tiprankstipranks
Trending News
More News >
Hubbell B (HUBB)
NYSE:HUBB
Advertisement

Hubbell B (HUBB) AI Stock Analysis

Compare
384 Followers

Top Page

HUBB

Hubbell B

(NYSE:HUBB)

Select Model
Select Model
Select Model
Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
$508.00
â–²(16.72% Upside)
Hubbell B's strong financial performance and positive earnings call are the most significant factors driving the score. The stock's technical indicators show a strong upward trend, although valuation metrics suggest it is relatively expensive. Recent corporate events further bolster the company's strategic position.
Positive Factors
Revenue Growth
Consistent revenue growth indicates robust market demand and effective business strategies, enhancing long-term financial stability.
Operating Margin Expansion
Operating margin expansion reflects efficient cost management and pricing strategies, contributing to sustainable profitability.
Strategic Acquisition
The acquisition aligns with infrastructure trends, strengthening Hubbell's market position and future earnings potential.
Negative Factors
Grid Automation Weakness
Weakness in grid automation could impact future growth, as this segment faces challenges in maintaining project pipelines.
Impact of Tariffs and Inflation
Cost inflation due to tariffs and raw materials could pressure margins, requiring ongoing price adjustments to maintain profitability.
Aclara Segment Challenges
Challenges in the Aclara segment highlight potential risks in maintaining consistent revenue streams from this business unit.

Hubbell B (HUBB) vs. SPDR S&P 500 ETF (SPY)

Hubbell B Business Overview & Revenue Model

Company DescriptionHubbell Incorporated, together with its subsidiaries, designs, manufactures, and sells electrical and electronic products in the United States and internationally. It operates through two segments, Electrical Solution and Utility Solution. The Electrical Solution segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies for the natural gas distribution market. It also designs and manufactures various industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product-oriented Internet sites; and special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers. The Utility Solution segment designs, manufactures, and sells distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures; and utility infrastructure products, including smart meters, communications systems, and protection and control devices. This segment sells its products to distributors, as well as directly to users, such as utilities, telecommunication companies, industrial firms, and construction and engineering firms. Its brand portfolio includes Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, Hot Box, etc. The company was founded in 1888 and is headquartered in Shelton, Connecticut.
How the Company Makes MoneyHubbell generates revenue through the sale of its diverse portfolio of electrical and electronic products across multiple sectors. Key revenue streams include the distribution of lighting and electrical components, which are sold to wholesalers, contractors, and original equipment manufacturers (OEMs). The company also earns income from utility solutions, including transmission and distribution products, which serve public and private utilities. Significant partnerships with electrical distributors and strategic alliances with OEMs enhance Hubbell's market reach and facilitate steady revenue generation. Additionally, the company benefits from ongoing infrastructure investments and the growing demand for energy-efficient products, which contribute positively to its earnings.

Hubbell B Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong organic growth and operating margin expansion, a positive full year outlook, and successful adoption of FIFO accounting. However, challenges such as grid automation weakness, tariff impacts, and Aclara segment decline were noted.
Q2-2025 Updates
Positive Updates
Strong Organic Growth in Key Segments
Hubbell delivered double-digit adjusted earnings per share growth in the second quarter, driven by strong organic growth in Grid Infrastructure and Electrical Solutions. Grid Infrastructure saw 7% organic growth, and Electrical Solutions delivered mid-single-digit organic growth.
Operating Margin Expansion
Year-over-year adjusted operating margin expanded by 120 basis points, supported by favorable mix dynamics and effective price/cost management.
Increased Full Year Outlook
Hubbell raised its full-year adjusted earnings per share outlook to a range of $17.65 to $18.15, reflecting confidence in achieving strong financial performance.
Successful Transition to FIFO Accounting
The adoption of a unified FIFO-based inventory accounting standard led to a $29 million decrease in COGS in Q2, contributing $0.30 to EPS in the first half.
Strong Order Book
Grid infrastructure orders remained strong, up high teens year-over-year in the first half, supporting expectations for continued growth.
Negative Updates
Grid Automation Weakness
Grid automation segment experienced a 13% contraction due to roll-off of large projects and backlog issues.
Impact of Tariffs and Raw Material Inflation
Raw material inflation and tariffs are driving incremental cost inflation, requiring proactive price and productivity adjustments.
Aclara Segment Challenges
Aclara, part of the grid automation segment, faced a 20% decline due to roll-off of large projects and backlog normalization.
Company Guidance
During Hubbell's Second Quarter 2025 Earnings Conference Call, the company reported robust financial performance, highlighting double-digit adjusted earnings per share growth and a 120 basis point year-over-year increase in adjusted operating margin. The call revealed a 7% organic growth in grid infrastructure within Utility Solutions and mid-single-digit organic growth in Electrical Solutions, with a notable 9% rise in adjusted operating profit. The company raised its full-year adjusted EPS outlook to $17.65-$18.15, indicating confidence in navigating macroeconomic and inflationary challenges. Hubbell transitioned to a FIFO-based inventory accounting to enhance cost consistency, resulting in a $29 million decrease in COGS for the second quarter. The company also noted strong order performance in grid infrastructure, with orders up high teens year-over-year in the first half, supporting expectations for continued organic growth in the latter half of the year.

