01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Hubbell Incorporated (HUBB) reported 2024 Net sales of $5,628.5 milliona, 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 millionb 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 $14.37c, 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 milliond, 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.
02—Key points
Key Highlights
- Net sales of $5,628.5 million rose 4.7%, while organic net sales were flat as price realization offset lower unit volume.
- Operating income increased to $1,091.6 million (19.4% of net sales) from $1,038.5 million, and adjusted operating margin expanded to 21.9% from 21.0%.
- Utility Solutions net sales rose 10.4% to $3,600.7 million on acquisitions, while organic sales declined 2.4% on enclosure weakness in the telecom market.
- Electrical Solutions net sales declined 3.9% to $2,027.8 million due to the residential lighting divestiture, although organic sales grew 3.8%.
- Free cash flow was $810.8 million, and the Term Loan was fully repaid, reducing long-term debt to $1,442.7 million from $2,023.2 million.
- Net debt to total capital improved to 24% from 34%, and the Board approved a new $500.0 million share repurchase program on February 12, 2025.
- Backlog at December 31, 2024 was $1,898 million, down from $2,328 million a year earlier.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Hubbell kept $0.14.
- Revenue$5.63B100.0%
- Cost of revenue−$3.72B66.1%
- Gross profit$1.91B33.9%
- Operating costs−$812.5M14.4%
- Operating income$1.09B19.4%
- Interest, other & tax−$314.1M5.6%
- Net income$779.0M13.8%
Where FY2024 revenue went
$5.63B- Cost of revenue: $3.72B, 66% of revenue
- SG&A: $812.5M, 14% of revenue
- Net income: $779.0M, 14% of revenue
- Interest, other & tax: $314.1M, 5.6% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $5.63B$5.37B | +4.8% |
| Cost of Revenue | $3.72B$3.50B | +6.5% |
| Gross Profit | $1.91B$1.88B | +1.5% |
| SG&A Expenses | $812.50M$849.60M | −4.4% |
| Operating Income | $1.09B$1.03B | +6.4% |
| Net Income | $779.00M$751.40M | +3.7% |
| EPS (Basic) | $14.49$13.98 | +3.6% |
| EPS (Diluted) | $14.39$13.89 | +3.6% |
| Shares Outstanding (Basic) | 53.70M53.60M | +0.2% |
| Shares Outstanding (Diluted) | 54.00M54.00M | 0.0% |
05—Questions
Frequently Asked Questions
What drove the increase in Hubbell's 2024 earnings?
Net income attributable to Hubbell rose 2.4% to $777.8 million and diluted EPS from continuing operations rose 2.3% to $14.37. The filing attributes the operating income increase to favorable price realization, productivity and cost management, partly offset by material and other cost inflation, lower unit volume and approximately $37.1 million higher net interest expense.
How did the Utility and Electrical segments perform?
Utility Solutions net sales rose 10.4% to $3,600.7 million, with operating margin of 20.3% versus 21.7% in 2023. Electrical Solutions net sales fell 3.9% to $2,027.8 million, but operating margin rose to 17.8% from 15.7%, and organic sales grew 3.8%.
How strong is Hubbell's balance sheet and liquidity?
Long-term debt was $1,442.7 million at year end, and total debt to total capital was 32%. The company had $329.1 million of cash and cash equivalents and a fully available $750.0 million revolving credit facility maturing March 12, 2026.
What are the main risks flagged in the filing?
Risk factors include inflation, competitive pricing pressure, currency volatility, supply disruptions for materials sourced from countries including Mexico and China, and tariff changes. The filing notes that executive orders on February 1, 2025 imposed new tariffs on imports from Canada, Mexico and China, with parts temporarily suspended. It also cites goodwill and intangible assets of approximately $3,581 million and the risk of impairment charges.
How is Hubbell returning capital to shareholders?
Hubbell paid $267.3 million in dividends in 2024 and increased its quarterly dividend to $1.32 per share from $1.22. It repurchased $40.0 million of shares during 2024, had $260.0 million remaining under its October 2022 program at year end, and approved a new $500.0 million program on February 12, 2025.
06—Continue