Hubbell (NYSE: HUBB) raises its outlook as Electrical sales jump 51%

What happened

Hubbell Incorporated (NYSE: HUBB) raised its 2026 adjusted EPS outlook to $20.40-$20.60 after third-quarter sales rose 24.6%.

Sales reached $1.87 billion, up from $1.50 billion a year earlier. Organic growth was 11.3% and acquisitions added 13.2%. The quarter reflects both real demand and a larger company.

Adjusted diluted EPS was $5.91, up 14% from $5.17 in the third quarter of 2025. GAAP diluted EPS was $4.94 against $4.77. Adjusted operating margin reached 25.5%, up 160 basis points from 23.9%.

Chairman, President and CEO Gerben Bakker said the higher full-year outlook is mainly driven by stronger expected Electrical Solutions growth.

Key numbers

Metric	Latest	Change	Source
Q3 net sales	$1.87 billion	from $1.50 billion, +24.6%	Hubbell Q3 2026 earnings release (SEC 8-K Exhibit 99.1)
Q3 adjusted diluted EPS	$5.91	from $5.17, +14%	Hubbell Q3 2026 earnings release (SEC 8-K Exhibit 99.1)
Q3 GAAP diluted EPS	$4.94	from $4.77, +4%	Hubbell Q3 2026 earnings release (SEC 8-K Exhibit 99.1)
Q3 adjusted operating margin	25.5%	from 23.9%, +1.6 percentage points	Hubbell Q3 2026 earnings release (SEC 8-K Exhibit 99.1)
Electrical Solutions Q3 net sales	$845 million	from $559 million, +51%	Hubbell Q3 2026 earnings release (SEC 8-K Exhibit 99.1)
FY 2026 adjusted diluted EPS outlook	$20.40-$20.60		Hubbell Q3 2026 earnings release (SEC 8-K Exhibit 99.1)

Read more: Hubbell (HUBB) company research

Where the growth came from

Electrical Solutions drove the quarter. Net sales rose 51% to $845 million from $559 million, with organic growth of 22% and acquisitions adding 29%. Adjusted operating income was $210 million, or 24.8% of sales, against $116 million, or 20.8%.

Bakker said the segment was led by strong datacenter markets, content gains and capacity expansion investments. He also said performance and integration at NSI are running ahead of initial expectations.

Utility Solutions grew more slowly. Net sales rose 9% to $1.03 billion from $944 million, with organic growth of about 5%. Grid Infrastructure sales rose about 13% while Grid Automation fell about 4%. Adjusted operating income was $267 million, or 26.0% of sales, against $242 million, or 25.7%.

Bakker said orders and end-market demand stayed strong and kept building backlog. Organic growth was led by distribution, transmission and substation markets.

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Why it matters

OptimistFi has argued that Hubbell's value depends on strong utility and electrical-infrastructure demand and on margins staying near recent highs. The quarter supports both parts of that view.

Electrical Solutions widened its adjusted margin by 400 basis points and Utility Solutions by 30. For both segments, the filing credits volume growth, acquisitions, favorable pricing, productivity and a net tariff benefit. Higher cost inflation and raw material costs partly offset those gains.

How reported results compare

Reported earnings grew more slowly than adjusted ones. Net income attributable to Hubbell was $262.5 million against $255.5 million, up 3%. GAAP operating margin slipped to 21.8% from 22.0%.

Adjusted EPS excludes $0.89 a share of acquisition-related amortization and $0.08 of transaction and integration costs. A year earlier the exclusions were $0.35 and $0.05.

Acquisitions also reshaped the balance sheet. Total debt was $5.12 billion at Sept. 30 against $2.33 billion at Dec. 31, 2025. Net debt to total capital was 51% against 28%. Net interest expense in the quarter was $58.0 million against $13.6 million. Cash spent on acquisitions over nine months was $3.01 billion.

Cash generation kept pace. Operating cash flow was $323 million against $284 million. Free cash flow was $280 million against $254 million. Hubbell expects full-year free cash flow of about 90% of adjusted net income.

What's next

Hubbell now expects 2026 total sales growth of 18-19%, including organic growth of 10-11%, and GAAP diluted EPS of $17.30 to $17.50. The adjusted range excludes $2.50 a share of amortization and $0.60 of transaction, integration and separation costs.

The next quarterly report tests those targets. Organic growth inside its range and a steady Electrical Solutions margin would strengthen the case. Organic growth that stalls while acquisitions carry the total would weaken it.

The filing names continued strength in datacenter markets as a factor that could change results. It also names continued softness in heavy industrial and residential markets in Electrical Solutions.

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