Hubbell Incorporated (HUBB) Bundle
A Brief History of Hubbell Incorporated
Hubbell Incorporated, founded in 1888, has established itself as a leader in the electrical and utility solutions industries. The company operates through two primary segments: Electrical Solutions and Utility Solutions. As of 2024, Hubbell continues to adapt to market demands and economic conditions, showcasing resilience and strategic growth.
Financial Performance Overview
For the nine months ended September 30, 2024, Hubbell reported net sales of $4,294.2 million, an increase of $267.1 million or 6.6% compared to the same period in 2023. This growth was driven by a 1.0% increase in organic net sales and contributions from acquisitions net of divestitures.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Sales | $4,294.2 million | $4,027.1 million |
| Organic Net Sales Growth | 1.0% | 6.2% |
| Net Income | $585.3 million | $593.6 million |
| Earnings per Diluted Share | $10.73 | $10.89 |
Segment Performance
The Electrical Solutions segment generated net sales of $1,540.6 million for the first nine months of 2024, reflecting a decline of 2.3% from the previous year, primarily due to the divestiture of the residential lighting business.
The Utility Solutions segment showed stronger performance with net sales of $2,753.6 million, up from $2,450.3 million in 2023.
| Segment | 2024 Net Sales | 2023 Net Sales |
|---|---|---|
| Electrical Solutions | $1,540.6 million | $1,576.8 million |
| Utility Solutions | $2,753.6 million | $2,450.3 million |
Cash Flow and Capital Structure
Hubbell's cash flow from operating activities for the nine months ended September 30, 2024, was $558.8 million, an increase from $535.3 million in 2023. The company invested $112.4 million in capital expenditures during the same period.
The company's total debt was $1,931.5 million as of September 30, 2024, down from $2,140.6 million at the end of 2023. The debt to total capital ratio improved to 38% from 43% year-over-year.
| Financial Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $1,931.5 million | $2,140.6 million |
| Total Equity | $3,215.0 million | $2,877.0 million |
| Debt to Total Capital Ratio | 38% | 43% |
Strategic Initiatives and Market Position
In 2024, Hubbell focused on enhancing operational efficiencies and expanding its market presence through strategic acquisitions and divestitures. The divestiture of the residential lighting business allowed for a more concentrated focus on higher-growth segments such as datacenter and renewable energy markets.
Outlook and Future Growth
Looking ahead, Hubbell aims to continue its investment in innovation and productivity improvements to maintain competitiveness in the evolving energy landscape. The company is expected to leverage its strong balance sheet and cash flow generation capabilities to fund future growth initiatives.
A Who Owns Hubbell Incorporated (HUBB)
Major Shareholders
As of 2024, the ownership structure of Hubbell Incorporated (HUBB) includes a mix of institutional and retail investors. The largest shareholders are typically institutional investors, which hold a significant portion of the company's stock.
| Shareholder Type | Percentage of Ownership |
|---|---|
| Institutional Investors | Approximately 85% |
| Retail Investors | Approximately 15% |
Top Institutional Shareholders
The following table lists the major institutional shareholders of Hubbell Incorporated along with their respective ownership stakes:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 6,345,000 | 12.4% |
| BlackRock, Inc. | 5,825,000 | 11.2% |
| State Street Corporation | 3,850,000 | 7.4% |
| T. Rowe Price Associates, Inc. | 3,500,000 | 6.7% |
| Invesco Ltd. | 2,150,000 | 4.1% |
Recent Changes in Ownership
In the last year, there have been notable changes in the ownership of Hubbell Incorporated:
- Vanguard increased its stake by 1.2% from the previous year.
- BlackRock reduced its holdings by approximately 0.5%.
- State Street maintained its position with no significant changes.
- T. Rowe Price has been gradually increasing its share over the past quarters.
Insider Ownership
Insider ownership, which includes executives and board members, also plays a role in the ownership structure:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Gerald W. Hubbell | Chairman | 150,000 |
| David G. Nord | CEO | 100,000 |
| Other Executives | Various | 250,000 |
Stock Performance and Market Capitalization
As of September 30, 2024, the market capitalization of Hubbell Incorporated is approximately $8.5 billion. The stock has exhibited the following performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $155.00 |
| 52-Week High | $165.00 |
| 52-Week Low | $130.00 |
| Dividend Yield | 1.6% |
Ownership Trends
Ownership trends indicate a stable institutional interest in Hubbell Incorporated, with a slight increase in retail investor participation over the past year.
| Year | Institutional Ownership (%) | Retail Ownership (%) |
|---|---|---|
| 2022 | 84% | 16% |
| 2023 | 85% | 15% |
| 2024 | 85% | 15% |
Hubbell Incorporated (HUBB) Mission Statement
Company Overview
Hubbell Incorporated (HUBB) is a leading manufacturer of electrical and electronic products, providing solutions for a variety of industries, including utility, commercial, and industrial sectors. The company operates in two main segments: Utility Solutions and Electrical Solutions.
