Hubbell
Diversified manufacturer of branded electrical and utility infrastructure hardware; sells through electrical/utility distributors and direct to investor-owned utilities; two segments (Utility Solutions ~63%, Electrical Solutions ~37%); growth via organic share gain plus bolt-on M&A.
Sources — 13 figures with citations
- Q2 2026 net sales, organic growth and segment splitfiled2026-06-30Total $1,711.8M (+15.3% vs $1,484.3M) = +10.2% organic, +4.8% acquisitions, +0.3% FX. Utility Solutions $1,025.8M (+9.7%; organic +5.5%, M&A +3.9%). Electrical Solutions $686.0M (+25.1%; organic +18.3%, M&A +6.5%). H1 2026 $3,228.5M (+13.2%; organic +9.2%).sec.gov — Condensed Consolidated Statement of Income, Segment Information and Organic Net Sales Growth tables, Exhibit 99.1 to the 8-K filed 2026-07-28.
- Q2 2026 margins — the compressionfiled2026-06-30Gross profit $613.0M = 35.8% (PY $552.1M = 37.2%). GAAP operating income $348.6M = 20.4% (PY 22.7%, -230bps). Adjusted operating income $408.5M = 23.9% (PY 24.4%, -50bps). Utility adjusted 25.6% (+10bps); Electrical adjusted 21.2% (-130bps). Adjusted EBITDA $416.2M (+8%) = 24.3% of sales.sec.gov — Margins and bps changes stated in the filed Segment Information table. Gross margin and adjusted EBITDA margin derived: 613.0/1,711.8 = 35.81%; 552.1/1,484.3 = 37.20%; 416.2/1,711.8 = 24.31%.
- Q2 2026 earnings and the GAAP-vs-adjusted divergencefiled2026-06-30Net income attributable to Hubbell $240.4M (-2% YoY); GAAP diluted EPS $4.52 (-1% YoY vs $4.56); adjusted net income $293.7M (+11%); adjusted diluted EPS $5.52 (+12% vs $4.93) on 53.1M diluted shares. Q2 adjustments: $39.1M amortization of acquisition intangibles + $28.0M transaction/integration costs (= $0.56 + $0.44 per share) vs $25.2M + $0.7M PY ($0.36 + $0.01). Interest expense, net $39.1M vs $14.5M PY.sec.gov — Earnings Per Share reconciliation table and income statement in Exhibit 99.1; the per-share adjustment amounts are stated in the Second Quarter Financial Highlights narrative.
- Balance sheet and leverage step-upfiled2026-06-30At 2026-06-30: total debt $5,372.6M (short-term $568.7M + long-term $4,803.9M); cash and investments $498.4M; net debt $4,874.2M. Versus 2025-12-31: total debt $2,325.4M, net debt $1,729.1M. Total debt/total capital 58% (from 38%); net debt/total capital 52% (from 28%). Goodwill $4,354.1M (from $3,060.8M); other intangibles, net $3,189.9M (from $1,394.3M); total assets $11,846.2M (from $8,228.8M).sec.gov — Condensed Consolidated Balance Sheet and the 'Ratios of Total Debt to Total Capital and Net Debt to Total Capital' non-GAAP table in Exhibit 99.1.
- NSI Industries acquisition and its financingfiled2026-06-30Acquired all equity of NSI Electrical Buyer, Inc. ('NSI Industries') for ~$3.0 billion in Q2 2026, funded with a new unsecured $900M term loan, $1.9B of senior notes and commercial paper issuances. H1 cash outflow for acquisitions $3,005.7M; H1 long-term debt issuance $2,787.5M plus $279.6M net short-term borrowing; $19.9M of debt issuance costs.sec.gov — Second Quarter Financial Highlights narrative plus the Condensed Consolidated Statement of Cash Flows in Exhibit 99.1.
