Slide 1: Second Quarter 2024 Earnings Call
Second Quarter 2024 Earnings Call July 30, 2024
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 statements generally relate to our expectations and beliefs rega
Slide 3: Key Messages
Key Messages 1 HES vertical market momentum and operational execution 2 Utility T&D end market demand strong 3 Adjusted operating margin expansion 4 Raising 2024 outlook 3
Slide 4: 2Q 2024 Results
2Q 2024 Results $1.45B Favorable price realization Sales Electrical markets and Utility T&D end demand strong; telcom markets weak as anticipated (Organic +2%, Net M&A +5%) 22.8% Favorable Price | Cost | Productivity Adj. OP Margin Impact of portfolio transformation (+40bps y/y) $4.37 +8%
Slide 5: 2Q 2024 Results
2Q 2024 Results NET SALES ADJUSTED OPERATING PROFIT $ millions $ millions +6% +8% 1,453 331 306 1,366 22.8% 22.4% 2Q 2023 2Q 2024 2Q 2023 2Q 2024 ADJUSTED DILUTED EPS FREE CASH FLOW $ per share $ millions +7% +7% $4.37 206 192 $4.07 2Q 2023 2Q 2024 2Q 2023 2Q 2024 Strong operating performance 5
Slide 6: 2Q 2024 Hubbell Utility Solutions (HUS) Segment Results
2Q 2024 Hubbell Utility Solutions (HUS) Segment Results UTILITY SOLUTIONS NET SALES UTILITY SOLUTIONS ADJ. OPERATING PROFIT $ millions $ millions +12% +4% 927 222 213 831 24.0% Organic -1% 25.6% Acquisitions +13% 2Q 2023 2Q 2024 2Q 2023 2Q 2024 Grid Infrastructure +12% (organic -6%) Solid price re
Slide 7: 2Q 2024 Hubbell Electrical Solutions (HES) Segment Results
2Q 2024 Hubbell Electrical Solutions (HES) Segment Results ELECTRICAL SOLUTIONS NET SALES ELECTRICAL SOLUTIONS ADJ. OPERATING PROFIT $ millions $ millions -2% +18% 535 526 109 20.8% Organic +7% 93 Divestiture -9% 17.3% 2Q 2023 2Q 2024 2Q 2023 2Q 2024 Electrification driving strong project activity
Slide 8: Growth Spotlight: Utility Substation Switches and Electrical Grounding
Growth Spotlight: Utility Substation Switches and Electrical Grounding Utility Substation Switches Electrical Grounding Substations typically constructed concurrently with large Grounding solutions typically installed at beginning of large industrial projects to enable load growth industrial project
Slide 9: Raising 2024 Outlook
Raising 2024 Outlook +7-8% 21.0 to 21.5% $16.20 to $16.50 ~$800M Total Sales Growth y/y Adjusted Operating Margin Adjusted EPS Free Cash Flow (~3% Organic and ~5% Net M&A) (up 0-50bps y/y) (up 6-8% y/y) (up double digits y/y) Utility Solutions 2H Considerations Electrical Solutions 2H Considerations
Slide 10: Appendix
APPENDIX ED
Slide 11: Appendix
Appendix References to "adjusted" operating measures exclude the impact of certain costs, gains or losses. Management believes In connection with our restructuring and related actions, we have incurred restructuring costs as defined by U.S. GAAP, which these adjusted operating measures provide usefu
Slide 12: Appendix
Appendix Reconciliation of Adjusted Net Income to the most directly comparable GAAP measure (millions): Hubbell Incorporated Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Change 2024 2023 Change Net income attributable to Hubbell (GAAP measure) $ 213.6 $ 206.8 3 % $ 361.4 $ 388.7 (
Slide 13: 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, 2024 2023 Change 2024 2023 Change Net Sales [a] $ 1,452.5 $ 1,365.9 6% $ 2,851.6 $ 2,651.3 8% Operating Income GAAP
Slide 14: Appendix
Appendix Reconciliation of Organic Net Sales Growth to Net Sales Growth (millions and percentage change): Hubbell Incorporated Three Months Ended June 30, Six Months Ended June 30, 2024 Inc/(Dec)% 2023 Inc/(Dec)% 2024 Inc/(Dec)% 2023 Inc/(Dec)% Net sales growth (GAAP measure) $ 86.6 6.3 $ 109.9 8.7
Slide 15: Appendix
Appendix Reconciliation of Net Debt to the most directly comparable GAAP measure (millions): Hubbell Incorporated June 30, 2024 December 31, 2023 Total Debt (GAAP measure) $ 2,003.2 $ 2,140.6 Total Hubbell Shareholders’ Equity 3,052.6 2,877.0 Total Capital $ 5,055.8 $ 5,017.6 Total Debt to Total Cap