Hubbell Incorporated Reports Third Quarter 2024 Financial Results
Shelton, CT - Hubbell Incorporated (NYSE:HUBB) today announced its financial results for the third quarter, concluding September 30, 2024. The company reported a strong operational performance, reflecting robust growth and operational efficiency in key segments.
Key Financial Metrics
| Financial Metric | Q3 2024 | Year-over-Year Change |
|---|---|---|
| Diluted EPS | $4.05 | - |
| Adjusted Diluted EPS | $4.49 | +14% |
| Operating Margin | 21.1% | - |
| Adjusted Operating Margin | 23.2% | +180 basis points |
Hubbell's positive third-quarter performance is characterized by a year-over-year increase of 14% in adjusted diluted EPS, demonstrating effective cost management and strategic growth initiatives. The company's organic growth remains steady despite a slight 1% downturn, counterbalanced by a 6% net impact from mergers and acquisitions.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Year-over-Year Change |
|---|---|---|---|
| Utility Solutions | $933 million | $838 million | +11% |
| Electrical Solutions | $510 million | $538 million | -5% |
The Utility Solutions segment recorded an 11% revenue increase led by strong investment in transmission and grid infrastructure, while the Electrical Solutions segment saw a decline primarily due to divestitures, despite organic growth of 3%.
Key Developments and Operational Highlights
- Acquisition-driven expansion added 15% to Utility Solutions sales.
- Strong performance in the datacenter and renewable verticals within Electrical Solutions.
- Continued operational efficiencies and portfolio transformation.
Executive Commentary
Gerben Bakker, Hubbell's Chairman, President, and CEO, emphasized the company's strong position in utility markets and its strategic advancements in the Electrical Solutions segment. 'Our investment in grid modernization and electrification continues to drive long-term value creation,' Mr. Bakker stated.
Forward Guidance
Hubbell has adjusted its full-year 2024 adjusted EPS outlook to a range of $16.35-$16.55, reflecting a positive trajectory in earnings. The company expects approximately 6% total sales growth for the full year with a 5% contribution from acquisitions.
Market Reaction
Following the earnings release, Hubbell's stock saw a slight post-event change of approximately 0.03%.
In conclusion, Hubbell Incorporated demonstrated strong financial results for the third quarter, driven by strategic growth across its core business segments and ongoing operational improvements. The company remains focused on capitalizing on industry trends towards modernization and electrification, positioning itself for sustained long-term growth.
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