- Cash flow, capex intensity and FCF marginderived2026-06-30Q2: OCF $249.8M (PY $260.6M), capex $37.0M (PY $39.9M), FCF $212.8M (PY $220.7M). H1: OCF $336.4M (PY $298.0M), capex $77.6M (PY $65.9M), FCF $258.8M (PY $232.1M). H1 working-capital drags: receivables -$167.1M, inventory -$79.2M. Derived: Q2 capex intensity 2.16%, Q2 FCF margin 12.43%; H1 capex intensity 2.40%, H1 FCF margin 8.02%.sec.gov — Cash-flow figures filed in the Free Cash Flow Reconciliation and Statement of Cash Flows. Ratios derived: 37.0/1,711.8 = 2.16%; 212.8/1,711.8 = 12.43%; 77.6/3,228.5 = 2.40%; 258.8/3,228.5 = 8.02%.
- FY2026 guidance (raised)filed2026-07-28Total sales growth +16-18%, organic +9-11%; GAAP diluted EPS $17.25-$17.55; adjusted diluted EPS $20.25-$20.55, excluding ~$2.50/share intangible amortization and ~$0.50/share transaction/integration costs; adjusted tax rate 22.0-22.5%; ~$20M of restructuring and related investment; FCF conversion ~90% of adjusted net income.sec.gov — 'Summary & Outlook' section of Exhibit 99.1. Prior guide was +8-11% total / +6-9% organic and $19.30-$19.85 adjusted EPS.
- Shares outstandingfiled2026-07-2352,832,571 shares of Hubbell common stock outstanding as of 2026-07-23.sec.gov — Cover page of the Form 10-Q for the quarter ended 2026-06-30, filed 2026-07-29 (dei:EntityCommonStockSharesOutstanding).
- Price, market capitalization and the post-print movemarket2026-08-03$476.04 CLOSE on 2026-08-03. Surrounding closes: $497.96 (07-27, day before release), $483.66 (07-28, release day), $460.96 (07-29), $473.69 (07-30), $472.55 (07-31). Market cap ~$25.15B; 52-week range $403.82-$565.50.stockanalysis.com — Daily close series; overview page (https://stockanalysis.com/stocks/hubb/) reports the $25.15B cap on 52.83M shares, consistent with 52,832,571 x $476.04 = $25.15B. Two-day drawdown from the pre-release close: (460.96/497.96)-1 = -7.4%.
- FY2025 revenue base for the LTM bridgefiled2025-12-31FY2025 net sales $5,844.6M, +3.8% total / +3.3% organic vs FY2024.sec.gov — FY2025 Form 10-K filed 2026-02-12: 'Net sales of $5,844.6 million in 2025 increased by $217.3 million, or 3.8%, compared to 2024.' Corroborated by the Q2 exhibit's 'With 2025 revenues of $5.8 billion'.
- LTM revenue through Q2 2026derived2026-06-30~$6,223.6M (~$6.22B)stockanalysis.com — Arithmetic: FY2025 $5,844.6M + H1 2026 $3,228.5M - H1 2025 $2,849.5M = $6,223.6M. Independently corroborated by the market data source's TTM revenue of $6.22B.
- Valuation on guided FY2026 adjusted EPS and leverage multiplederived2026-08-03P/E on the $20.40 midpoint of guided FY2026 adjusted EPS: $476.04 / $20.40 = ~23.3x (vs ~25x on the earlier $19.58 guidance midpoint). EV ~$30.02B ($25.15B cap + $4.87B net debt) = ~4.8x LTM revenue. Net debt / annualized H1 adjusted EBITDA = $4,874.2M / ($740.2M x 2) = ~3.3x. Market-quoted forward P/E ~22.0x; trailing P/E ~28.2x.stockanalysis.com — Arithmetic shown. The ~3.3x leverage figure is deliberately conservative: H1 2026 adjusted EBITDA of $740.2M (filed) contains only ~1 month of NSI, so a pro-forma full-year figure would lower the multiple. Forward/trailing P/E taken from the market source as quoted.
