Hubbell Incorporated

Hubbell reported Q2 2026 net sales of $1.712 billion, up 15% year over year. Organic sales grew 10%, with 6% organic growth in Utility Solutions and 18% in Electrical Solutions. Adjusted operating profit was $409 million, up 13%, and adjusted operating margin was 23.9%, down modestly versus a strong prior-year comparison. Adjusted EPS was $5.52, up 12%. Utility Solutions sales were $1.026 billion and adjusted operating profit was $263 million; Electrical Solutions sales were $686 million and adjusted operating profit was $146 million. Free cash flow was $213 million in the quarter and $259 million year to date, up 12% year over year. For full-year 2026, management raised sales growth guidance to 11% to 18% from 8% to 16%, with organic growth now expected at 9% to 11% versus 6% to 9% previously. Utility Solutions organic growth is now expected at 7% to 9%, and Electrical Solutions organic growth at 12% to 14%. Adjusted operating margin guidance was raised to 23.1% to 23.4%, adjusted EPS guidance was raised to $20.25 to $20.55 from $19.30 to $19.85, and free cash flow conversion is expected to be about 90% of adjusted net income. Management also said net interest expense is expected to be $170 million and the adjusted tax rate 22.0% to 22.5% for the year.

Gerben Bakker said Hubbell’s results reflect strong positions in attractive end markets and continued execution, especially in data centers and utility transmission/distribution. He emphasized that the company is investing in capacity, managing inflation with price and productivity, and using capital to upgrade the portfolio toward higher-growth and higher-margin businesses. His tone was confident and constructive, repeatedly framing utility and electrical end markets as being in the early stages of a multiyear investment cycle.

Joe Capozzoli focused on the financial bridge from strong volume and acquisitions to higher EPS, while noting the offset from interest expense tied to NSI financing. He cited Q2 adjusted operating profit of $409 million, adjusted EPS of $5.52, and free cash flow of $213 million, with $259 million generated year to date. He also detailed NSI’s expected contribution: about $0.20 of EPS accretion in 2026, about $0.80 in 2027, pro forma leverage of about 2.9x net debt to EBITDA, and full-year 2026 free cash flow conversion of roughly 90% as CapEx rises to $175 million to $190 million from $155 million last year.

Analysts pressed management on whether utility distribution strength reflected restocking, and whether transmission/substation orders were being timed into the second half and 2027. Management said distribution strength was partly easier comps after prior destocking, but also reflected a healthy market, while transmission/substation was seeing strong quoting, more projects, and some bookings into 2027. Other questions focused on price actions, tariff-related margin support, and capex/capacity additions; management said pricing had been raised in April and again in July, expects about 3 to 4 points of full-year price, and said the Q3 tariff refund benefit is concentrated in the quarter.