Hubbell Inc. (NYSE:HUBB)

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Segment Profit Margin: Utility Solutions

Hubbell Inc.; Utility Solutions; segment profit margin calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Operating income	438,200)	284,100)	298,200)	276,500)	236,100)
Net sales	2,871,100)	2,334,400)	1,922,400)	1,965,300)	1,821,100)
Segment Profitability Ratio
Segment profit margin¹	15.26%	12.17%	15.51%	14.07%	12.96%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ 2022 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × 438,200 ÷ 2,871,100 = 15.26%

The Utility Solutions segment demonstrated a general upward trajectory in both top-line revenue and operating results over the five-year period from 2018 to 2022. Net sales grew from 1.82 billion US dollars in 2018 to 2.87 billion US dollars in 2022, while operating income rose from 236.1 million US dollars to 438.2 million US dollars in the same timeframe.

Revenue Trends: Net sales exhibited steady growth through 2019, followed by a marginal decline in 2020. However, a period of accelerated expansion followed, with sales increasing by approximately 21% in 2021 and a further 23% in 2022.
Operating Income Performance: Operating income climbed consistently from 2018 through 2020, reaching 298.2 million US dollars. A slight contraction occurred in 2021, where income fell to 284.1 million US dollars despite a simultaneous increase in sales. This trend reversed sharply in 2022, with operating income increasing by approximately 54% to 438.2 million US dollars.
Segment Profit Margin Volatility: The segment profit margin showed a period of expansion from 12.96% in 2018 to a peak of 15.51% in 2020. In 2021, the margin experienced a significant contraction to 12.17%, marking the lowest point in the five-year period and indicating that operating expenses grew at a faster rate than revenue. By 2022, the margin recovered to 15.26%, nearly returning to the 2020 peak and signaling an improvement in operational efficiency or pricing realization.

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Segment Profit Margin: Electrical Solutions

Hubbell Inc.; Electrical Solutions; segment profit margin calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Operating income	270,900)	248,200)	234,800)	320,100)	320,800)
Net sales	2,076,800)	1,859,700)	2,263,600)	2,625,700)	2,660,600)
Segment Profitability Ratio
Segment profit margin¹	13.04%	13.35%	10.37%	12.19%	12.06%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ 2022 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × 270,900 ÷ 2,076,800 = 13.04%

The Electrical Solutions segment experienced significant volatility in both revenue and profitability between 2018 and 2022, characterized by a contraction in sales volume followed by an expansion in profit margins.

Revenue Trajectory: Net sales exhibited a consistent downward trend from 2018 through 2021, declining from 2,660.6 million to a period low of 1,859.7 million. A partial recovery was observed in 2022, with sales rising to 2,076.8 million, although the figure remained substantially below the 2018 baseline.
Operating Income Trends: Operating income remained relatively stable between 2018 and 2019 but suffered a sharp contraction in 2020, dropping to 234.8 million. A recovery phase followed, with operating income increasing sequentially in 2021 and 2022 to reach 270.9 million, though it did not return to the 320.8 million peak recorded in 2018.
Profit Margin Dynamics: The segment profit margin displayed a non-linear trend, falling to a low of 10.37% in 2020 before rebounding sharply to 13.35% in 2021. Despite a slight moderation to 13.04% in 2022, the margin remained higher than the levels seen from 2018 to 2020. This expansion in margin occurred despite the overall reduction in net sales relative to 2018, suggesting an improvement in operational efficiency or a shift toward higher-margin revenue streams.

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Hubbell Inc., ROA by reportable segment

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Utility Solutions	14.55%	10.06%	11.63%	11.51%	9.85%
Electrical Solutions	13.73%	11.59%	10.52%	14.56%	14.40%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The segment return on assets (ROA) for the reportable segments reveals divergent performance trajectories between the Utility Solutions and Electrical Solutions divisions from 2018 through 2022. While the Utility Solutions segment exhibited an overall growth trend, the Electrical Solutions segment experienced a period of volatility characterized by a significant mid-term decline and subsequent recovery.