- Data-center growth, pricing and the H2 margin-recovery planmarket2026-07-28Data-center sales up ~65% in Q2, guided ~+50% for FY2026; FY organic by segment Utility +7-9%, Electrical +12-14%. Full-year pricing now expected at 3-4%, up from an initial ~2% assumption. Management expects Electrical Solutions to return to margin expansion in H2, via price, operational efficiency and tariff refunds. Consensus: adjusted EPS $5.52 vs ~$5.38 expected; revenue $1.71B vs ~$1.66B expected.markets.financialcontent.com — Secondary source — earnings-call coverage (StockStory, syndicated 2026-08-04). The ~65% data-center growth, ~50% full-year data-center guide, the 3-4% pricing figure, the segment organic sub-ranges and the consensus comparisons are NOT in the filed 8-K exhibit and are attributed to this call coverage.
Earnings, margins, COGS & capex
Hubbell is a high-margin, cash-generative electrical/utility-infrastructure compounder. FY2025 revenue was $5,844.6M with adjusted operating margin of 22.7% and free cash flow of $874.7M (~90% conversion of adjusted net income). Growth is anchored by Utility Solutions (63% of sales, ~24% adj. margin) - grid components/automation - offset in 2025 by weakness in meters/AMI. Momentum re-accelerated in Q1 2026 (+8% organic) on grid infrastructure and a ~40% surge in data-center-linked demand, prompting a full-year guidance raise. The $3.0B NSI Industries acquisition (closed June 9 2026, ~$570M revenue) expands the Electrical segment into data-center/light-industrial fittings.
Income statement — where each revenue dollar goes
% of revenueOf every $1 of revenue, ~64¢ is cost of goods and ~15¢ operating expense, leaving ~20¢ of operating profit.
Revenue trend
Margins
+80bps YoY
+130bps YoY
+50bps YoY (high)
+120bps YoY (expanding)
+110bps YoY
consistent
COGS structure
COGS is dominated by raw materials - steel, copper, aluminum, resins/plastics - plus manufacturing labor across a largely North American footprint. Commodity inflation and tariffs are managed via price/cost actions and productivity; gross margin ~35% area with pricing generally offsetting input inflation.
Capex
Capex-light for an industrial: $155.1M in FY2025 (~2.7% of sales). Growth is funded more by M&A than heavy plant spend; the company prioritizes FCF return (dividend + buyback) and bolt-ons.
Latest earnings
Beat on both lines, sold off on margins. Adjusted EPS $5.52 vs consensus ~$5.38; revenue $1.712B vs consensus ~$1.66B. The stock nonetheless fell from $497.96 (2026-07-27 close) to $483.66 on the print and $460.96 the following session — a ~7.4% two-day drawdown — on adjusted operating margin contracting 50bps (Electrical -130bps) and the leverage step-up. This is the second consecutive quarter where a beat was met with a selloff (Q1 2026 also fell ~6%).
FY2026 RAISED across the board: total sales growth +16-18% (from +8-11%); organic +9-11% (from +6-9%), with Utility +7-9% and Electrical +12-14% and data-center revenue ~+50% for the year; GAAP diluted EPS $17.25-$17.55; adjusted diluted EPS $20.25-$20.55 (from $19.30-$19.85). Adjusted EPS excludes ~$2.50/share intangible amortization and ~$0.50/share transaction/integration costs. Adjusted tax rate 22.0-22.5%; ~$20M of restructuring and related investment; FCF conversion ~90% of adjusted net income. Full-year pricing now expected at 3-4%, up from an initial ~2% assumption.
