Slide 1: Fourth Quarter 2023 Earnings Call
Fourth Quarter 2023 Earnings Call January 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 include statements about expectations regarding our financial re
Slide 3: Key Messages
Key Messages 1 Solid volume growth and continued strong price realization 2 Robust margin expansion driven by favorable Price | Cost | Productivity 3 Portfolio actions improve growth/margin profile; expect net accretive to 2024 adj. EPS 4 2024 outlook anticipates attractive profitable growth off str
Slide 4: 4Q 2023 Results
4Q 2023 Results $1.35B Solid volume growth and continued strong price realization Sales Strong growth in Utility Comms & Controls and Electrical Solutions (Organic +8%, Acquisitions +2%) 19.4% Robust margin expansion driven by favorable Price | Cost | Productivity Adj. OP Margin Continued in
Slide 5: 4Q 2023 Results
4Q 2023 Results NET SALES ADJUSTED OPERATING PROFIT $ millions +10% $ millions +34% 1,346 262 1,220 195 19.4% 16.0% 4Q 2022 4Q 2023 4Q 2022 4Q 2023 ADJUSTED DILUTED EPS FREE CASH FLOW $ per share +42% $ millions +57% $3.69 284 $2.60 180 4Q 2022 4Q 2023 4Q 2022 4Q 2023 Strong finish to a strong year
Slide 6: 4Q 2023 Hubbell Utility Solutions (HUS) Segment Results
4Q 2023 Hubbell Utility Solutions (HUS) Segment Results UTILITY SOLUTIONS NET SALES UTILITY SOLUTIONS ADJ. OPERATING PROFIT $ millions $ millions +13% +41% 811 174 716 123 21.4% 17.2% 4Q 2022 4Q 2023 4Q 2022 4Q 2023 Organic +9%; acquisitions +4% T&D Components +4% (organic +1%) Price | Cost po
Slide 7: 4Q 2023 Hubbell Electrical Solutions (HES) Segment Results
4Q 2023 Hubbell Electrical Solutions (HES) Segment Results ELECTRICAL SOLUTIONS NET SALES ELECTRICAL SOLUTIONS ADJ. OPERATING PROFIT $ millions $ millions +6% +23% 534 88 503 16.5% 72 14.3% 4Q 2022 4Q 2023 4Q 2022 4Q 2023 Organic +6% Industrial markets supported by electrification and US reshori
Slide 8: Active Portfolio Management
Active Portfolio Management DIVESTITURES HUBBELL PORTFOLIO Sold C&I Lighting, Haefely high voltage and Aclara consumer engagement Definitive agreement to sell Residential Lighting (anticipated close in early Feb) >$500M in net proceeds from asset sales Exited more cyclical and competitive bu
Slide 9: Outlook
024 Outlook HUBBELL
Slide 10: 2024 Market Outlook
2024 Market Outlook HUBBELL UTILITY SOLUTIONS (HUS) HUBBELL ELECTRICAL SOLUTIONS (HES) Utility T&D markets up >MSD driven by grid modernization & electrification Portfolio aligned to megatrends and positioned for structurally higher growth Transmission robust on renewables projects and grid in
Slide 11: 2024 Outlook
2024 Outlook 2024 OUTLOOK 2024 EPS BRIDGE +8-10% +1% price offset by mat’l HES footprint optimization - Net interest +2-4% volume inflation $16.00 Total Sales Growth y/y growth expense to Productivity +3-5% Organic offsets other + TSA income $16.50 (~$20M) ~$90M +5% Net M&A adjusted OP adjusted OP c
Slide 12: Driving Continued Profitable Growth Off Strong Multi-Year Performance Base
Driving Continued Profitable Growth Off Strong Multi-Year Performance Base NET SALES ADJUSTED OPERATING PROFIT $ millions $ millions +8-11% +8-10% +26%CAGR +13%CAGR 1,129 5,373 4,948 788 21.0% 21.4% 4,194 567 610 3,683 15.9% 15.4% 14.5% 17.0% 2020 2021 2022 2023 2024E 2020 2021 2022 2023 2024E ADJUS
Slide 13: Appendix
APPENDIX USBELL
Slide 14: Appendix
APPENDIX References to "adjusted" operating measures exclude the impact of certain costs, gains or losses. Management Organic net sales, a non-GAAP measure, represent net sales according to U.S. GAAP, less net sales from believes these adjusted operating measures provide useful information regarding
Slide 15: Appendix: Adjusted Net Income and EPS Reconciliation
APPENDIX Reconciliation of Adjusted Net Income From Continuing Operations to the most directly comparable GAAP measure (millions): Hubbell Incorporated Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 Change 2023 2022 Change Net income from continuing operations attributabl
Slide 16: Appendix: Adjusted Operating Margin Reconciliation
APPENDIX Reconciliation of Adjusted Operating Margin to the most directly comparable GAAP measure (millions): Hubbell Incorporated Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 Change 2023 2022 Change Net Sales [a] $ 1,345.8 $ 1,219.6 10 % $ 5,372.9 $ 4,947.9 9% Operatin
Slide 17: Appendix: Organic Net Sales Growth Reconciliation
APPENDIX Reconciliation of Organic Net Sales Growth to Net Sales Growth (millions and percentage): Hubbell Incorporated Three Months Ended December 31, Twelve Months Ended December 31, 2023 Inc/(Dec)% 2022 Inc/(Dec)% 2023 Inc/(Dec)% 2022 Inc/(Dec)% Net sales growth (GAAP measure) $ 126.2 10.3 $ 119.
Slide 18: Appendix: Free Cash Flow and Net Debt Reconciliation
APPENDIX Reconciliation of Free Cash Flow to the most directly comparable GAAP measure (millions): Three Months Ended December Twelve Months Ended 31, December 31, 2023 2022 2023 2022 Net cash provided by operating activities from continuing operations (GAAP measure) $ 345.5 $ 242.4 $ 880.8 $ 636.2