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 **[0001628280-24-003792_hubb-20231231.htm:6]** **[0001628280-24-033632_hubb-20240630.htm:13]** **[0001628280-24-003792_hubb-20231231.htm:8]**. 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 **[0001628280-24-003792_hubb-20231231.htm:6]** **[0001628280-24-003792_hubb-20231231.htm:8]**. 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 **[0001628280-24-044201_hubb-20240930.htm:28]** **[0001628280-24-003792_hubb-20231231.htm:6]**.

1. **Utility Solutions** - Focuses on products for electrical distribution, transmission, substation, and telecommunications, including components like arresters, insulators, connectors, and smart meters **[0001628280-24-003792_hubb-20231231.htm:6]** **[0001628280-24-033632_hubb-20240630.htm:13]**.
   - **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.

2. **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 **[0001628280-24-003792_hubb-20231231.htm:8]** **[0001628280-24-003792_hubb-20231231.htm:6]**.
   - **Wiring Devices** - Manufactures devices for electrical wiring applications.
   - **Lighting Fixtures** - Produces lighting solutions for various settings.
   - **Industrial Controls** - Offers controls for industrial applications.

8ad274659a363bf39406dbd8742e1987a2f4dc4f8ecc1ba955cea3dcd7507f27

08cc7483c4b31d0f2aac5ac58d8dd13dd64a2f350e36556e4149a0612e3dc0f2

| Metric [Unit: $ Million] | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States            | **1,320.5**  **[0001628280-24-044201_hubb-20240930.htm:12]**  | **1,327.6**  **[0001628280-24-033632_hubb-20240630.htm:12]**  | **1,287.4**  **[0001628280-24-019474_hubb-20240331.htm:10]**  | N/A     | **1,262.2**  **[0001628280-23-035804_hubb-20230930.htm:11]**  | N/A     | N/A     | N/A     |
| International            | **122.1**  **[0001628280-24-044201_hubb-20240930.htm:12]**    | **124.9**  **[0001628280-24-033632_hubb-20240630.htm:12]**    | **111.7**  **[0001628280-24-019474_hubb-20240331.htm:10]**    | N/A     | **113.6**  **[0001628280-23-035804_hubb-20230930.htm:11]**    | N/A     | N/A     | N/A     |
| Total Revenue            | **1,442.6**  **[0001628280-24-044201_hubb-20240930.htm:12]**  | **1,452.5**  **[0001628280-24-033632_hubb-20240630.htm:12]**  | **1,399.1**  **[0001628280-24-019474_hubb-20240331.htm:10]**  | N/A     | **1,375.8**  **[0001628280-23-035804_hubb-20230930.htm:11]**  | N/A     | N/A     | N/A     |

a8db60dc4e39f71c3b742e6935a7055332e0d3ba50fe15e121f32ae74fd9066d

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

5921349623d45e0fb0ccedb55772d5cf41835080d8b99292ce5f40e3ebad8900

475b73d61da48ccc4110eea6e87e0a420678a1701f6d8824e3d788f99e635f44

| Segment/Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Utility Solutions Segment (Business)** | **$716 million**  **[0001628280-23-001785_exhibit991_01312023.htm:1]**  | **$781.6 million**  **[0001628280-23-014179_hubb-20230331.htm:11]**  | **$831 million**  **[0001628280-23-025530_exhibit991_07252023.htm:1]**  | **$837.9 million**  **[0001628280-23-035804_hubb-20230930.htm:12]**  | **$811 million**  **[0001628280-24-002494_exhibit991_01302024.htm:1]**  | **$894.0 million**  **[0001628280-24-019474_hubb-20240331.htm:9]**  | **$926.5 million**  **[0001628280-24-033632_hubb-20240630.htm:13]**  | **$933.1 million**  **[0001628280-24-044201_hubb-20240930.htm:13]**  |
| **Electrical Solutions Segment (Business)** | **$503 million**  **[0001628280-23-001785_exhibit991_01312023.htm:1]**  | **$503.8 million**  **[0001628280-23-014179_hubb-20230331.htm:11]**  | **$535 million**  **[0001628280-23-025530_exhibit991_07252023.htm:1]**  | **$537.9 million**  **[0001628280-23-035804_hubb-20230930.htm:12]**  | **$534 million**  **[0001628280-24-002494_exhibit991_01302024.htm:1]**  | **$505.1 million**  **[0001628280-24-019474_hubb-20240331.htm:9]**  | **$526.0 million**  **[0001628280-24-033632_hubb-20240630.htm:13]**  | **$509.5 million**  **[0001628280-24-044201_hubb-20240930.htm:13]**  |
| **Total Net Sales (Business)** | N/A | **$1,285.4 million**  **[0001628280-23-014179_hubb-20230331.htm:11]**  | **$1,365.9 million**  **[0001628280-23-025628_hubb-20230630.htm:12]**  | **$1,375.8 million**  **[0001628280-23-035804_hubb-20230930.htm:12]**  | **$1,345 million**  **[0001628280-24-002494_exhibit991_01302024.htm:1]**  | **$1,399.1 million**  **[0001628280-24-019474_hubb-20240331.htm:9]**  | **$1,452.5 million**  **[0001628280-24-033632_hubb-20240630.htm:13]**  | **$1,442.6 million**  **[0001628280-24-044201_hubb-20240930.htm:13]**  |
| **Grid Infrastructure (Product)** | N/A | N/A | N/A | N/A | N/A | **$612.8 million**  **[0001628280-24-019474_hubb-20240331.htm:9]**  | **$654.5 million**  **[0001628280-24-033632_hubb-20240630.htm:11]**  | **$654.2 million**  **[0001628280-24-044201_hubb-20240930.htm:11]**  |
| **Grid Automation (Product)** | N/A | N/A | N/A | N/A | N/A | **$281.2 million**  **[0001628280-24-019474_hubb-20240331.htm:9]**  | **$272.0 million**  **[0001628280-24-033632_hubb-20240630.htm:11]**  | **$278.9 million**  **[0001628280-24-044201_hubb-20240930.htm:11]**  |
| **Electrical Products (Product)** | N/A | N/A | N/A | N/A | N/A | **$211.5 million**  **[0001628280-24-019474_hubb-20240331.htm:9]**  | **$223.1 million**  **[0001628280-24-033632_hubb-20240630.htm:11]**  | **$232.1 million**  **[0001628280-24-044201_hubb-20240930.htm:11]**  |
| **Connection and Bonding (Product)** | N/A | N/A | N/A | N/A | N/A | **$175.5 million**  **[0001628280-24-019474_hubb-20240331.htm:9]**  | **$192.3 million**  **[0001628280-24-033632_hubb-20240630.htm:11]**  | N/A |
| **Industrial Controls (Product)** | N/A | N/A | N/A | N/A | N/A | **$96.9 million**  **[0001628280-24-019474_hubb-20240331.htm:9]**  | **$110.6 million**  **[0001628280-24-033632_hubb-20240630.htm:11]**  | N/A |
| **Retail and Builder (Product)** | N/A | N/A | N/A | N/A | N/A | **$21.2 million**  **[0001628280-24-019474_hubb-20240331.htm:9]**  | **$0 million**  **[0001628280-24-033632_hubb-20240630.htm:11]**  | **$0 million**  **[0001628280-24-044201_hubb-20240930.htm:11]**  |