- Q2 net sales
- $1,711.8M (+15.3%: +10.2% organic, +4.8% M&A, +0.3% FX)
- Q2 adjusted diluted EPS
- $5.52 (+12% YoY); GAAP $4.52 (-1% YoY)
- Q2 adjusted operating margin
- 23.9%, DOWN 50bps YoY (GAAP 20.4%, down 230bps)
- Electrical Solutions adjusted operating margin
- 21.2%, DOWN 130bps YoY — tariffs, cost inflation, restructuring investment
- Utility Solutions adjusted operating margin
- 25.6%, UP 10bps YoY
- Data-center sales growth
- ~+65% in Q2; guided ~+50% for FY2026
- Grid Infrastructure / Grid Automation
- Grid Infrastructure +12%; Grid Automation +1% (the weaker sub-segment; Aclara order momentum said to be improving)
- Net debt
- $4,874.2M vs $1,729.1M at YE2025; net debt/total capital 52% vs 28%
- Net debt / annualized H1 adj EBITDA
- ~3.3x (derived, conservative — H1 EBITDA includes only ~1 month of NSI)
- Q2 free cash flow
- $212.8M, DOWN from $220.7M PY despite 15% sales growth
- NSI Industries
- ~$3.0B, closed Q2 2026; funded with a $900M term loan, $1.9B senior notes and commercial paper; drove $28.0M of Q2 transaction/integration costs
Growth drivers
- Grid modernization / T&D capex supercycle — aging US grid, load growth, and a newly framed ~$1.5B addressable high-voltage transmission (765 kV) opportunity over the next decade
- Data-center power buildout — data-center-linked demand up ~40% in Q1 2026; NSI acquisition adds data-center/light-industrial fittings
- Electrification and reshoring of US manufacturing lifting Electrical Solutions
- Grid automation / smart-grid (communications, controls, protection) as a higher-margin mix-shift
- Bolt-on M&A - NSI Industries ($3.0B, ~$570M revenue, closed June 2026) and a steady acquisition cadence ($958.3M deployed on acquisitions in FY2025)
- Pricing power + productivity driving continued margin expansion
Reported financials — SEC EDGAR
Audited GAAP figures pulled from SEC filings · latest filing 2026-02-12. The audited primary-source spine — not financial advice.
Revenue — annual (GAAP)
Margins & balance sheet — FY’25
Bull & bear
The demand side is inflecting hard and broadly: 10% organic growth with data-center sales up ~65%, Electrical organic up 18%, and grid infrastructure up 12% — enough for management to nearly double the full-year sales guide and raise adjusted EPS again, with pricing now running 3-4% versus an initial 2% plan.
- Organic growth accelerated to +10.2% in Q2 (from +8% in Q1 and +3.3% for FY2025) — the AMI/meters air-pocket that dragged 2025 has lapped and both segments are growing
- Electrical Solutions organic +18.3% with data-center sales up ~65% in the quarter on added capacity, new products and content gains; FY2026 data-center revenue guided ~+50%
- Utility Solutions organic +5.5% with Grid Infrastructure +12%, and Utility adjusted operating margin still EXPANDED (25.6%, +10bps) — the 63%-of-sales high-margin core is holding its price/cost spread
- Guidance raised on every line: total sales +16-18% (from +8-11%), organic +9-11%, adjusted EPS to $20.25-$20.55 (from $19.30-$19.85), with management citing strong first-half order trends as the visibility for H2
- Pricing power is real and improving — full-year price now expected at 3-4% versus an initial ~2% assumption, and management expects Electrical to return to margin EXPANSION in H2
- NSI closed and contributing (+4.8pts of Q2 growth), deepening data-center and light-industrial content; the M&A engine plus ~90% FCF conversion is the compounding mechanism the thesis has always rested on
- The de-rating helps: at $476.04 the stock trades ~23x the midpoint of guided FY2026 adjusted EPS ($20.40) versus ~25x before the de-rating, with a market-quoted forward P/E of ~22x
This quarter breaks the two pillars the premium multiple rested on — margin expansion and a clean balance sheet. Adjusted operating margin went DOWN 50bps (Electrical -130bps), GAAP EPS actually fell 1%, free cash flow fell YoY on 15% revenue growth, and net debt tripled to $4.87B, so the guidance raise is increasingly volume-and-M&A-driven rather than quality-driven.
