Hubbell Incorporated reported its second quarter 2025 results, announcing a transition to FIFO-based inventory accounting. The company achieved a 2% increase in net sales, with organic growth also at 2%. The 2Q operating margin was reported at 22.7%, while the adjusted operating margin stood at 24.4%.
The company's diluted EPS for the second quarter was $4.56, with adjusted diluted EPS at $4.93. The shift to FIFO resulted in a decrease of $29 million in cost of goods sold (COGS) for the quarter, amounting to $0.42 per diluted share. For the first half of the year, the FIFO method led to a decrease of $20 million in COGS, equivalent to $0.29 per diluted share.
In terms of outlook, Hubbell raised its 2025 diluted EPS projection to $16.25-$16.75, with adjusted diluted EPS expected to be in the range of $17.65-$18.15.
The company highlighted specific segment performances, noting that the grid infrastructure achieved 7% organic growth, driven by strong demand for substation and transmission products. Additionally, the electrical solutions segment saw 4% organic growth, attributed to strength in datacenter markets.
Hubbell's CEO, Gerben Bakker, expressed confidence in the company's long-term financial framework, expecting mid-single-digit organic growth and continued adjusted operating margin expansion.
The market has reacted to these announcements by moving the company's shares -2.73% to a price of $426.335. For the full picture, make sure to review HUBBELL INC's 8-K report.
