Hubbell Inc - Class B

Hubbell holds a particular specialism in high-voltage grid equipment, especially in the United States.

Hubbell holds a particular specialism in high-voltage grid equipment, especially in the United States. The company is positioned to benefit from the electrification of energy demand and the build-out of the electrical grid, which is a key theme in our portfolio. We believe that Hubbell's expertise in this area provides a competitive advantage, contributing to its growth potential as demand for electrical infrastructure continues to rise.

Hubbell, as a leading provider of utility equipment, serves a critical role in helping utilities modernize and expand their networks, supported by a strong market position, a broad product portfolio and a history of successful acquisitions. We believe the company is well positioned to benefit from growing investment in the U.S. electrical grid and the rising demand for power driven by electrification and AI-related infrastructure needs.

Hubbell Inc. manufactures electrical and electronic products for utility, telecom, commercial, and industrial markets, holding the #1 market share in transmission and distribution products. The company benefits from secular trends like grid hardening and electrification, with organic growth of 4-6% enhanced by M&A, which has delivered an average low-teens return on investment. Hubbell's strong brand portfolio and embedded customer relationships support a case for long-term double-digit earnings per share growth, driven by a focus on quality and service in a high-cost failure environment.

Hubbell is a company with a strong track record and a clear path to future value creation. It manufactures essential equipment for the transmission and distribution of electricity across the US grid. The company has grown its revenues at a compound rate of 5-6% over the last 5, 10, and 20 years, with a return on invested capital of just under 50%. Hubbell's market share is stable at 20%, which is twice the size of its nearest competitor, reflecting its position as the leading supplier of essential parts. The ongoing demand for grid investment ensures a long runway for growth.