 million in 2017. The company repaid $150 million of its Term Loan early and had $360.0 million remaining under its share repurchase authorization, with $40.0 million repurchased in 2018. The quarterly dividend was raised to $0.84 per share from $0.77. The Power segment, which now includes Aclara, grew to $1.82 billion in net sales, while the Electrical segment grew five percent to $2.66 billion. The filing also flags several risks: tariffs and rising material costs, the Aclara integration (Aclara was excluded from management's internal control assessment and represented 13% of total assets excluding intangibles and goodwill), the potential additional multi-employer pension withdrawal liability of up to $23 million, of which the trustees demanded $23.3 million, which the company is disputing through arbitration, and the transition from LIBOR.
Feb 15, 2019
2017
Hubbell Annual Report, Year Ended Dec 31, 2017
Hubbell Incorporated reported 2017 net sales of $3,668.8 million, up from $3,505.2 million in 2016, with operating income of $503.7 million and diluted EPS of $4.39, down from $5.24. The decline in reported earnings reflects approximately $57 million of income tax expense tied to the Tax Cuts and Job Act of 2017 (TCJA), which pushed the effective tax rate to 43.6%. Excluding restructuring and related costs, Aclara transaction costs, the TCJA impact and the debt extinguishment loss, adjusted diluted EPS rose to $5.93 from $5.66 and adjusted operating income reached $534.1 million. Free cash flow was $299.3 million, and the company guided 2018 reported diluted EPS of $6.10 to $6.50 and adjusted diluted EPS of $6.95 to $7.35. The filing's most significant subsequent event was the February 2, 2018 acquisition of Aclara for approximately $1.1 billion, which extends the Power segment into smart automation technologies. It was funded with a $450 million senior notes offering, a $500 million term loan and commercial paper, and the company entered a new $750 million revolving credit facility. Total debt was $1,055.2 million at year-end 2017, and debt to total capital was 39%, so the acquisition will meaningfully increase leverage. By segment, Electrical generated $2,532.8 million in net sales (69% of consolidated revenue) with adjusted operating margin of 11.9%, while Power generated $1,136.0 million (31%) with adjusted operating margin of 20.6%. Management expects acquisitions to contribute approximately 15% to 2018 net sales growth, including Aclara, and the company repurchased $92.5 million of stock in 2017 and authorized a new $400 million repurchase program.
Feb 15, 2018
2016
Hubbell Annual Report, Year Ended Dec 31, 2016
Hubbell Incorporated's 2016 10-K reports net sales of $3,505.2 million, up from $3,390.4 million in 2015, with the increase driven mainly by acquisitions (three percentage points), partly offset by a one-percentage-point drag from foreign currency translation. Operating income rose to $477.8 million (13.6% of sales) from $474.6 million, while adjusted operating income, which excludes Restructuring and Related Costs, was flat at $512.8 million, with the adjusted operating margin declining to 14.6%. Net income attributable to Hubbell was $293.0 million, or $5.24 per diluted share, compared with $4.77 in 2015; adjusted diluted EPS was $5.66 versus $5.52. Management attributes margin pressure to unfavorable product and business mix, pricing headwinds in the Electrical segment (particularly Lighting), and foreign exchange. The company's cash flow from operations was $398.2 million and free cash flow was $331.0 million, which management defines as operating cash flow less capital expenditures. Total debt rose to $993.7 million from $644.1 million after a $400 million senior notes offering in March 2016, and debt to total capital increased to 38% from 27%. Hubbell repurchased $237.8 million of shares in 2016, leaving $153.6 million of authorization, and raised its quarterly dividend to $0.70 per share from $0.63. For 2017, management guides to diluted EPS of $5.60 to $5.80 and expects free cash flow roughly equal to net income attributable to Hubbell. The filing also discloses a $12.5 million charge in the fourth quarter of 2016 for an anticipated withdrawal from a multi-employer pension plan, with potential additional liability of up to $28 million. The U.S. salaried pension plan was frozen for service accruals effective February 28, 2017, producing a $34.1 million curtailment gain. Management expects to initiate additional restructuring actions in 2017, and PricewaterhouseCoopers LLP issued an unqualified opinion on the financial statements and internal control over financial reporting.
