Mar 31, 2024

Hubbell Q1 2024 Earnings Report

Hubbell's Q1 2024 results were reported, showing a solid start to the year with strong organic growth in Electrical Solutions and acquisition-driven growth in Utility Solutions.

Key Takeaways

Hubbell reported a 9% increase in net sales, driven by organic growth and acquisitions. The company reaffirms its full-year outlook for diluted EPS of $14.10-$14.60 and adjusted diluted EPS of $16.00-$16.50.

Q1 diluted EPS was $2.73, with adjusted diluted EPS at $3.60.

Net sales increased by 9%, with organic growth of 2% and net M&A contributing 6%.

Operating margin decreased by 310 bps year-over-year, while adjusted operating margin decreased by 100 bps.

Full year 2024 diluted EPS is anticipated to be $14.10-$14.60; adjusted diluted EPS is reaffirmed at $16.00-$16.50.

Total Revenue
$1.4B
Previous year: $1.29B
+8.9%
EPS
$3.6
Previous year: $3.61
-0.3%
Gross Profit
$452M
Previous year: $448M
+0.9%
Cash and Equivalents
$388M
Previous year: $430M
-9.7%
Free Cash Flow
$52M
Previous year: $80.3M
-35.2%
Total Assets
$6.86B
Previous year: $5.48B
+25.2%

Hubbell

Hubbell

Forward Guidance

Hubbell anticipates full year 2024 total sales growth of 8-10% and organic net sales growth of 3-5%, as compared to full year 2023. The Company anticipates acquisitions net of the residential lighting business divestiture contributing approximately 5% to full year sales growth.

Positive Outlook

  • Full year 2024 total sales growth of 8-10%.
  • Organic net sales growth of 3-5%.
  • Acquisitions contributing approximately 5% to full year sales growth.
  • Diluted EPS in the range of $14.10-$14.60.
  • Adjusted diluted EPS in the range of $16.00-$16.50.

Challenges Ahead

  • Excludes amortization of acquisition-related intangible assets.
  • Excludes a $0.22 loss on disposition of the residential lighting business.
  • Excludes $0.10 of transaction, integration, and separation costs.
  • Ranges are based on an adjusted tax rate of approximately 22.5%.
  • Includes approximately $0.35 of anticipated restructuring and related investment.