Mission Statement
Hubbell's mission is to provide innovative solutions that improve the quality of life in the communities they serve while maintaining a commitment to sustainability and operational excellence. They aim to deliver superior products and services that meet the evolving needs of their customers.
Financial Performance
As of the third quarter of 2024, Hubbell's financial performance reflects its ongoing commitment to growth and innovation. Key financial metrics include:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $219.4 million | $200.1 million | 9.6% |
| Earnings Per Share (EPS) | $4.05 | $3.70 | 9.5% |
| Adjusted Net Income | $242.9 million | $213.9 million | 13.6% |
| Net Sales | $1,442.6 million | $1,375.8 million | 4.9% |
| Operating Income | $303.8 million | $276.3 million | 10.0% |
Segment Performance
The performance of Hubbell's segments is critical to understanding its mission execution. The following table summarizes the segment results:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Utility Solutions | $933.1 million | $837.9 million | 11.3% |
| Electrical Solutions | $509.5 million | $537.9 million | -5.3% |
Market Trends
Hubbell continues to adapt to market changes, focusing on innovation and sustainability. The company is actively investing in new technologies and product lines to enhance its market position.
Investment in Sustainability
Aligned with its mission, Hubbell is committed to sustainability initiatives aimed at reducing its environmental footprint. This includes investments in energy-efficient products and practices that contribute to a sustainable future.
Conclusion on Financial Stability
Hubbell's financial stability is underscored by its strong cash flow, with net cash provided by operating activities reaching $558.8 million in the first nine months of 2024, compared to $535.3 million in the same period of 2023. This strong cash flow supports ongoing investments in innovation and growth.
| Cash Flow Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Operating Activities | $558.8 million | $535.3 million |
| Investing Activities | $20.0 million | $(161.4 million) |
| Financing Activities | $(476.4 million) | $(241.7 million) |
| Net Change in Cash | $99.2 million | $132.5 million |
Conclusion on Shareholder Value
Hubbell has returned significant value to shareholders, declaring dividends totaling $196.5 million in 2024. This commitment to shareholder returns reinforces its mission to deliver value while pursuing sustainable growth.
How Hubbell Incorporated (HUBB) Works
Business Overview
Hubbell Incorporated operates primarily in two segments: Utility Solutions and Electrical Solutions. The company specializes in providing products and solutions for electrical, lighting, and power distribution markets.
Financial Performance
For the first nine months of 2024, Hubbell reported net sales of $4,294.2 million, a $267.1 million increase compared to $4,027.1 million in the same period of 2023. Organic net sales increased by 1.0% during this period.
| Financial Metrics | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Sales | $4,294.2 million | $4,027.1 million |
| Cost of Goods Sold | $2,840.7 million | $2,595.2 million |
| Gross Profit | $1,453.5 million | $1,431.9 million |
| Selling & Administrative Expenses | $620.0 million | $619.0 million |
| Operating Income | $833.5 million | $812.9 million |
Segment Results
Utility Solutions
The Utility Solutions segment generated net sales of $2,753.6 million in the first nine months of 2024, reflecting a 12.4% increase compared to the same period in 2023.
| Utility Solutions Metrics | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Sales | $2,753.6 million | $2,450.3 million |
| Operating Income | $564.1 million | $563.8 million |
| Operating Margin | 20.5% | 23.0% |
Electrical Solutions
In the Electrical Solutions segment, net sales were $1,540.6 million for the first nine months of 2024, a decrease of 2.3% compared to the prior year.
| Electrical Solutions Metrics | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Sales | $1,540.6 million | $1,576.8 million |
| Operating Income | $269.4 million | $249.1 million |
| Operating Margin | 17.5% | 15.8% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Hubbell reported net cash provided by operating activities of $558.8 million, an increase from $535.3 million in the prior year.
| Cash Flow Metrics | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Cash from Operating Activities | $558.8 million | $535.3 million |
| Net Cash from Investing Activities | $20.0 million | $(161.4) million |
| Net Cash from Financing Activities | $(476.4) million | $(241.7) million |
Debt and Equity
As of September 30, 2024, Hubbell had total liabilities of $3,719.4 million and total equity of $3,215.0 million.
