Power equipment maker Hubbell misses profit expectations on high raw material costs

May 1 (Reuters) - Electrical equipment maker Hubbell HUBB.N reported a lower-than-expected first-quarter profit on Thursday, hurt by softening demand from grid automation, elevated raw material costs and tariff-related headwinds that eroded its margins.

The company, however, increased its 2025 sales growth expectations in the range of 6% to 8%, from the earlier forecast of 4% to 5%, while maintaining its adjusted profit per share forecast of $17.35 to $17.85.

Utility solutions segment sales, comprising 64% of 2024 revenue, fell 4% to $857.1 million due to challenging prior year comparisons for grid automation sales, the company said.

The Connecticut-based company reported an adjusted profit of $3.50 per share for the quarter, below the analysts' estimate of $3.72 per share, according to data compiled by LSEG.

Its quarterly revenue fell 2.4% to $1.37 billion, compared with the estimate of $1.39 billion.