Hubbell Incorporated Reports 4.7% Net Sales Increase to $5.63 Billion for Fiscal Year 2024

Hubbell Incorporated reported a net sales increase of 4.7% for the fiscal year ending December 31, 2024, reaching $5.63 billion, compared to $5.37 billion in 2023. The company's net income from continuing operations attributable to Hubbell rose by 2.4% to $777.8 million, with diluted earnings per share increasing to $14.37 from $14.05 in the previous year. Adjusted net income, which excludes certain costs, increased by 8.1% to $896.8 million, reflecting improved operational efficiency and pricing strategies despite facing material and other cost inflation.

The Utility Solutions segment, which accounted for 64% of total revenues, saw net sales grow by 10.4% to approximately $3.6 billion, driven by acquisitions and strong demand in transmission and substation markets. However, organic sales in this segment declined by 2.4%, primarily due to reduced unit volumes in enclosure products linked to weakness in the telecommunications market. Conversely, the Electrical Solutions segment experienced a 3.9% decrease in net sales to $2.03 billion, impacted by the divestiture of the residential lighting business, which generated $187.1 million in sales in 2023.

Strategically, Hubbell completed several acquisitions in 2023, including Systems Control for approximately $1.1 billion, enhancing its capabilities in substation control solutions. The company also divested its residential lighting business for $131 million, resulting in a pre-tax loss of $5.3 million. These moves are part of Hubbell's ongoing strategy to optimize its portfolio and focus on core competencies in utility and electrical solutions.

Operationally, Hubbell's employee headcount stood at approximately 17,700 as of December 31, 2024, with 60% based in the United States. The company reported a backlog of $1.9 billion at year-end, down from $2.3 billion in 2023, with expectations that most of this backlog will be fulfilled in 2025. The company continues to invest in productivity initiatives and restructuring efforts to mitigate rising material costs and enhance operational efficiency.

Looking ahead, Hubbell anticipates ongoing inflationary pressures and potential economic slowdowns that could impact customer demand. The company plans to maintain its pricing actions and productivity improvements to protect its margins. Additionally, the recent acquisition of Ventev for approximately $72 million in February 2025 is expected to further strengthen its position in the electrical solutions market.