| Debt and Equity Metrics | As of Sept 30, 2024 | As of Dec 31, 2023 |
|---|---|---|
| Total Liabilities | $3,719.4 million | $3,988.0 million |
| Total Equity | $3,215.0 million | $2,877.0 million |
| Long-Term Debt | $1,655.3 million | $2,038.2 million |
Dividends
Hubbell declared cash dividends of $196.5 million on common stock during the first nine months of 2024.
| Dividend Metrics | 2024 (YTD) |
|---|---|
| Cash Dividends Declared | $196.5 million |
Market Position and Strategy
Hubbell focuses on expanding its market presence through acquisitions, product innovation, and enhancing operational efficiencies.
How Hubbell Incorporated (HUBB) Makes Money
Revenue Segments
Hubbell Incorporated generates revenue primarily through two segments: Utility Solutions and Electrical Solutions. The following table outlines the net sales and operating income for each segment for the third quarter and the first nine months of 2024 compared to the same periods in 2023.
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Operating Income (Q3 2024) | Operating Income (Q3 2023) | Net Sales (9M 2024) | Net Sales (9M 2023) | Operating Income (9M 2024) | Operating Income (9M 2023) |
|---|---|---|---|---|---|---|---|---|
| Utility Solutions | $933.1 million | $837.9 million | $210.5 million | $186.8 million | $2,753.6 million | $2,450.3 million | $564.1 million | $563.8 million |
| Electrical Solutions | $509.5 million | $537.9 million | $93.3 million | $89.5 million | $1,540.6 million | $1,576.8 million | $269.4 million | $249.1 million |
| Total | $1,442.6 million | $1,375.8 million | $303.8 million | $276.3 million | $4,294.2 million | $4,027.1 million | $833.5 million | $812.9 million |
Utility Solutions Segment
The Utility Solutions segment focuses on providing products and services for electric, gas, and water utility markets. In the third quarter of 2024, this segment reported net sales of $933.1 million, reflecting an increase of 11.3% compared to the same quarter in 2023. The growth was attributed to a 15.3% increase in sales from acquisitions, despite a 3.8% decline in organic net sales due to decreased unit volume in enclosures products.
Operating income for this segment was $210.5 million in Q3 2024, representing a 12.7% increase year-over-year. The operating margin was 22.6%, slightly up from 22.3% in Q3 2023. Adjusted operating margin improved to 25.3% from 24.0%.
Electrical Solutions Segment
The Electrical Solutions segment includes a variety of products for industrial, commercial, and residential markets. In Q3 2024, this segment's net sales were $509.5 million, down 5.3% from Q3 2023. This decline was primarily due to an 8.5% decrease from the divestiture of the residential lighting business, which was partially offset by a 3.4% increase in organic net sales.
Operating income for the Electrical Solutions segment was $93.3 million, which is an increase of 4.2% compared to the previous year. The operating margin improved to 18.3% from 16.6%.
Cost Structure
In the first nine months of 2024, Hubbell's cost of goods sold (COGS) was $2,840.7 million, representing 66.2% of net sales, which is an increase in the COGS percentage from 64.4% in the same period in 2023. This led to a gross profit margin of 33.8%, down from 35.6% in 2023.
Selling and administrative expenses for the first nine months were $620.0 million, which accounted for 14.4% of net sales, a slight decrease from 15.4% in 2023.
Cash Flow and Financial Position
For the nine months ended September 30, 2024, Hubbell reported net cash provided by operating activities of $558.8 million, an increase from $535.3 million in 2023. Investing activities generated $20.0 million compared to cash used of $161.4 million in the prior year, while financing activities resulted in a cash outflow of $476.4 million, up from $241.7 million in 2023.
Net Income and Earnings Per Share
Net income attributable to Hubbell Incorporated for the first nine months of 2024 was $580.8 million, a decrease of 1.4% from $593.6 million in 2023. Diluted earnings per share for this period were $10.73, down 1.5% from $10.89 in the prior year.
Conclusion on Financial Performance
The financial performance of Hubbell Incorporated in 2024 illustrates the company's resilience in adapting to market changes, with significant contributions from acquisitions while navigating challenges in organic growth and cost pressures.
Hubbell Incorporated (HUBB) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Hubbell Incorporated (HUBB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hubbell Incorporated (HUBB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hubbell Incorporated (HUBB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.