Utility Solutions: This segment demonstrated a general upward trend in asset efficiency. ROA increased from 9.85% in 2018 to 11.63% by 2020. Despite a moderate contraction to 10.06% in 2021, a substantial increase occurred in 2022, with the ROA reaching a period peak of 14.55%.
Electrical Solutions: The performance of this segment was marked by initial stability and a subsequent sharp decline. Following a peak of 14.56% in 2019, the ROA dropped significantly to 10.52% in 2020. A consistent recovery followed over the next two years, with values rising to 11.59% in 2021 and returning to 13.73% by the end of 2022.
Comparative Segment Analysis: At the beginning of the analyzed period, Electrical Solutions maintained a higher ROA than Utility Solutions. However, a reversal in leadership occurred by 2022, as Utility Solutions surpassed Electrical Solutions in asset productivity. The 2020 fiscal year represented a point of divergence, where Utility Solutions maintained stability while Electrical Solutions faced a notable reduction in returns.

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Segment ROA: Utility Solutions

Hubbell Inc.; Utility Solutions; segment ROA calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Operating income	438,200)	284,100)	298,200)	276,500)	236,100)
Assets	3,011,900)	2,823,800)	2,563,800)	2,401,300)	2,395,800)
Segment Profitability Ratio
Segment ROA¹	14.55%	10.06%	11.63%	11.51%	9.85%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ 2022 Calculation
Segment ROA = 100 × Operating income ÷ Assets
= 100 × 438,200 ÷ 3,011,900 = 14.55%

The Utility Solutions segment demonstrates a positive long-term trajectory in both profitability and asset efficiency between 2018 and 2022. While the growth path experienced brief volatility in 2021, the period concluded with a significant acceleration in financial performance.

Operating Income Trends: Operating income exhibited a general upward trend, rising from US$ 236.1 million in 2018 to US$ 438.2 million in 2022. A substantial increase occurred between 2021 and 2022, where income grew by approximately 54%, following a marginal decline during the 2021 fiscal year.
Asset Base Expansion: Total assets for the segment grew steadily from US$ 2.396 billion in 2018 to US$ 3.012 billion in 2022. This consistent expansion indicates a continuous increase in the segment's resource base over the five-year period.
Segment Return on Assets (ROA) Analysis: The Segment ROA increased from 9.85% in 2018 to a peak of 14.55% in 2022. The ratio remained relatively stable between 2019 and 2020, before contracting to 10.06% in 2021. This 2021 contraction was driven by the simultaneous occurrence of decreasing operating income and increasing assets. The sharp recovery in 2022 represents the highest efficiency level in the analyzed period, indicating that the surge in operating income significantly outpaced the growth of the asset base.

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Segment ROA: Electrical Solutions

Hubbell Inc.; Electrical Solutions; segment ROA calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Operating income	270,900)	248,200)	234,800)	320,100)	320,800)
Assets	1,972,900)	2,142,100)	2,233,000)	2,197,800)	2,228,500)
Segment Profitability Ratio
Segment ROA¹	13.73%	11.59%	10.52%	14.56%	14.40%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ 2022 Calculation
Segment ROA = 100 × Operating income ÷ Assets
= 100 × 270,900 ÷ 1,972,900 = 13.73%

The Electrical Solutions segment demonstrated a period of volatility in profitability followed by a consistent recovery trend between 2018 and 2022. While operating income and return on assets experienced a significant contraction in 2020, the subsequent years show a steady improvement in both earnings and asset efficiency.

