Hubbell Inc (HUBB) 2024 Q3 法說會逐字稿

Good day. Thank you for standing by. Welcome to the Third Quarter 2024 for Hubbell Incorporated earnings conference call.

再會。謝謝你的支持。歡迎參加 Hubbell 公司 2024 年第三季財報電話會議。

(Operator Instructions)

（操作員說明）

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Dan Marotta, VP of Investor Relations.

請注意，今天的會議正在錄製中。現在，我想將會議交給今天的發言人、投資者關係副總裁 Dan Marotta。

Thanks, operator. Good morning, everyone, and thank you for joining us. Earlier this morning, we issued a press release announcing our results for the third quarter of 2024. For the press release and slides are posted to the Investor section of our website at Hubbell.com.

謝謝，接線生。大家早安，感謝您加入我們。今天早些時候，我們發布了一份新聞稿，宣布了 2024 年第三季的業績。新聞稿和幻燈片發佈在我們網站 Hubbell.com 的投資者部分。

I'm joined today by Chairman, President and CEO, Gerben Bakker and Executive Vice President and CFO, William Sperry. Please note, our comments this morning may have statements related to the expected future results of our company in our forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Please note the discussion of forward-looking statements in our press release and consider it incorporated by reference into this call. Comments may also include non-GAAP financial measures. Those measures are reconciled with comparable GAAP measures are in included in the press release and slides. Now let me turn the call over to Gerben.

今天與我一起出席的還有董事長、總裁兼執行長 Gerben Bakker 以及執行副總裁兼財務長威廉‧斯佩里 (William Sperry)。請注意，我們今天早上的評論可能包含與 1995 年《私人證券訴訟改革法案》所定義的前瞻性陳述中的我們公司的預期未來業績相關的陳述。請注意我們新聞稿中對前瞻性陳述的討論，並考慮將其納入本次電話會議中作為參考。評論還可能包括非公認會計準則財務指標。這些措施與新聞稿和幻燈片中包含的可比較公認會計準則措施進行了協調。現在讓我把電話轉給格本。

Great. Good morning and thank you for joining us to discuss Hubbell's Third Quarter 2024 results. Hubbell delivered strong operating performance in the quarter, generating 14% year over year, adjusted earnings per share and operating profit growth as well as 180 basis points of adjusted operating margin expansion. We are raising our full year outlook this morning, and we remain confident in delivering double digit adjusted operating profit growth in 2024.

偉大的。早安，感謝您加入我們討論 Hubbell 2024 年第三季的業績。Hubbell 在本季度實現了強勁的營運業績，調整後每股收益和營運利潤同比增長 14%，調整後營運利潤率擴大了 180 個基點。今天上午，我們上調了全年展望，我們仍然有信心在 2024 年實現兩位數的調整後營業利潤增長。

In our Utility Solutions segment, Grid modernization and electrification continue to drive strong growth in transmission, substation and grid automation markets as utility customers invest in grid infrastructure upgrades to accommodate electrification driven load growth and energy connect new sources of renewable generation. We believe that we are at the early stages of a multiyear T & D investment cycle and that Hubbell's leading positions and service levels position us for sustained GDP plus growth over the long term. As anticipated, telecom markets remained weak and utility distribution markets continued to reflect the impact of customer inventory normalization. Operational execution was strong in the quarter and Utility Solutions return to year-over-year operating margin expansion.

在我們的公用事業解決方案領域，電網現代化和電氣化繼續推動輸電、變電站和電網自動化市場的強勁增長，因為公用事業客戶投資電網基礎設施升級，以適應電氣化驅動的負載增長和能源連接新的可再生能源發電。我們相信，我們正處於多年 T&D 投資週期的早期階段，Hubbell 的領先地位和服務水準使我們能夠實現 GDP 的長期持續成長。正如預期的那樣，電信市場仍然疲軟，公用事業分銷市場繼續反映客戶庫存正常化的影響。本季的營運執行力強勁，公用事業解決方案恢復了年比營運利潤率的成長。

Electrabel solutions delivered another quarter of strong core operating performance with solid organic growth and 190 basis points of adjusted operating margin expansion.

Electrabel 解決方案又一個季度實現了強勁的核心營運業績，實現了穩健的有機成長和 190 個基點的調整後營運利潤率擴張。

Performance in the quarter was led by strength in data center and renewable markets where we are executing effectively on our strategy to compete collectively in high growth verticals, which specified positions innovative new products and an integrated solution-oriented service model for customers. From an operational standpoint, we continue to simplify our business to drive productivity and operating efficiencies, which, along with portfolio transformation efforts, contributed to robust margin expansion in the quarter.

本季的業績主要得益於資料中心和再生能源市場的實力，我們正在有效執行我們的策略，在高成長的垂直市場中進行集體競爭，為客戶指定了創新的新產品和麵向整合解決方案的服務模式。從營運角度來看，我們繼續簡化業務以提高生產力和營運效率，再加上投資組合轉型努力，為本季的利潤率強勁成長做出了貢獻。

Overall, while we continue to navigate pockets of challenges in certain large high margin businesses published proving the ability to compound off of recent outperformance. As we look ahead, our portfolio and strategy uniquely position Hubbell to capitalize on grid modernization and electrification megatrends, we are confident in our ability to deliver on our increased full year outlook as well as to achieve differentiated performance for our shareholders over the long term.

總體而言，雖然我們繼續應對某些大型高利潤業務所面臨的挑戰，但這些業務已公佈，證明有能力從近期的優異表現中實現複合。展望未來，我們的投資組合和策略使 Hubbell 能夠利用電網現代化和電氣化大趨勢，我們對實現全年成長前景以及為股東實現長期差異化業績的能力充滿信心。

Before I turn it over to Bill to discuss the quarter in more detail, I would like to provide some additional context on recent storm activity and the potential implication to our business. First and foremost, our thoughts are with all the people and communities impacted by these catastrophic. Hubbell has a large manufacturing presence in the US. Southeast and three of our manufacturing facilities were impacted and encountered disruptions as a result of hurricane saline and Milton, however, all have quickly return to full operation, and I'm relieved that all of our employees are safe.

在我將其交給比爾更詳細地討論該季度之前，我想提供一些有關近期風暴活動及其對我們業務的潛在影響的額外背景資訊。首先也是最重要的，我們與所有受這些災難影響的人民和社區同在。Hubbell 在美國擁有大量製造業務。東南部和我們的三個製造工廠受到颶風鹽水和米爾頓的影響並遭遇中斷，但所有工廠都很快恢復全面運營，令我感到欣慰的是我們所有員工都很安全。

I am proud of how Hubble and our employees have responded in support of all of those in need during this time as well as the collective efforts to serve our customers and ensure that critical infrastructure and the impact that community is restored safely and efficiently. When we highlight service as a key differentiator in our industry stores are prime examples where our customers depend on trusted partners who can reliably serve their needs at scale and with agility. Our dedicated emergency response team is unique in this regard, providing customers with 24 seven support dedicated storm inventory, prioritize production engineering to support to identify alternative restoration solutions and logistics capability to expedite delivery and never charging premiums or fees viewing it as our obligation and privilege to make a positive impact during these times of critical need. Bill will provide you with more specifics on the financial impact of the storms in the third quarter in a few minutes, as well as the anticipated contribution of storm related orders in the fourth quarter. As we have highlighted many times over the years, the impact of storms typically represents only a small portion of full year revenues. But more importantly, they highlight the ongoing need to harden our critical infrastructure in order to mitigate against the increasing impact of extreme weather events as well as the mission critical nature of Hubbell product offerings and our commitments to service excellence for our customer. More details of the quarter.

我對哈伯和我們的員工在這段時間為所有有需要的人提供支持以及為我們的客戶提供服務並確保關鍵基礎設施和社區影響得到安全有效恢復的集體努力感到自豪。當我們強調服務是我們行業中的關鍵差異化因素時，我們的客戶依賴值得信賴的合作夥伴，他們可以可靠地大規模、敏捷地滿足他們的需求，商店就是最好的例子。我們的專業緊急應變團隊在這方面是獨一無二的，為客戶提供24 小時7 個支援的專用風暴庫存，優先考慮生產工程以支援確定替代恢復解決方案和物流能力以加快交付，並且從不收取保費或費用，將其視為我們的義務和特權在這些關鍵需求時期產生積極影響。比爾將在幾分鐘內為您提供有關第三季度風暴的財務影響的更多具體信息，以及第四季度風暴相關訂單的預期貢獻。正如我們多年來多次強調的那樣，風暴的影響通常只佔全年收入的一小部分。但更重要的是，它們強調了持續強化關鍵基礎設施的必要性，以減輕極端天氣事件日益增加的影響，以及 Hubbell 產品的關鍵任務性質以及我們為客戶提供卓越服務的承諾。該季度的更多詳細資訊。

Thanks very much Gerben and good morning, everybody. Appreciate you taking the time to be with us this morning and I need to beg your patience and been fighting a cold this week and my voice is shot. So, I'm sorry that.

