Jun 30, 2022

Hubbell Q2 2022 Earnings Report

Reported strong Q2 2022 earnings with significant organic net sales growth and operating margin expansion.

Key Takeaways

Hubbell reported strong Q2 2022 results, with a 19% increase in net sales and a 20% organic net sales growth. The company's diluted EPS was $2.51, and adjusted diluted EPS was $2.81. Hubbell also raised its full-year 2022 diluted EPS guidance to $8.25-$8.65 and adjusted diluted EPS to $9.40-$9.80. Additionally, Hubbell closed on two bolt-on acquisitions in July, PCX and Ripley Tools.

Q2 net sales increased by 19% with organic growth of 20%.

Diluted EPS for Q2 was $2.51, while adjusted diluted EPS reached $2.81.

Full-year 2022 diluted EPS guidance raised to $8.25-$8.65; adjusted diluted EPS to $9.40-$9.80.

Closed two bolt-on acquisitions in July, PCX and Ripley Tools.

Total Revenue
$1.26B
Previous year: $1.19B
+5.4%
EPS
$2.81
Previous year: $2.36
+19.1%
Gross Profit
$383M
Previous year: $331M
+15.8%
Cash and Equivalents
$424M
Previous year: $265M
+59.8%
Free Cash Flow
$168M
Previous year: $131M
+28.3%
Total Assets
$5.24B
Previous year: $5.17B
+1.3%

Hubbell

Hubbell

Forward Guidance

Hubbell anticipates full year 2022 total sales growth of +14-16% and organic net sales growth of +13-15%. The Company anticipates net M&A contributing +1% to full year sales growth and approximately $0.10 of full year Adjusted EPS.

Positive Outlook

  • Full year 2022 total sales growth of +14-16%.
  • Organic net sales growth of +13-15%.
  • Net M&A contributing +1% to full year sales growth.
  • Approximately $0.10 of full year Adjusted EPS from M&A.
  • Free cash flow conversion of 90-100% of adjusted net income.

Challenges Ahead

  • Anticipation of accelerated investments in the second half of 2022.
  • Approximately $0.40 per share of anticipated restructuring and related investments for the full year 2022.
  • The earnings per share and adjusted earnings per share ranges continue to be based on an adjusted tax rate of 22.0% to 22.5%.
  • Unspecified accelerated investments in restructuring, footprint optimization, capacity expansion and innovation initiatives
  • Unspecified restructuring and related investments anticipated for full year 2022