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Hubbell Incorporated is a global manufacturer specializing in electrical products and utility solutions, catering to a diverse range of customer and end-market applications. The company operates through two main segments: Utility Solutions and Electrical Solutions, providing products for electrical distribution, transmission, substation, telecommunications, building operators, and industrial customers . Hubbell's offerings include components like arresters, insulators, connectors, smart meters, wiring devices, lighting fixtures, and industrial controls, which are used in industrial, commercial, and institutional facilities . The company emphasizes innovation and quality, focusing on both "In Front of the Meter" and "Behind the Meter" applications related to energy transmission and consumption .
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Utility Solutions - Focuses on products for electrical distribution, transmission, substation, and telecommunications, including components like arresters, insulators, connectors, and smart meters .
- Electrical Distribution - Provides components for the distribution of electricity.
- Transmission and Substation - Offers products for the transmission of electricity and substation applications.
- Telecommunications - Supplies components for telecommunications infrastructure.
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Electrical Solutions - Provides components for building operators and industrial customers, such as wiring devices, lighting fixtures, and industrial controls, with applications in light industrial, non-residential, and heavy industrial markets .
- Wiring Devices - Manufactures devices for electrical wiring applications.
- Lighting Fixtures - Produces lighting solutions for various settings.
- Industrial Controls - Offers controls for industrial applications.
| Name | Position | External Roles | Short Bio | Start Date |
|---|---|---|---|---|
Gerben W. Bakker ExecutiveBoard | Chairman of the Board, President, and CEO | Board of Trustees of Manufacturers Alliance | Began at Hubbell in 1988 as a manufacturing engineer; became CEO in 2020 and Chairman in 2021. Led 12 acquisitions, including Aclara, growing Hubbell Power Systems' net sales from $921M to $1.8B in four years. | 1988 (at HUBB) |
Alyssa R. Flynn Executive | Chief Human Resources Officer (CHRO) | None | Joined Hubbell in 2014; became CHRO in 2022. Previously VP of Compensation, Benefits & HR Systems and Chief of Staff to the CEO. | 2014 (at HUBB) |
Gregory A. Gumbs Executive | President, Utility Solutions Segment | None | Joined Hubbell in 2023. Previously President and CEO of Bosch Rexroth North America and held leadership roles at Eaton Corporation. | July 2023 |
Jonathan M. Del Nero Executive | Vice President, Controller | None | Joined Hubbell in 2014; became VP, Controller in 2021. Previously held financial roles at Aetna, Stanley Black & Decker, and The Hartford. | 2014 (at HUBB) |
Katherine A. Lane Executive | Senior Vice President, General Counsel, and Secretary | None | Joined Hubbell in 2010; became SVP, General Counsel, and Secretary in 2021. Previously VP, Associate General Counsel. | 2010 (at HUBB) |
Mark E. Mikes Executive | President, Electrical Solutions Segment | None | Over 30 years at Hubbell. Became President of Electrical Solutions Segment in 2023. Previously Division President of Hubbell Power Systems. | 1989 (at HUBB) |
William R. Sperry Executive | Executive Vice President and CFO | Board Member at MSA Safety Incorporated | Joined Hubbell in 2008; became CFO in 2012. Previously worked at Lehman Brothers and J.P. Morgan. Expertise in corporate strategy and financial leadership. | 2008 (at HUBB) |
Anthony J. Guzzi Board | Independent Lead Director | Chairman, President, and CEO of EMCOR Group, Inc. | Director at Hubbell since 2006. Extensive leadership experience in manufacturing and operations. CEO of EMCOR Group since 2011. | 2006 |
Bonnie C. Lind Board | Independent Director | Director at Mission Produce, Tamarack Timberlands LLC, and Albany International Corp. | Director at Hubbell since 2019. Former CFO and Treasurer of Neenah, Inc. Expertise in finance, manufacturing, and governance. | 2019 |
Carlos M. Cardoso Board | Independent Director | Principal of CMPC Advisors LLC; Director at Freudenberg Group | Director at Hubbell since 2013. Extensive experience in manufacturing and operations. Former President of the Pump Division at Flowserve Corporation. | 2013 |
Debra L. Dial Board | Independent Director | Board Member at Dow, Inc. | Joined Hubbell's Board in 2023. Former SVP, Chief Accounting Officer, and Controller at AT&T. Expertise in finance, accounting, and risk management. | July 2023 |
Garrick J. Rochow Board | Independent Director | President, CEO, and Director of CMS Energy Corporation | Joined Hubbell's Board in 2024. Extensive leadership experience at CMS Energy, including roles as EVP of Operations and Chief Customer Officer. | November 2024 |
John F. Malloy Board | Independent Director | Executive Chairman of Victaulic Company; Director at Hollingsworth & Vose | Director at Hubbell since 2011. Former Chairman, President, and CEO of Victaulic Company. Holds a Ph.D. in Economics. | 2011 |
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You mentioned that destocking in the Utility Distribution market is lasting longer than initially anticipated due to limited visibility into end customer demand. Can you provide more specifics on how this prolonged destocking is impacting your sales and when you expect it to normalize?
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In the Utility Solutions segment, weakness in the telecom market has been a significant headwind. Given the ongoing challenges, what strategic actions are you taking to mitigate the impact of a weak telecom market on your overall utility business?
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Despite strong performance in certain areas, there was an indication that margins in the Systems Control business are slightly below the mid-20s and creating a headwind quarter-over-quarter. Can you elaborate on why these margins are lower than expected and what measures you're implementing to improve profitability in this area?
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You've raised your full-year adjusted earnings per share outlook but have slightly trimmed your full-year sales guidance. With no changes to margin guidance, what factors are driving the expected EPS growth despite lower sales, and how confident are you in achieving these targets?
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Given the strong growth in data center and renewables markets within Electrical Solutions, how sustainable do you view this growth trajectory, and what risks do you see that could potentially slow down the momentum in these high-growth verticals?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Northern Star Holdings, Inc. (Systems Control) | 2023 | Completed in December 2023 for $1.1 billion in cash—financed through a $600M unsecured term loan facility, cash on hand, and commercial paper—with the acquisition adding advanced substation control and relay panel solutions to enhance Hubbell’s Utility Solutions portfolio, subject to customary regulatory conditions. |
Indústria Eletromecânica Balestro Ltda. (Balestro) | 2023 | Acquired on October 27, 2023 for approximately $89 million in cash—this strategic tuck-in vertically integrates supply chains by enhancing MOV block production capabilities for the electrical utility industry, with preliminary purchase accounting under the Utility Solutions segment. |
EI Electronics LLC (EIG) | 2023 | Completed in May 2023 for about $60 million in cash (net of adjustments)—this acquisition brings fully integrated energy management and power quality monitoring solutions to Hubbell’s Utility Solutions portfolio, with recognized intangible assets (e.g., customer relationships) and tax-deductible goodwill supporting synergistic growth. |
PCX Holdings LLC (PCX) | 2022 | Completed in July 2022 for approximately $114 million in cash (net of adjustments)—adding factory-built modular power solutions for the data center market to Hubbell’s Electrical Solutions segment, the deal includes recognized intangible assets and tax-deductible goodwill, furthering strategic growth in a high-demand area. |
Ripley Tools, LLC & Nooks Hill Road, LLC (Ripley Tools) | 2022 | Completed in July 2022 for about $49.6 million in cash (net of adjustments)—this acquisition expands Hubbell’s Utility Solutions segment with advanced cable and fiber preparation tools and test equipment, and includes recognized intangible assets and tax-deductible goodwill to support high-growth opportunities. |