非常感謝格本，大家早安。感謝您今天早上抽出時間與我們在一起，我需要懇求您耐心等待，這週我一直在與感冒作鬥爭，我的聲音很嘶啞。所以，我很抱歉。

I'm going to start my comments on Page 4 of the slides that I hope you found and reiterate with Gerben said, overall, very strong operating performance for Hubbell in the third quarter, 5% sales growth, 14% OP growth, 180 basis points of OP margin expansion, 14% growth in earnings per share and 19% growth in free cash flow. In addition to looking at these variances to prior year, we sometimes look back at sequential and compare to the second quarter we had growth in the OP dollars OP margins and earnings per share all up sequentially.

我將從幻燈片的第4 頁開始我的評論，我希望您能找到並重申Gerben 所說的，總體而言，Hubbell 在第三季度的營運業績非常強勁，銷售額增長5％，OP 增長14 ％，基數180營運利潤率擴張、每股收益增長 14% 和自由現金流增長 19% 點。除了查看與上一年的差異之外，我們有時還會回顧一下連續季度，並與第二季度相比，我們的營業利潤率和每股收益均連續增長。

So, we think signs healthy financial performance and so returning to sales of up 5% that's comprised of organic being down slightly and net M&A, a contributing about six points of net M&A refers to the fact that we sold a lower growth, lower margin business of residential lighting and added some higher margin, higher growth businesses in the utility segment. Most notably systems control, which we'll talk about the strong contributions were getting for that acquisition when we get to the utility segment. Inside of the organic story, we have strong in customer demand across the portfolio are the exception being a particularly weak telecom industry and this curve and had mentioned distribution utility are still working through an overstock situation between the channel and our end customers.

因此，我們認為財務表現表現健康，銷售額恢復成長 5%，其中包括有機略有下降和淨併購，淨併購貢獻約 6 個百分點，這是因為我們出售了成長較低、利潤率較低的業務住宅照明業務，並在公用事業領域增加了一些利潤率更高、成長更快的業務。最值得注意的是系統控制，當我們進入公用事業領域時，我們將討論該收購所獲得的強大貢獻。在有機故事中，我們在整個投資組合中擁有強勁的客戶需求，但電信業特別疲軟，這條曲線並提到分銷公用事業仍在解決通路和我們的最終客戶之間庫存過剩的情況。

Operationally, you see mid teams' growth of 14% to $4.49 of adjusted EPS. And the operating profit side equal growth for the 180 basis points of margin expansion and that also compares favorably to the second quarter where we had 40 basis points of sequential margin expansion from Q2 to Q2 three and adjusted operating profit. There's improvement across both segments, and we'll talk about those in the next two pages. But structural improvements in the Electrical segment and on the utility side, strong performance as well, i think you'll see a good price cost productivity execution, and you see the impact of successful portfolio transformation by selling some lower growth, lower margin business and adding some higher growth, higher-margin business.

從營運角度來看，中型團隊的調整後每股盈餘成長了 14%，達到 4.49 美元。營業利潤方面與利潤率擴張 180 個基點的成長相當，這也與第二季相比有利，第二季到第三季我們的利潤率連續擴張了 40 個基點，並調整了營業利潤。這兩個部分都有所改進，我們將在接下來的兩頁中討論這些內容。但電氣領域和公用事業方面的結構性改進以及強勁的業績，我認為您會看到良好的價格成本生產力執行力，並且您會看到通過出售一些增長較低、利潤率較低的業務和成功的投資組合轉型的影響增加一些高成長、高利潤的業務。

The EPS growth in the mid teams in line with operating profit growth below the line of OPE., there was a little bit more in interest expense due to the acquisition them a little bit lower tax rate that offset each other and the cash flow in line to hits our full year targets. So, on page 5, I will start to disaggregate the company's performance into the two segments, and it will start as we usually do with the utility segment. So, you see double digit sales growth in the third quarter of 11% to 933 million, that's comprised of 15% on the acquisition and minus 4% organic. If we're to unpack that into the different divisions, you'll see growth in both with 15% growth in critical infrastructure and the mid-single digit growth in grid automation, just to remind everybody we have in those two divisions, we have the old transmission and distribution yield of Will Power System in the grid infrastructure as well as specialty, which includes both enclosures, gas components plus systems control that in the grid automation, we've got a clear eye, which has as both meters and comms plus switching infusing as well as some connected to them automation products.

中游團隊的每股盈餘成長與低於營業利潤線的營業利潤成長一致。因此，在第 5 頁，我將開始將公司的表現分為兩個部分，就像我們通常對公用事業部分所做的那樣。因此，您會看到第三季的兩位數銷售額成長 11%，達到 9.33 億美元，其中包括 15% 的收購成長和負 4% 的有機成長。如果我們將其分解到不同的部門，您會看到關鍵基礎設施的成長為 15%，電網自動化的成長為中個位數，只是為了提醒大家，我們在這兩個部門中擁有威爾電力系統在電網基礎設施和專業領域的舊輸配電產量，包括外殼、氣體組件和系統控制，在電網自動化中，我們有一個清晰的眼睛，其中包括儀表和通信加上開關輸液以及一些與之相連的自動化產品。

Sequentially, we saw sales growth from Q2 to Q3, which we think is a good sign for us. Healthy seasonality. If we disaggregated a little bit into some of the markets, Telecom continues to be weak, down 30% in the third quarter. It represents modest improvement over the first half as we're starting to flatten sequentially for the remains pretty bumpy month to month, and we're expecting continued softness in to the fourth quarter. Fourth quarter, though, will have easier compares and important, maybe to note that flat from here would imply growth in 2025.

隨後，我們看到從第二季到第三季的銷售額成長，我們認為這對我們來說是一個好兆頭。健康的季節性。如果我們稍微細分一些市場，電信業仍然疲軟，第三季下降了 30%。它代表了上半年的適度改善，因為我們開始逐月趨於平穩，但每月仍然相當坎坷，我們預計第四季度將繼續疲軟。不過，第四季的比較會更容易，也很重要，也許值得注意的是，第四季持平將意味著 2025 年的成長。

On the T&D side, the real strength on the transmission piece, double digit growth, benefiting from mega trends of electrification and renewables, both requiring new miles and new grid interconnection switches, spending that the benefits of all on the distribution side continuing to work through a channel and customer overstocking. But there continues to be we think healthy demand as more equipment is being installs to harden the grid and for maintenance and repair. So we believe that's obviously a temporary condition. And we get to the end of this morning, Gerben will give you some outlook ideas into 2025. Systems control is worth pausing on. They're off to a really great start for us. This is our third quarter reporting with them. In addition to the very short stub period in December, they are a growing versus prior year at a very healthy levels and delivering very attractive margins, the turnkey solution that they provide is proving to be very attractive for customers from Gerben. I have a chance to go out there visiting team a couple of weeks ago they're all very energized, excited to grow very culturally, consistent with Hubbell and a great to watch our sales force interact with their sales force. I think we can see some long-range growth there as well as our customer base can become systems control, customer base.

在輸電和輸電方面，輸電部分的真正優勢是兩位數的增長，受益於電氣化和可再生能源的大趨勢，兩者都需要新的里程和新的電網互連開關，分配方面的所有人的利益繼續發揮作用管道和客戶庫存過剩。但我們認為，隨著越來越多的設備被安裝以加固電網以及維護和修理，我們認為健康的需求仍然存在。所以我們認為這顯然是暫時的情況。今天早上結束時，Gerben 將為您提供一些 2025 年展望的想法。系統控制值得暫停。他們為我們帶來了一個非常好的開始。這是我們向他們提供的第三季報告。除了12 月的存根期非常短之外，與去年相比，它們的成長速度非常健康，並提供了非常有吸引力的利潤，事實證明，它們提供的交鑰匙解決方案對Gerben 的客戶非常有吸引力。幾週前，我有機會去拜訪團隊，他們都充滿活力，很高興能夠在文化上成長，與 Hubbell 保持一致，並且很高興看到我們的銷售人員與他們的銷售人員互動。我認為我們可以看到那裡的一些長期成長，我們的客戶群可以成為系統控制、客戶群。

The selling cycles a little bit longer. So, the backlog actually strong visibility into 2025 already stuff. You'll hit here SP., quite confident about systems control, the grid automation side, the growth of mid-single digits, good tailwinds in grid protection and control solutions as our customers continue to invest in grid resiliency and in particular, switching infusing a doing quite well in substation applications. So some of the right side of the page. Turning to margins, you see very strong margin performance, 18% in dollars to 236 million. You see 130 basis points of margin expansion over 25%, which is a nice benchmark, we think and that represents over a point of sequential expansion from the second quarter. So, you have acquisitions contributing new dollars. You've got really strong price cost management, and you see some returns on prior year investments in productivity at all of that is absorbing some of the decremental from the contraction in telecom. So very strong performance on the utility segment tends.

