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Hubbell 8-K Report, Financial Results (Apr 30, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 30, 2024
Period End
April 30, 2024
Security
HUBB
In the record · 2016–202610-K1110-Q338-K110

HUBB filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 110 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Feb ’18Feb ’18
  2. Leadership change8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed April 30, 2024. Cited figures are marked; the original filing is the authoritative source.

Hubbell Incorporated reported first quarter 2024 results in a press release dated April 30, 2024, furnished as Exhibit 99.1.

Net sales were $1,399.1 milliona, up from $1,285.4 million, and diluted EPS was $2.73 versus $3.37 a year earlier. Adjusted diluted EPS was $3.60 compared with $3.61. GAAP operating income fell to $228.5 million from $248.8 million, and operating margin declined 310 basis points to 16.3%.

Adjusted operating margin was 19.7%, down 100 basis points. Acquisitions drove much of the sales growth, while organic net sales grew 2.3%. By segment, Utility Solutions net sales rose 14% to $894 millionb, with organic sales flat and acquisitions adding 14%.

Electrical Solutions net sales were roughly flat at $505 millionc, with organic net sales up 6% and a divestiture reducing sales by 6%. The company closed the sale of its residential lighting business in the quarter for a cash purchase price of $131 million, recording a pre-tax loss of $5.3 million. Operating cash flow was $92 million and free cash flow was $52 million, compared with $114 million and $80 million in the prior-year period.

For full-year 2024, Hubbell reaffirmed adjusted diluted EPS guidance of $16.00d-$16.50 and now anticipates GAAP diluted EPS of $14.10-$14.60. It expects total sales growth of 8-10% and organic net sales growth of 3-5%, and continues to expect free cash flow of approximately $800 million.

02—Key points

Key Highlights

  1. Q1 2024 net sales rose 9% to $1,399.1 million, with organic growth of 2% and net M&A contributing 6%.
  2. GAAP diluted EPS was $2.73 versus $3.37 a year earlier; adjusted diluted EPS was $3.60 versus $3.61.
  3. GAAP operating margin declined 310 basis points to 16.3%; adjusted operating margin declined 100 basis points to 19.7%.
  4. Utility Solutions net sales increased 14% to $894 million, driven entirely by acquisitions, with organic sales flat.
  5. Electrical Solutions organic net sales grew 6%, with adjusted operating margin up 80 basis points to 15.8%.
  6. Hubbell reaffirmed full-year 2024 adjusted diluted EPS guidance of $16.00-$16.50 and lowered GAAP diluted EPS guidance to $14.10-$14.60.
  7. Free cash flow was $52 million in Q1 2024 versus $80 million a year earlier, and full-year 2024 free cash flow is expected at approximately $800 million.

03—Questions

Frequently Asked Questions

  1. Did Hubbell meet its financial expectations in the first quarter of 2024?

    The filing describes Hubbell as off to a solid start, with strong organic growth in Electrical Solutions and continued acquisition-driven growth in Utility Solutions. Management said first quarter results position the company to achieve its reaffirmed 2024 outlook. Telcom markets were weak, and operating margins were affected by investments in growth and productivity initiatives.

  2. Why did GAAP earnings decline while adjusted earnings held steady?

    GAAP diluted EPS was $2.73 versus $3.37 a year earlier. Adjusted diluted EPS excludes $0.55 of acquisition-related intangible amortization, a $0.22 loss on the residential lighting disposition, and $0.10 of transaction, integration, and separation costs. Adjusted diluted EPS was $3.60 versus $3.61 in the prior-year period.

  3. What changed in the full-year 2024 outlook?

    Hubbell reaffirmed adjusted diluted EPS guidance of $16.00-$16.50 and anticipates GAAP diluted EPS of $14.10-$14.60. It expects total sales growth of 8-10%, organic net sales growth of 3-5%, and approximately 5% sales contribution from acquisitions net of the residential lighting divestiture. Free cash flow is expected at approximately $800 million.

  4. How did the residential lighting divestiture affect the quarter?

    The company sold the residential lighting business for a cash purchase price of $131 million, subject to customary adjustments. The transaction closed in the first quarter, and Hubbell recorded a pre-tax loss of $5.3 million. Proceeds from the disposal, net of cash, were $122.9 million in the cash flow statement.

  5. How did cash generation compare with the prior year?

    Net cash provided by operating activities was $92 million in the first quarter of 2024, versus $114 million in the prior-year period. Free cash flow was $52 million versus $80 million. Capital expenditures were $40.3 million compared with $33.4 million.

04—Continue

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