Feb 16, 2017
2015
Hubbell Annual Report, Year Ended Dec 31, 2015
Hubbell Incorporated's 2015 Form 10-K reports net sales of $3.39 billion, up slightly from $3.36 billion in 2014, with acquisitions adding three percentage points and foreign currency reducing sales by two percentage points. Operating income fell to $474.6 million from $517.4 million, and operating margin declined to 14.0% from 15.4%. Results included $38.9 million of Restructuring and Related Costs and $19.7 million of Reclassification Costs. Net income attributable to Hubbell was $277.3 million, or $4.77 per diluted share, versus $5.48 in 2014. Excluding restructuring and reclassification costs, adjusted earnings per diluted share were $5.52, compared with $5.54 in 2014. The most significant corporate event was the December 23, 2015 reclassification of the dual-class common stock into a single class, which required $200.7 million of Class A Cash Consideration at $28.00 per Class A share. A shareholder lawsuit challenging the reclassification was amended on February 1, 2016, and the defendants intend to move to dismiss it. Cash and cash equivalents fell to $343.5 million from $653.9 million, and total debt rose to $644.1 million from $596.3 million, with $48.2 million of short-term debt including commercial paper. Shareholders' equity declined to $1.74 billion from $1.93 billion. For 2016, management expects end markets to be flat in aggregate, with oil and gas markets projected to decline roughly fifteen to twenty percent, and anticipates earnings of $5.20 to $5.40 per diluted share, including approximately $0.35 of restructuring costs. The company plans up to $250 million of share repurchases and acquisitions, including Lyall for approximately $130.0 million and Electric Motion Company for approximately $43.0 million, both completed in early 2016.
Feb 18, 2016
2014
Hubbell Annual Report, Year Ended Dec 31, 2014
Hubbell Incorporated's 2014 results show net sales of $3,359.4 million, up from $3,183.9 million in 2013, with operating income of $517.4 million (15.4% of sales, versus 15.9% in 2013) and net income attributable to Hubbell of $325.3 million, or $5.48 diluted EPS. The filing attributes the sales growth to acquisitions, which added four percentage points, and to volume, which added two; price realization was flat. Gross margin declined to 33.0% from 33.6%, driven by unfavorable business and product mix, higher material costs, and cost inflation in excess of productivity. Cash from operations was $391.5 million, and year-end cash and equivalents were $653.9 million against total debt of $599.0 million. The Electrical segment generated $2,398.2 million of net sales (operating margin 14.1%, down from 15.1%), while the Power segment generated $961.2 million (operating margin 18.7%, up from 18.1%). Seven acquisitions were completed in 2014 for $183.8 million net of cash acquired, and three more were completed in January 2015 for approximately $126 million. For 2015, management expects net sales to rise five to seven percent and diluted EPS of $5.35 to $5.55, including about $0.25 of restructuring costs, and it expects the Harsh and Hazardous product line to decline 15 to 20 percent. The Company also raised its quarterly dividend to $0.56 per share from $0.50 and approved a new $300 million share repurchase program, with $229.5 million remaining at year-end. Investors should note the dual-class structure: holders of Class A stock, which carries 20 votes per share, held approximately 74% of the voting power as of December 31, 2014. The Company settled the Powerweb Energy litigation in the fourth quarter of 2014 without exceeding amounts previously reserved.
