Jun 30, 2023

Hubbell Q2 2023 Earnings Report

Hubbell reported a strong operating performance driven by grid modernization and electrification.

Key Takeaways

Hubbell reported strong Q2 2023 results with a 9% increase in net sales and a 50% increase in operating profit. The company is raising its full-year 2023 diluted EPS guidance.

Q2 diluted EPS from continuing operations was $3.82; adjusted diluted EPS from continuing operations was $4.07.

Q2 net sales increased by 9% (organic +6%, acquisitions +3%).

Operating margin expanded by 590 bps; adjusted operating margin expanded by 580 bps.

Full year 2023 diluted EPS from continuing operations is expected to be $13.75-$14.25; adjusted diluted EPS is expected to be $14.75-$15.25.

Total Revenue
$1.37B
Previous year: $1.26B
+8.8%
EPS
$4.07
Previous year: $2.81
+44.8%
Gross Profit
$496M
Previous year: $383M
+29.5%
Cash and Equivalents
$493M
Previous year: $424M
+16.1%
Free Cash Flow
$192M
Previous year: $168M
+14.3%
Total Assets
$5.64B
Previous year: $5.24B
+7.7%

Hubbell

Hubbell

Forward Guidance

Hubbell anticipates full year 2023 total sales growth of 8-10% and organic net sales growth of 7-9%. Full year 2023 free cash flow is expected to be greater than $700 million.

Positive Outlook

  • Full year 2023 total sales growth of 8-10%.
  • Organic net sales growth of 7-9%.
  • Net M&A contributing +1% to full year sales growth.
  • Adjusted tax rate of 22.5% to 23.0%.
  • Full year 2023 free cash flow to be greater than $700 million.