Hubbell Incorporated (HUBB) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 25, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Thank you for standing by and welcome to the Hubbell Incorporated First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder today's program is being recorded.

And now I'd like to introduce your host for today's program Dan Innamorato, Vice President, Investor Relations. Please go ahead sir.

Dan Innamorato

Thanks operator. Good morning everyone and thank you for joining us. Earlier this morning we issued a press release announcing our results for the first quarter of 2023. The press release and slides are posted to the Investors section of our website at hubbell.com.

I'm joined today by our Chairman, President, and CEO, Gerben Bakker; and our Executive Vice President and CFO, Bill Sperry. Please note our comments this morning may include statements related to the expected future results of our company and are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Therefore please note the discussion of forward-looking statements in our press release and considered incorporated by reference to this call.

Additionally comments may also include non-GAAP financial measures. Those measures are reconciled to the comparable GAAP measures and are included in the press release and slides.

Now, let me turn the call over to Gerben.

Gerben Bakker

Great. Good morning and thank you for joining us to discuss Hubbell's first quarter 2023 results. Hubble is off to a strong start to the year. Our first quarter results exceeded our expectations, driven primarily by three factors: stronger stick rates and realization on incremental price actions, effective ramp-up of recent capacity investments, and improved operational productivity.

We are raising our full year outlook this morning to account for this outperformance, while maintaining a balanced view of risks and opportunities as we navigate a more uncertain second half.

Our investments in capacity, innovation, and productivity are yielding strong returns and enabling us to effectively serve strong customer demand for Hubbell's critical infrastructure solutions.

Most notably utilities continue to actively harden and upgrade aging infrastructure, while also investing to facilitate renewables and electrification through new interconnections and enhanced smart grid applications.

We achieved double-digit sales growth in the first quarter as improved production output enabled continued volume growth, while leading service levels supported continued demand strength and price realization.