Feb 19, 2015
2013
Hubbell Annual Report, Year Ended Dec 31, 2013
Hubbell Incorporated reported net sales of $3.18 billion for 2013, up from $3.04 billion in 2012, with operating income of $507.6 million (15.9% of net sales) and net income attributable to Hubbell of $326.5 million, or $5.47 diluted earnings per share. The Electrical segment generated $2.26 billion in net sales and $341.1 million in operating income, while the Power segment generated $921.3 million in net sales and $166.5 million in operating income. Acquisitions added three percentage points to 2013 net sales, and three acquisitions completed during the year cost $96.5 million net of cash acquired. Cash flow from operating activities was $381.8 million in 2013, capital expenditures were $58.8 million, and the company ended the year with $740.7 million in cash and cash equivalents. Total debt was $597.5 million, debt to total capital was 24%, and the company reported net debt of $(189.1) million, meaning net cash. The $500 million revolving credit facility was undrawn at year end. Management's 2014 outlook calls for net sales growth of five to six percent, operating margin expansion of 20 to 30 basis points, a tax rate of approximately 32.5%, and free cash flow approximating net income. The filing also highlights risks including the Powerweb Energy, Inc. lawsuit over wireless lighting technology, which the company says could have a material adverse effect if resolved unfavorably, and the concentrated voting power of the Class A common stock, which carries 20 votes per share. The company declared a dividend increase to $0.50 per Class B share per quarter in October 2013.
Feb 18, 2014
2012
Hubbell Annual Report, Year Ended Dec 31, 2012
Hubbell Incorporated's 10-K for fiscal 2012 reports net sales of $3.04 billion, up 6% from $2.87 billion in 2011, driven mainly by higher organic volume, with acquisitions and price realization also contributing. Operating income rose 11% to $471.8 million, and operating margin improved to 15.5% from 14.8%. Net income attributable to Hubbell was $299.7 million, or $5.00 per diluted share, compared with $4.42 in 2011. Gross margin expanded to 33.2% from 32.2%, reflecting price realization, productivity improvements and slightly lower material costs. The Electrical segment generated $2.11 billion of sales and $303.7 million of operating income, while the Power segment generated $929.8 million of sales and $168.1 million of operating income, with an operating margin of 18.1%. Cash from operations was $349.1 million, and year-end cash and cash equivalents were $645.0 million against total debt of $596.7 million. The company completed four acquisitions for $90.7 million in 2012 and acquired Continental Industries for approximately $37 million in January 2013. Management guided to 2013 net sales growth of three to five percent and roughly 40 basis points of operating margin expansion. The filing also highlights governance and leadership changes. David G. Nord became President and Chief Executive Officer effective January 1, 2013, succeeding Timothy H. Powers, who remained Chairman. Class A shares carry 20 votes per share and hold about 73% of voting power, and the quarterly dividend was raised twice during 2012, to $0.45 per share.
Feb 13, 2013
2011
Hubbell Annual Report, Year Ended Dec 31, 2011
Hubbell Incorporated reported 2011 net sales of $2.87 billion, up 13% from $2.54 billion in 2010, driven primarily by higher organic volume (volume added ten percentage points). Operating income rose 15% to $423.8 million, with operating margin of 14.8% versus 14.5% in 2010. Net income attributable to Hubbell was $267.9 million, and diluted earnings per share were $4.42, compared with $3.59 in 2010. The Electrical segment generated $2.00 billion in net sales and $282.0 million of operating income, while the Power segment generated $867.4 million in net sales and $141.8 million of operating income. Backlog at December 31, 2011 was approximately $288.2 million, up from $271.5 million. Cash flow from operations was $335.0 million in 2011, and capital expenditures were $55.4 million. The company spent $137.7 million repurchasing Class B shares and completed its December 2007 repurchase program, while a new $200 million September 2011 program remains fully available. Total debt was $599.2 million against total Hubbell shareholders' equity of $1,467.8 million, and the company reported net debt of $(25.2) million, meaning net cash, at year-end. The company also entered a five-year $500 million revolving credit facility in October 2011, which was undrawn at year-end. For 2012, management expects net sales to increase four to six percent, operating margin to expand by approximately 50 basis points, and the effective tax rate to rise to approximately 32.5%. The Board approved an increase in the quarterly dividend from $0.38 to $0.41 per share, beginning with the April 2012 payment.
