2023 Annual Report
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HomeHome | Annual Report  | 
A Letter to Our Shareholders

Chairman, President and Chief Executive Officer, Hubbell Incorporated

Fellow Shareholders,

2023 was another successful year for Hubbell. We achieved 9% sales growth, over 500 basis points of operating margin expansion, and over 40% growth in operating profit and adjusted earnings per share. Hubbell’s strong positions in attractive Utility and Electrical markets, our leading service levels to customers, and the performance by our dedicated employees were the key contributors to our results.

This strong financial performance for shareholders enabled us to invest in Hubbell’s future by expanding capacity for our customers and investing in innovation and productivity initiatives. We invested $166 million in capital expenditures in 2023, effectively doubling our capital investment over the past three years, while still generating a record $715 million in free cash flow.

Our strong balance sheet supported a sixteenth consecutive year of raising our dividend, which we increased by 9% while also repurchasing $30 million of stock and deploying $1.2 billion to three acquisitions in 2023: Electro Industries Gaugetech, Balestro and Systems Control. These acquisitions bolster an industry leading Utility Solutions platform across components, communications and controls. We also announced the sale of our residential lighting business from our Electrical Solutions segment at the end of 2023, a transaction that recently closed for $131 million and now aligns our Electrical Solutions segment to higher growth and margin opportunities. Together, these portfolio actions reflect the continued execution of our strategy to create a focused portfolio of critical infrastructure solutions strategically aligned around grid modernization and electrification.

In 2023 we welcomed two new leaders to our two operating segments, Hubbell Electrical Solutions (HES) and Hubbell Utility Solutions (HUS).

Mark Mikes, a longtime senior leader in Hubbell’s Power Systems business took over leadership of HES and Greg Gumbs, a leader with a proven track record in the utility, electrical and automation industries took over leadership of HUS. Both Mark and Greg will be focused on building off our recent success to deliver continued, long-term profitable growth for shareholders. I am confident in their leadership, as well as Hubbell’s deep pool of talent throughout our organization who remain focused on delivering across each of our strategic pillars – to Serve our Customers, Grow the Enterprise, Operate with Discipline and Develop our People.

In July 2023, we were pleased to add Debra Dial to the Board. Debbie brings strong financial, accounting, risk management and strategy experience to Hubbell. In January 2024, Director John Russell announced his plan to retire from the Board in May 2024. Hubbell and the Board benefited greatly from John's wisdom and leadership these last thirteen years.

Hubbell was recently named to the S&P 500, the Dow Jones Sustainability Index (DJSI) for North America and (for the fourth year in a row) one of the World’s Most Ethical Companies by Ethisphere. As a Company we are incredibly proud of the recognition that Hubbell continues to receive in the US and around the world. These honors were achieved collectively by Hubbell’s over 18,000 employees, and I am thankful for their hard work and dedication to our mission.

At Hubbell, our Mission is simple – we Electrify economies and Energize communities. As more electrical applications plug into the grid, we aim to build a Reliable, Resilient and Renewable energy infrastructure on a backbone of Hubbell solutions. We believe that executing on our mission will enable Hubbell to solve critical infrastructure problems for our customers, provide exciting career growth opportunities for our employees and make a positive impact on our communities, while of course continuing to deliver strong results for our shareholders.

Thank you for your support and your investment in Hubbell.


Gerben W. Bakker
Chairman, President and Chief Executive Officer
March 25, 2024


(1) Represents the results of continuing operations. See Note 2 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 8, 2024 for further details.
(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, 2023, filed with the SEC on February 8, 2024.
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