baae36cb465a8c0acd4a4443b28838f41d973b050ac4a30b36bd4f51bbaa15d6

| Metric (USD Millions)                  | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Unsatisfied Performance Obligations **[0001628280-23-002875_hubb-20221231.htm:85]** | 320     | 300     | 260     | 240     | 200     | 150     | 100     | 80      |

79163f4efb459e36db753da07ea29cc40e03b07e84f0ef9848f94097c61faabd

1. 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?

2. 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?

3. 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?

4. 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?

5. 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?

de4f856c060142198121c54d8ad8ef8c653a4e6ce49c1d17605e9b38eee7ab1a

Unsatisfied Performance Obligations **[0001628280-23-002875_hubb-20221231.htm:85]**

ac4bc42b1d875347b7701248957e4e2d48579f60d2d6fd3abd036f5dd6817f5d

**Annual guidance for FY 2024:**
- **Adjusted Earnings Per Share (EPS)**: $16.35–$16.55  **[HUBB_3404377_5]**  (raised from $16.20–$16.50  **[HUBB_3395021_5]** )

23b586a62bb7ac47863e3280d2dbe7a41ef7397cb9cd54fca0f1fdf7c9a47d82

United States

International

- Canada and UK

- Switzerland

- Brazil

- Mexico

Total Revenue

df29d94145b4c78a7336dda1a636ebd4985692fa7efcd18704000499d711e416

a89a5c822905636eeaba1490523a3e8ee8a206a00843fc1502a6d6ae89a161d1

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted Earnings Per Share (EPS)**: Raised to a range of **$16.20 to $16.50**  **[HUBB_3395021_5]** .
  2. **Sales Growth**: **7% to 8%** for the full year, with approximately **3% organic growth**  **[HUBB_3395021_5]** .
  3. **Adjusted Operating Margins**: Expected to be between **21% to 21.5%** for the full year  **[HUBB_3395021_5]** .
  4. **Free Cash Flow**: Target of **$800 million** for the year  **[HUBB_3395021_2]** .
  5. **Utility Segment**: Improved levels of organic growth and a return to year-over-year adjusted operating margin expansion in the second half  **[HUBB_3395021_5]** .
  6. **Seasonality**: Second half to account for approximately **48% to 49%** of the full-year EPS  **[HUBB_3395021_9]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year 2024 Outlook**: Double-digit adjusted operating profit growth at the midpoint  **[HUBB_3381517_1]** .
  2. **Electrical Segment**: Organic growth expected to be up **3% to 4%** for the full year  **[HUBB_3381517_20]** .
  3. **Utility Margins**: Expected to be reasonably flat year-over-year, with margins up in Q2 and Q3, and declining in Q4  **[HUBB_3381517_10]** .
  4. **Telecom Business**: Anticipated to be **down double digits** for the full year  **[HUBB_3381517_16]** .
  5. **Free Cash Flow**: On track to deliver **$800 million**  **[HUBB_3381517_3]** .
  6. **Restructuring Investments**: Increased expectations from **$0.25 to $0.35**  **[HUBB_3381517_6]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Sales Growth**: 
     - **Organic Sales Growth**: 3% to 5%  **[HUBB_3371140_4]** .
     - **Total Sales Growth**: 8% to 10%, including 5% net from M&A activities  **[HUBB_3371140_4]** .
  2. **Operating Profit Growth**: 10%  **[HUBB_3371140_4]** .
  3. **Earnings Growth**: 6% earnings growth to the midpoint of $16.25  **[HUBB_3371140_5]** .
  4. **Free Cash Flow**: Approximately 90% of net income  **[HUBB_3371140_4]** .
  5. **Capital Expenditures**: Continued increase  **[HUBB_3371140_4]** .
  6. **Interest Expense**: Increase of about $40 million  **[HUBB_3371140_20]** .
  7. **Seasonality**: Normal seasonal pattern, with Q1 and Q4 below Q2 and Q3  **[HUBB_3371140_5]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information about the Q3 2024 earnings call for Hubbell, so the guidance from that specific earnings call is unavailable.