Feb 15, 2012
2010
Hubbell Annual Report, Year Ended Dec 31, 2010
Hubbell Incorporated's 2010 Form 10-K reports net sales of $2.54 billion, up from $2.36 billion in 2009, with net income attributable to Hubbell of $217.2 million, or $3.59 diluted earnings per share. Operating income rose to $367.8 million (14.5% of sales) from $294.7 million (12.5%). The increase was driven by the Burndy acquisition, favorable currency translation and higher organic volume. Gross profit margin improved to 32.6% from 30.8%, reflecting productivity gains, while the Electrical segment's operating margin rose to 13.8% and the Power segment's margin declined to 16.2% from 18.6%. Balance sheet and cash flow highlights include cash and cash equivalents of $520.7 million at year-end, total debt of $597.7 million, and a debt-to-total-capitalization ratio of 29%. Net cash from operating activities was $266.2 million, down from $397.7 million, mainly due to higher working capital. The company issued $300 million of 3.625% senior notes due 2022 and redeemed $200 million of 6.375% notes due 2012, recording a $14.7 million pre-tax loss on extinguishment of debt. The Board raised the quarterly dividend from $0.36 to $0.38 per share, effective with the April 2011 payment. For 2011, management expects net sales to rise three to five percentage points, operating margin to expand by about 50 basis points, and free cash flow to approximately equal net income. Investors should also note the dual-class structure: Class A shares carry 20 votes each and held about 73% of voting power at December 31, 2010.
Feb 16, 2011
2009
Hubbell Annual Report, Year Ended Dec 31, 2009
Hubbell Incorporated reported 2009 net sales of $2,355.6 million, down from $2,704.4 million in 2008, as broad-based market weakness and a 17% volume decline hit results. Operating income fell to $294.7 million from $346.0 million, and net income attributable to Hubbell declined to $180.1 million from $222.7 million. Diluted EPS was $3.15 versus $3.93 in 2008. Segment results show the Electrical segment (70% of 2009 revenue) with operating income of $163.7 million and a 9.9% operating margin, while the Power segment (30% of revenue) grew operating income to $131.0 million and expanded its operating margin to 18.6%. The company completed the $355.2 million cash acquisition of Burndy Americas on October 2, 2009, which added connectors, cable accessories and tooling to the Electrical segment and contributed $44.9 million to fourth-quarter net sales. Operating cash flow rose to $397.7 million from $319.2 million, aided by working capital reductions, and total debt was steady at $497.2 million. Debt to total capitalization improved to 28% from 33%, and Hubbell shareholders' equity increased to $1,298.2 million, largely due to an October 2009 equity issuance that netted $122.0 million. For 2010, management expects net sales roughly flat with 2009, with non-residential construction forecast to decline about twenty percent, a 32.5% tax rate, free cash flow approximately equal to net income, and Burndy expected to be accretive. In February 2010 the Board raised the quarterly dividend from $0.35 to $0.36 per share.
Feb 19, 2010
2008
Hubbell Annual Report, Year Ended Dec 31, 2008
Hubbell Incorporated reported 2008 net sales of $2.7 billion, up 7% from 2007, driven mainly by acquisitions and selling price increases. Operating income rose to $346.0 million (12.8% of sales) from $299.4 million, and net income increased to $222.7 million, with diluted earnings per share of $3.94 versus $3.50 in 2007. The Electrical segment produced $1,958.2 million in sales and the Power segment $746.2 million, with the Power segment showing a 15.9% operating margin. Seven acquisitions costing $267.4 million in total were completed during 2008, including Kurt Versen, CDR Systems, Varon and USCO, and these businesses are expected to contribute approximately $200 million in annual net sales. The balance sheet shifted meaningfully in 2008. Total debt rose to $497.4 million from $236.1 million after the company issued $300 million of 5.95% senior notes due 2018, and debt to total capitalization reached 33% compared with 18% a year earlier. Cash and cash equivalents increased to $178.2 million. The company repurchased about 2.0 million shares for $96.6 million, and about $160 million remains available under its December 2007 repurchase program. Pension plans were underfunded at year end, with a funded status of $(106.2) million, and the company recorded a $92.1 million after-tax charge to equity for pension and postretirement plans. Management's 2009 outlook is negative. It anticipates significant recessionary conditions in the U.S., with overall volumes expected to be down low to mid-teens compared with 2008 before currency effects. Management expects net sales and earnings to decline in 2009, but it plans to keep a conservative balance sheet and expects free cash flow to exceed net income. The full-year effect of 2008 acquisitions is expected to add approximately $100 million of incremental sales in 2009.