- Adjusted operating margin contracted 50bps to 23.9% and GAAP contracted 230bps to 20.4% — the first clear reversal of the margin-expansion story (FY2025 was +80bps adjusted). Electrical Solutions adjusted margin fell 130bps to 21.2% on tariffs, raw-material and cost inflation, and restructuring
- GAAP diluted EPS FELL 1% ($4.52 vs $4.56) and net income attributable fell 2% — the entire +12% adjusted EPS growth is the widening adjustment bridge ($0.56 amortization + $0.44 transaction/integration in Q2, versus $0.36 + $0.01 PY)
- Net debt tripled to $4,874.2M from $1,729.1M; net debt/total capital went 28% -> 52%, gross debt/capital 38% -> 58%. Net debt is ~3.3x annualized H1 adjusted EBITDA, and interest expense nearly tripled to $39.1M in the quarter — a permanent EPS headwind until deleveraging lands
- Free cash flow DECLINED to $212.8M from $220.7M despite 15% revenue growth, with H1 receivables +$167.1M and inventory +$79.2M; the ~90% conversion guide now has to be delivered against rising capex and integration spend
- Goodwill and intangibles ballooned to $4,354.1M and $3,189.9M (from $3,060.8M and $1,394.3M) — total assets went $8.23B -> $11.85B on a $3.92B equity base, so a stumble in NSI creates real impairment exposure
- The market has now sold off a beat twice running (~6% in Q1, ~7% over two sessions in Q2), which is what stretched expectations look like from the inside — the stock is ~16% below its 52-week high of $565.50
- Grid Automation grew only ~1% — the higher-margin mix-shift leg of the thesis is the slowest-growing part of the portfolio, and management's H2 Electrical margin recovery depends on price and tariff refunds arriving on schedule
- Larger rivals (Eaton, Schneider, ABB, Emerson, nVent) are targeting the same grid and data-center pools, and Hubbell's own filing flags 'continued softness in the heavy industrial and residential markets of Electrical Solutions'
What it is worth
Forward P/E vs. electrical-equipment peers + reverse-DCF sanity check. At ~$487 on FY2026 adj. EPS guidance of $19.30-$19.85 (midpoint ~$19.58), HUBB trades ~25x forward earnings - a premium to its historical ~18-22x, in line with high-quality grid/electrification peers (ETN, NVT) that also carry mid-20s multiples. Reverse-DCF: the current price implies sustained mid-to-high-single-digit organic growth plus continued margin expansion and ~90% FCF conversion - achievable if the grid/data-center cycle holds, demanding if utility capex stalls.
~$360-400 (~18-20x)
if utility capex softens, AMI weakness persists, commodities/tariffs compress margins, or the multiple de-rates toward history.
~$490-540 (~25-27x forward)
guidance delivered, multiple holds around peer level.
~$600+ (~30x on ~$20 FY26 EPS growing double-digit) if grid + data-center demand compounds, NSI accretes, and margins keep expanding.
Quality name at a full multiple; upside is cycle-and-execution-dependent rather than cheap. Not financial advice.
SWOT
Strengths
- Leading, entrenched positions in US utility-grid components with deep IOU relationships and spec-in advantages
- High margins (22.7% adj. operating) and strong FCF (~90% conversion) fund dividends, buybacks and bolt-ons
- Direct leverage to secular grid-modernization, electrification and data-center power capex
- Diversified, mission-critical product breadth with pricing power across cycles
Weaknesses
- Cyclical/lumpy end-demand tied to utility and non-residential construction capex budgets
- Meters/AMI softness was a real 2025 drag - exposure to telecom/utility capex timing
- Commodity (steel/copper/aluminum) and tariff cost exposure requires continuous price/cost management
- Rising leverage after the ~$2.8B debt-funded $3.0B NSI deal reduces near-term balance-sheet flexibility
Opportunities
- Multi-decade T&D reinvestment cycle and the ~$1.5B 765kV high-voltage transmission ramp
- Data-center electrical content growth (NSI fittings, grid connections, enclosures/power)
- Grid automation/software mix-shift lifting margins above the hardware base
- Continued accretive bolt-on M&A in a fragmented electrical-components market
Threats
- Larger, better-capitalized competitors (Eaton, Schneider, ABB, Emerson) pushing into grid/data-center power
- Utility capex deferral or a non-residential construction downturn
- Tariff/commodity shocks outpacing price recovery
- Integration risk and multiple compression if the NSI deal or grid cycle disappoints elevated expectations
Moats, dependencies & bottlenecks
Moats
Spec-in / installed-base standardization with investor-owned utilities Grid components are qualified into utility standards and construction specs; switching is slow, risk-averse and costly - a durable share anchor.