Hubbell B Financial Statement Overview

Summary
Hubbell B demonstrates strong financial health with impressive revenue and profit growth, stable margins, and effective cash flow management. The balance sheet reflects healthy leverage and asset management, contributing to robust shareholder returns.
Income Statement
85
Very Positive
Hubbell B shows strong revenue growth with a significant increase from $4.19 billion in 2020 to $5.63 billion in TTM 2025. Gross profit margin has improved, with a TTM figure of 34.5%, indicating effective cost management. The net profit margin also improved from 8.4% in 2020 to 14.6% in TTM 2025, showcasing enhanced profitability. Consistent EBIT and EBITDA margins indicate stable operational performance.
Balance Sheet
78
Positive
The company maintains a healthy balance sheet with a steady equity ratio of approximately 49% in TTM 2025, reflecting a balanced asset structure. The debt-to-equity ratio has slightly increased but remains manageable, indicating prudent leverage management. Return on equity has improved to 23.5% in TTM 2025, highlighting effective use of shareholder funds.
Cash Flow
82
Very Positive
Operating cash flow to net income ratio remains strong at 1.16 in TTM 2025, showing excellent cash generation. Free cash flow has seen robust growth from $454 million in 2022 to $785 million in TTM 2025. The free cash flow to net income ratio of 0.95 in TTM 2025 underscores efficient cash utilization.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.63B5.63B5.37B4.95B4.19B3.68B
Gross Profit1.95B1.90B1.89B1.47B1.15B1.09B
EBITDA1.32B1.29B1.17B855.10M663.10M629.10M
Net Income830.30M777.80M759.80M545.90M399.50M351.20M
Balance Sheet
Total Assets7.15B6.68B6.91B5.40B5.28B5.09B
Cash, Cash Equivalents and Short-Term Investments399.60M345.00M348.70M454.80M295.60M267.90M
Total Debt2.00B1.72B2.29B1.56B1.53B1.69B
Total Liabilities3.65B3.40B4.02B3.03B3.04B3.00B
Stockholders Equity3.49B3.27B2.88B2.36B2.23B2.07B
Cash Flow
Free Cash Flow785.30M810.80M715.10M453.90M453.60M559.60M
Operating Cash Flow957.40M991.20M880.80M583.20M543.80M648.00M
Investing Cash Flow-255.80M-59.10M-1.38B16.40M-77.80M-328.80M
Financing Cash Flow-721.60M-923.40M388.50M-437.10M-433.00M-244.20M

Hubbell B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price435.23
Price Trends
50DMA
432.65
Positive
100DMA
410.90
Positive
200DMA
397.83
Positive
Market Momentum
MACD
2.02
Positive
RSI
49.71
Neutral
STOCH
41.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBB, the sentiment is Positive. The current price of 435.23 is below the 20-day moving average (MA) of 438.01, above the 50-day MA of 432.65, and above the 200-day MA of 397.83, indicating a neutral trend. The MACD of 2.02 indicates Positive momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 41.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HUBB.

Hubbell B Risk Analysis

Hubbell B disclosed 25 risk factors in its most recent earnings report. Hubbell B reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Hubbell B Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
4.20B12.7818.85%0.89%3.73%32.29%
80
Outperform
16.13B28.5316.65%0.81%-4.84%2.33%
78
Outperform
$23.30B28.6625.34%1.21%0.95%13.74%
75
Outperform
10.39B26.7215.54%0.20%9.16%4.09%
69
Neutral
6.58B79.296.67%0.23%8.49%-7.65%
65
Neutral
2.04B19.447.67%2.14%-12.09%-78.18%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HUBB
Hubbell B
435.23
15.76
3.76%
AYI
Acuity Brands
338.45
66.47
24.44%
AEIS
Advanced Energy
176.59
75.54
74.76%
ENS
EnerSys
110.36
11.18
11.27%
ATKR
Atkore International Group
60.70
-22.83
-27.33%
NVT
nVent Electric
97.70
28.95
42.11%

Hubbell B Corporate Events

Executive/Board Changes
Hubbell B Appoints Edward Baine as Independent Director
Positive
Aug 29, 2025

On August 29, 2025, Hubbell Incorporated announced the election of Edward H. Baine as an independent director, effective immediately. Mr. Baine, with extensive experience in the utility industry from his tenure at Dominion Energy, is expected to contribute significantly to Hubbell’s focus on grid modernization and electrification, enhancing operational excellence and delivering long-term shareholder value.

M&A Transactions
Hubbell B Announces Acquisition of DMC Power
Positive
Aug 14, 2025

On August 12, 2025, Hubbell Incorporated announced its agreement to acquire DMC Power, LLC for $825 million in cash, with the transaction expected to close by the end of 2025. This acquisition aims to enhance Hubbell’s Utility Solutions portfolio by integrating DMC Power’s connector technology systems, which are aligned with market trends in load growth and infrastructure development, and is anticipated to be accretive to Hubbell’s adjusted EPS in 2026.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 30, 2025