Hubbell (HUBB) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 5% year-over-year to $1.44B, driven by acquisitions, while organic sales declined 1% due to lower volume.

• Adjusted diluted EPS increased 14% to $4.49; GAAP diluted EPS was $4.05.

• Operating margin expanded to 21.1% (GAAP) and 23.2% (adjusted), up 180 bps year-over-year.

• Utility Solutions saw strong demand in grid infrastructure and automation, while telecom markets remained weak.

• Raised 2024 outlook, citing strong operational execution and favorable positioning for 2025 and beyond.

Financial highlights

• Net sales rose 5% year-over-year to $1,443M; organic sales declined 1%, but M&A contributed +6%.

• Adjusted operating profit increased 14% to $335M, with adjusted operating margin up 180bps to 23.2%.

• Adjusted EPS grew 14% to $4.49; free cash flow up 19% to $189M.

• Net income attributable to Hubbell was $219.4M, up 10% year-over-year.

• Adjusted EBITDA for Q3 increased 12% year-over-year to $353.1M.

Outlook and guidance

• 2024 adjusted diluted EPS outlook raised to $16.35–$16.55, up 7–8% year-over-year; GAAP diluted EPS expected at $14.20–$14.40.

• Full-year total sales growth anticipated at ~6%, with organic net sales growth of ~1%; M&A expected to contribute ~5%.

• Free cash flow outlook for FY24 is ~$800M, up double digits year-over-year.

• Q4 2024 expected to benefit from storm restoration, stronger revenue seasonality, and continued margin expansion.

• Confident in achieving GDP-plus growth in 2025, driven by grid modernization and electrification megatrends.