Total Q1 2025 Net Sales

~2.4% decline (from $1,399.1M to $1,365.2M)

The overall decline was driven by a notable drop in the Utility Solutions segment, which partially offset the slight improvement in Electrical Solutions. In Q1 2025, Utility Solutions revenues fell significantly (down from $894.0M to $857.1M) while Electrical Solutions saw a minor gain (from $505.1M to $508.1M). " "

Utility Solutions Revenue

~4.1% decline (from $894.0M to $857.1M)

Utility Solutions revenue decreased primarily due to a 15% decline in Grid Automation sales, with only a minimal offset from a 1% increase in Grid Infrastructure sales. This reflects underlying market weaknesses and challenges in organic growth, which had also impacted prior period performance. " "

Electrical Solutions Revenue

~0.6% increase (from $505.1M to $508.1M)

The slight increase in Electrical Solutions revenue is attributed to robust 5% organic growth, particularly in datacenter markets and favorable price realization, even as other areas remained subdued. This contrasts with the previous period where overall pressures were mitigated by stronger organic performance. " "

Net Income

+14.8% increase (from $147.8M to $169.7M)

Net income improvement was driven by higher operating income—a 5% rise from $228.5M to $239.0M—coupled with significantly lower interest expense (reduced from $21.1M to $13.8M) and reduced restructuring costs, which collectively spurred the jump in net income despite moderate sales declines. " "

Operating Cash Flow

~59% decline (from $92.2M to $37.4M)

Operating cash flow dropped sharply primarily due to adverse working capital changes, including a significant increase in accounts receivable and other shifts in current assets and liabilities. This represents a deterioration in liquidity management compared to the previous quarter, even as net income improved. " "

Cash and Cash Equivalents

~10.8% decline (from $388.2M to $346.9M)

The moderate decline in cash and cash equivalents is the result of a mixed impact from financing and investing activities, where substantial cash outflows—such as share repurchases and debt repayments—were not fully offset by operating cash inflows, reflecting a more aggressive capital allocation strategy than in the prior period. " "

Free Cash Flow Conversion

FY 2025

at least 90% of adjusted net income "

90% or greater of net income "

no change

EPS

FY 2025

$17.35 to $17.85 "

$16.85 to $17.35 " "

lowered

Operating Margin

FY 2025

Continued expansion is anticipated "

Expected to face slight headwinds with a slightly dilutive effect " "

lowered

Volume Growth

FY 2025

Expected to be a primary driver of performance "

Organic volume growth expected to be 3%+ "

no change

Share Repurchase Authorization

FY 2025

no prior guidance

Increased authorization to $600 million (with $125M repurchased in Q1) "

no prior guidance

Pricing Strategy and Execution

Q2 2024 discussions focused on maintaining strong price/cost productivity " " and Q4 2024 emphasized improved pricing power with targeted, modest price increases " "

Q1 2025 detailed aggressive price increases to offset inflation and tariffs with strong “stick rate” confidence and sequential price realization " " "

An increasing emphasis on proactive price adjustments—with enhanced execution and confidence—has emerged over time. " " " " " "

Tariff and Cost Inflation Concerns

Q2 2024 focused on cost inflation dynamics " " while Q4 2024 discussed tariff exposure (notably through Chinese tariffs and Mexican COGS) with preparedness measures " " "

Q1 2025 provided a detailed discussion on tariff impacts including a specific $135 million cost, reciprocal tariffs, sensitivity analysis, and extensive mitigation initiatives " " " "

A shift toward detailed, proactive mitigation of tariffs and inflation—highlighting clear offset measures—has been observed. " " " " " " "

Margin Performance and Compression Risks

Q2 2024 reported modest margin improvements with some headwinds (e.g. Telecom, restructuring) " " " and Q4 2024 showcased strong, broad margin expansion with executing efficiency measures " " " "

Q1 2025 acknowledged margin headwinds from material costs and tariffs that diluted operating margins despite positive pricing contributions " "

Margins have fluctuated: after strong improvements in Q4 2024, sentiment turned more cautious in Q1 2025 amid pricing offset pressures. " " " " " "

Order Book Strength, Demand Trends, and Seasonality

Q2 2024 highlighted steady organic growth in utility and electrical segments with clear seasonal patterns " " " " , and Q4 2024 noted a book‐to‐bill ratio above one and order normalization " " "

Q1 2025 reported robust order book growth—including double-digit increases in grid infrastructure orders—and a typical seasonal ramp up with early signs of telecom order stabilization " " " " "

A consistently strong demand environment is indicated, with improved seasonal outlooks and a gradual correction in inventory normalization pressures. " " " " " " "

Utility Segment Demand and Performance

Q2 2024 saw growth driven by acquisitions and strong Transmission & Distribution demand despite telecom headwinds " " " , while Q4 2024 noted moderate sales growth and margin expansions with order improvements " "

Q1 2025 presented mixed performance: robust double-digit growth in grid infrastructure but softness in grid automation and margin pressures due to headwinds " " "

Performance remains segmented—consistent strength in grid infrastructure contrasts with persistent challenges in automation and margins, underlining long-term investment needs. " " " " " "

Transmission & Distribution and Substation Growth

Q2 2024 emphasized robust double-digit organic growth in transmission and substations " " " " and Q4 2024 reported moderate overall sales growth (around 4%) boosted by the Systems Control acquisition " " "

Q1 2025 detailed strong order growth (double digits) in T&D with revised multiyear capital plans and bullish long-term positioning " " "

Consistent, bullish performance is evident in T&D, with all periods pointing to strong organic and acquisition-led growth and clear long-term infrastructure opportunities. " " " " " " " "

Segment-Specific Challenges (Grid Automation, Meters/AMI, Telecom)

Q2 2024 indicated Telecom underperformance (down 40%) but steady grid automation (8% organic growth) and healthy meter/AMI conversions " " " ; Q4 2024 showed grid automation softness (11% decline), project roll-offs in meters/AMI, and notable Telecom declines requiring rightsizing " " " "

Q1 2025 reported further softness in grid automation (15% decline) with meters/AMI also under pressure, while Telecom showed signs of stabilization with flattening declines " " "

Persistent challenges in grid automation and meters remain, though Telecom appears to be stabilizing—suggesting mixed sentiment and potential targets for turnaround efforts. " " " " " " " " "

Growth Initiatives and M&A Impacts

Q2 2024 emphasized strategic portfolio repositioning in Electrical Solutions and robust growth in utility via acquisitions " " " " ; Q4 2024 highlighted active M&A deals—including Systems Control and a $70M acquisition—along with significant growth and efficiency investments " " " "

Q1 2025 continued this focus with a robust vertical market strategy, new product development, improved sales force alignment, an active M&A pipeline, and share repurchases " " " "

A consistent, aggressive growth strategy is maintained across periods, with increasing emphasis on strategic M&A to drive portfolio enhancement and long-term value. " " " " " " " "

Exposure to Tariffs on Mexican Operations

Q4 2024 discussed exposure from Mexico as representing a mid-teens percentage of COGS and outlined aggressive preparedness measures " "

Q1 2025 reiterated similar exposure with detailed initiatives to offset the tariff impact, including neutralizing a $135M cost impact " "

Exposure to Mexican tariffs remains a consistent concern, with both periods highlighting proactive pricing and productivity measures—even though it was not mentioned in Q2 2024. " " " "