Operating Income Performance: Operating income remained stable from 2018 to 2019 at approximately US$ 320 million before declining sharply to US$ 234.8 million in 2020. A recovery phase followed, with income rising to US$ 248.2 million in 2021 and US$ 270.9 million in 2022, although these figures remained below the 2018 peak.
Asset Base Evolution: The asset base remained relatively constant between 2018 and 2020, fluctuating near US$ 2.2 billion. A notable downward trend emerged after 2020, with assets decreasing to US$ 2.14 billion in 2021 and further to US$ 1.97 billion by the end of 2022, indicating a reduction in the segment's total resource footprint.
Segment Return on Assets (ROA) Analysis: The segment ROA peaked at 14.56% in 2019 before falling to a minimum of 10.52% in 2020. The subsequent climb to 11.59% in 2021 and 13.73% in 2022 was facilitated by the simultaneous increase in operating income and the reduction of the asset base, which enhanced the overall efficiency of asset utilization.

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Hubbell Inc., asset turnover by reportable segment

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Utility Solutions	0.95	0.83	0.75	0.82	0.76
Electrical Solutions	1.05	0.87	1.01	1.19	1.19

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The asset turnover ratios for the reportable segments demonstrate diverging trajectories between 2018 and 2022, with Utility Solutions showing a general improvement in asset efficiency and Electrical Solutions experiencing a period of volatility followed by a partial recovery.

Utility Solutions Asset Turnover: A positive long-term trend is observed in this segment, with the ratio increasing from 0.76 in 2018 to 0.95 by 2022. Despite a marginal contraction to 0.75 in 2020, the segment achieved its highest efficiency level in the final year of the period, indicating an enhanced ability to generate revenue from its asset base.
Electrical Solutions Asset Turnover: This segment exhibited significant fluctuations, maintaining a stable ratio of 1.19 through 2019 before entering a downward trend that bottomed at 0.87 in 2021. A recovery was recorded in 2022, with the ratio rising to 1.05, although this remains below the peak efficiency levels seen in 2018 and 2019.

Comparative analysis indicates a convergence in asset utilization efficiency between the two segments. While Electrical Solutions initially operated with a substantially higher turnover ratio, the gap narrowed significantly by 2022 as Utility Solutions improved its operational efficiency and Electrical Solutions regained momentum following a two-year decline.

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Segment Asset Turnover: Utility Solutions

Hubbell Inc.; Utility Solutions; segment asset turnover calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net sales	2,871,100)	2,334,400)	1,922,400)	1,965,300)	1,821,100)
Assets	3,011,900)	2,823,800)	2,563,800)	2,401,300)	2,395,800)
Segment Activity Ratio
Segment asset turnover¹	0.95	0.83	0.75	0.82	0.76

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ 2022 Calculation
Segment asset turnover = Net sales ÷ Assets
= 2,871,100 ÷ 3,011,900 = 0.95

The Utility Solutions segment demonstrated a general improvement in asset utilization efficiency between 2018 and 2022. While there was a temporary contraction in efficiency during 2020, the period ended with a significant acceleration in the ability to generate revenue from the segment's asset base.

Net Sales Growth: A consistent upward trajectory in net sales is observed, increasing from 1,821,100 thousand US dollars in 2018 to 2,871,100 thousand US dollars by 2022. The most pronounced growth occurred between 2020 and 2022, where sales rose from 1,922,400 thousand US dollars to 2,871,100 thousand US dollars, representing a substantial expansion in market activity.
Asset Base Expansion: Total assets for the segment grew steadily over the five-year period, rising from 2,395,800 thousand US dollars in 2018 to 3,011,900 thousand US dollars in 2022. The growth in assets was more linear and gradual compared to the more volatile growth seen in net sales.
Segment Asset Turnover Analysis: The asset turnover ratio fluctuated between 2018 and 2020, starting at 0.76, peaking at 0.82 in 2019, and dipping to 0.75 in 2020. This 2020 decline coincided with a slight decrease in net sales paired with an increase in the asset base. However, a strong recovery followed, with the ratio climbing to 0.83 in 2021 and reaching a period high of 0.95 in 2022.

The widening gap between sales growth and asset growth in the final two years suggests an increase in operational efficiency. The rise in the asset turnover ratio to 0.95 indicates that the segment is successfully leveraging its investments to generate higher volumes of revenue.

