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Hubbell 8-K Report, Financial Results (Oct 29, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 29, 2024
Period End
October 29, 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 October 29, 2024. Cited figures are marked; the original filing is the authoritative source.

Hubbell Incorporated reported third quarter and nine-month 2024 results in a press release dated October 29, 2024, furnished as Exhibit 99.1.

For the third quarter, net sales were $1,442.6 milliona versus $1,375.8 million a year earlier, with GAAP diluted EPS of $4.05 (versus $3.70) and adjusted diluted EPS of $4.49 (versus $3.95). Operating income was $303.8 million (21.1% of net sales) and adjusted operating margin was 23.2%. Organic net sales declined 1.0%, with acquisitions contributing 9.4% and divestitures reducing sales by 3.3%.

Utility Solutions net sales rose 11% to $933 millionb, while Electrical Solutions net sales fell to $510 million, with organic growth of 3%. For the nine months ended September 30, 2024, net sales were $4,294.2 million and diluted EPS was $10.73, compared with $10.89 in the prior-year period. Net cash provided by operating activities was $558.8 million and free cash flow was $446.4 million.

Total debt fell to $1,931.5 millionc from $2,140.6 million at December 31, 2023, and net debt to total capital declined to 27% from 34%. Management updated its full-year 2024 outlook: GAAP diluted EPS of $14.20 to $14.40, and adjusted diluted EPS raised to $16.35 to $16.55.

The company expects total sales growth of approximately 6%, organic growth of approximately 1%, and free cash flow of approximately $800 milliond. The adjusted EPS outlook excludes approximately $1.75 of acquisition-related intangible amortization, a $0.22 loss on the disposition of the residential lighting business, and $0.17 of transaction, integration and separation costs.

02—Key points

Key Highlights

  1. Third-quarter GAAP diluted EPS was $4.05, up from $3.70, and adjusted diluted EPS was $4.49, up from $3.95 (14% year over year).
  2. Third-quarter net sales rose 5% to $1,442.6 million; organic net sales declined 1.0%, with acquisitions adding 9.4% and divestitures reducing sales by 3.3%.
  3. Utility Solutions net sales increased 11% to $933.1 million, with Grid Infrastructure up approximately 15% and Grid Automation up approximately 4%; Electrical Solutions net sales declined to $509.5 million, though organic net sales grew 3.4%.
  4. Adjusted operating margin reached 23.2%, up 180 basis points year over year, while GAAP operating margin was 21.1%.
  5. Full-year 2024 adjusted diluted EPS outlook was raised to $16.35 to $16.55; GAAP diluted EPS outlook is $14.20 to $14.40.
  6. Nine-month free cash flow was $446.4 million, and the company continues to expect approximately $800 million for full-year 2024.
  7. Total debt declined to $1,931.5 million from $2,140.6 million at year-end 2023, and net debt to total capital fell to 27% from 34%.

03—Questions

Frequently Asked Questions

  1. Why did reported sales grow while organic sales declined in the third quarter?

    Net sales rose 4.9% to $1,442.6 million, driven by acquisitions that added 9.4%, partly offset by divestitures that reduced sales by 3.3% and a slight currency effect. Organic net sales, which exclude acquisitions, divestitures and currency, declined 1.0%, with telecom weakness and utility distribution softness cited as drivers.

  2. What drove the gap between GAAP and adjusted EPS?

    The third-quarter adjustments excluded $0.40 of amortization of acquisition-related intangible assets and $0.04 of transaction, integration and separation costs. The company expects full-year 2024 amortization of approximately $1.75 per share, a $0.22 loss on the residential lighting disposition, and $0.17 of transaction, integration and separation costs.

  3. How is the company's balance sheet and cash generation trending?

    At September 30, 2024, total debt was $1,931.5 million and cash and investments totaled $531.1 million, leaving net debt of $1,400.4 million. Nine-month operating cash flow was $558.8 million, and free cash flow was $446.4 million, compared with $431.5 million in the prior-year period.

  4. What is the company's full-year 2024 outlook?

    Hubbell expects GAAP diluted EPS of $14.20 to $14.40 and adjusted diluted EPS of $16.35 to $16.55, with total sales growth of approximately 6% and organic growth of approximately 1%. Acquisitions net of the residential lighting divestiture are expected to add approximately 5% to sales growth. The outlook assumes an adjusted tax rate of 22.0% to 22.5% and includes approximately $0.35 of restructuring and related investment.

04—Continue

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