Broad branded catalog (Hubbell, plus NSI's Bridgeport/Polaris/Tork) sold through 2,000+ distributors; breadth and availability are hard to replicate.
Moderate-Strong Scale in North American electrical manufacturing supports pricing that offsets commodity inflation and funds margin expansion.
Repeatable accretive bolt-ons (NSI the latest) extend reach - a process advantage, not a structural barrier.
Dependencies
63% of revenue tracks utility T&D and grid-hardening budgets; deferrals hit directly.
Electrical Solutions and data-center content depend on construction and hyperscaler capex.
Commodity + tariff inflation pressures COGS; managed via price/cost and productivity.
WESCO, Graybar, Sonepar, Rexel and utility direct channels carry the products; channel destocking swings shipments.
Growth algorithm leans on bolt-ons; NSI integration and post-deal leverage are execution-dependent.
Advantages
- Entrenched, spec-in utility-grid positions with high switching costs
- High margin + high FCF conversion self-funding capital return and M&A
- Direct, diversified exposure to grid modernization, electrification and data-center power
- Proven bolt-on M&A machine broadening the addressable market
Weaknesses
- Cyclical, budget-driven end-demand with sub-segment air-pockets (2025 AMI/meters)
- Commodity/tariff cost sensitivity
- Elevated valuation leaves little margin for execution slips
- Post-deal leverage reduces near-term flexibility
Bottlenecks
- Utility capex approval cycles and permitting cadence gate order timing
- High-voltage transmission (765kV) ramp depends on long project lead-times and utility procurement
- Skilled manufacturing labor and specialty input (e.g., copper, grain-oriented steel) availability
- Post-NSI leverage limits the size of the next acquisition until deleveraging
Top signals & trends
Top signals
Rising multi-year grid-capex plans are the core demand driver for Utility Solutions.
~40% Q1 2026 growth; hyperscaler capex and NSI fittings extend the runway.
The 2025 drag; a rebound removes a headwind, continued softness caps organic growth.
Accretion delivery and deleveraging pace validate (or undercut) the M&A thesis.
Margin expansion depends on price staying ahead of input inflation.
Trends
High positive · Aging US grid + load growth (electrification, data centers) drives a multi-decade capex wave; the ~$1.5B 765kV TAM is a fresh leg.
High positive · AI-driven data-center construction lifts electrical content; core rationale for the NSI deal.
Manufacturing onshoring and building electrification support Electrical Solutions demand.
Higher-margin communications/controls/protection mix-shift above the hardware base.
Cost pressure, but Hubbell's domestic footprint and pricing are relative advantages.
Ecosystem & competitor graph
Suppliers feed the company; customers pull from it. Line thickness shows the strength of each tie (supply-chain dependency, customer earnings contribution). Hover to isolate a tie.
Steel input for enclosures, poles, hardware.
Steel supply for fabricated components.
Copper - key input for connectors, conductors, grounding.
Wire/cable and copper/aluminum products (private).
Major electrical/utility distributor - key route to market.
Large electrical distributor (private/employee-owned).
Global electrical distributors (Sonepar private; Rexel Euronext-listed) carrying Hubbell products.
Investor-owned utility - representative end customer for grid products.
IOU end customer buying T&D/grid components.
Diversified electrical + power-management giant overlapping in utility, industrial and data-center power.
Electrical connection/protection and enclosures; direct overlap in Electrical Solutions and data-center.
Automation + electrical; competes in grid/industrial adjacencies.
French electrical/energy-management leader; strong in data-center power and grid (ADR).
Global electrification + grid-automation player (former T&B owner); overlaps in utility/industrial (ADR).
Lighting + electrical controls; overlaps in the lighting/controls portions of Electrical Solutions.
Electrical wiring devices and infrastructure; data-center and building overlap (ADR).