Slide 1: Second Quarter 2023 Earnings Call
Second Quarter 2023 Earnings Call July 25, 2023
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures Forward Looking Statements Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements about expectations regarding our financial re
Slide 3: Key Messages
Key Messages 1 Strong organic growth 2 Favorable Price | Cost | Productivity continues to drive significant margin expansion 3 Supply chain environment normalizing 4 Raising 2023 outlook; accelerating investments in 2H 3
Slide 4: Segment Leadership Update
Segment Leadership Update In Front of the Meter: Behind the Meter: Hubbell Utility Solutions Hubbell Electrical Solutions Greg Gumbs – President Utility Solutions Mark Mikes – President Electrical Solutions Proven leadership track record in utility, electrical Established track record of success
Slide 5: 2Q 2023 Results
2Q 2023 Results $1.37B Organic net sales growth driven by strong price realization Sales Continued double-digit growth in Utility Solutions (Organic +6%, Acquisitions +3%) 22.4% Robust margin expansion on favorable Price | Cost | Productivity Adj. OP Margin Improved supply chain environment
Slide 6: 2Q 2023 Results
2Q 2023 Results NET SALES ADJUSTED OPERATING PROFIT $ millions $ millions +47% +9% 1,366 306 1,256 22.4% 208 16.6% 2Q 2022 2Q 2023 2Q 2022 2Q 2023 ADJUSTED DILUTED EPS FREE CASH FLOW $ per share +45% $ millions +14% $4.07 192 168 $2.81 2Q 2022 2Q 2023 2Q 2022 2Q 2023 Strong second quarter results 6
Slide 7: 2Q 2023 Hubbell Utility Solutions (HUS) Segment Results
2Q 2023 Hubbell Utility Solutions (HUS) Segment Results UTILITY SOLUTIONS NET SALES UTILITY SOLUTIONS ADJ. OPERATING PROFIT $ millions $ millions +14% +70% 831 213 729 25.6% 125 17.2% 2Q 2022 2Q 2023 2Q 2022 2Q 2023 Organic +13%; acquisition +1% T&D Components +13% Price | Cost positive Dist
Slide 8: Growth Spotlight: Transmission
Growth Spotlight: Transmission TRENDS RECENT WINS INVESTMENT Renewable generation growth drives need for Strong franchise leading the electric T&D Transmission capacity investment needed to increased transmission investment industry in depth, breadth & reliability serve strong demand IRA stimulus
Slide 9: 2Q 2023 Hubbell Electrical Solutions (HES) Segment Results
2Q 2023 Hubbell Electrical Solutions (HES) Segment Results ELECTRICAL SOLUTIONS NET SALES ELECTRICAL SOLUTIONS ADJ. OPERATING PROFIT $ millions +1% $ millions +12% 528 535 93 83 17.3% 15.7% 2Q 2022 2Q 2023 2Q 2022 2Q 2023 Organic -4%; acquisition +5% Price | Cost positive Commercial markets mo
Slide 10: 2023 Outlook
2023 Outlook Updated 2023 +8-10% $14.75 – $15.25 >$700M Full Year Total Sales Growth y/y Adjusted EPS Outlook (+7-9% Organic; +1% M&A) (~40% y/y growth at midpoint) Free Cash Flow 1H to 2H Sequential Considerations Modest 1H to 2H volume growth Maintain favorable, but narrowing Price | Cost spre
Slide 11: Appendix
HUBBELL Appendix
Slide 12: Appendix
Appendix References to "adjusted" operating measures exclude the impact of certain costs, gains or losses. Management In connection with our restructuring and related actions, we have incurred restructuring costs as defined by U.S. believes these adjusted operating measures provide useful informatio
Slide 13: Appendix
Appendix Reconciliation of Adjusted Net Income From Continuing Operations to the most directly comparable GAAP measure (millions): Hubbell Incorporated Three Months Ended June 30, Six Months Ended June 30, 2023 2022 Change 2023 2022 Change Net income from continuing operations attributable to Hubbel
Slide 14: Appendix
Appendix Reconciliation of Adjusted Operating Margin to the most directly comparable GAAP measure (millions): Hubbell Incorporated Three Months Ended June 30, Six Months Ended June 30, 2023 2022 Change 2023 2022 Change Net Sales [a] $ 1,365.9 $ 1,256.0 9% $ 2,651.3 $ 2,412.1 10 % Operating Income GA
Slide 15: Appendix
Appendix Reconciliation of Organic Net Sales Growth to Net Sales Growth (millions and percentage): Hubbell Incorporated Three Months Ended June 30, Six Months Ended June 30, 2023 Inc/(Dec)% 2022 Inc/(Dec)% 2023 Inc/(Dec)% 2022 Inc/(Dec)% Net sales growth (GAAP measure) $ 109.9 8.7 $ 201.7 19.1 $ 239
Slide 16: Appendix
Appendix Reconciliation of Net Debt to the most directly comparable GAAP measure (millions): Hubbell Incorporated June 30, 2023 December 31, 2022 Total Debt (GAAP measure) $ 1,440.9 $ 1,442.6 Total Hubbell Shareholders’ Equity 2,620.7 2,360.9 Total Capital $ 4,061.6 $ 3,803.5 Total Debt to Total Cap