Feb 20, 2009
2007
Hubbell Annual Report, Year Ended Dec 31, 2007
Hubbell Incorporated reported 2007 net sales of $2,533.9 million, up from $2,414.3 million in 2006, with net income of $208.3 million and diluted earnings per share of $3.50, compared with $2.59 in 2006. Operating income rose to $299.4 million, or 11.8% of sales, from $233.9 million, or 9.7%, as gross profit margin improved to 29.0% from 27.2%. The filing attributes the margin gains mainly to selling price increases and productivity improvements, with the Industrial Technology and Power segments leading sales growth of 23% and 11%, respectively. The Electrical segment, the largest at $1,639.9 million in sales, was essentially flat as residential lighting weakness offset gains in electrical products and wiring systems. Cash flow from operating activities more than doubled to $335.2 million, and the company repurchased about 3.6 million shares for $193.1 million. Total debt was $236.1 million, with debt to total capitalization of 18%. Management's 2008 outlook calls for sales growth of 4%-6% excluding currency effects, operating margin expansion of about one percentage point, and diluted EPS of $3.70-$3.90. Management expects residential markets to decline significantly in 2008, and it completed the January 2008 acquisition of Kurt Versen, Inc. for approximately $100 million.
Feb 25, 2008
2006
Hubbell Annual Report, Year Ended Dec 31, 2006
Hubbell Incorporated's 2006 results show net sales of $2.41 billion, up from $2.10 billion in 2005, with all three segments contributing to the increase. Net income declined to $158.1 million from $165.1 million, and diluted EPS fell to $2.59 from $2.67. Management described 2006 as a particularly challenging year, citing operational inefficiencies from the SAP system rollout and new product launches, along with a gross profit margin that decreased to 27.2% from 28.3% as commodity raw material costs rose. Operating margin declined to 9.7% from 10.8%, and cash provided by operating activities fell to $139.9 million from $184.1 million, largely due to higher inventory and receivables. For 2007, the company guides to net sales growth of 6% to 8% excluding currency effects, operating margin expansion of about one percentage point, a 29.5% effective tax rate, and diluted EPS of $2.90 to $3.15. Free cash flow is expected to be $175 to $190 million. The board approved a new stock repurchase program of up to $200 million over two years in February 2007, and the company expects spending on share repurchases and/or acquisitions of $150 to $200 million in 2007. Residential markets are expected to decline significantly in 2007. The balance sheet remains conservative, with total debt of $220.2 million, debt to total capitalization of 18%, and shareholders' equity of $1.02 billion. Acquisitions in 2006 included Strongwell Lenoir City, Inc. for $117.4 million and Austdac Pty Limited for $28.1 million. The company's Lighting Business Integration and Rationalization Program is substantially complete, with savings estimated at $20 to $25 million annually.
Feb 27, 2007
2005
Hubbell Annual Report, Year Ended Dec 31, 2005
Hubbell Incorporated (HUBB) reported net sales of $2.1 billion for 2005, up 5.6% from $1,993.0 million in 2004, led by the Power and Industrial Technology segments, which grew 18% and 17% respectively. Operating income rose to $226.8 million from $212.6 million, with operating margin of 10.8% versus 10.7% in 2004. Net income was $165.1 million, or $2.67 diluted earnings per share, compared with $154.7 million and $2.51 in 2004. The Electrical segment, the largest at $1,496.8 million in sales, saw its operating margin fall to 9.5% from 10.6% as unabsorbed factory costs, commodity costs and the SAP system rollout weighed on results. Cash flow from operating activities was $184.1 million in both 2005 and 2004. Hubbell repaid $100 million of senior notes at maturity in October 2005, reducing total debt to $228.8 million from $299.0 million, and debt to total capitalization fell to 19% from 24%. The company repurchased $62.7 million of common stock during 2005 and completed five small acquisitions for $54.3 million. A new $100 million share repurchase program was approved in February 2006. For 2006, management expects sales growth of 5%-7% excluding currency effects, diluted EPS of $2.60-$2.80, an effective tax rate of approximately 29.5% (versus 23.5% in 2005), and free cash flow of $100-$150 million. Management also anticipates an approximate $0.11 per diluted share impact from stock-based compensation expense under SFAS 123(R).