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Segment Asset Turnover: Electrical Solutions

Hubbell Inc.; Electrical Solutions; segment asset turnover calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net sales	2,076,800)	1,859,700)	2,263,600)	2,625,700)	2,660,600)
Assets	1,972,900)	2,142,100)	2,233,000)	2,197,800)	2,228,500)
Segment Activity Ratio
Segment asset turnover¹	1.05	0.87	1.01	1.19	1.19

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ 2022 Calculation
Segment asset turnover = Net sales ÷ Assets
= 2,076,800 ÷ 1,972,900 = 1.05

An analysis of the Electrical Solutions segment reveals a period of volatility in asset utilization from 2018 to 2022. The segment asset turnover ratio demonstrates a U-shaped trend, characterized by a steady decline until 2021, followed by a partial recovery in 2022.

Net Sales Performance: A consistent downward trend in net sales was observed from 2018 through 2021, with revenue falling from approximately $2.66 billion to a low of $1.86 billion. A reversal occurred in 2022, as sales increased to $2.08 billion.
Asset Base Management: The total asset base remained relatively stable between 2018 and 2021, fluctuating slightly around the $2.2 billion mark. A more pronounced reduction in assets was recorded in 2022, where the balance decreased to $1.97 billion.
Asset Turnover Ratio Dynamics: Efficiency remained stable at 1.19 during 2018 and 2019 before declining to 1.01 in 2020 and reaching a minimum of 0.87 in 2021. The ratio recovered to 1.05 in 2022, indicating a return toward historical levels of productivity.

The decline in asset turnover between 2019 and 2021 was primarily driven by the contraction in net sales, as the asset base did not decrease proportionally to the loss in revenue. The improvement observed in 2022 resulted from a dual effect: a recovery in sales volume and a simultaneous reduction in total assets, which collectively enhanced the efficiency of asset deployment within the segment.

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Hubbell Inc., capital expenditures to depreciation by reportable segment

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Utility Solutions	0.88	0.51	0.57	0.53	0.42
Electrical Solutions	0.80	0.77	0.53	0.70	0.86

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The analysis of segment capital expenditures relative to depreciation reveals distinct investment trajectories for the Utility Solutions and Electrical Solutions segments between 2018 and 2022. While both segments maintained ratios below 1.0 throughout the period, indicating that capital spending remained lower than the depreciation of the asset base, their individual trends diverged significantly before converging toward the end of the period.

Utility Solutions: A general upward trajectory is observed for this segment. The ratio increased steadily from 0.42 in 2018 to 0.57 by 2020, followed by a marginal decline to 0.51 in 2021. A substantial increase occurred in 2022, with the ratio reaching a period high of 0.88, signaling a marked intensification of capital investment relative to asset depreciation in the final year.
Electrical Solutions: This segment exhibited a U-shaped trend over the five-year period. A consistent decline was noted from 2018 to 2020, with the ratio dropping from 0.86 to a low of 0.53. This trend reversed in 2021 and 2022, as the ratio recovered to 0.77 and 0.80, respectively, nearly returning to the levels observed at the start of the period.
Comparative Investment Patterns: In 2018, a significant disparity existed between the two segments, with Electrical Solutions investing more aggressively relative to its depreciation than Utility Solutions. By 2022, this gap narrowed substantially as Utility Solutions accelerated its investment pace and Electrical Solutions recovered from its mid-period dip, resulting in both segments concluding the period with similar capital expenditure-to-depreciation ratios.

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Segment Capital Expenditures to Depreciation: Utility Solutions

Hubbell Inc.; Utility Solutions; segment capital expenditures to depreciation calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Capital expenditures	86,900)	55,800)	53,100)	45,400)	36,800)
Depreciation and amortization	99,200)	108,500)	92,500)	86,000)	87,000)
Segment Financial Ratio
Segment capital expenditures to depreciation¹	0.88	0.51	0.57	0.53	0.42

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 86,900 ÷ 99,200 = 0.88

The Utility Solutions segment exhibited a consistent increase in capital investment between 2018 and 2022, characterized by a significant acceleration in spending during the final year of the observed period.

