Fri, May 2, 12:09 PM (16 days ago)
**Hubbell Incorporated (HUBB) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,365.2 million, a 2.4% decrease YoY, driven by a 1.2% decline from divestitures net of acquisitions and a 0.6% contraction in organic net sales due to lower volume. - **Profit Margins:** Gross profit margin expanded to 33.1% from 32.0% YoY, while operating margin increased to 17.5% from 16.3% YoY. - **Net Income:** $171.0 million, a 14.8% increase YoY, with earnings per diluted share increasing by 15% to $3.15. **Segment Performance:** - **Utility Solutions:** Net sales decreased by 4.2% YoY to $857.1 million, with operating margin increasing to 18.7% from 17.6% YoY. - **Electrical Solutions:** Net sales increased by 0.6% YoY to $508.1 million, with operating margin expanding to 15.5% from 14.1% YoY. **Cash Flow and Liquidity:** - **Operating Cash Flow:** $37.4 million, a decrease from $92.2 million YoY due to increased working capital and pension contributions. - **Investing Cash Flow:** -$99.3 million, primarily due to the $73.3 million acquisition of Ventev. - **Financing Cash Flow:** $75.0 million, reflecting higher net borrowings and increased share repurchases. **Future Operations and Uncertainties:** - **Acquisitions:** Hubbell acquired Ventev for $73.3 million, expanding its wireless network solutions portfolio. - **Restructuring:** The company continues to invest in restructuring and productivity initiatives to mitigate rising material and administrative costs. - **Market Conditions:** Hubbell faces uncertainties due to inflation, trade tensions, and geopolitical risks, which may impact demand and supply chains. **Trends and Outlook:** - **Organic Growth:** Despite divestitures, Hubbell saw organic growth in the Electrical Solutions segment, driven by strength in the datacenter vertical. - **Cost Management:** The company is focused on operational productivity and pricing strategies to offset inflationary pressures. - **Capital Allocation:** Hubbell has a total share repurchase authorization of approximately $635.0 million and a $1.0 billion revolving credit facility. **Ticker:** HUBB