Mar 8, 2006
2004
Hubbell Annual Report, Year Ended Dec 31, 2004
Hubbell Incorporated (HUBB) reported 2004 net sales of $1,993.0 million, up from $1,770.7 million in 2003, and net income of $154.7 million, or $2.51 diluted earnings per share, compared with $115.1 million and $1.91 in 2003. Operating income rose to $212.6 million from $171.9 million, and operating margin improved to 10.7% from 9.7%. The Electrical segment, which accounted for about 74% of revenue, drove most of the growth, with net sales up 12% to $1,476.8 million. Power sales rose 16% to $386.2 million and Industrial Technology sales rose 4% to $130.0 million. The 2004 results were helped by a $10.2 million tax benefit from the closing of an IRS examination, while special charges totaled $16.7 million, mainly tied to the ongoing lighting integration program and the closure of a Puerto Rico wiring device factory. Cash flow weakened in 2004, with operating cash flow of $185.0 million versus $242.2 million in 2003, driven mainly by higher accounts receivable and inventory. Debt was $299.0 million at year-end, and cash and investments of $407.2 million exceeded total debt, giving a net debt figure of $(108.2) million. The company disclosed a $100 million senior note due October 2005 that it expects to repay from cash and short-term investments. Management's 2005 outlook calls for sales growth of 5%-7% excluding currency effects, an operating margin improvement of about one percentage point, an effective tax rate of 29%-30%, and lighting-related charges of $20-$30 million. The filing also discloses that Chief Financial Officer William T. Tolley was placed on paid administrative leave on November 5, 2004, and that Gregory F. Covino serves as Corporate Controller and Interim Chief Financial Officer. Backlog at December 31, 2004 was $137.5 million, up from $114.2 million a year earlier. The company reported a debt-to-capitalization ratio of 24%, down from 26%, and stated that it had no material off-balance sheet arrangements.
Mar 9, 2005
2003
Hubbell Annual Report, Year Ended Dec 31, 2003
Hubbell Incorporated's 2003 results showed net sales of $1,770.7 million, up 12% from $1,587.8 million in 2002, with operating income rising to $171.9 million (9.7% of sales) from $138.5 million (8.7%). Net income was $115.1 million, or $1.91 per diluted share, compared with $83.2 million, or $1.38 per diluted share, in 2002, which included a $25.4 million goodwill impairment charge recorded as a cumulative effect of an accounting change. The Electrical segment drove most of the growth, reflecting the 2002 acquisitions of the LCA lighting business and Hawke. Management attributed the improvement to the lighting integration program, lean process initiatives, and workforce reductions, though sales in commercial construction, utility and telecommunications markets remained weak. The balance sheet strengthened over the year. Cash and temporary cash investments rose to $220.8 million, cash and investments exceeded total debt of $298.8 million, and debt to total capitalization fell to 26% from 29%. Operating cash flow was $243.6 million, against capital expenditures of $27.6 million, and the company paid $78.4 million in dividends. Management's 2004 outlook calls for sales growth of 2% to 4% excluding currency effects, a one-point improvement in operating margin, an effective tax rate of 27% to 28%, and free cash flow of $125 to $175 million. The company also expects to record consolidation charges of $15 to $25 million and to spend $40 to $60 million on an enterprise-wide business system. The filing describes Hubbell's three segments as Electrical, Power, and Industrial Technology, which accounted for approximately 74%, 19%, and 7% of 2003 revenue respectively. Management stated that the company's Puerto Rico federal tax benefits are set to expire on December 31, 2005, and that it is evaluating ways to mitigate their loss.
