Q3 2023 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$329.97July 1, 2023
Final Price$313.41October 1, 2023
Price Change$-16.56
% Change-5.02%
- Hubbell management is confident in maintaining strong utility margins into next year, anticipating profitable growth on top of the 700 basis points margin expansion achieved in 2023.
- The company expects an acceleration in organic growth in Q4, with positive volume growth in the Electrical segment, as channel inventory normalization concludes, signaling strong demand and market momentum heading into 2024.
- Recent strategic acquisitions, such as Balestro and Systems Control, are expected to enhance manufacturing capacity and support future growth plans, particularly in high-growth areas like transmission and substation markets driven by renewables and electrification megatrends.
- The company's ability to maintain current high utility margins into next year is uncertain, as a significant portion of margin expansion was driven by price-cost dynamics, which may not persist.
- Weakening demand in the telecommunications segment due to higher interest rates and delayed projects awaiting stimulus funding is causing significant timing impacts and could affect growth.
- Overstock situations in the electrical side have affected volumes for several quarters, and while the company expects improvement, this issue may continue to impact sales and growth.