176be456ffd913ab1ba1b3efe6a7c04c18089d2e23a607c9b6be0930798f6599

| Name               | Position                                      | Start Date       | Short Bio                                                                                                                                                                                                 |
|--------------------|-----------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Gerben W. Bakker   | Chairman, President, and CEO                  | May 4, 2021      | Gerben W. Bakker has been with Hubbell since 1988, starting as a manufacturing engineer. He became Chairman, President, and CEO on May 4, 2021, after serving as President and CEO from October 2020  **[0001308179-24-000281_lhubb2024_def14a.htm:9]** **[0001628280-24-003792_hubb-20231231.htm:12]** **[0001628280-23-002875_hubb-20221231.htm:11]** .                             |
| William R. Sperry  | Executive Vice President, CFO                 | May 2020         | William R. Sperry has been the Executive Vice President and CFO since May 2020. He previously served as EVP, CFO, and Treasurer from June 2019 to May 2020, and as SVP and CFO from 2012 to 2019  **[0001628280-24-003792_hubb-20231231.htm:12]** **[0001628280-23-002875_hubb-20221231.htm:11]** .                                      |
| Jonathan M. Del Nero | Vice President, Controller                  | January 15, 2021 | Jonathan M. Del Nero became Vice President, Controller on January 15, 2021. He was previously Assistant Controller from June 14, 2014, to January 15, 2021  **[0001628280-23-002875_hubb-20221231.htm:11]** .                                                                                 |
| Alyssa R. Flynn    | Chief Human Resources Officer                 | February 2022    | Alyssa R. Flynn has been the Chief Human Resources Officer since February 2022. She was previously VP, Compensation, Benefits & HR Systems from 2014 to February 2022  **[0001628280-24-003792_hubb-20231231.htm:12]** **[0001628280-23-002875_hubb-20221231.htm:11]** .                                                                  |
| Gregory A. Gumbs   | President, Utility Solutions Segment          | July 1, 2023     | Gregory A. Gumbs started as President of the Utility Solutions Segment on July 1, 2023. He was previously President and CEO of Bosch Rexroth from September 2020 to June 2023  **[0001628280-24-003792_hubb-20231231.htm:12]** **[0001308179-24-000281_lhubb2024_def14a.htm:3]** .                                                           |
| Katherine A. Lane  | Senior Vice President, General Counsel, and Secretary | May 2021         | Katherine A. Lane has been SVP, General Counsel, and Secretary since May 2021. She served as VP, General Counsel, and Secretary from June 2019 to May 2021  **[0001628280-24-003792_hubb-20231231.htm:12]** **[0001628280-23-002875_hubb-20221231.htm:11]** .                                                                              |
| Mark E. Mikes      | President, Electrical Solutions Segment       | July 1, 2023     | Mark E. Mikes became President of the Electrical Solutions Segment on July 1, 2023. He was previously Division President of Hubbell Power Systems and Enterprise Operational Excellence from July 2022 to June 2023  **[0001628280-24-003792_hubb-20231231.htm:12]** **[0001308179-24-000281_lhubb2024_def14a.htm:3]** .                   |
| Garrick J. Rochow  | Director (elected to the Board of Directors)  | November 19, 2024 | Garrick J. Rochow was elected as an independent director on November 19, 2024, and appointed to the Board's Audit and Finance Committees  **[0001193125-24-261813_d850317d8k.htm:1]** .                                                                                                    |

52897e8b92af93d43cd7476677580488d689fda52ecd5d636164332b41d20416

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | October 21, 2022  **[0001628280-24-044201_hubb-20240930.htm:45]** **[0001628280-24-044201_hubb-20240930.htm:57]**  |
| End Date/Duration        | October 2025  **[0001628280-24-044201_hubb-20240930.htm:45]** **[0001628280-24-044201_hubb-20240930.htm:57]**  |
| Total additional amount  | $300 million  **[0001628280-24-044201_hubb-20240930.htm:45]** **[0001628280-24-044201_hubb-20240930.htm:57]**  |
| Remaining authorization amount | $270 million  **[0001628280-24-044201_hubb-20240930.htm:45]** **[0001628280-24-044201_hubb-20240930.htm:57]**  |
| Details                  | The program aims to return value to shareholders and manage the company's capital structure. Repurchases may be conducted through open market or privately negotiated transactions, subject to market conditions and alternative uses of cash.  **[0001628280-23-035804_hubb-20230930.htm:44]** **[0001628280-24-003792_hubb-20231231.htm:43]** **[0001628280-24-044201_hubb-20240930.htm:45]**  |

21f4d3acd0468ed6da313cb51d3246d1f2da0fc41546f4a2a88d0d878f419b05

95f91f113f89ca72438ed937a9ffd84578ffc04ad5e6e3bf523532d0f76dad91

- **Strong orders in Transmission & Distribution**, with customers queuing up for 2025 deliveries, and **book-to-bill above one** in grid infrastructure for the first time since early 2023, indicating improving demand and fading destocking effects.  **[HUBB_3414228_17]** **[HUBB_3414228_25]**
- **Confidence in pricing power**, with the company expecting to pass on price increases to customers, supported by constructive discussions with customers and distributors.  **[HUBB_3414228_13]**
- **Growth rate expected to improve throughout 2025**, with **stronger growth in later quarters**, following normal seasonality, indicating potential acceleration in performance.  **[HUBB_3414228_13]** **[HUBB_3414228_25]**

f733754637c1efb598d253b3b348cc7b015977a5835df99d890fa5d06d3330bb

- **Exposure to Potential Tariffs on Mexican Manufacturing Operations**: Hubbell has confirmed that a significant portion of its cost of goods sold comes from Mexico, estimated to be in the mid-teens percentage range.  **[HUBB_3414228_10]** **[HUBB_3414228_9]**  Potential tariffs or changes in trade policy affecting Mexican imports could increase costs, and while the company plans to react with pricing actions, this could impact demand or margins.
- **Softness in Meters and AMI Business**: The company is experiencing a slowdown in its meters and Advanced Metering Infrastructure (AMI) segment, expecting the first quarter of 2025 to be similar to the fourth quarter of 2024, which saw declines.  **[HUBB_3414228_25]**  This ongoing weakness could negatively affect overall growth projections.
- **Limited Pricing Power Moving Forward**: Pricing contributed less than **1%** to growth in the fourth quarter, with slightly more in Electrical than Utility.  **[HUBB_3414228_12]** **[HUBB_3414228_28]**  Management does not anticipate significant pricing increases going forward unless driven by external factors like tariffs  **[HUBB_3414228_22]** , potentially limiting a lever for margin expansion.