銷售週期稍長一些。因此，積壓的訂單實際上已經是 2025 年的強可見度了。您會在這裡看到SP.，對系統控制、電網自動化方面、中個位數的成長非常有信心，隨著我們的客戶繼續投資於電網彈性，特別是開關注入，電網保護和控制解決方案將獲得良好的推動力在變電站應用中表現相當出色。所以頁面右側有一些。談到利潤率，您會看到非常強勁的利潤率表現，以美元計算為 18%，達到 2.36 億美元。你會看到利潤率擴張了 130 個基點，超過 25%，我們認為這是一個很好的基準，這代表了第二季連續擴張的一個點。所以，你的收購貢獻了新的資金。你有非常強大的價格成本管理，你會看到前一年生產力投資的一些回報，所有這些都吸收了電信收縮帶來的一些減量。因此，公用事業領域的表現往往非常強勁。

Let me elaborate a little bit on burdens comments on the storms. So, to the utility segment, the storms had had a neutral impact in the quarter. We have a couple of facilities in Aiken, South Carolina and Largo, Florida that were impacted and to be closed for the last several days and we believe we lost about $5 billion of shipments from those closures, but that was offset by about 5 billion of shipments on storm orders that we got that we had an inventory and represented about a quarter of the 20 million in orders that we received. So net effect is in the third quarter, neutral in the fourth quarter, we'll get those shipments outpaced and including $15 million more in storm orders, which are already party out there.

讓我詳細闡述一下負擔對風暴的評論。因此，對於公用事業部門來說，風暴在本季產生了中性影響。我們在南卡羅來納州艾肯和佛羅裡達州拉戈有幾家工廠受到影響，在過去幾天內將關閉，我們相信這些關閉導致我們損失了約50 億美元的貨運量，但這大約50 億美元的貨運量所抵消。因此，淨效應是在第三季度，在第四季度是中性的，我們將讓這些出貨量超過，其中包括 1500 萬美元的風暴訂單，這些訂單已經在外面了。

So, we turn to page 6 and the electrical segment of another nice quarter for the Electrical segment, as they've done in 2024, you see 3% organic growth was 190 basis points of margin expansion and 5% operating profit growth from the 3% organic growth nets out the effect of the disposition of residential lighting. If you also add back the effect of storms on the Electrical segment there, we have a facility in art in North Carolina, near Ashfield, the western part of North Carolina and we're estimating they lost about 5 to 10 million in sales from having to close this last several days of the quarter. Some had those shipments gone out normally you would have seen about 5% sales growth. So, we think electrical, he's got good trends in doing nicely on the sale side of that growth is being driven by data centers and renewables, where we've enacted our vertical sales strategy, which proving to be quite effective. We've unified marketing materials, integrated sales force becoming much more effective, cross-selling the balance of system products and as well becoming more innovative with our new product development and and doing really well with that strategy in those couple of verticals, light industrial continues to be very solid as the critical electrical content is installed in a wide range of products across a wide range of industries. Lesser contributions from heavy industrial and commercial. So decent trends across the portfolio. But the clear strengths is its data centers, renewables and light industrial on the right side of page, operating profit continues the strong performance we've been seeing in 2024, you see a 5% increase in operating profit. That would be double digits if you netted out receipt from last year. So quite healthy growth, 190 basis points margin expansion seen good drop through on that incremental growth effective price cost management. The effect of the portfolio management is seen very clearly, and I think what percent is best for the future is watching. Mark Mike and his team continue to simplify and streamline the business continue to compete, collectively, reorganize the sales force by geography versus product, eliminate functional redundancies and ultimately made the segment more efficient and more effective, so we're excited to see the path ahead market has team have segment on it. I think they're set up for good multiyear performance.

因此，我們轉向第 6 頁，電氣部門的另一個好季度，正如他們在 2024 年所做的那樣，你會看到 3% 的有機增長意味著利潤率擴張 190 個基點，營業利潤增長 5%。 % 有機成長抵消了住宅照明處置的影響。如果你還加上風暴對那裡的電氣部分的影響，我們在北卡羅來納州有一個藝術工廠，靠近北卡羅來納州西部的阿什菲爾德，我們估計他們的銷售額損失了大約 5 到 1000 萬美元。本季的最後幾天。如果這些出貨量正常的話，有些產品的銷售額將會成長 5% 左右。因此，我們認為電氣方面，他在銷售方面表現良好，成長是由資料中心和再生能源推動的，我們在這些方面製定了垂直銷售策略，事實證明該策略非常有效。我們統一了行銷材料，整合的銷售團隊變得更加有效，交叉銷售系統產品的平衡，並且隨著我們的新產品開發變得更加創新，並且在這幾個垂直領域，輕工業領域，我們的策略做得非常好隨著關鍵電氣內容安裝在各行各業的各種產品中，該領域的地位仍然非常穩固。重工業和商業的貢獻較小。整個投資組合的趨勢非常好。但明顯的優勢是頁面右側的資料中心、再生能源和輕工業，營業利潤延續了我們在 2024 年看到的強勁表現，您會看到營業利潤成長了 5%。如果你扣除去年的收入，那將是兩位數。因此，相當健康的成長，190 個基點的利潤率擴張，在增量成長有效的價格成本管理上看到了良好的下降。投資組合管理的效果非常明顯，我認為對未來來說最好的百分比是多少，值得關注。馬克·麥克和他的團隊繼續簡化和精簡業務，繼續集體競爭，根據地理位置與產品重組銷售隊伍，消除職能冗餘，最終使該部門變得更加高效和有效，因此我們很高興看到這條道路前方市場有團隊對其進行細分。我認為他們已經為多年的良好表現做好了準備。

From Page 7. I'm going to give the remainder of 24 outlook, and that is going to ask Gerben to comment on next year. So, we're raising our full-year guidance to $16.35 to $16.55 that's a mid-single digit growth and just to remind everybody, that's off of a base that over the last two years, 22 and 23 is up about 75% and so to us having what is in effect, a 20% caterers into 2020 levels is what we were trying to convey at Investor Day by describing kind of the new do where we're going to be growing off of this space and we're going to be growing. We take both sales and OP margin, and that's quite important. We belief of the year specifically has evolved a little differently than we expected back in January, namely, we've generated lower sales volume has detailed telecom market weakness has persisted longer than we believe and that utility customers on the distribution side holding more inventory than we believed, so managing through those two headwinds. But we're quite pleased that the whole business model is really performing very nicely and despite those volume challenge, this is delivering at the higher above high end of the original EPS range.

從第 7 頁開始。我將給出 24 日剩餘的展望，這將要求格本對明年發表評論。因此，我們將全年指導上調至 16.35 美元至 16.55 美元，這是一個中等個位數的增長，只是提醒大家，這偏離了過去兩年 22 和 23 增長約 75% 的基礎，所以對我們來說，20% 的餐飲服務達到2020 年的水平是我們在投資者日試圖透過描述我們將在這個領域成長的新做法來傳達的訊息，我們將正在成長。我們同時考慮銷售額和營運利潤率，這非常重要。我們今年的信念與我們一月份的預期略有不同，即，我們的銷量較低，因為詳細的電信市場疲軟持續的時間比我們認為的要長，而且分銷方面的公用事業客戶持有的庫存比我們想像的要多。但我們非常高興的是，整個業務模式確實表現得非常好，儘管存在這些銷售挑戰，但其交付仍高於原始每股收益範圍的高端。

So, we've got multiple levers to pull, obviously this year relying on the acquisition level as well as the price cost productivity lever and those are proving to be very effective and maybe just maybe just a comment on the fourth quarter itself, We're expecting revenues to be a little bit stronger seasonally as that storm shifted some of the sales out of 3Q into 4Q and created some new sales for the utility segment, But we continue we expect the operating performance to continue to incur increased margins in them. So that gets us to the high end or maybe modestly above the high end as a range for the balance of the year. To ask Gerben to give you thoughts as we're thinking about next year at this point.