Capital Expenditure Trajectory: Annual capital expenditures grew steadily from $36.8 million in 2018 to $55.8 million in 2021, followed by a substantial increase to $86.9 million in 2022. This progression indicates a strengthening commitment to asset acquisition and infrastructure investment over the five-year window.
Depreciation and Amortization Stability: Depreciation and amortization expenses remained relatively stable, fluctuating within a range of $86 million to $108.5 million. The lack of a linear growth pattern in depreciation, relative to the sharp rise in expenditures, suggests that the segment's investment growth is outstripping the rate at which older assets are being written off.
Analysis of the Capital Expenditure to Depreciation Ratio: The ratio of capital expenditures to depreciation showed a general upward trend, increasing from 0.42 in 2018 to 0.88 in 2022. While the ratio remained below 1.0 throughout the period—meaning capital spending did not fully offset depreciation—the sharp increase in 2022 indicates a transition toward a more aggressive investment phase. The movement from a low of 0.42 to a peak of 0.88 reflects a strategic shift toward increasing the segment's asset base or upgrading existing capabilities.

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Segment Capital Expenditures to Depreciation: Electrical Solutions

Hubbell Inc.; Electrical Solutions; segment capital expenditures to depreciation calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Capital expenditures	39,500)	31,100)	34,800)	45,800)	53,000)
Depreciation and amortization	49,300)	40,600)	65,100)	65,000)	61,400)
Segment Financial Ratio
Segment capital expenditures to depreciation¹	0.80	0.77	0.53	0.70	0.86

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 39,500 ÷ 49,300 = 0.80

The Electrical Solutions segment experienced a period of fluctuating capital investment and asset depreciation between 2018 and 2022, characterized by a significant contraction in reinvestment relative to asset consumption during the middle of the period followed by a subsequent recovery.

Capital Expenditure Trends: A consistent decline in capital expenditures was observed from 2018 through 2021, with spending falling from 53,000 thousand US$ to a low of 31,100 thousand US$. This downward trajectory reversed in 2022, as expenditures increased to 39,500 thousand US$, although levels remained below the 2018 baseline.
Depreciation and Amortization Patterns: Depreciation and amortization costs remained relatively stable between 2018 and 2020, peaking at 65,100 thousand US$. A sharp reduction occurred in 2021, where costs dropped to 40,600 thousand US$, before rising again to 49,300 thousand US$ in 2022.
Segment Capital Expenditures to Depreciation Ratio: The reinvestment ratio exhibited a U-shaped trend over the analyzed period. Starting at 0.86 in 2018, the ratio declined steadily to a minimum of 0.53 in 2020, indicating a period where capital spending was significantly lower than the annual depreciation of assets. A recovery was noted in 2021 and 2022, with the ratio rising to 0.77 and 0.80, respectively. Throughout the five-year duration, the ratio remained consistently below 1.0, signifying that the segment's capital expenditures did not fully replace the value of depreciated assets.

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Hubbell Inc., net sales by reportable segment

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Utility Solutions	2,871,100)	2,334,400)	1,922,400)	1,965,300)	1,821,100)
Electrical Solutions	2,076,800)	1,859,700)	2,263,600)	2,625,700)	2,660,600)
Total	4,947,900)	4,194,100)	4,186,000)	4,591,000)	4,481,700)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Total net sales exhibited volatility between 2018 and 2022, concluding the period with a significant increase to approximately US$ 4.95 billion. The overall trajectory was characterized by divergent performance between the two primary reportable segments, resulting in a notable shift in the revenue composition of the organization.