02f89e8739b2561a5e0b20dad3da8d58f8530838c005035a118f887f1d82d9cf

1. **Tariff Exposure and Impact**  
   **Q:** What is your exposure to tariffs on Mexico, Canada, and China?  
   **A:** Hubbell has significantly reduced its Chinese tariff exposure by disposing of certain businesses, resulting in a very small impact from Chinese tariffs.  **[HUBB_3414228_8]**  Regarding Mexico and Canada, the situation is fluid. Mexico is our **#2 sourcing location after the U.S.**, but we haven't quantified the exact percentage of COGS from Mexico.  **[HUBB_3414228_9]** **[HUBB_3414228_10]**  We are preparing to navigate any potential tariff impacts through pricing and productivity measures.  **[HUBB_3414228_8]** **[HUBB_3414228_9]** 

2. **Electrical Segment Margins**  
   **Q:** Are the over 20% Electrical margins sustainable for 2025?  
   **A:** The Electrical segment achieved margins over **20%** for the first time in Q4 2024.  **[HUBB_3414228_11]**  We anticipate continued margin expansion in this segment through high-margin product growth, efficiency initiatives, and favorable mix.  **[HUBB_3414228_11]**  We believe reaching these margin levels is sustainable for the full year 2025.  **[HUBB_3414228_11]** 

3. **Utility Segment Growth Outlook**  
   **Q:** What is the growth outlook for the utility segment in 2025?  
   **A:** We expect the utility segment to return to growth in 2025 as inventory levels normalize.  **[HUBB_3414228_7]**  Destocking pressures are fading, and we're seeing positive signs with a return to order growth.  **[HUBB_3414228_7]** **[HUBB_3414228_17]**  We anticipate grid automation to slightly grow for the full year, despite challenges in meters and AMI.  **[HUBB_3414228_14]** **[HUBB_3414228_15]** 

4. **Inventory Destocking Impact**  
   **Q:** How is the inventory destocking situation evolving?  
   **A:** The destocking issue is gradually improving.  **[HUBB_3414228_17]**  Inventory levels are starting to normalize, particularly among our VIP customers.  **[HUBB_3414228_7]** **[HUBB_3414228_17]**  While it's not a sudden change, we expect a positive trend into 2025 as inventories reach typical levels.  **[HUBB_3414228_7]** **[HUBB_3414228_17]** 

5. **Pricing Power and Price Realization**  
   **Q:** How are you approaching pricing given potential tariffs and cost pressures?  
   **A:** We're prepared to act swiftly on pricing if tariffs are implemented, working closely with customers to time adjustments appropriately.  **[HUBB_3414228_8]** **[HUBB_3414228_13]**  We've developed stronger pricing capabilities over recent years, enabling us to navigate cost pressures effectively.  **[HUBB_3414228_21]** **[HUBB_3414228_22]**  In Q4 2024, pricing contributed a little over **1%** overall, with slightly higher impact in Electrical than Utility.  **[HUBB_3414228_12]** **[HUBB_3414228_28]** 

6. **Operating Margin Outlook**  
   **Q:** What is the operating margin outlook for 2025?  
   **A:** We anticipate modest operating margin expansion in 2025, driven by volume growth and efficiency initiatives.  **[HUBB_3414228_14]**  While adjusted margins increased around **90 basis points** in 2024, we're expecting approximately **50 basis points** of increase in 2025.  **[HUBB_3414228_14]**  This reflects continued investments in growth and productivity with good payback expectations.  **[HUBB_3414228_14]** **[HUBB_3414228_26]** 

7. **Order Trends and Demand Visibility**  
   **Q:** Are you seeing true demand improvement or tariff-related pre-buying?  
   **A:** It's challenging to distinguish tariff-related pre-buys from true demand, but we closely monitor order patterns to prevent excessive pre-buying ahead of potential tariffs.  **[HUBB_3414228_18]**  Current order trends are positive, with book-to-bill ratios returning above **1**, indicating underlying demand improvement.  **[HUBB_3414228_18]** 

8. **Telecoms Business Outlook**  
   **Q:** How is the telecoms business performing, and are you rightsizing it?  
   **A:** The telecoms business saw significant declines in 2024 due to strong prior-year comparisons.  **[HUBB_3414228_24]**  We've been rightsizing the business throughout 2024 to align with current volumes, reducing our cost structure.  **[HUBB_3414228_27]**  We aim to grow the business profitably without sacrificing margins.  **[HUBB_3414228_24]** **[HUBB_3414228_27]** 

9. **M&A Pipeline and Recent Deals**  
   **Q:** What is your outlook on M&A activity?  
   **A:** We're actively pursuing M&A opportunities and have a robust pipeline across both segments.  **[HUBB_3414228_20]**  We recently closed a **$70 million** bolt-on acquisition in our Electrical segment, enhancing our wireless network capabilities.  **[HUBB_3414228_20]**  We remain well-positioned financially to invest in strategic acquisitions.  **[HUBB_3414228_20]** 

10. **Earnings Seasonality**  
    **Q:** How should we think about earnings seasonality in 2025?  
    **A:** We anticipate first-quarter earnings to contribute in the same **low 20%** range of total annual EPS as in 2024.  **[HUBB_3414228_13]**  Growth in Q1 2025 may be slightly below the full-year expectation of **4–5%** due to seasonality, with stronger growth expected in subsequent quarters.  **[HUBB_3414228_13]** 

6f05f8e7906ba3400b2f9b435c84300785f56aa51b32bbe7902319d32ccc7750

**Annual guidance for FY 2025:**  
- **Organic Growth**: 4% to 5%  **[HUBB_3414228_6]**  (no prior guidance)  
- **Utility Solutions Segment Growth**: 4% to 6%  **[HUBB_3414228_6]**  (no prior guidance)  
- **Electrical Solutions Segment Growth**: 3% to 5%  **[HUBB_3414228_6]**  (no prior guidance)  
- **Adjusted Earnings Per Share (EPS)**: $17.35 to $17.85  **[HUBB_3414228_6]**  (no prior guidance)  
- **Free Cash Flow Conversion**: At least 90% of adjusted net income  **[HUBB_3414228_6]**  (no prior guidance)  
- **Adjusted Operating Margin Expansion**: Continued expansion  **[HUBB_3414228_6]**  (no prior guidance)  
- **Volume Growth**: Expected to be a primary driver  **[HUBB_3414228_6]**  (no prior guidance)  
- **Tax Rate and Other Expenses**: Higher year-over-year, partially offset by lower net interest expense  **[HUBB_3414228_6]**  (no prior guidance)  

55f5a7fff371f5bf5b1f56aecb16bd7a904c2151f3ab0296796e0040026d8a4a

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | At least 1961  **[0001628280-24-003792_hubb-20231231.htm:68]**  | Present  | Current auditor   |

