A Letter to Our Shareholders

Hubbell employees delivered another strong year of operating results in 2019, driven by our core strategy of providing mission-critical electrical products and utility solutions to enable our customers to operate critical infrastructure safely, reliably and efficiently.

Our organizational commitment to operational excellence produced a record level of free cash flow generation and solid margin expansion. This strong cash flow enabled a balanced allocation of capital to more high-quality growth businesses and greater distributions to our shareholders, both of which we accomplished this year through attractive acquisitions, a divestiture and raising our dividend.

Strong financial performance

In 2019, Hubbell had record net sales of $4.6 billion, driven by 2% organic growth. Earnings per diluted share on an adjusted basis(1) were $8.12, a 5% increase over 2018. Free cash flow(1) was $498 million, allowing us to increase our dividend for the 12th consecutive year.

Organic growth
Adjusted diluted earnings per share(1)
Free Cash Flow (1)
David G. Nord
Chairman and CEO, Hubbell Incorporated

Our objective is to grow at twice the rate of our markets through organic growth and acquisitions while operating at a competitive cost structure. This enables us to deliver high single-digit earnings growth plus dividends to our shareholders over the long-term.

(1) Adjusted diluted earnings per share and free cash flow are non-GAAP financial measures. A reconciliation to the comparable GAAP financial measures can be found in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020.


We achieved organic growth of 2% in 2019, as mixed end market trends in our Electrical segment were offset by continued strength in our utility facing markets which drove strong growth in our Power segment.

Electrical Transmission & Distribution were particularly strong in 2019 as our utility customers continued to invest in upgrading, modernizing and maintaining the electrical grid.

Non-residential and residential markets saw modest growth for the year and gas distribution markets remained solid, while industrial and oil markets were softer.

Our heightened focus on operating execution drove year-over-year adjusted operating margin expansion in 2019, despite more than doubling our annual investment in restructuring and related activities to optimize our footprint. We expect these investments to generate significant cost savings for our shareholders over the next several years as we continue our journey to become a more integrated Hubbell with world-class operations.


Hubbell has a 132-year history of doing business the right way, and we remain focused on carrying on this legacy. We believe in measuring our progress not only in terms of our financial accomplishments, but also in running our business sustainably and in the best interests of all stakeholders. This philosophy is underscored by the following four pillars which guide us as a company:

  1. 1. Serve our customers
  2. 2. Grow the enterprise
  3. 3. Operate with discipline
  4. 4. Develop our people


Hubbell is a global team of talented, purpose-driven professionals. Many are leaders in their communities - volunteering to make a positive social impact and building a more sustainable future.

We remain dedicated to being an open, inclusive and diverse company. As part of the Paradigm for Parity coalition, we are committed to achieving gender parity in our senior leadership by 2030. And, as a leadership team, we are investing in developing our people to be our next generation of leaders and innovators.


Hubbell’s focus on corporate social responsibility and sustainability initiatives is a vital part of our business model. This benefits not just Hubbell and our employees, but our investors, customers, suppliers and communities.

Sustainability is not limited to our business, products or locations. At Hubbell, we believe that the principle of sustainability can be incorporated into diverse areas of our business and our enterprise strategy and can help Hubbell live up to its four pillars.

Whether it’s manufacturing new products, developing products and solutions that deliver energy savings and efficiencies, enhancing safety measures at our locations, or providing our employees with development opportunities, Hubbell continues to drive better opportunities for all of its stakeholders.


We are confident that we have the right strategy to continue to create value for our shareholders, remain a valued partner for our customers and suppliers and contribute to the development and sustainability of our employees and communities. We’ve made significant progress in executing on our strategy, which has led to strong performance in 2019 and has positioned Hubbell for continued long-term success.

Our commitment to serve our customers, operate with discipline, grow the enterprise and develop our people is unwavering. It has made us who we are today and will enable us to continue to deliver exceptional shareholder value well into the future.

Thank you for your continued support,

Signature of David G. Nord
David G. Nord
Chairman and Chief Executive Officer


Signature of David G. Nord
Signature of David G. Nord
Signature of David G. Nord

(1) Adjusted diluted earnings per share and free cash flow are non-GAAP financial measures. A reconciliation to the comparable GAAP financial measures can be found in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020

Our Strategic Objectives

The following four pillars serve as Hubbell’s guiding principles and are the foundation of our success in exceeding our customers’ expectations with reliable energy solutions.





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