Utility Solutions Performance: A strong upward trend is observed within the Utility Solutions segment. After a period of modest growth and a slight dip in 2020, sales accelerated significantly, rising from US$ 1.82 billion in 2018 to US$ 2.87 billion in 2022. This trajectory indicates a substantial and sustained expansion in this business line.
Electrical Solutions Performance: The Electrical Solutions segment experienced a general decline for the majority of the period. Sales decreased from a peak of US$ 2.66 billion in 2018 to a low of US$ 1.86 billion in 2021. Although a recovery was noted in 2022, with sales increasing to US$ 2.08 billion, the segment failed to return to its 2018 performance levels.
Segment Composition Shift: A reversal in segment dominance occurred over the five-year window. In 2018, Electrical Solutions was the primary revenue driver. By 2022, Utility Solutions became the leading segment, accounting for the majority of total net sales, reflecting a strategic or market-driven shift in the company's revenue base.
Aggregate Revenue Trends: Total net sales remained relatively stagnant between 2019 and 2021, with values fluctuating between US$ 4.19 billion and US$ 4.59 billion. The period ended with a sharp increase in 2022, marking the highest annual sales figure in the analyzed timeframe.

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Hubbell Inc., operating income by reportable segment

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Utility Solutions	438,200)	284,100)	298,200)	276,500)	236,100)
Electrical Solutions	270,900)	248,200)	234,800)	320,100)	320,800)
Total	709,100)	532,300)	533,000)	596,600)	556,900)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Total operating income exhibited a volatile trajectory between 2018 and 2022, characterized by initial growth, a mid-period contraction and plateau, and a significant expansion in the final year. The aggregate operating income rose from 556.9 million US dollars in 2018 to 709.1 million US dollars in 2022, representing a total increase of approximately 27% over the five-year period.

Utility Solutions Performance: This segment demonstrated a strong overall growth trend, increasing its operating income from 236.1 million US dollars in 2018 to 438.2 million US dollars in 2022. While a slight decline was observed in 2021, the segment experienced an exceptional surge in 2022, with operating income increasing by approximately 54% compared to the previous year. This segment served as the primary driver for the total operating income growth observed in the final period.
Electrical Solutions Performance: Operating income for this segment showed a general downward trend compared to its 2018 baseline of 320.8 million US dollars. A significant contraction occurred in 2020, where income dropped to 234.8 million US dollars. Although a recovery trend began in 2021 and continued into 2022, reaching 270.9 million US dollars, the segment remained below its 2018 and 2019 performance levels.
Segment Contribution Shift: A fundamental shift in the operating income mix occurred during the analyzed period. In 2018, Electrical Solutions was the dominant contributor, providing approximately 57.6% of the total operating income. By 2022, this dynamic reversed, with Utility Solutions contributing approximately 61.8% of the total operating income, indicating a shift in the company's primary earnings driver.

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Hubbell Inc., assets by reportable segment

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Utility Solutions	3,011,900)	2,823,800)	2,563,800)	2,401,300)	2,395,800)
Electrical Solutions	1,972,900)	2,142,100)	2,233,000)	2,197,800)	2,228,500)
General Corporate	417,800)	315,600)	288,300)	303,900)	247,800)
Total	5,402,600)	5,281,500)	5,085,100)	4,903,000)	4,872,100)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Total assets experienced a consistent upward trajectory from December 31, 2018, through December 31, 2022, increasing from US$ 4,872,100 thousand to US$ 5,402,600 thousand. This growth is characterized by a significant divergence in asset allocation between the primary reportable segments, with expansion in one segment offsetting contraction in another.

Utility Solutions Growth Trend: The Utility Solutions segment demonstrated sustained and accelerating growth over the five-year period. Assets increased from US$ 2,395,800 thousand in 2018 to US$ 3,011,900 thousand in 2022. This represents a steady expansion, with the most significant annual increases occurring between 2020 and 2022, establishing this segment as the primary driver of the company's total asset base.
Electrical Solutions Asset Contraction: Conversely, the Electrical Solutions segment exhibited a general downward trend. After remaining relatively stable between 2018 and 2020, assets declined from US$ 2,233,000 thousand in 2020 to US$ 1,972,900 thousand by the end of 2022. This decline indicates a reduction in the asset intensity or a strategic divestment of resources within this specific segment.
General Corporate Asset Fluctuations: Assets attributed to General Corporate remained the smallest component of the total but showed overall growth. From a base of US$ 247,800 thousand in 2018, assets rose to US$ 417,800 thousand in 2022. A notable surge is observed between 2021 and 2022, where assets increased by approximately 32% in a single fiscal year.
Segment Concentration Shift: A structural shift in the balance sheet is evident. In 2018, Utility Solutions and Electrical Solutions held nearly equal asset weights. By 2022, Utility Solutions accounted for approximately 55.7% of total assets, while Electrical Solutions dropped to approximately 36.5%, reflecting a strategic pivot toward the utility-focused business line.

