Shares of Hubbell Incorporated (NYSE: HUBB) plunged 5.18% in intraday trading after the company reported first-quarter earnings that fell short of analyst expectations. The electrical and electronic products manufacturer faced challenges from raw material inflation, tariffs, and softness in its Grid Automation segment.

Hubbell reported adjusted earnings per share of $3.50 for Q1 2025, missing the consensus estimate of $3.72. Revenue for the quarter came in at $1.37 billion, slightly below the expected $1.39 billion. The company's Utility Solutions segment, which accounts for about 64% of total revenue, saw a 4% decline in sales to $857.1 million, primarily due to a 15% drop in Grid Automation sales.

Gerben Bakker, Chairman, President and CEO of Hubbell, commented on the results: "Our results in the first quarter were driven by continued strong operating performance in our Electrical Solutions segment and a return to organic growth in Grid Infrastructure, offset by anticipated softness in Grid Automation and the impact of higher cost inflation." Bakker added that recent cost increases driven by raw material inflation and tariffs resulted in a net price/cost/productivity headwind in the first quarter.

Despite the challenges, Hubbell maintained its full-year 2025 adjusted earnings per share guidance of $17.35 to $17.85. The company remains confident in its ability to mitigate recent inflationary impacts through pricing and productivity initiatives. However, investors seemed to focus on the near-term headwinds, leading to the significant stock price decline.