因此，我們有多種槓桿可以拉動，顯然今年依賴於收購水平以及價格成本生產率槓桿，這些槓桿被證明是非常有效的，也許只是對第四季度本身的評論，我們'我們預計收入會按季節強勁一些，因為風暴將部分銷售從第三季度轉移到第四季度，並為公用事業部門創造了一些新的銷售，但我們仍然預計營運業績將繼續帶來利潤率的增加。因此，這使我們達到了高端，或者可能略高於今年剩餘時間的高端範圍。現在請格本給您一些我們正在考慮明年的想法。

Thanks, Will. I'm confident in our ability to deliver on our raised full year 2024 outlook and believe that Hubbell is well positioned for 2025 and beyond. With unique leading positions across the energy infrastructure and from the meter behind the meter and at the edge, we believe that Hubbell will achieve attractive GDP-plus growth through the cycle.

謝謝，威爾。我對我們實現 2024 年全年展望的能力充滿信心，並相信 Hubbell 在 2025 年及以後處於有利地位。憑藉在能源基礎設施領域以及從錶後到邊緣的獨特領先地位，我們相信 Hubbell 將在整個週期中實現有吸引力的 GDP 成長。

A secular grid modernization and electrification mega trends accelerate utility solutions. We anticipate that robust and the budgets will drive attractive growth across most of our end markets as utility customers continue to invest in making the grid infrastructure, more reliable, resilient and renewable. Project pipelines and interconnection backlogs drive High visibility to continued strength in transmission and substation market, and we are confident that our sales and distribution markets will return to growth levels corresponding with healthy end customer demand.

長期的電網現代化和電氣化大趨勢加速了公用事業解決方案的發展。我們預計，隨著公用事業客戶繼續投資使電網基礎設施更加可靠、有彈性和可再生，強勁的預算將推動我們大多數終端市場的有吸引力的成長。專案管道和互連積壓推動了輸電和變電站市場持續強勁的高知名度，我們相信我們的銷售和分銷市場將恢復到與健康的最終客戶需求相對應的增長水平。

While our exposure and telecom markets will be reduced headed into next year, easing comparisons and stabilizing markets provide constructive setups in grid automation. We anticipate that meter project roll-offs will be more than offset by strength in protection and control solutions. Electrical Solutions, secular growth markets of data centers, renewables and T&E make up more than 25% of our portfolio and are positioned for continued strength. While macroeconomic conditions drive some uncertainty and pockets of our business, we are well positioned to continue executing on our growth and productivity playbook to achieve differentiated performance. Pulpo has demonstrated over the last several years to collect definitely showed our ability to execute across a wide range of environments and market conditions, driving over 20% compounded growth in adjusted operating profit and earnings per share. We expect to continue building off this strong base of performance in 2025 and beyond, and we look forward to sharing more details with you when we provide our initial outlook next year. With that, let me turn the call over to Q&A.

雖然我們的投資和電信市場將在明年減少，但寬鬆的比較和穩定的市場為電網自動化提供了建設性的設定。我們預計，電錶項目的縮減將被保護和控制解決方案的實力所抵消。電氣解決方案、資料中心、再生能源和 T&E 等長期成長市場占我們產品組合的 25% 以上，並有望持續保持強勢。雖然宏觀經濟狀況為我們的業務帶來了一些不確定性和影響，但我們有能力繼續執行我們的成長和生產力策略，以實現差異化的績效。Pulpo 在過去幾年中的表現明確表明了我們在各種環境和市場條件下執行的能力，推動調整後營業利潤和每股收益複合增長超過 20%。我們預計在 2025 年及以後繼續建立這一強大的業績基礎，並期待在明年提供初步展望時與您分享更多細節。接下來，讓我將通話轉至問答環節。

(Operator Instructions)

（操作員說明）

Jeffrey Sprague with Vertical Research.

傑弗裡·斯普拉格（Jeffrey Sprague）從事垂直研究。

Hey, thanks. Good morning, everyone. Hey, just in terms of getting level on the actual results on Slide 5 its depending on us the organics. I've got some systems controls looks like it to $120 million of revenues than ending the quarter. We could maybe let us know if that's right. And I guess that implies for the grid infrastructure is down on the 6% organic or so, but maybe you could share those numbers?

嘿，謝謝。大家早安。嘿，就幻燈片 5 上的實際結果而言，這取決於我們有機體。我的一些系統控制看起來比本季末的收入為 1.2 億美元。也許我們可以讓我們知道這是否正確。我想這意味著電網基礎設施的機會率下降了 6% 左右，但也許你可以分享這些數字？

Yes, you've got you've got systems control that. Yes, that's right, Jeff

是的，你有系統控制它。是的，沒錯，傑夫

And how about a grid automation on a little bit M&A in there, too? Or is that 4% a good organic number.

那麼，在其中進行一些併購，實現電網自動化怎麼樣？或者說 4% 是一個好的有機數字嗎？

that's organic, yeah.

那是有機的，是的。

And then on the on the storm impact itself, is there any confidence that this flushes out remaining channel inventory, but I suppose if you made inventory in North Carolina and it's sitting in Arizona, it's not move it across the country. So maybe that maybe you don't really know, but we've been trying to solve this little all year. Where does where do you think we're at on the channel and kind of getting the normalization?

然後就風暴影響本身而言，是否有信心這會清除剩餘的渠道庫存，但我想如果您在北卡羅來納州製造庫存並且庫存位於亞利桑那州，則不會將其轉移到全國各地。所以也許你真的不知道，但我們一整年都在努力解決這個問題。您認為我們在頻道上處於什麼位置並且正在實現正常化？

So, Jeff, maybe I'll take that one on the short answer to is yes, this is helping to flush out the inventory. As you well pointed out and with very specific customers in very specific regions. And that would even say within those customers, they prepare for storm of branch. When they see that coming, they're going to play storm orders looking at their inventory not necessarily what existed across the whole enterprise network perhaps. But yes, this is clearly going to help with flush that inventory through it.

所以，傑夫，也許我會認為簡短的答案是肯定的，這有助於清理庫存。正如您所指出的，在非常特定的地區有非常特定的客戶。甚至可以說，在這些客戶中，他們正在為分支機構風暴做好準備。當他們看到這種情況發生時，他們將根據庫存下達風暴訂單，而不一定是整個企業網路中存在的庫存。但是，是的，這顯然將有助於清理庫存。

And maybe just the kind of separate the follow-on Will mentioned strong price cause. Could you give us a sense of how price belonged in the quarter across the two segments?

也許正是後續威爾提到的強勁價格原因的那種分離。您能否讓我們了解一下本季這兩個細分市場的價格狀況？

Yes. So, price was positive in both segments. Showed about a point to the enterprise. And I think I didn't want to mention it in my remarks just because I think it's going to; we're pivoting Jeff to a period where it's just going to be a smaller part of the price cost equation versus 22 and 23. It was such a low large thing, but about a point for the enterprise and positive on both.

是的。因此，這兩個領域的價格都是正面的。給企業展示了一點。我想我不想在發言中提及它，因為我認為它會；我們將傑夫轉向一個時期，與 22 和 23 時期相比，它在價格成本方程中所佔的比例較小。這是一件很小的大事，但對企業來說卻是一件重要的事情，對雙方都有正面意義。

Right. Thank you. (Operator Instructions) Steve Tusa with JPMorgan.

正確的。謝謝。（操作員指示）摩根大通的 Steve Tusa。

Hey, good morning. Can hear me okay?

嘿，早安。聽得到我說話嗎？

Yes, great.

是的，太好了。

Great. Thanks. I just following up on that on that last question from Jeff, on price thing on how should we think about that next year? I in particular with utility, I mean, is like I'm sure you're talking your customers on how to how does that how are those kinds of negotiations playing out here for you guys, especially in utility for next year?

偉大的。謝謝。我只是跟進傑夫的最後一個問題，關於價格問題，我們明年該如何考慮？我特別是在公用事業方面，我的意思是，我確信您正在與客戶討論如何進行這些談判，尤其是明年的公用事業方面，這些談判的進展如何？

That maybe got good delivered. So let me provide just some broader comments on the discussions, um, but yes, I'd say our price traction this year in both segments have been good, but the outlier to that is in the telecom. We've given back some price to get specific some targeted projects but if you look at the CMD part of the business and the rest of the business, the price sticks a price, actually additional pricing that we've taken has held, we're coming into what we call blanket season again with utilities are right now and we think about the price will still be a lever for us going forward there's still inflation, in the market it will be much more modest levels.

