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Hubbell Inc. (NYSE:HUBB)

This company has been moved to the archive! The financial data has not been updated since November 1, 2023.

Common-Size Income Statement
Quarterly Data

Hubbell Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -64.57 -63.67 -65.12 -69.92 -69.72 -69.49 -72.05 -73.65 -72.21 -71.71 -72.58 -72.47 -70.27 -70.45 -71.25 -70.45 -69.93 -70.13 -71.74 -71.98 -70.42 -70.18 -71.46
Gross profit 35.43% 36.33% 34.88% 30.08% 30.28% 30.51% 27.95% 26.35% 27.79% 28.29% 27.42% 27.53% 29.73% 29.55% 28.75% 29.55% 30.07% 29.87% 28.26% 28.02% 29.58% 29.82% 28.54%
Selling & administrative expenses -15.34 -15.26 -15.52 -15.97 -14.81 -15.33 -15.59 -14.14 -14.33 -14.81 -15.93 -15.98 -15.04 -15.70 -17.86 -17.23 -15.71 -15.92 -17.14 -16.08 -15.70 -16.37 -18.49
Operating income 20.08% 21.07% 19.36% 14.10% 15.47% 15.18% 12.36% 12.21% 13.47% 13.49% 11.49% 11.54% 14.69% 13.85% 10.90% 12.32% 14.36% 13.95% 11.12% 11.94% 13.88% 13.45% 10.05%
Interest expense, net -0.57 -0.67 -0.75 -0.96 -0.92 -1.01 -1.13 -1.21 -1.26 -1.20 -1.59 -1.40 -1.35 -1.65 -1.38 -1.60 -1.41 -1.44 -1.61 -1.56 -1.56 -1.61 -1.75
Gain (loss) on disposition of business 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01 -0.64 0.00 0.00 0.00 0.00 0.00 0.00 1.80 0.00 0.00 0.00 0.00 0.00 0.00
Loss on extinguishment of debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Pension charge 0.00 0.00 0.00 -0.09 -0.11 -0.35 0.00 0.00 0.00 0.00 0.00 -0.10 -0.60 0.00 0.00 1.31 0.00 -1.91 0.00 0.00 0.00 0.00 0.00
Investment income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.14 0.00 0.00 0.00 0.01 0.00 0.00 0.00
Other income (expense), net -0.25 -0.35 -0.32 -0.20 0.06 0.20 0.31 0.26 0.07 0.05 0.13 -0.26 -0.21 -0.29 -0.35 -0.29 -0.80 -0.27 -0.50 -0.36 -0.25 -0.35 -0.66
Other expense -0.82% -1.02% -1.07% -1.25% -0.97% -1.16% -0.82% -0.95% -1.19% -3.39% -1.46% -1.75% -2.16% -1.95% -1.73% -0.45% -0.41% -3.62% -2.11% -1.91% -1.81% -1.96% -2.40%
Income from continuing operations before income taxes 19.26% 20.05% 18.28% 12.86% 14.50% 14.01% 11.54% 11.26% 12.28% 10.10% 10.03% 9.79% 12.54% 11.90% 9.16% 11.86% 13.95% 10.33% 9.01% 10.03% 12.08% 11.49% 7.65%
Provision for income taxes -4.58 -4.80 -4.01 -2.70 -2.95 -3.10 -2.56 -2.05 -2.54 -1.60 -2.22 -1.83 -2.74 -2.52 -2.22 -2.52 -2.94 -2.15 -2.23 -2.23 -2.36 -2.71 -1.61
Net income from continuing operations 14.68% 15.24% 14.27% 10.16% 11.55% 10.92% 8.98% 9.21% 9.74% 8.50% 7.81% 7.96% 9.80% 9.39% 6.94% 9.34% 11.01% 8.18% 6.79% 7.80% 9.72% 8.78% 6.03%
Income (loss) from discontinued operations, net of tax 0.00 0.00 0.00 -1.50 -0.85 -1.08 6.72 1.65 0.46 0.66 0.46 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net income 14.68% 15.24% 14.27% 8.66% 10.70% 9.83% 15.70% 10.85% 10.20% 9.16% 8.27% 7.96% 9.80% 9.39% 6.94% 9.34% 11.01% 8.18% 6.79% 7.80% 9.72% 8.78% 6.03%
Net income attributable to noncontrolling interest -0.14 -0.10 -0.12 -0.08 -0.13 -0.12 -0.11 -0.16 -0.19 -0.08 -0.15 -0.16 -0.14 -0.09 -0.06 -0.11 -0.16 -0.16 -0.14 -0.10 -0.09 -0.18 -0.15
Net income attributable to Hubbell Incorporated 14.54% 15.14% 14.15% 8.58% 10.57% 9.71% 15.59% 10.69% 10.01% 9.09% 8.13% 7.79% 9.66% 9.29% 6.88% 9.24% 10.86% 8.02% 6.65% 7.69% 9.63% 8.60% 5.88%

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The common-size income statement analysis reveals a significant strengthening of profitability and operational efficiency over the period from March 2018 to September 2023. While margins remained relatively stable for the first several years, a marked upward trend in both gross and operating margins emerged starting in 2022 and accelerating through 2023.

Gross Profitability Trends
Gross profit margins exhibited relative stability between 2018 and 2021, generally fluctuating between 26% and 30% of net sales. However, a structural shift is observed beginning in 2022. By early 2023, the gross margin rose significantly, peaking at 36.33% in June 2023 and maintaining a level above 35% through September 2023. This indicates a substantial reduction in the cost of goods sold as a percentage of revenue, moving from approximately 71% in earlier years to approximately 64% by the end of the period.
Operating Performance and Expense Management
Operating income as a percentage of net sales followed a trajectory similar to gross profit, though with more volatility in the early years. Operating margins averaged between 10% and 14% from 2018 through 2021. A significant expansion occurred in 2023, where margins reached a peak of 21.07% in June 2023. This improvement was supported by disciplined management of selling and administrative expenses, which decreased from a range of 16% to 18% in 2018 to a more consistent 15% range by 2023, suggesting improved operating leverage.
Financing and Non-Operating Items
Interest expense, net, demonstrates a consistent downward trend relative to net sales. From a peak of 1.75% in March 2018, this figure declined to 0.57% by September 2023, indicating a reduction in the relative cost of debt service. Other non-operating items, including pension charges and gains or losses on the disposition of businesses, created sporadic volatility, particularly in 2019 and 2021, but did not alter the primary upward trend in core profitability.
Net Income and Bottom-Line Results
Net income attributable to the parent company showed steady growth, rising from roughly 6% to 9% of sales in the 2018-2021 window to consistently exceeding 14% in 2023. A notable anomaly occurred in March 2022, where net income spiked to 15.59% due to a significant contribution from discontinued operations (6.72%). Excluding these one-time events, the organic growth in net profit margins is evident, although it is partially offset by an increase in the provision for income taxes, which rose from an average of 2-3% to approximately 4.5% of net sales in 2023 as taxable income increased.

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