5004bed579334cfc56aa3fe3d12e2aa8bec35609499e4db985092a3808cefdef

060130a55d881916c22e8cc8e7cd70100cc7a3cbe2dc1a69aa99e48b0aba673f

9ba12d93fc72263dffb1fbe3f755bf3e3c516df86d8ee94833c4c4c6eb82de18

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,442.6 million (~+5% YoY)  **[0001628280-24-044201_hubb-20240930.htm:3]** **[0001628280-23-035804_hubb-20230930.htm:3]**   
- Utility Solutions: $933.1 million (+11% YoY)  **[0001628280-23-035804_hubb-20230930.htm:12]** **[0001628280-24-044201_hubb-20240930.htm:11]** **[0001628280-24-044201_hubb-20240930.htm:3]** **[0001628280-24-044201_hubb-20240930.htm:13]**   
- Electrical Solutions: $509.5 million (-5% YoY)  **[0001628280-23-035804_hubb-20230930.htm:12]** **[0001628280-24-044201_hubb-20240930.htm:11]** **[0001628280-24-044201_hubb-20240930.htm:3]** **[0001628280-24-044201_hubb-20240930.htm:13]**   
- United States Revenue: $887.0 million (+11% YoY)  **[0001628280-23-035804_hubb-20230930.htm:11]** **[0001628280-24-044201_hubb-20240930.htm:12]**   
- International Revenue: $46.1 million (+11% YoY)  **[0001628280-23-035804_hubb-20230930.htm:11]** **[0001628280-24-044201_hubb-20240930.htm:12]**   
- Operating Income (EBIT): $303.8 million (+10% YoY)  **[0001628280-24-044201_hubb-20240930.htm:3]** **[0001628280-23-035804_hubb-20230930.htm:3]**   
- Net Income: $219.4 million (+10% YoY)  **[0001628280-24-044201_hubb-20240930.htm:3]** **[0001628280-23-035804_hubb-20230930.htm:3]**   
- Diluted EPS: $4.06 (+10% YoY)  **[0001628280-24-044201_hubb-20240930.htm:3]** **[0001628280-23-035804_hubb-20230930.htm:3]**   
- Interest Expense: **$18.7 million (+140% YoY)**  **[0001628280-24-044201_hubb-20240930.htm:3]** **[0001628280-23-035804_hubb-20230930.htm:3]**   

c2fc1ed9301629a963bbaff6261f7ae095dae45ae7ae087fef50dfbf1f4f1039

ea3f041785634e1c65a06cdb1f4936b04859eae48dedee866e6b8cfc514331e0

6c05a84d2d7c545fd3ee7de0c3a27c47c5704c27350a978272ff96d2d9d620d9

Organic net sales growth for Utility Solutions segment (millions of dollars)

Organic net sales growth for Electrical Solutions segment (millions of dollars)

Organic net sales growth for the total company (millions of dollars)

Number of employees worldwide (employees)

8519be85ffb150d10bf999dbe2480b7251fbc4d764b322f7cef4f8de0ef47d11

| Year | Amount Due (in millions) | Debt Type                          | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|----------------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | $291.2  **[0001628280-24-044201_hubb-20240930.htm:47]** **[0001628280-24-044201_hubb-20240930.htm:24]**             | Short-Term Debt (Commercial Paper, Current Portion of Long-Term Debt, Other Short-Term Debt) | N/A                   | 15.1% = (291.2 / 1,931.5) * 100 **[0001628280-24-044201_hubb-20240930.htm:47]**                                           |
| 2026     | $399.0 **[0001628280-24-044201_hubb-20240930.htm:24]**               | Senior Notes                           | 3.35 **[0001628280-24-044201_hubb-20240930.htm:24]**          | 20.7% = (399.0 / 1,931.5) * 100 **[0001628280-24-044201_hubb-20240930.htm:47]**                                           |
| 2026     | $198.2 **[0001628280-24-044201_hubb-20240930.htm:24]**               | Term Loan                              | Adjusted SOFR (6.5)  **[0001628280-24-044201_hubb-20240930.htm:24]** **[0001628280-24-044201_hubb-20240930.htm:47]**  | 10.3% = (198.2 / 1,931.5) * 100 **[0001628280-24-044201_hubb-20240930.htm:47]**                                           |
| 2027     | $298.5 **[0001628280-24-044201_hubb-20240930.htm:24]**               | Senior Notes                           | 3.15 **[0001628280-24-044201_hubb-20240930.htm:24]**          | 15.5% = (298.5 / 1,931.5) * 100 **[0001628280-24-044201_hubb-20240930.htm:47]**                                           |
| 2028     | $447.5 **[0001628280-24-044201_hubb-20240930.htm:24]**               | Senior Notes                           | 3.50 **[0001628280-24-044201_hubb-20240930.htm:24]**          | 23.2% = (447.5 / 1,931.5) * 100 **[0001628280-24-044201_hubb-20240930.htm:47]**                                           |
| 2031     | $297.1 **[0001628280-24-044201_hubb-20240930.htm:24]**               | Senior Notes                           | 2.30 **[0001628280-24-044201_hubb-20240930.htm:24]**          | 15.4% = (297.1 / 1,931.5) * 100 **[0001628280-24-044201_hubb-20240930.htm:47]**                                           |

8b6db5333c2fc4e8b3d39e6996b24d651376f2fda57e1c1163344ab3928f96e5

- **Weakness in the Utility segment**: Organic sales in the Utility segment were down **6%** in the quarter, impacted by a **40%** decline in the Telecom market and ongoing customer inventory destocking in utility distribution, which is lasting longer than anticipated and creating headwinds for growth.  **[HUBB_3395021_11]** **[HUBB_3395021_6]**
- **Book-to-bill ratio below 1 indicating weak demand**: The company acknowledged that the book-to-bill ratio for the Utility segment is not yet back to **1**, suggesting that orders are not exceeding shipments, potentially signaling weak demand and future sales challenges.  **[HUBB_3395021_11]**
- **Margins pressured by acquisitions**: The acquisition of Systems Control, while contributing to sales growth, is dilutive to margins as it operates at margins slightly below mid-20%, creating a headwind for overall Utility segment margins.  **[HUBB_3395021_7]**