那也許得到了很好的交付。因此，讓我對討論提供一些更廣泛的評論，嗯，但是，是的，我想說我們今年在這兩個領域的價格吸引力都很好，但例外的是電信領域。我們已經回饋了一些價格來獲得特定的一些目標項目，但如果你看看業務的 CMD 部分和其餘業務，價格就會固定下來，實際上我們採取的額外定價已經保留，我們'現在，公用事業再次進入我們所謂的“全面季節”，我們認為價格仍然是我們前進的槓桿，通貨膨脹仍然存在，市場上的水平將要溫和得多。

But we continue to focus on what our true value proposition is, right, which is service for 3M and the storm. The recent storms have again shown our customers why they do business with us. So, we still believe that while much at a much more modest level on that in our customers will value of first and foremost, the quality of service and of course, then at a competitive price. So, as we stated before, our whole construct is not to go backwards. And I think we've proven that in 24, and that's our views and setup for 25 as well.

但我們繼續關注我們真正的價值主張，對吧，那就是為 3M 和風暴提供服務。最近的風暴再次向我們的客戶展示了他們與我們開展業務的原因。因此，我們仍然相信，儘管我們的客戶的水平要低得多，但他們首先看重的是服務質量，當然還有有競爭力的價格。因此，正如我們之前所說，我們的整個結構是不會倒退的。我認為我們已經在 24 週年中證明了這一點，這也是我們對 25 週年的看法和設定。

So, we look at kind of at the margin. You guys put up this year pretty strong result. It. Was there anything in the comps as we look to next year on that played out as a bit of a headwind? So, should we assume that the 24 margins are kind of a base to at least, you know, grow off of for next year for utility margins? Could you just keep beating those numbers? Obviously?

所以，我們關注的是邊際。你們今年取得了相當不錯的成績。它。我們預計明年的比較中是否有什麼因素會帶來一些阻力？那麼，我們是否應該假設 24 個利潤率至少是明年公用事業利潤率成長的基礎？你能繼續打破這些數字嗎？明顯地？

Yes. Look, I think, Steve, the way we wanted to set up the future with our Investor Day outlook was kind of shifting the idea of our OP walk to be going from a price cost kind of really big step up in 22 and 23. It's still a little bit in 24 and so in, as you think about us going forward, thinking a little bit more about that volume driving incremental, that's why would you sort of saw in that 25% to 30% dropped through that we're kind of expecting you know, there's a little bit of investment activity still, but I would think of our ability to drive margins next year to be largely driven on incremental from pump.

是的。史蒂夫，我認為，我們希望透過投資者日展望來設定未來的方式是，將我們 OP 步行的想法從 22 和 23 年的價格成本大幅提升轉變為一種。距離 24 日還有一點點，當你考慮我們未來的發展時，多考慮一下銷量推動增量，這就是為什麼你會看到 25% 到 30% 的下降，我們正在有點期待你知道，仍然有一些投資活動，但我認為我們明年提高利潤率的能力很大程度上取決於泵浦的增量。

Yes, maybe the other thing to keep in mind, Steve, we were at the second half of last year, we really stepped up the investment levels to prepare for where we have visible areas of demand and that's a little bit what were, um, um, field. What's driving our mortgage business now is well why it is in the absence of some of those investments.

是的，也許另一件事要記住，史蒂夫，我們在去年下半年，我們確實提高了投資水平，為我們有明顯需求領域的地方做好準備，這就是，嗯，嗯，田野。現在推動我們抵押貸款業務發展的原因正是在缺乏其中一些投資的情況下的原因。

Right. And then, just one last quick one on utility is, should we think next year's like an easy comp because you still have destocking this year, so it should be above kind of your long-term average and on some of these more stock and flow?

正確的。然後，關於效用的最後一個快速問題是，我們是否應該認為明年是一個簡單的比較，因為今年你仍然在去庫存，所以它應該高於你的長期平均水平，並且在一些更多的庫存和流量上？

I think. Yes. I mean, I think that that we're anticipating transmission to remain really strong and you're right, they should be able to bounce back. And so, I would agree with your statement.

我認為。是的。我的意思是，我認為我們預計傳播將保持強勁，你是對的，他們應該能夠反彈。所以，我同意你的說法。

Okay. Thanks a lot.

好的。多謝。

Thank you. Nigel Coe with Wolfe Research.

謝謝。沃爾夫研究中心的奈傑爾·科 (Nigel Coe)。

Thanks. Good morning. Facility, you do something disturbing favorably. So, EBIT going onto Killam's Arthur's question, but the way the web I'm trying to decompose here, I mean, I think the math is right down 6% for the call to the components. Some like telecom at the bulk of that. So, I'm get into sort of ex telecom flattish, maybe down 1% coal, is that correct? And then just kind of go from the site is correct. A couple of things. Number one, what do you estimate to be you're sort of end customer utility customer spending across your across your business? Is that an institution? And maybe in sentiments that then is this the weakness in residential new zones have an impact from that business? So, this is this really just a destocking impact.

謝謝。早安.設施，你做了一些令人不安的事情。所以，息稅前利潤繼續討論 Killam 的 Arthur 的問題，但我在這裡嘗試分解網絡的方式，我的意思是，我認為對於組件的調用，數學計算直接下降了 6%。有些人主要喜歡電信。所以，我陷入了某種前電信持平狀態，也許煤炭下降了 1%，對嗎？然後從網站上走就是正確的。有幾件事。第一，您估計您的最終客戶公用事業客戶在整個業務中的支出是多少？那是一個機構嗎？也許有人認為，住宅新區的疲軟是否會受到該業務的影響？所以，這實際上只是去庫存的影響。

Maybe let me take the first on the new, take the revenue on a bit. So, your math is correct. As you issue a pointed those out with both what was the closure or so of Telecom contributes and then with the rest of the T&E, and I'd say end demand is mid-single digit. What we've been talking about. So, I think you have at all strike.

也許讓我先考慮一下新的，然後再考慮一下收入。所以，你的數學是正確的。當您指出電信的關閉或其他貢獻以及 T&E 的其餘部分時，我想說最終需求是中個位數。我們一直在談論的事情。所以，我認為你已經罷工了。

Yes, no and I think of the resi side, you continue to who are we at or if you think about read these impacts on us at a rate regulated business, we got rid of or the electrical side, we still have some exposure through the big boxes that goes into rosy applications. But that's I think your question was how as it affects utility, we still think that it out the maintenance and repair. It's really the way to drive that, that that that is still strong in the easy. If the effect of what's happening in new developments, we would be a smaller effect pricing.

是的，不，我想到了 Resi 方面，你繼續了解我們是誰，或者如果你想以受監管的業務來閱讀這些對我們的影響，我們擺脫了電氣方面，我們仍然通過進入美好應用的大盒子。但我認為你的問題是，當它影響公用事業時，我們仍然認為它超出了維護和維修的範圍。這確實是驅動它的方式，在簡單的情況下仍然很強大。如果新開發案發生的影響，我們會進行影響較小的定價。

Okay. Then a quick one on the margins. Ebit margins were very impressive, especially given the mix impact, et cetera. SG&A came in a lot lighter than what we had. I think SG&A was down 4% now. Obviously, we've got some portfolio changes here on here, but is that a is that a sustainable level of SG&A? Is there were some one-timers in there? And did that land primarily within utility components in terms of the SG&A impact.

好的。然後在邊緣快速進行一次。息稅前利潤率非常可觀，特別是考慮到混合影響等。SG&A 比我們少很多。我認為 SG&A 現在下降了 4%。顯然，我們的投資組合發生了一些變化，但這是否是 SG&A 的可持續水平？裡面有一些一次性的嗎？就SG&A影響而言，這主要涉及公用事業部分。

I would say the SG&A was spread. I would say the level of spending is sustainable as curve and I was saying there was some elevated investments happening at the end of last year. So between last year's SG&A in this year's, I think this year's is kind of the durable maintainable level

我想說SG&A 是分散的。我想說，支出水準是可持續的曲線，我是說去年年底出現了一些投資增加。因此，在去年的 SG&A 和今年的之間，我認為今年的 SG&A 處於持久可維護水平

and maybe as a Nigel as a percentage wise, certainly with the addition of systems control that both in sales growth, that reduces SG&A as a percentage. And then I'd say the other area in some of the business, particularly in the telecom and enclosure business, we think are some actions to address cost appropriately for more color there. The decline in volume.

也許作為奈傑爾的百分比，當然增加了銷售成長方面的系統控制，這減少了銷售、管理和管理費用的百分比。然後我想說的是，在某些業務的其他領域，特別是在電信和機櫃業務中，我們認為需要採取一些行動來適當解決成本問題，以獲得更多的色彩。成交量下降。

Okay. That's very helpful. Thanks.

好的。這非常有幫助。謝謝。

Thank you. (Operator Instructions) Julian Mitchell with Barclays.

