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Sep 30, 2024
Hubbell Q3 2024 Earnings Report
Hubbell reported strong operating performance, with solid operating margin expansion and double digit growth in operating income.
Key Takeaways
Hubbell's Q3 2024 results showed a 5% increase in net sales and a 14% rise in adjusted diluted EPS. The Utility Solutions segment saw growth in transmission, substation, and grid protection markets, while the Electrical Solutions segment was driven by datacenter and renewables verticals.
3Q diluted EPS was $4.05; adjusted diluted EPS was $4.49, up 14% year-over-year.
3Q net sales increased by 5%, with organic sales down 1% and net M&A contributing +6%.
3Q operating margin was 21.1%; adjusted operating margin was 23.2%, a +180 bps year-over-year increase.
The adjusted diluted EPS outlook for 2024 was raised to $16.35-$16.55.
Revenue by Segment
Forward Guidance
Hubbell anticipates full year 2024 total sales growth of approximately 6% and organic net sales growth of approximately 1%, 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. The diluted EPS and Adjusted EPS ranges are based on an adjusted tax rate of 22.0% to 22.5% and include approximately $0.35 of anticipated restructuring and related investment. The Company continues to expect full year 2024 free cash flow of approximately $800 million.
Positive Outlook
- Full year 2024 total sales growth of approximately 6%.
- Organic net sales growth of approximately 1%.
- Acquisitions net of divestiture contributing approximately 5% to sales growth.
- Adjusted tax rate of 22.0% to 22.5%.
- Free cash flow of approximately $800 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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