89e944a5507ecae7399ccd018c87f170090635ccc8e21ec488b5269b126202b6

- **Significant weakness in the Telecom segment is impacting Hubbell's revenues and margins**, with volumes down **40% in the first quarter** and expectations of **double-digit declines for the full year**. This weakness is a meaningful headwind for the Utility Solutions margins.  **[HUBB_3381517_8]** **[HUBB_3381517_23]** **[HUBB_3381517_16]**
- **Rising material costs**, including increases in **copper prices**, are putting pressure on Hubbell's price-cost equation, potentially impacting profitability if not offset by pricing actions. The company acknowledges that **inflation persists** and they need to keep an eye on productivity and pricing.  **[HUBB_3381517_9]**
- **Growth in the grid automation segment is expected to flatten** in the second half due to tougher year-over-year comparisons, which may lead to **slower overall growth** for Hubbell.  **[HUBB_3381517_21]**

4950ce32c3750c70a72706e3e34cd407b17399417a037c8b0a9e8cd679bd0ca0

1. **Utility Growth Outlook**  
   **Q:** When will utility growth return to mid-single digits?  
   **A:** We anticipate organic utility growth starting at the beginning of next year, as destocking ends and distribution bounces back.  **[HUBB_3404377_15]** **[HUBB_3404377_21]** 

2. **Destocking and Inventory Normalization**  
   **Q:** Is the storm impact helping to flush out channel inventory?  
   **A:** Yes, recent storms are helping to flush out inventory, leading to normalization and supporting future growth.  **[HUBB_3404377_9]** **[HUBB_3404377_17]** 

3. **Telcom Segment Outlook**  
   **Q:** How is the Telcom business expected to perform?  
   **A:** Telcom is down about **30%** this year; we expect steady, profitable growth moving forward but not a rapid bounce-back to previous levels.  **[HUBB_3404377_18]** **[HUBB_3404377_19]** 

4. **Margin Expectations for Next Year**  
   **Q:** Should we expect margins to grow next year?  
   **A:** Margin growth next year will be driven largely by incremental volume, with less impact from pricing actions.  **[HUBB_3404377_12]** **[HUBB_3404377_13]** 

5. **Pricing Trends and Strategy**  
   **Q:** How did pricing perform, and what's the outlook?  
   **A:** Pricing was positive in both segments, about **1 point** to the enterprise, and while price will remain a lever, increases will be more modest going forward.  **[HUBB_3404377_10]** **[HUBB_3404377_12]** 

6. **M&A Pipeline**  
   **Q:** What's the status of the M&A pipeline?  
   **A:** The pipeline is robust, with opportunities ranging from our typical **$50 million to $100 million** deals up to billion-dollar acquisitions.  **[HUBB_3404377_25]** 

7. **Systems Control Performance**  
   **Q:** How is Systems Control performing?  
   **A:** Systems Control had a strong third quarter with about **$120 million** in revenue; growth is strong and margins are attractive.  **[HUBB_3404377_8]** **[HUBB_3404377_29]** 

8. **Tariff Exposure**  
   **Q:** Is there concern about tariff impacts?  
   **A:** Tariff exposure has been reduced due to portfolio changes and supply chain adjustments; we're confident in managing any future impacts.  **[HUBB_3404377_18]** **[HUBB_3404377_20]** 

9. **Aclara Outlook**  
   **Q:** What's expected for Aclara?  
   **A:** We expect meters to be down, but this will be more than offset by growth in AMI and Protection & Controls, leading to overall growth.  **[HUBB_3404377_22]** 

10. **SG&A Levels**  
    **Q:** Is the current SG&A spending level sustainable?  
    **A:** Yes, the current SG&A level is sustainable and reflects reduced investments from last year.  **[HUBB_3404377_16]** 

4b42b106d477edddebccc2f4b351133b08f2e5af4e4ed9228557cd2295cd1ea3

- **Rising raw material costs, particularly higher steel prices, are expected to impact Hubbell's margins starting in Q1 2024.** William Sperry noted that the company will feel these increased costs due to the lag in the supply chain, stating, "*I think we'll feel those prices... in the first quarter and maybe the mid- to end of the first quarter.*"  **[HUBB_3371140_25]**
- **Weakness in the Telecom market presents uncertainty and potential pressure on earnings.** William Sperry mentioned that Telecom would be the first market to see a downturn, saying, "*I think Telcom would be the first to see a market down... So that's really the most noteworthy one.*"  **[HUBB_3371140_17]**  This cautious outlook may negatively impact the Utility Solutions segment.
- **Uncertainty in non-residential construction, especially in the office sector, could lead to slower growth in the Electrical Solutions segment.** William Sperry highlighted potential pressure on office-related markets, explaining, "*I just think maybe the pressure on office just feels like it puts a little bit less certainty... maybe some of that office could be weaker.*"

390e1b0b6d68d19a21d6744651e71f7bef0f0077da95a8eac621034d16763299

1. **2024 Organic Growth Outlook**  
   **Q:** How confident are you in achieving 4% organic growth in 2024?  
   **A:** Management expects **4% organic growth** for 2024, anticipating a stronger second half as headwinds from Telcom and destocking ease. Early order trends in January are **constructive**, supporting this outlook.  **[HUBB_3371140_16]** 

2. **Utility Margins**  
   **Q:** Will utility margins improve in 2024?  
   **A:** Utility margins are expected to be **flat** in 2024, as mix effects from Aclara and investments balance out. Margins should stabilize throughout the year, returning to a normal seasonal shape.  **[HUBB_3371140_24]** 

3. **Destocking Impact**  
   **Q:** How has destocking affected growth, and what is expected in 2024?  
   **A:** Destocking had a **mid-single-digit** negative impact on full-year 2023 growth in Electrical Solutions. Management anticipates this pressure will lessen in 2024, contributing to organic growth.  **[HUBB_3371140_21]** 

4. **Price-Cost Dynamics**  
   **Q:** How are price increases and cost pressures impacting margins?  
   **A:** The company anticipates **flat price-cost** in 2024, with **1 point** of rollover price offsetting commodity inflation. Productivity initiatives aim to manage non-material inflation in transportation and wages.  **[HUBB_3371140_7]** 

5. **Acquisition Strategy**  
   **Q:** What are your acquisition plans for 2024?  
   **A:** With a **healthy balance sheet** and **1.4x net leverage**, management is open to strategic acquisitions in high-growth, high-margin areas. A pipeline of opportunities may emerge in the second half of the year.  **[HUBB_3371140_26]** 

6. **Telcom Business Outlook**  
   **Q:** What is the outlook for the Telcom segment?  
   **A:** Telcom was down **20%** in Q4 2023 and is expected to be down double digits in Q1 2024. A rebound is anticipated in the second half as stimulus funding frees up.  **[HUBB_3371140_8]** 