謝謝。（操作員指示）朱利安·米切爾與巴克萊銀行。

Hi, good morning. And just wanted to circle back on the HUS. sales outlook again. So perhaps some maybe help us understand the telecom piece. We know how much are you thinking that's going to be down this year? I think before you said maybe down in the mid 20 here. I'm wondering, is that still how and when we're thinking about 2025, yes, we'll slope of sort of telecom bounce. Should we see. And on the transmission side of utility, is that kind of steady growth next year beyond any kind of acceleration because of what's going on in backlogs? Maybe help us on a good handle naturally as well.

嗨，早安。只是想繞回 HUS。再次展望銷售前景。所以也許有些可以幫助我們理解電信部分。我們知道您認為今年會下降多少？我想你之前說過可能會在 20 左右左右。我想知道，我們是否仍然以這種方式以及何時考慮 2025 年，是的，我們將出現某種電信反彈的趨勢。我們應該看到嗎？在公用事業的傳輸方面，由於積壓的情況，明年的穩定成長是否會超越任何形式的加速？也許也能自然地幫助我們掌握良好的手把。

Yes. I'd say on the YouTube and the Telcom and kitchen vehicle and I'm sorry, on the telecom side, it's more like 30% this year. It was, of course, stronger deeper in the first half. We're at this, but our goal is not to tried to recapture that volume, but to grow that profitably go going forward. And the reason even now as we see some projects come back and we're quoting, you know, some pretty sizable projects for next year. We're just being very, very thoughtful to not come capture that volume at any price. So on. So, I wouldn't expect that to bounce back at those kinds of verticals that have declined, but more steady growth from here going forward. And I think your second half was around transmission and transmissions been cranking, you know, at double digits. And we're anticipating that to continue. And I wouldn't think your question was whether there were some accelerations and I would say we're expecting it to continue to crank in double digits.

是的。我想說的是，在 YouTube、電信和廚房車輛方面，很抱歉，在電信方面，今年的比例大約是 30%。當然，上半場的表現更加深入。我們已經做到了這一點，但我們的目標不是試圖重新奪回這一銷量，而是繼續增加利潤。原因是，即使現在我們看到一些項目回來了，我們也引用了明年一些相當大的項目。我們只是非常非常深思熟慮，不會不惜任何代價來獲取這個數量。很快。因此，我不認為這種成長會在那些已經下降的垂直領域反彈，而是從這裡開始更穩定的成長。我認為你的下半場是關於變速箱的，你知道，變速箱一直以兩位數的速度運轉。我們預計這種情況會持續下去。我不認為你的問題是是否有一些加速，我想說我們預計它會繼續以兩位數的速度成長。

That's helpful. Thank you. And then I'm just kind of following up on that on the inventory aspect of the customers realize the visibility is perhaps not as high as one would like is your impression that the inventory issue, we weren't still talking about it early next year? Do you have some sense of where those inventory levels by end of the major customers?

這很有幫助。謝謝。然後我只是跟進客戶的庫存方面，意識到可見性可能沒有人們想要的那麼高，這是你對庫存問題的印象，我們明年初還沒有談論它？您是否了解主要客戶最終的庫存水準？

Yes. Let me give some comments and insights onto that. As we think about the destock, what we see is that is driven mainly by our large IOU customers. In many cases, these are VIP. relationship, long term strategic alliances. And this is an area where we actually prioritize them when we started to see the supply chain normalize, Bart, helping to create to it. It's in other areas like the smaller munis co-ops in a public power where this overstock had been less for now. Now we're actually seeing very nice growth in line with what is demand. But we see as demand. You know, certainly the as we've said, the storms have helped this a little bit. We continue to have conversations with our customers. We continue to analyze the sell through data with conversations with these customers. And I'd say that provides a constructive outlook for us for distribution growth in 25. Now, of course, the timing of precise unite the turn of a year is it overdose dose are just very hard to call. But I'd say what's for us encouraging that were also right now starting to see some of these customer's sign. It placed 25 orders specifically for projects that they sort of visibility to. So that gives us confidence that that demand is strong. So, what I would say calling a specific date is very hard. We anticipate that this situation will be much, much improved exiting this year. And return. It is growth and CMO and more importantly,

是的。讓我對此發表一些評論和見解。當我們考慮去庫存時，我們看到這主要是由我們的大借方客戶推動的。在很多情況下，這些都是 VIP。關係，長期策略聯盟。當我們開始看到供應鏈正常化時，這是我們實際上優先考慮的一個領域，巴特，幫助創造它。在其他領域，例如公共權力機構中規模較小的市政合作社，目前庫存過剩的情況較少。現在我們實際上看到了與需求相符的非常好的成長。但我們看到的是需求。你知道，正如我們所說，風暴確實對此有所幫助。我們繼續與客戶進行對話。我們繼續透過與這些客戶的對話來分析銷售數據。我想說，這為我們 25 年的分銷成長提供了建設性的前景。當然，現在很難確定在歲末年初是否服藥過量的確切時間。但我想說的是，對我們來說令人鼓舞的是，我們現在也開始看到其中一些客戶的跡象。它專門為他們了解的項目下了 25 個訂單。因此，這讓我們相信這種需求是強勁的。所以，我想說的是，要確定一個具體的日期是非常困難的。我們預計今年這種情況將會得到很大程度的改善。然後返回。這是成長和 CMO，更重要的是，

that's great. But and just to clarify, sort of what proportion roughly of your utility revenue is that type of customer where the inventories have been high? Any rough sense of proportion?

那太棒了。但是，我想澄清一下，庫存較高的此類客戶在您的公用事業收入中所佔的比例大約是多少？有粗略的比例感嗎？

We haven't disclosed that, Julian.

我們還沒有透露這一點，朱利安。

Understood. Thanks very much.

明白了。非常感謝。

Thank you. Joseph O'Dea with Wells Fargo.

謝謝。約瑟夫‧奧戴 (Joseph O'Dea) 與富國銀行 (Wells Fargo)。

Hey, good morning. Thanks for taking my questions. And I wanted to circle back about, given your comment on telecom and being selective in the volume go after is interesting on just any perspective on kind of margin mix within HUS. as we think about sort of transmission distribution substation versus like telco and gas distribution, trying to think about just as telco comes back, but you're more selective with it, just some of the margin considerations there as well as the growth contributions may be changing a little bit next year. Any margin mix considerations,

嘿，早安。感謝您回答我的問題。我想回想一下，考慮到您對電信的評論以及對數量的選擇性追求，無論對 HUS 內的利潤組合的任何觀點都很有趣。當我們考慮輸配電變電站與電信和天然氣分配之類的情況時，嘗試考慮電信公司的回歸，但你對此更有選擇性，只是其中的一些利潤考慮因素以及增長貢獻可能是明年會有一點改變。任何利潤組合考慮因素，

It's interesting. I'm thinking about mix specifically with Telecom. The margins had didn't really high. And as we've worked through this volume decline, they've come down. But you'd expect as it comes back the margins to return to attractive levels? I wouldn't get too. I don't think there's a ton of mix drivers in all those different pieces are much more much more consistent. I would say.

這很有趣。我正在考慮專門與電信混合。利潤率並不高。當我們克服銷量下降的問題時，它們已經下降了。但您是否期望隨著它的恢復，利潤率會恢復到有吸引力的水平？我也不會得到。我不認為所有這些不同的部分中有大量的混合驅動程式更加一致。我會說。

Got it. And then just anything on tariff scenario considerations in particular, as it relates to sourcing, I think that the portfolio moves would have diminished at some of the direct exposure that you have. But I'm not sure in terms of the portfolio as it exists today and just as we're mindful of sort of scenario considerations, anything on that on the tariff front.

知道了。然後，特別是有關關稅場景考慮的任何事情，因為它與採購有關，我認為投資組合的變動會因您所擁有的某些直接風險而減少。但我不確定目前存在的投資組合，正如我們留意某種情景考慮，關稅方面的任何事情。

Yes, I think you're right to point out, their exposure has been reduced, particularly the lighting businesses were highly exposed to that. But I'd also say during the last couple of years, as part of our resiliency and strengthening during the supply chain crunch, we've also reduced our exposure to give us certainly one of those regions that were exposed to theirs in the best I'd say today to Hubbell, it's a lower exposure that was. And I'd say the second thing is we've learned a lot from the earlier days of when we perhaps were self-critical of not going after that fast enough. And I think we've proven over the last couple of years, whether it's thereof or other inflation that we're much better reacted to those, I'd say. And I'm confident that that when when tariffs if and when tariffs do happen, that it's a US, a smaller impact to our business would be to go manage it.

