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2022 was a strong year for Hubbell, one in which we delivered for our customers while investing in the Company's future and driving returns for our shareholders.
In 2022 we had record sales of $4.9 billion, record adjusted diluted earnings per share(2) of $10.62 and free cash flow(2) of $507 million. Hubbell increased its dividend by 7% in 2022, representing the 15th consecutive year of a dividend increase.
We also executed a balanced and efficient capital allocation program, repurchasing $182 million in shares of Hubbell and investing over $177 million in acquisitions and $129 million in capital expenditure and restructuring projects to more effectively serve customers while driving growth to the top and bottom line.
After closing on the sale of Hubbell’s commercial and industrial lighting business in February, 2022 for a sale price of $350 million, we grew our business with three acquisitions in the second half of 2022 - PCX Holdings LLC, Ripley Tools and REF Automation.
We saw unprecedented order demand from our customers across both our Electrical and Utility segments in 2022, as grid modernization and electrification continue to drive demand for Hubbell products and solutions. Hubbell’s unique, leading positions across the energy infrastructure are enabling us to solve critical infrastructure problems for our utility and electrical customers in front of and behind the meter.
In 2022 we opened a new manufacturing facility in Oklahoma City, Oklahoma for our enclosures, gas and related product businesses. This new facility, our largest manufacturing facility in the US, consolidates locations while bringing together efficient processes and an increased ability to deliver to our customers.
We also accelerated our innovation efforts, optimizing investment into larger scale, strategic innovation projects. We believe these investments will drive Hubbell’s long-term organic growth profile and position the company to continue to capitalize on attractive megatrends in grid modernization and electrification.
2023 is Hubbell’s 135th anniversary, and I look forward to all of the opportunities for our business, our customers, employees, shareholders and partners. The key to our success continues to be our over 16,000 employees around the world. Their dedication, support and resiliency drive everything we do.
We are well positioned to continue executing on our strategy of solving critical infrastructure problems through reliable and efficient utility and electrical solutions. We will continue to drive value from our positions across the energy infrastructure to grow our business, operate efficiently, innovate and serve our stakeholders.
I thank you for your continued support and investment in Hubbell.
Gerben W. Bakker
Chairman, President and
Chief Executive Officer
March 20, 2023 |
(2) 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, 2022, filed with the SEC on February 9, 2023.
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