Overview

* Hubbell Q2 net sales rise 2% but miss analyst expectations

* Adjusted EPS of $4.93 beats estimates, reflecting strong operational performance

* Co raises 2025 adjusted EPS outlook, reflecting confidence in growth

Outlook

* Hubbell expects 2025 adjusted EPS outlook of $17.65-$18.15

* Company expects 2025 organic net sales growth of 4-6%

* Hubbell anticipates 90% free cash flow conversion on adjusted net income

Result Drivers

* GRID INFRASTRUCTURE - 7% organic growth driven by strong demand for substation and transmission products

* ELECTRICAL SOLUTIONS - 4% organic growth fueled by strength in datacenter markets

* INVENTORY ACCOUNTING CHANGE - Transition to FIFO method decreased COGS by $29 mln, improving margins

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $1.48 $1.51

Revenue bln bln (11

Analysts

)

Q2 Beat $4.93 $4.41

Adjusted (12

EPS Analysts

)

Q2 EPS $4.56

Q2 Net $245.50

Income mln

Q2 24.4%

Adjusted

Operatin

g Margin

Q2 Free $221 mln

Cash

Flow

Q2 22.7%

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electrical components & equipment peer group is "buy"

* Wall Street's median 12-month price target for Hubbell Inc ( HUBB ) is $428.50, about 2.3% below its July 28 closing price of $438.31

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)