是的，我認為你指出的是對的，他們的曝光度已經減少，特別是照明企業的曝光度很高。但我還要說，在過去的幾年裡，作為我們在供應鏈緊縮期間的彈性和加強的一部分，我們還減少了我們的風險敞口，使我們成為那些在最好的情況下受到他們的影響的地區之一。我想說的第二件事是，我們從早期的經驗中學到了很多東西，當時我們可能會自我批評，認為自己追求的速度不夠快。我認為，過去幾年我們已經證明，無論是通膨還是其他通膨，我們對這些通膨的反應要好得多。我相信，當關稅發生時，如果關稅確實發生，那是美國，對我們業務影響較小的就是去管理它。

I appreciate it. Thank you.

我很感激。謝謝。

Thank you. Chris Snyder with Morgan Stanley.

謝謝。摩根士丹利的克里斯·斯奈德。

I wanted to follow up on the utility organic growth commentary. It seems like at least based on my kind of back-of-the-envelope math; it seems like utility is up low single digits organic in Q4. And really all of that is driven by the storm, whether it's the deferments out of Q3 or just the storm orders you guys got. So, I guess my question is, how fast do you think that this business can get back to that in a mid-single digit kind of plus target? It sounds like you guys think next year at or above 50. It is that more of a back half that we get there. Or do you think you could start the year at that level? It just seems like a big step up from what's implied on Q4.

我想跟進公用事業有機成長評論。看起來至少是基於我的粗略數學計算；看起來公用事業在第四季有機成長了低個位數。事實上，所有這一切都是由風暴驅動的，無論是第三季的延期還是你們收到的風暴訂單。所以，我想我的問題是，您認為這項業務能夠以多快的速度恢復到中個位數的加號目標？聽起來你們認為明年會達到或超過 50 歲。我們到達那裡的更多的是後半部分。或者你認為你可以以這個水平開始新的一年嗎？這似乎比第四季的暗示邁出了一大步。

Yes. I mean, I think, Jim, I think that our view is that it could bounce back when this inventory levels are finding their natural level and that we think you know, at the end market levels and materials getting installed at a level higher than our shipments are right now. So, it was driven said, I think the everyday there is a mathematical point at which you can still grow even if customers are still destocking. And so that's we haven't given you our guidance for 25 yet, but we do anticipate its organic utility growth starting at the beginning of next year.

是的。我的意思是，我認為，吉姆，我認為我們的觀點是，當庫存水平達到自然水平時，它可能會反彈，我們認為你知道，在終端市場水平和材料安裝水平高於我們的水平現在發貨。因此，有人說，我認為每天都會有一個數學點，即使客戶仍在去庫存，你仍然可以成長。因此，我們尚未向您提供 25 的指導，但我們確實預計其有機公用事業將從明年初開始成長。

Appreciate that. Thank you. Then maybe just following up on that, can you maybe talk a little bit about what's expected for our Clara? We know that came out of a period of really strong growth, but a lot of that was driven by kind of working down the backlogs on the expectation that Clara kind of flatlined or should we expect to clear out to enter a period of timeline? And so, given unless something comes our Banco?

很欣賞這一點。謝謝。那麼也許只是跟進一下，你能談談對我們的克拉拉的期望嗎？我們知道這是一個真正強勁增長的時期，但其中很大一部分是由於克拉拉的預期趨於平緩或我們應該清理進入一段時間線而減少積壓所推動的？那麼，除非我們的銀行有什麼東西來？

Yes, I mean, I think I think Clara has got the ability to grow its comms half of its business. And so, the question is really pointed, I think, at the meter per second. So, there is a couple of big projects that are rolling off in the business has become a little bit more a maintenance and repair type business when new projects get added back. Hopefully that would provide the next surge of growth. I would say it,

是的，我的意思是，我認為 Clara 有能力發展其一半的通訊業務。因此，我認為問題確實指向每秒米。因此，當新專案重新添加時，業務中正在進行的幾個大型專案變得更像是維護和維修類型的業務。希望這將帶來下一次成長。我想說的是，

but maybe put a finer point on it. I think as we look to 25, we expect meters to be down, but more than offset by the AMI and protection and controls growth. And then that's how we kind of that business and Haus grid automation.

但也許可以說得更詳細。我認為，當我們展望 25 時，我們預計電錶會下降，但會被 AMI 以及保護和控制增長所抵消。這就是我們如何處理該業務和 Haus 網格自動化。

Thank you.

謝謝。

Thank you. Christopher Glynn with Oppenheimer.

謝謝。克里斯多福·格林與奧本海默。

Thanks. Good morning and feel better. Bill, just that wanted to ask about the heavy industrial and commercial markets said a little softer. It didn't sound like it was particularly maybe it's flattened. Does that feel like just kind of lumpiness in end market or some fundamental slowing and maybe the facility impact to hit those products?

謝謝。早上好，感覺好多了。比爾，只是想問一下重工業和商業市場的狀況，語氣溫和了一些。聽起來不像是特別可能是被壓扁了。這是否感覺像是終端市場的波動或一些根本性的放緩，也許是對這些產品的設施影響？

Yes. I think it's an interesting one as we look at it, Chris, you know, if you start on the heavier industrial side, we're serving, for example, steel plants. Would you still see steel prices down? That tells you something about demand. And it gives us an indication of of demands that strong of steel cut suggesting that copper is kind of been running in different direction from that sale that so it's a little bit the contributions. He has been very modest comparatively and become something that to keep our eye on. As we give you guidance for 25 would work together in January. We'll have, I think, more to say about what we're expecting there.

是的。我認為這是一個有趣的問題，克里斯，你知道，如果你從重工業方面開始，我們正在為鋼鐵廠等服務。您還會看到鋼材價格下跌嗎？這告訴你一些關於需求的資訊。它向我們表明了鋼材削減的強烈需求，表明銅的走勢與銷售方向不同，因此這是一點貢獻。相對而言，他非常謙虛，成為值得我們關注的人物。正如我們為您提供的 25 月份工作指引。我想，對於我們的期望，我們還有更多要說的。

Okay. And commercial markets Nornes.

好的。和商業市場諾內斯。

So again, it's interesting. We used to have with the big lighting business. There are ways to have a lot of exposure, and we have a lot less now, but it's been again, pretty modest for us right now.

再說一次，這很有趣。我們曾經與大型照明企業合作過。有很多方法可以增加曝光度，但現在我們的曝光率要少得多，但現在對我們來說還是相當有限的。

Okay. And then just kind of a final question on the distribution products discussions and anything interesting in the third quarter book to bill versus the first half.

好的。然後是關於分銷產品討論的最後一個問題，以及第三季度書籍與上半年相比的任何有趣的事情。

I don't think anything terribly enlightening. No, I think Gerben comments on how you're sort of peeling away, where where would there be destocking of the distribution side? It's not and co-ops and VOD is in public power anymore. I think I think we just started rolling out in our private from Houston through Florida, the Southeast, the hurricanes have probably flush that out, right? So, if we keep, we just keep getting better on that side, I will say.

我不認為有什麼特別有啟發性的事情。不，我認為格本評論了你們是如何剝離的，分銷方面會在哪裡去庫存？合作社和視訊點播不再屬於公共權力。我想我想我們剛開始從休士頓到佛羅裡達州、東南部在私人範圍內推出，颶風可能已經把它沖走了，對吧？所以，我會說，如果我們堅持下去，我們就會在這方面不斷變得更好。

Great. Thank you.

偉大的。謝謝。

Thank you. Brett Linzey with Mr. Hill.

謝謝。布雷特·林澤和希爾先生。

Hey, good morning. This is Peter Coss on for Bret. More than just one of the beads program there. Any update to how you're thinking about that at the impact of the funding? And then are you worried about any political risk there, just to be a Trump presidency, particularly with Musk trying to cut costs and there is more outspoken, the opposed the program? Thanks.

嘿，早安。我是彼得·科斯 (Peter Coss) 替補布雷特 (Bret)。不僅僅是其中的一個珠子程式。您對資金影響的看法有何更新？那麼，您是否擔心川普擔任總統會帶來任何政治風險，特別是馬斯克試圖削減成本，並且有更多直言不諱的人反對該計劃？謝謝。

Yes. I mean what we've said, what we've said here is some limited contribution this year and probably not until later next year until the funding starts to flow. There's been a couple of approvals recently for money to float in terms of big project visits associated with data. It's not something we've seen yet. I'm citing later next year. What sort of the base case of when some of that could start to contribute?

是的。我的意思是我們所說的，我們在這裡所說的是今年的一些有限貢獻，可能要到明年晚些時候，直到資金開始流動。最近有幾項批准在與資料相關的大型專案存取方面提供資金。這不是我們見過的東西。我引用的是明年晚些時候。當其中一些可以開始做出貢獻時，是什麼樣的基本情況？

Thanks. And just on the M&A pipeline, anything on deal velocity, general sizing, whereas white spaces you're looking to fill up? Thanks.