7. **Investments and Productivity**  
   **Q:** How will investments impact productivity and margins?  
   **A:** An additional **$10 million** will be invested in restructuring and footprint optimization in 2024, with expected paybacks over **three years**. Improved productivity is embedded in the company's guidance.  **[HUBB_3371140_18]** 

8. **Electrical Solutions Margins**  
   **Q:** Are margins in Electrical Solutions expected to expand in 2024?  
   **A:** Margins are expected to be **flat to slightly expanding**. Benefits from restructuring and the exit of the lower-margin lighting business contribute to improved performance.  **[HUBB_3371140_15]** 

9. **Steel Price Impact**  
   **Q:** How will rising steel prices affect your costs?  
   **A:** Steel price increases starting in November 2023 will impact costs in early 2024, with effects felt in the mid to end of the first quarter.  **[HUBB_3371140_25]** 

10. **Utility Demand and Capacity**  
    **Q:** Can you meet the growing demand in Utility markets?  
    **A:** More work is needed to enhance factory throughput. Capital investments are ongoing to support growth, particularly in **Transmission and Substation** markets.  **[HUBB_3371140_9]** 

d704b901d4b0453ac1c3af1d0b79326633e7b93998819e0afa382ff6fb73b64e

- **Hubbell is continuing to optimize its Electrical Solutions segment through footprint consolidation and operational improvements, leading to potential margin expansion opportunities over the next few years.**  **[HUBB_3371140_22]**
- **Strong demand in data centers and renewables verticals is benefiting Hubbell's PCX and Burndy businesses, contributing to volume growth in the Electrical Solutions segment.**  **[HUBB_3371140_14]**
- **Ongoing capital investments to expand capacity, particularly in the Transmission and Substation markets, are expected to support growth embedded in the company's guidance.**  **[HUBB_3371140_9]**

992f9a35b293e69166b1d0aa6ebf23be327a840ac98859fe4406fdff5cca0fac

- 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**.  **[HUBB_3362982_19]**
- 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.  **[HUBB_3362982_11]**
- 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.  **[HUBB_3362982_18]** **[HUBB_3362982_21]**

da9dd2bf4d636f2275b552cdfe3ed9556a6cca8a9d59ef25b26827ae5c99c6e7

- **Margins in the Utility Solutions segment are expected to improve in the second half of the year**, driven by increased organic volumes and stable pricing, signaling a positive outlook for profitability.  **[HUBB_3395021_2]**
- **Transmission and substation markets are experiencing strong double-digit organic growth**, indicating robust demand in high-margin areas and contributing significantly to Hubbell's performance.  **[HUBB_3395021_17]**
- **End-market demand in the Utility segment remains strong**, with utility customers increasing capital expenditure budgets and continued investment, particularly in transmission and substation projects, despite some destocking in distribution channels.  **[HUBB_3395021_4]**

9200335db8c6da1ecf04bd64f5323e51196117c8c790885305bc3246acf1c646

- **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.  **[HUBB_3362982_19]**
- **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.  **[HUBB_3362982_7]**
- **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.  **[HUBB_3362982_11]**

0b6906bc5bdc2d99f5c2d9a2c64485b77da9c78d1f8638c91524b52b442e2d9b

1. **Telecom Business Outlook**  
   **Q:** What's the full-year outlook for Telecom business?  
   **A:** Management expects the Telecom business to be **down double digits** for the full year, with the second quarter continuing the first quarter's weakness. They believe the decline is due to inventory normalization rather than end-market weakness and anticipate a rebound once inventories reach normal levels ( **[HUBB_3381517_16]** ,  **[HUBB_3381517_24]** ,  **[HUBB_3381517_25]** ).

2. **Utility Margins Expectations**  
   **Q:** How will Utility margins trend this year?  
   **A:** Utility margins are expected to increase sequentially in the second and third quarters, then decline in the fourth quarter, resulting in **flattish margins year-over-year**. Management is intentionally investing in capacity, which creates a short-term drag but positions the business for multiyear growth ( **[HUBB_3381517_10]** ,  **[HUBB_3381517_13]** ,  **[HUBB_3381517_17]** ).

3. **Electrical Segment Outlook**  
   **Q:** Is there upside to Electrical segment's 3-4% growth guidance?  
   **A:** Management is encouraged by the strong first-quarter performance and maintains the **3-4% full-year organic growth** outlook for the Electrical segment. They hint at potential upside, driven by electrification trends and robust industrial demand ( **[HUBB_3381517_20]** ,  **[HUBB_3381517_22]** ).

4. **Supply-Demand in Utilities**  
   **Q:** Has the Utility supply-demand environment shifted?  
   **A:** The company is investing in capacity expansion in areas with **visible long-term growth**, such as Transmission and Substation. Supply chain conditions are improving, with service levels rising and lead times returning to normal, aligning with customer needs and demand ( **[HUBB_3381517_14]** ).

5. **Distribution Growth and Inventory**  
   **Q:** What is the status of distribution growth and inventory levels?  
   **A:** Distribution markets are growing, but utility customers have elevated inventories, causing softer order patterns. Channel inventories are normalizing, and management expects a **rebound in demand** as inventory levels stabilize. The ramp-up is slightly delayed but shows encouraging signs ( **[HUBB_3381517_7]** ,  **[HUBB_3381517_11]** ).

6. **Price/Cost Dynamics**  
   **Q:** How is the price/cost equation developing?  
   **A:** Despite material cost inflation, the company achieved **3 points of price** in the first quarter, exceeding the anticipated 1 point. Pricing remains strong, with surgical adjustments as needed, helping to offset costs and support margins. Productivity initiatives complement pricing actions ( **[HUBB_3381517_8]** ,  **[HUBB_3381517_13]** ).

7. **Investments and Spending**  
   **Q:** What are the investment plans for the year?  
   **A:** Investments focus on capacity expansion in the Utility segment and restructuring in the Electrical segment, adding **$0.10 to the annual outlook**. Spending is expected to be relatively even throughout the year, supporting long-term growth and competitiveness ( **[HUBB_3381517_18]** ).

