In This Article:
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Adjusted Earnings Per Share Growth: 14% year-over-year increase.
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Operating Profit Growth: 14% year-over-year increase.
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Adjusted Operating Margin Expansion: 180 basis points increase.
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Sales Growth: 5% overall increase.
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Free Cash Flow Growth: 19% increase.
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Utility Segment Sales Growth: 11% increase, with 15% from acquisitions and -4% organic.
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Utility Segment Operating Margin: 130 basis points expansion to over 25%.
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Electrical Segment Organic Growth: 3% increase.
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Electrical Segment Operating Margin Expansion: 190 basis points increase.
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Full-Year EPS Guidance: Raised to $16.35 to $16.55.
Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hubbell Inc (NYSE:HUBB) reported a 14% year-over-year growth in adjusted earnings per share and operating profit.
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The company achieved a 180 basis point expansion in adjusted operating margin.
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Utility Solutions segment showed strong growth driven by grid modernization and electrification trends.
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Electrabel solutions delivered solid organic growth and 190 basis points of adjusted operating margin expansion.
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Hubbell Inc (NYSE:HUBB) raised its full-year outlook, confident in delivering double-digit adjusted operating profit growth for 2024.
Negative Points
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Telecom markets remained weak, impacting overall performance.
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Utility distribution markets were affected by customer inventory normalization.
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Hubbell Inc (NYSE:HUBB) faced disruptions in three manufacturing facilities due to recent storm activity.
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Organic sales were slightly down, with net M&A contributing to growth.
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Interest expenses increased due to acquisitions, offsetting some financial gains.
Q & A Highlights
Q: Can you confirm the revenue contribution from Systems Control and provide insights on grid infrastructure's organic performance? A: Systems Control contributed approximately $120 million in revenue for the quarter. The grid infrastructure segment experienced around a 6% organic decline, but this was offset by strong performance in other areas.
Q: How is the storm impact affecting channel inventory, and what is the status of inventory normalization? A: The recent storms have helped flush out inventory, particularly in specific regions and with certain customers. This process is aiding in inventory normalization, although it varies by location and customer.
Q: What is the outlook for pricing in the utility segment for next year, and how are customer negotiations progressing? A: Pricing traction has been positive, especially outside of the telecom sector. We expect pricing to remain a lever, albeit at more modest levels, as we continue to focus on our value proposition, including service and quality.