Mar 5, 2004
2002
Hubbell Annual Report, Year Ended Dec 31, 2002
Hubbell Incorporated's 2002 annual report shows net sales of $1,587.8 million, up 21% from $1,312.2 million in 2001, with the increase attributed to the 2001 fourth quarter and 2002 acquisitions. Excluding acquired businesses, consolidated net sales decreased approximately 10% as non-residential construction and industrial demand declined, while residential and consumer/home center demand grew. Operating income rose to $138.5 million from $56.5 million, helped by lower special charges, acquired-business profit, and streamlining savings. Net income was $83.2 million, or $1.38 diluted EPS, after a $25.4 million non-cash goodwill impairment recorded as a cumulative effect of accounting change; income before that change was $108.6 million, or $1.81 diluted EPS. The balance sheet became more leveraged after the 2002 acquisitions of LCA (the domestic lighting business of U.S. Industries, Inc.), Hawke Cable Glands, and a pole line hardware business from Cooper Power Systems. Total debt rose to $298.7 million from $167.5 million, and debt to total capitalization increased to 29% from 19%. Acquisitions consumed $270.2 million in cash, and operating cash flow was $179.4 million. Management expects 2003 pretax lighting integration costs of $15 to $20 million, a tax rate of approximately 27%, and pension contributions of $25 to $35 million. Management stated that economic conditions in commercial construction, industrial, and telecommunications markets were negatively affecting results and are expected to remain below 1998-2000 levels in 2003. The company reported 11,476 full-time employees at year-end 2002, and its shares trade on the New York Stock Exchange under the symbols HUBA and HUBB.
Mar 24, 2003
2001
Hubbell Annual Report, Year Ended Dec 31, 2001
Hubbell Incorporated's 2001 results reflected a sharp sales downturn. Net sales fell to $1,312.2 million from $1,424.1 million, and operating income dropped to $56.5 million from $184.5 million, with net income of $48.3 million ($0.82 diluted EPS) versus $138.2 million ($2.25) in 2000. The results include a fourth-quarter special charge of $56.3 million, offset by a $3.3 million reversal, and a total 2001 streamlining plan with a cumulative expected cost of $62.0 million, which management expects to provide $20 million in annual savings once complete. Management cites widespread economic weakness and the post-September 11 slowdown, with Electrical Segment sales down 10%, Power Segment sales down 10%, and Industrial Technology Segment sales up 14% (helped by the GAI-Tronics acquisition). Cash generation was strong. Operating cash flow rose to $199.3 million from $123.8 million, driven by inventory and receivables reductions, and total borrowings were reduced to $167.5 million from $359.2 million. Share repurchases were suspended, with no purchases under the $300 million authorization expected in 2002. Subsequent to year-end, Hubbell agreed to acquire USI's LCA Group, Inc. for $250.0 million in cash, subject to the Hart-Scott-Rodino waiting period, and completed the acquisition of Hawke Cable Glands Limited in March 2002. The company expects its effective tax rate to return to 23% in 2002 from the 13.4% recorded for 2001, and it expects to finance the LCA acquisition through commercial paper and additional indebtedness. The filing reports no material pending legal proceedings.
