Hubbell Incorporated

What they do

Hubbell makes and assembles electrical products for utilities and building operators through subsidiaries in the U.S., Canada, Puerto Rico, Mexico, China, the UK, Brazil, Australia, Spain, Ireland and the Philippines, with joint ventures in Hong Kong and the Philippines. It reports in two segments: Utility Solutions, which makes T&D components and edge-of-grid products like smart meters and protection and control devices, and Electrical Solutions, positioned Behind the Meter. Its products sell under more than 75 brands, including Aclara, Chance, Hubbell, Ohio Brass and Beckwith Electric.

Revenue drivers

• Utility Solutions segment — Grid transmission and distribution components plus smart meters, communications, and protection and control devices; represented 63% of consolidated revenues in 2025, 64% in 2024 and 61% in 2023.
• Electrical Solutions segment — Sells Behind-the-Meter electrical products into non-residential, data center, industrial, telecom and gas distribution markets; Q2 2026 net sales were $686 million, up 25% year over year.
• Grid Infrastructure — A sub-line within Utility Solutions covering utility T&D hardware; Q2 2026 net sales rose approximately 12% year over year.
• Grid Automation — A sub-line within Utility Solutions covering grid protection and controls; Q2 2026 net sales rose approximately 1% year over year.

Recent performance

Q2 2026 net sales rose 15% to $1,712 million, split roughly +10% organic and +5% from M&A. Diluted EPS was $4.52 and adjusted diluted EPS was $5.52, up 12% year over year; operating margin was 20.4% and adjusted operating margin 23.9%, down 50 basis points. Utility Solutions net sales rose 10% to $1,026 million with 25.6% adjusted operating margin, while Electrical Solutions net sales rose 25% to $686 million with 21.2% adjusted operating margin. The company incurred $0.44 per diluted share of transaction, integration and separation costs in Q2 2026.

Strategy

Hubbell is pursuing organic growth complemented by acquisitions that extend capabilities and product offerings, having invested $958 million in acquisitions in 2025 and roughly $3.0 billion for NSI Industries in June 2026. NSI Industries supplies electrical fittings, connectors, components and wire management products, funded partly with a $900 million unsecured term loan and $1.9 billion of notes. It runs an ongoing restructuring program consolidating manufacturing and distribution facilities and back-office functions to lower cost. Pricing and productivity programs are intended to offset inflation and tariffs, and the company says it is investing in capacity expansion for high-growth areas.

Risks

• Inflation and input costs — Material costs are approximately half of cost of goods sold, and Hubbell cites ongoing inflationary pressure plus tariff and energy cost increases as margin risks.
• Tariffs and trade policy — The company states that changes in U.S. and international trade policies could have a material adverse effect on its business and operating results.
• Utility customer demand variability — The 10-K notes that substantial variability in purchases by electrical utilities would affect the Utility Solutions segment, which was 63% of 2025 revenues.
• Acquisition integration and leverage — The approximately $3.0 billion NSI Industries purchase was funded with a $900 million term loan and $1.9 billion of notes, adding integration and balance sheet risk.

Outlook

Management raised its full-year 2026 adjusted diluted EPS guidance to a range of $20.25 to $20.55, with diluted EPS expected between $17.25 and $17.55. It expects double-digit growth in organic sales, adjusted operating profit and adjusted earnings per share at the midpoint of the range. The company cites strong first-half order trends as providing visibility into the second half and points to grid modernization, load growth and data center investment as demand drivers.