謝謝。就併購管道而言，有關於交易速度、整體規模的任何信息，以及您希望填補的空白嗎？謝謝。

Yes, I think the M&A pipeline is pretty robust right now. A couple of things swirling around. And I would say, of the traditional sizes in our there, there's a more in our typical 50 to $100 billion size range, but there is also the fee was 1 billion ish range where you've seen us to a couple of things recently. So, it's an it's something we continue to feel that there will be opportunities for us to strengthen both the electrical utility segments. There continues to be good brands out there. We can buy ways to strengthen our product and solution suites. You know, we continue to look for growth rates and margin potential that's additive to us. So, one of the interesting implications of that is I think we are seeing higher multiples. And yet because of the higher margin, higher growth rates were still able to deliver the same or even often better rates of return. So, it's an interesting outcome that the bulk I feel like the multiples have tripped us up on us to last year or two, but that I think it's at. Do you think there is warranted and justified given the return potential?

是的，我認為目前的併購管道相當強勁。有幾件事在旋轉。我想說的是，在我們那裡的傳統規模中，有更多在我們典型的 50 至 1000 億美元規模範圍內，但也有 10 億左右的費用範圍，您最近看到我們做了一些事情。因此，我們仍然認為我們將有機會加強這兩個電力公用事業領域。那裡仍然有好的品牌。我們可以購買方法來增強我們的產品和解決方案套件。您知道，我們將繼續尋找對我們有利的成長率和利潤潛力。因此，有趣的含義之一是我認為我們正在看到更高的倍數。然而，由於更高的利潤率，更高的成長率仍然能夠帶來相同甚至更好的回報率。所以，這是一個有趣的結果，我覺得去年或兩年前的大部分倍數已經讓我們絆倒了，但我認為它已經到了。考慮到回報潛力，您認為這樣做有必要且合理嗎？

Perfect. Thank you.

完美的。謝謝。

(Operator Instructions) Nicole DeBlase with Deutsche Bank.

（操作員指令）Nicole DeBlase 與德意志銀行。

Yes. Thanks, guys. Good morning. And my questions have been asked already, but I guess maybe just on channel inventory. I mean, obviously a lot of discussion around what's happening at the end customer level. But just want to confirm that you guys still feel comfortable with where channel inventories today?

是的。謝謝，夥計們。早安.我的問題已經被問到了，但我想可能只是關於渠道庫存。我的意思是，顯然有很多關於最終客戶層面發生的事情的討論。但只是想確認一下你們對今天的通路庫存是否仍然滿意？

So I'd say yes, yes, it's certainly not as clear.

所以我會說是的，是的，這當然不是那麼清楚。

Okay. Cool. And then I guess and on the 4Q outlook, we should be kind of assuming a normal seasonal outcome and then just layer on the impact of the storm push out from 3Q to 4Q. So, if you guys expect to recapture all of that in the fourth quarter?

好的。涼爽的。然後我想，就第四季的前景而言，我們應該假設正常的季節性結果，然後將風暴從第三季推向第四季的影響分層。那麼，你們是否希望在第四季重新奪回所有這些？

Yes, that's a better way. I think I said better than seasonal, but it's probably you said it better, which is it will be seasonal plus a pickup from the storms. You said it better than I did.

是的，這是一個更好的方法。我想我說的比季節性更好，但可能你說得更好，這將是季節性的加上風暴的影響。你說的比我說的好。

Okay, perfect. Thank you, guys. I'll pass it on.

好的，完美。謝謝你們，夥計們。我會把它傳遞下去。

Thank you. Scott Graham with Seaport Research Partners.

謝謝。斯科特·格雷厄姆與海港研究合作夥伴。

Yes, hi, and good morning. Thank you for taking my question. The two questions, really the renewables and the data center businesses, were those up sort of in the 1520 territory or was it actually 20?

是的，嗨，早安。謝謝你回答我的問題。兩個問題，即可再生能源和資料中心業務，這些業務的成長是在 1520 區間還是實際上是 20？

are up strong double digits.

強勁兩位數成長。

Fair enough. Okay.

很公平。好的。

There was a comment made earlier about POS. utility level be sort of running up mid-single. Is that across both great infrastructure and automation? Or was that just to comment on just infrastructure, as I commented, distribution markets within utility and some of the customers that are not in an overstock position.

之前有一個關於 POS 的評論。實用水準有點接近中路。這是否涵蓋了基礎設施和自動化？或者，正如我所評論的那樣，這只是為了評論基礎設施、公用事業內部的分銷市場以及一些不處於庫存過剩狀態的客戶。

Great. Thank you.

偉大的。謝謝。

(Operator Instructions) Jeffrey Sprague with Vertical Research.

（操作員說明）Jeffrey Sprague 從事垂直研究。

Thanks for letting me back. Then I just want to come back. The systems control I would think that we're working with the assumption that it was a 400 million business last year on a kind of confirm you just have 21st and revenues here in Q three. I'm sure there's some seasonality development. I mean at this business growing 15, 20 percent organically, I'm currently maybe maybe you could just give us a sense. You mentioned in the quarter strong monetization and offering getting traction this kind of a little bit more color on how that the cases performance?

謝謝你讓我回來。然後我只想回來。系統控制 我認為我們正在假設去年的業務規模為 4 億美元，以確認您只有第 21 位以及第三季的收入。我確信有一些季節性的發展。我的意思是，在這個業務有機成長 15%、20% 的情況下，我目前也許你可以給我們一個感覺。您在本季提到了強勁的貨幣化，並提供了更多關於案例表現的色彩？

Yes. So first of all, we didn't have it last year. So, I'm comparing nine out of letting out whatever the Phase two was not that big yet. Growth rate is strong. It isn't perfectly linear. I would say the third quarter was particularly strong, um, but I think you're right to and for tenants growing very handsomely and at nice margins in that, I believe over the long term. But this would require investment on our part. But I think with our sales force and our relationships, I really think we can grow that business over the long term. Yes, Jeff, in a really, really important ways. So we're really, really pleased to have systems control and the family.

是的。首先，我們去年沒有。所以，我正在比較九個，無論第二階段還沒有那麼大。成長率強勁。它不是完全線性的。我想說第三季特別強勁，嗯，但我認為從長遠來看，租戶的成長非常可觀且利潤率很高，這是正確的。但這需要我們的投資。但我認為憑藉我們的銷售團隊和我們的關係，我真的認為我們可以長期發展這項業務。是的，傑夫，在一個非常非常重要的方面。所以我們真的非常非常高興能夠擁有系統控制權和家庭。

Just a point of clarification, 400 million was the expectation for revenues here. Jeff,

需要澄清的是，這裡的收入預期為 4 億。傑夫，

it was. Okay.

是的。好的。

Thanks, Jeff. And can you run I think somebody might divest the tariff question. I'm going back and forth a little bit between calls, but um, can you give us a sense now of what percentage of your COGS are U.S. based? I don't know that I have that off the top of my head. The question was asked, and we said it's smaller. We it was the in-person was it was what exposure would you have and it's smaller a because we sold off to lighting businesses that have a lot of exposure. Second, we had done some redundancy planning and pulled some volume back domestically. And then secondly, the fact that we have a lot more confidence in our ability to manage whatever tariff headwinds via price and productivity. So, um, we are we'll keep our eyes very closely on the tariff question, but that's where we're pretty significant. Majority of us of our COGS are US-based. Now here you can get out ahead of us who don't have the number, but I'd say it's a significant portion of our boxes is in North American based.

謝謝，傑夫。你能跑嗎？我會在兩次通話之間來回詢問，但是，您現在能否告訴我們，您的銷貨成本中有多少百分比來自美國？我不知道我腦子裡有這個想法。問了問題，我們說它更小。我們是面對面的，這是你將擁有的曝光度，它較小，因為我們賣給了擁有大量曝光度的照明企業。其次，我們做了一些裁員計劃，並在國內撤回了一些銷量。其次，我們對透過價格和生產力管理任何關稅逆風的能力更有信心。所以，嗯，我們將密切關注關稅問題，但這就是我們非常重要的地方。我們的大部分銷貨成本都位於美國。現在，您可以在沒有號碼的人之前下車，但我想說的是，我們的包裹很大一部分位於北美。

Appreciate it. Thanks.

欣賞它。謝謝。

Thank you. I'm showing no further questions at this time. I would now like to turn it back to Dan Marotta for closing remarks.

謝謝。我目前沒有提出任何進一步的問題。現在我想請丹馬洛塔做總結發言。

Thanks, everybody, for joining us will be around all day for calls. Appreciate it.

謝謝大家加入我們，我們將全天接聽電話。欣賞它。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。