Mar 20, 2002
1998
Hubbell Annual Report, Year Ended Dec 31, 1998
Hubbell Incorporated reported net sales of $1,424.6 million for fiscal 1998, up from $1,378.8 million in 1997, with net income of $169.4 million ($2.50 diluted EPS) compared with $130.3 million ($1.89 diluted EPS) in 1997, which included a $52.0 million special charge. The filing states that consolidated net sales increased 3% on improved shipments and acquisitions, offset by weaker telephone company orders, weak international markets, a strong U.S. dollar and increased price competition. Operating income rose to $226.1 million from $171.6 million. Segment results were mixed: Electrical sales rose 4% to $808.4 million, Power sales rose 2% to $393.1 million, Telecommunications sales rose 5% to $149.5 million, and the Other Industry segment sales fell 1% to $73.6 million. The balance sheet remained solid, with working capital of $219.8 million, a current ratio of 1.6 to 1, and cash of $30.1 million at year-end. Total borrowings of $212.9 million, consisting of commercial paper and long-term debt, were 25.3% of shareholders' equity, up from 12.0% in 1997, after the company repurchased $82.8 million of stock and acquired three lighting businesses and Siescor Technologies for $78.4 million in cash. Management expects capital expenditures of approximately $70.0 million annually over the next three years and says available cash, credit facilities and internally generated funds should be sufficient to meet its needs. The filing also discloses a streamlining program, primarily in the Electrical and Power segments, that is expected to relocate about 2,000 jobs and close five facilities, with annual savings of up to $25.0 million after roughly a three-year implementation. The company reports a Year 2000 remediation plan with estimated expenditures of $20 million, about 70% spent to date, and states that no Year 2000 compliance issues with its products have been identified.
Mar 24, 1999
1993-A
Hubbell Annual Report (Amendment), Year Ended Mar 31, 1993
Hubbell Incorporated filed this Amendment No. 1 on Form 10-K/A for the fiscal year ended December 31, 1993. The amendment was filed because the box for disclosure of delinquent filers under Item 405 of Regulation S-K was inadvertently checked on the original filing. The registrant's Class A and Class B Common Stock and their Common Stock Purchase Rights are listed on the New York Stock Exchange. The Connecticut-incorporated company is headquartered at 584 Derby Milford Road, Orange, Connecticut. As of March 18, 1994, the approximate aggregate market value of voting stock held by non-affiliates was $1,754,923,000. On that date, 5,883,861 Class A shares and 25,410,958 Class B shares were outstanding. The market value figure excludes shares held by executive officers and directors and by the Roche Trust, the Hubbell Trust, and the Harvey Hubbell Foundation. The filing states that Part III information is incorporated by reference from the definitive proxy statement for the proposed annual meeting of stockholders to be held on May 2, 1994, which was filed with the Commission on March 25, 1994. The amendment was signed by Richard W. Davies, Secretary and General Counsel, on April 4, 1994.
Apr 5, 1994
1993
Hubbell Annual Report, Year Ended Dec 31, 1993
Hubbell Incorporated reported 1993 net sales of $832.4 million, up from $786.1 million in 1992, but net income fell to $66.3 million ($2.10 per share) from $77.6 million ($2.45 per share) as a fourth-quarter pretax restructuring charge of $50.0 million ($31.0 million net of tax, or $.98 per share) weighed on results. Excluding the charge, the filing states net earnings would have been $97.3 million, or $3.08 per share. The restructuring program includes consolidating all or part of ten manufacturing facilities, reducing the labor force by approximately 6%, reorganizing certain management structures, and realigning warehousing and distribution. The company expects the program to yield annual savings and cost avoidance of as much as $25.0 million after an approximate three-year implementation. The balance sheet remained solid, with working capital of $131.9 million, a current ratio of 1.6 to 1, and total assets of $874.3 million. Total borrowings of $91.1 million in notes payable and $2.7 million in long-term debt were stated as 16.8% of shareholders' equity. Operating cash flow rose to $118.5 million from $85.2 million. Management also disclosed a March 16, 1994 agreement to acquire A. B. Chance Industries, Inc. for $41.1 million in stock consideration plus retirement of $66.9 million of Chance's debt, to be funded from internal funds and up to $40.0 million of short-term borrowing. By segment, Low Voltage sales rose 2% to $432.0 million, High Voltage sales rose more than 23% to $134.2 million on the Hipotronics acquisition and higher insulator and surge arrester shipments, and Other segment sales rose more than 4% to $266.3 million. Backlog at December 31, 1993 was approximately $60.4 million versus $54.7 million a year earlier.
Mar 25, 1994