8. **Impact of M&A on Margins**  
   **Q:** How did the Systems Control acquisition affect margins?  
   **A:** The acquisition's impact was modest, with Systems Control's margins in the mid-20s slightly dilutive due to scale. Operational investments also created a **point of drag** on margins, but management is prioritizing long-term capacity growth over short-term margin optimization ( **[HUBB_3381517_13]** ,  **[HUBB_3381517_17]** ).

9. **Electrification and Industrial Demand**  
   **Q:** What drives growth in industrial markets?  
   **A:** Electrification trends, onshoring, and large-scale projects like semiconductor plants are driving **broad-based strength** in industrial markets. The company is well-positioned to benefit from these trends, with renewables and data centers each accounting for less than 10% of segment sales but offering significant growth opportunities ( **[HUBB_3381517_22]** ,  **[HUBB_3381517_23]** ).

10. **Meters and AMI Business Outlook**  
    **Q:** Will Meters and AMI growth continue in second half?  
    **A:** Management expects the impressive growth seen in the first quarter to **flatten** in the second half due to tougher comparisons and backlog management. They anticipate stable performance rather than a decline ( **[HUBB_3381517_21]** ).

cf867652c542520fe5d808d5d0f18b54f8baf6b7a27f4a78a1b6586aecf59247

1. **Full-Year Guidance and Margin Outlook**  
   **Q:** What drove the uplift in full-year guidance despite lower sales?  
   **A:** We adjusted our margin guidance upward to reflect an expected increase of **10 to 50 basis points**.  **[HUBB_3395021_23]**  This improvement stems from better-than-anticipated performance in the first half and operational efficiencies, even though we've slightly trimmed our sales outlook.  **[HUBB_3395021_23]** 

2. **Telecom Segment Performance**  
   **Q:** What's the updated Telecom sales expectation for the year?  
   **A:** After Telecom sales were down **40%** in both Q1 and Q2, we've adjusted our full-year expectation to be down approximately **25%**.  **[HUBB_3395021_13]**  The downturn lasted longer than expected, but we believe we're at the bottom and anticipate gradual improvement moving forward.  **[HUBB_3395021_15]** 

3. **Utility Margins and Pricing**  
   **Q:** Any color on Utility margins and impact from pricing?  
   **A:** We expect Utility margins to improve in the second half due to returning organic volume.  **[HUBB_3395021_8]** **[HUBB_3395021_9]**  Despite fluctuations in steel and copper prices, we're not facing pressure to reduce prices and continue managing costs like labor and transportation effectively.  **[HUBB_3395021_8]** **[HUBB_3395021_9]** 

4. **Utility Inventory Destocking**  
   **Q:** Where do we stand on inventory destocking in Utilities?  
   **A:** Destocking in the utility distribution side lasted longer than anticipated but shows signs of improvement.  **[HUBB_3395021_6]**  It's uneven across product lines, but where destocking has ended, demand is picking up.  **[HUBB_3395021_6]**  Strong end demand is supported by growing utility CapEx budgets and continued customer investment.  **[HUBB_3395021_6]** 

5. **Transmission and Substation Growth**  
   **Q:** Is transmission and substation growing double-digit, including Systems Control?  
   **A:** Yes, transmission and substation are growing at **double-digit** rates organically.  **[HUBB_3395021_7]**  Systems Control is also growing at a similar pace compared to last year.  **[HUBB_3395021_7]**  Its margins are attractive, just below the **mid-20s**, adding positively despite slight mix-related margin dilution.  **[HUBB_3395021_7]** 

6. **Second Quarter Electrical Operating Profit**  
   **Q:** Why did Electrical op profit grow more than revenue sequentially in Q2?  
   **A:** The increase was due to favorable mix from strong growth in data centers and renewables—high-margin areas—as well as productivity improvements and cost control.  **[HUBB_3395021_17]**  The absence of the residential lighting business also contributed to higher margins.  **[HUBB_3395021_17]** 

7. **Steel Prices and Margin Tailwinds**  
   **Q:** Will lower steel prices provide margin tailwinds?  
   **A:** While steel prices have declined, other costs like copper, labor, and transportation have fluctuated, offsetting potential benefits.  **[HUBB_3395021_10]** **[HUBB_3395021_11]**  Overall, these factors are balancing out, and we're mixing back to our plan without significant margin tailwinds from steel.  **[HUBB_3395021_10]** **[HUBB_3395021_11]** 

8. **Aclara Backlog and Visibility**  
   **Q:** What's the outlook for Aclara's backlog and orders into 2025?  
   **A:** We're seeing increased pipeline activity and have secured projects that will ship next year.  **[HUBB_3395021_16]**  While it's early to discuss 2025 in detail, we're actively bidding on projects to fill our pipeline and observe customer appetite for continued investment.  **[HUBB_3395021_16]** 

9. **Second Half Seasonality Expectations**  
   **Q:** How should we think about earnings seasonality in H2, particularly Q3 vs. Q4?  
   **A:** Typically, Q2 and Q3 are our strongest quarters, forming the "head" of the year, with Q4 seeing a seasonal step-down.  **[HUBB_3395021_14]** **[HUBB_3395021_9]**  We expect this pattern to continue in 2024, with earnings potentially flattening in Q3 and then declining in Q4.  **[HUBB_3395021_14]** 

10. **General Industrial Demand Trends**  
    **Q:** Is general industrial demand solid outside of key verticals?  
    **A:** Yes, general industrial demand, including distribution and MRO, remains particularly solid.  **[HUBB_3395021_20]**  This excludes high-growth verticals like data centers and renewables.  **[HUBB_3395021_20]** 

c0c4f1b3bb413e6d90d5c30e86096ca0ee8c624c0fa5b1ab5eb80683c241f3b2

- **The Electrical segment outperformed expectations in the first quarter, suggesting potential upside beyond the original organic growth outlook of 3% to 4% for the full year.**  **[HUBB_3381517_20]**
- **Better than expected price realization contributed to a stronger price/cost position, with 3 points of price in the first quarter compared to the initial outlook of 1 point.**  **[HUBB_3381517_8]**
- **Hubbell is poised to benefit from multiyear projects such as chip plants and reshoring of large-scale industrial projects, which serve as strong leading indicators for future growth.**  **[HUBB_3381517_25]**

9144237db14d20d0df2617807522c21ed9e9988585d328fe0caaf25393ca4a7f

Hubbell Inc (HUBB)

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