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Hubbell Inc., capital expenditures by reportable segment

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Utility Solutions	86,900)	55,800)	53,100)	45,400)	36,800)
Electrical Solutions	39,500)	31,100)	34,800)	45,800)	53,000)
General Corporate	2,900)	3,300)	500)	2,700)	6,400)
Total	129,300)	90,200)	88,400)	93,900)	96,200)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Total capital expenditures remained relatively stable between 2018 and 2021, fluctuating within a narrow range from $96.2 million to $88.4 million, before experiencing a significant surge to $129.3 million in 2022. This overall trend reflects a period of consolidated spending followed by a sharp acceleration in investment during the final year of the period.

Utility Solutions Growth Pattern: A consistent and accelerating upward trend is observed in the Utility Solutions segment. Capital expenditures increased every year, rising from $36.8 million in 2018 to $55.8 million in 2021. A substantial spike occurred in 2022, where expenditures reached $86.9 million, representing a total growth of approximately 136% over the five-year interval.
Electrical Solutions Variance: The Electrical Solutions segment exhibited a general decline in capital allocation from 2018 to 2021, falling from $53.0 million to $31.1 million. This downward trajectory was reversed in 2022, with expenditures increasing to $39.5 million, although this figure remained below 2018 levels.
General Corporate Expenditure Volatility: Investment in General Corporate activities was the smallest component of the total budget and showed significant volatility. Expenditures dropped sharply from $6.4 million in 2018 to a low of $0.5 million in 2020, before stabilizing between $2.9 million and $3.3 million in 2021 and 2022.
Strategic Allocation Shift: A fundamental shift in the distribution of capital is evident. In 2018, Electrical Solutions received the highest allocation of capital. By 2022, the priority had shifted decisively toward Utility Solutions, which then accounted for approximately 67% of the total capital expenditures for the organization.

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Hubbell Inc., depreciation and amortization by reportable segment

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Utility Solutions	99,200)	108,500)	92,500)	86,000)	87,000)
Electrical Solutions	49,300)	40,600)	65,100)	65,000)	61,400)
Total	148,500)	149,100)	157,600)	151,000)	148,400)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Total depreciation and amortization expenses remained relatively stable over the five-year period from 2018 to 2022. The aggregate expenditure began at $148.4 million in 2018, reached a peak of $157.6 million in 2020, and concluded at $148.5 million in 2022, indicating a negligible net change over the long term despite internal segment volatility.

Utility Solutions Segment Analysis: Depreciation and amortization within the Utility Solutions segment exhibited a general upward trend through 2021. After a slight dip in 2019 to $86.0 million, expenses rose steadily to $108.5 million by 2021. A moderate decline followed in 2022, with the figure settling at $99.2 million. This segment consistently represented the primary driver of the total depreciation and amortization expense.
Electrical Solutions Segment Analysis: The Electrical Solutions segment showed relative stability between 2018 and 2020, with expenses hovering around $61.4 million to $65.1 million. A significant contraction occurred in 2021, where expenses dropped sharply to $40.6 million, representing the lowest point in the observed period. A partial recovery was noted in 2022, as the figure rose to $49.3 million.
Comparative Segment Distribution: There was a notable shift in the allocation of expenses between the two segments. In 2018, Utility Solutions accounted for approximately 58.6% of total depreciation and amortization. By 2021, this proportion increased to approximately 72.8%, reflecting a divergence in asset consumption or investment patterns between the Utility and Electrical solutions divisions.

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