01—Abstract
Summary
Summary of the 10-Q filed October 30, 2024. Cited figures are marked; the original filing is the authoritative source.
Hubbell Incorporated reported third-quarter 2024 net sales of $1,442.6 milliona, up from $1,375.8 million in the third quarter of 2023, with operating income of $303.8 million (21.1% of net sales) versus $276.3 million (20.1%).
Net income attributable to Hubbell Incorporated was $219.4 millionb, or $4.05 per diluted share, compared with $200.1 million, or $3.70 per diluted share, a year earlier. Growth was driven by acquisitions, which contributed 6% net of divestitures, partly offset by a 1% decline in organic net sales on lower volume. Utility Solutions net sales rose to $933.1 million, while Electrical Solutions net sales fell to $509.5 million, reflecting the divestiture of the residential lighting business.
For the first nine months of 2024, net sales were $4,294.2 millionc versus $4,027.1 million, and net income attributable to Hubbell Incorporated was $580.8 million, or $10.73 per diluted share, compared with $588.8 million, or $10.89 per diluted share. Total other expense rose to $72.4 million, driven mainly by higher interest expense tied to the Systems Control acquisition, and the company recorded a $5.3 million pre-tax loss on the sale of the residential lighting business, which closed for $131 million in cash. Operating cash flow was $558.8 million for the nine months, and the company repaid $386.3 million of long-term debt, reducing total debt to $1,931.5 million from $2,140.6 million at year-end 2023.
The balance sheet strengthened, with shareholders' equity rising to $3,215.0 milliond and cash and cash equivalents of $435.7 million at September 30, 2024. The company paid $196.5 million in dividends and repurchased $30.0 million of shares during the nine months, leaving $270.0 million remaining under its repurchase authorization. Net debt to total capital declined to 27% from 34%.
02—Key points
Key Highlights
- Third-quarter net sales increased 4.9% to $1,442.6 million, with acquisitions adding 9.4% and divestitures reducing sales by 3.3%; organic net sales declined 1.0%.
- Third-quarter operating margin rose to 21.1% from 20.1%, and adjusted operating margin rose to 23.2% from 21.4%.
- Diluted EPS for the third quarter was $4.05, up from $3.70; nine-month diluted EPS was $10.73, down from $10.89.
- Utility Solutions third-quarter net sales increased 11.3% to $933.1 million, while organic sales fell 3.8% on lower unit volume in enclosures and telecom markets.
- Electrical Solutions organic net sales grew 3.4% in the third quarter, led by datacenter and renewables markets, but reported sales fell 5.3% after the residential lighting divestiture.
- Total debt fell to $1,931.5 million from $2,140.6 million after $386.3 million of term loan principal payments; the $750 million revolving credit facility remained undrawn.
- Interest expense increased significantly for the nine months, reflecting debt incurred for the Systems Control acquisition and higher market interest rates.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Hubbell kept $0.16.
- Revenue$1.44B100.0%
- Cost of revenue−$936.6M64.9%
- Gross profit$506.0M35.1%
- Operating costs−$193.3M13.4%
- Operating income$312.7M21.7%
- Interest, other & tax−$86.5M6.0%
- Net income$226.2M15.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed October 30, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.44B$1.38B | +4.9% |
| Cost of Revenue | $936.60M$888.40M | +5.4% |
| Gross Profit | $506.00M$487.40M | +3.8% |
| SG&A Expenses | $193.30M$211.10M | −8.4% |
| Operating Income | $312.70M$276.30M | +13.2% |
| Net Income | $226.20M$200.10M | +13.0% |
| EPS (Basic) | $4.21$3.72 | +13.2% |
| EPS (Diluted) | $4.18$3.70 | +13.0% |
| Shares Outstanding (Basic) | 53.70M53.60M | +0.2% |
| Shares Outstanding (Diluted) | 54.00M54.00M | 0.0% |
05—Questions
Frequently Asked Questions
How did Hubbell perform in the third quarter of 2024?
Net sales were $1,442.6 million, up from $1,375.8 million, and net income attributable to Hubbell was $219.4 million, or $4.05 per diluted share, compared with $3.70 in the prior-year quarter. Operating margin expanded to 21.1% from 20.1%, and adjusted net income attributable to Hubbell rose 13.6% to $242.9 million.
What drove the change in net sales?
Acquisitions contributed 9.4% to growth, led by Systems Control in Utility Solutions, while divestitures of the residential lighting business reduced sales by 3.3%. Organic net sales declined 1.0%, driven by lower volume partially offset by price realization.
How did the two segments perform?
Utility Solutions net sales rose to $933.1 million with an operating margin of 22.6%, but organic sales fell 3.8% due to lower unit volume. Electrical Solutions net sales declined to $509.5 million, but organic sales grew 3.4%, and its operating margin improved to 18.3% from 16.6%.
How did debt and liquidity change during the first nine months of 2024?
Total debt decreased to $1,931.5 million from $2,140.6 million, including $386.3 million of term loan payments. Cash and cash equivalents were $435.7 million, and the $750 million revolving credit facility was undrawn at September 30, 2024. Net debt to total capital declined to 27% from 34%.
What capital returns did Hubbell make in 2024 so far?
In the first nine months of 2024, Hubbell paid $196.5 million in dividends and repurchased $30.0 million of common stock. The company had $270.0 million remaining under its share repurchase authorization, which expires in October 2025.
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