Hubbell Incorporated : 1Q 2026 Earnings Call Presentation
HUBB
Published on 04/30/2026 at 07:59 am EDT
April 30, 2026
Key Messages
1
2
3 Electrical Solutions growth driven by datacenter and light industrial
4
3
BACKGROUND
New RTO/ISO recommendation for >7,000 new miles (35+ projects) of
765kV transmission; represents ~3x increase over existing 765kV miles
Buildout is early cycle; only 1/3rd of planned miles have been awarded to utility/developers - supplier awards to follow as projects progress
Content per mile opportunity increases >2x on 765kV projects
(Hubbell content typically represents <5% of project cost)
Incremental opportunities from substations and lower voltage tie-in lines
New products in development/testing in collaboration w/ major customers
Capacity expansion investments underway to serve strong growth
LEADING POSITIONS, INNOVATION AND PORTFOLIO DEPTH DRIVING EARLY SUCCESS
Hubbell awarded first 160 miles of multi-year 765kV project
Project anticipated to begin in 2027
Hubbell awarded 150+ mile double circuit 500kV project
High voltage transmission represents ~$1.5B Served Addressable Market opportunity through 2035
Project anticipated to begin in 2H26
Leading portfolio depth and breadth enables full
HUBBELL OFFERINGS FOR 765kV TRANSMISSION AND SUBSTATION
solutions offering for customers
NET SALES
ADJ. OPERATING PROFIT
ADJ. DILUTED EPS
FREE CASH FLOW
$ millions
1,365
+11%
1,517
$ millions $ millions
19.8%
18.7%
301
+18%
$ per share
+16%
$3.93
$3.38
+304%
46
11
256
1Q 2025 1Q 2026
Strong fundamental operating performance
Organic +8%
Electrical Solutions organic +11% Utility Solutions organic +7%
(Grid Infrastructure +12% and Grid Automation -7%)
1Q 2025 1Q 2026
+110bps y/y
Volume growth
Price | Cost | Productivity positive
1Q 2025 1Q 2026
Up Mid Teens y/y
Higher y/y interest expense and tax rate
Lower share count
1Q 2025 1Q 2026
Strong start to FY26
Seasonally solid 1Q performance Repurchased $168M shares in 1Q
HUS NET SALES
HUS ADJUSTED OPERATING PROFIT
Organic +7%
Acquisitions +4%
949
+11%
21.8%
19.9%
207
+21%
$ millions $ millions
857
171
1Q 2025 1Q 2026 1Q 2025 1Q 2026
HIGHLIGHTS AND KEY PERFORMANCE DRIVERS
Grid Infrastructure sales $727M (+12% organic)
Broad-based demand strength across distribution, transmission and substation markets
Load growth and datacenter buildouts drove robust transmission and substation demand
Aging infrastructure drove strong hardening and resiliency investment
Strong telcom growth and solid gas distribution growth
Grid Automation sales $222M (-7% organic)
Meters & AMI markets weak as anticipated; strong growth in protection & control
Sales up slightly sequentially versus 4Q25
Grid Infrastructure volume growth partially offset by Grid
Automation volume declines
Acquisitions
Favorable price realization and productivity
Cost inflation, higher raw material and tariff costs
HES NET SALES
HES ADJUSTED OPERATING PROFIT
Organic +11%
Forex +1%
568
+12%
16.4%
16.7%
93
+10%
$ millions $ millions
508 85
1Q 2025 1Q 2026 1Q 2025 1Q 2026
HIGHLIGHTS AND KEY PERFORMANCE DRIVERS
Datacenter sales up ~40%
Light industrial markets strong
Non-residential solid; heavy industrial markets softer
Vertical market strategy, new product introductions and commercial alignment driving outgrowth
Volume growth
Favorable price realization and productivity
Cost inflation, higher raw material and tariff costs
Higher y/y restructuring investment (~80bps impact)
2026 Outlook
Commentary
Sales Growth
+8-11%
Organic Growth
+6-9%
Adj. Operating Margin
22.7% - 23.0%
Non-Operating
Net Interest ($90M) Other Expense ($20M) Tax Rate ~22.5% Share Count 53.1M
Adj. EPS
$19.30 - $19.85
Free Cash Flow
>90%
of adj. net income
Stronger organic growth
Acquisitions still expected to contribute +2%
HUS organic increased to +6-9%: stronger Distribution (+HSD) and Trans/Sub (up low DD)
HES organic increased to +6-9%: stronger Datacenter (up >25%) and T&D (+HSD)
Incremental price realization across both segments
Price | Cost | Productivity neutral or better on dollar-for-dollar basis
Investment supporting high growth areas
Continue to anticipate FY26 restructuring and related expense of $15-20M
Lower share count versus initial outlook offset by higher net interest expense
Other non-operating items unchanged
Raising full year adjusted EPS range
Strong 1Q demand momentum provides enhanced visibility
CapEx still anticipated at $175-190 million
Investment supporting capacity expansion in high growth areas like trans/sub and datacenter
Delivering Stronger Growth and Managing Price | Cost in Dynamic Environment
Enhanced visibility to strong Utility T&D and datacenter demand
Utility distribution resiliency investment strong
Recent transmission project wins provide enhanced 2H visibility
Datacenter orders and robust capex budgets drive stronger FY26 outlook
International oil & gas project uncertainty (<1% of Hubbell sales)
Incremental cost inflation anticipated to be offset by additional price / productivity
Recent inflation in metals, plastics as well as
freight and transportation costs
Updated tariff framework roughly neutral versus prior outlook
Additional pricing actions implemented 2Q
Continued emphasis on productivity and supply chain resiliency
Dynamic geopolitical, macroeconomic and inflationary environment
>90% US sales exposure
Utility + Datacenter represent >2/3rds of Hubbell portfolio
Short cycle demand holding up solidly
Supply chain resiliency investments mitigating material/component availability issues for now
Confident in price actions sticking; need to
continue monitoring demand elasticity
Raising FY26 organic growth outlook from +5-7% to +6-9%
Continue to anticipate neutral
or better P | C | P for FY26
Hubbell portfolio well positioned
amid uncertain environment
References to "adjusted" operating measures exclude the impact of certain costs, gains or losses. Management believes these adjusted operating measures provide useful information regarding our underlying performance from period to period and an understanding of our results of operations without regard to items we do not consider a component of our core operating performance. Adjusted operating measures are non-GAAP measures, and include adjusted operating income, adjusted operating margin, adjusted net income attributed to Hubbell Incorporated, adjusted net income available to common shareholders, adjusted earnings per diluted share, and Adjusted EBITDA. These non-GAAP measures exclude, where applicable:
Amortization of all intangible assets associated with our business acquisitions, including inventory step-up amortization associated with those acquisitions. The intangible assets associated with our business acquisitions arise from the allocation of the purchase price using the acquisition method of accounting in accordance with Accounting Standards Codification 805, "Business Combinations." These assets consist primarily of customer relationships, developed technology, trademarks and tradenames, and patents, as reported in Note 6-Goodwill and Other Intangible Assets, under the heading "Total Definite-Lived Intangibles," within the Company's audited consolidated financial statements set forth in its Annual Report on Form 10-K for Fiscal Year Ended December 31, 2025. The Company excludes these non-cash expenses because we believe it (i) enhances management's and investors' ability to analyze underlying business performance, (ii) facilitates comparisons of our financial results over multiple periods, and (iii) provides more relevant comparisons of our results with the results of other companies as the amortization expense associated with these assets may fluctuate significantly from period to period based on the timing, size, nature, and number of acquisitions. Although we exclude amortization of these acquired intangible assets and inventory step-up from our non-GAAP results, we believe that it is important for investors to understand that revenue generated, in part, from such intangibles is included within revenue in determining adjusted net income attributable to Hubbell Incorporated.
Transaction, integration, and separation costs associated with our business acquisitions and divestitures. The effect that acquisitions and divestitures may have on our results fluctuate significantly based on the timing, size, and number of transactions, and therefore results in significant volatility in the costs to complete transactions and integrate or separate the businesses. Transaction costs are primarily professional services and other fees incurred to complete the transactions. Integration and separation costs are the internal and external incremental costs directly relating to these activities for the acquired or divested business. The acquisition and integration of DMC Power resulted in significant transaction and integration costs, and the acquisitions and disposition completed by the Company in the fourth quarter of 2023 resulted in a significant increase in transaction, integration and separation costs. As a result, we believe excluding such costs relating to these transactions provides useful and more comparable information for investors to better assess our operating performance from period to period.
Income tax effects of the above adjustments, which are calculated using the statutory tax rate, taking into consideration
the nature of the item and the relevant taxing jurisdiction, unless otherwise noted.
Adjusted EBITDA is a non-GAAP measure that excludes the items noted above and also excludes the Other income (expense), net, Interest expense, net, and Provision for income taxes captions of the Condensed Consolidated Statement of Income, as well as depreciation and amortization expense.
Net debt (defined as total debt less cash and investments) to total capital is a non-GAAP measure that we believe is a useful measure for evaluating the Company's financial leverage and the ability to meet its funding needs.
Free cash flow is a non-GAAP measure that we believe provides useful information regarding the Company's ability to generate cash without reliance on external financing. In addition, management uses free cash flow to evaluate the resources available for investments in the business, strategic acquisitions and further strengthening the balance sheet.
In connection with our restructuring and related actions, we have incurred restructuring costs as defined by U.S. GAAP, which are primarily severance and employee benefits, asset impairments, accelerated depreciation, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. We also incur restructuring-related costs, which are costs associated with our business transformation initiatives, including the consolidation of back-office functions and streamlining our processes, and certain other costs and gains associated with restructuring actions. We refer to these costs on a combined basis as "restructuring and related costs", which is a non-GAAP measure.
Organic net sales, a non-GAAP measure, represents net sales according to U.S. GAAP, less net sales from acquisitions and divestitures during the first twelve months of ownership or divestiture, respectively, less the effect of fluctuations in net sales from foreign currency exchange. The period-over-period effect of fluctuations in net sales from foreign currency exchange is calculated as the difference between local currency net sales of the prior period translated at the current period exchange rate as compared to the same local currency net sales translated at the prior period exchange rate. We believe this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. When comparing net sales growth between periods excluding the effects of acquisitions, business dispositions and currency exchange rates, those effects are different when comparing results for different periods. For example, because net sales from acquisitions are considered inorganic from the date we complete an acquisition through the end of the first year following the acquisition, net sales from such acquisition are reflected as organic net sales thereafter.
There are limitations to the use of non-GAAP measures. Non-GAAP measures do not present complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These financial measures should not be considered in isolation from, as substitutes for, or alternative measures of, reported GAAP financial results, and should be viewed in conjunction with the most comparable GAAP financial measures and the provided reconciliations thereto. We believe, however, that these non-GAAP financial measures, when viewed together with our GAAP results and related reconciliations, provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.
Reconciliations of each of these non-GAAP measures to the most directly comparable GAAP measure can be found in the tables below. When we provide our expectations for organic net sales, adjusted effective tax rate, adjusted diluted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected net sales, effective tax rate, diluted EPS and net cash flows provided by operating activities) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, certain financing costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Reconciliation of Adjusted Net Income to the most directly comparable GAAP measure (millions):
Hubbell Incorporated Three Months Ended March 31,
2026
2025
Change
Net income attributable to Hubbell (GAAP measure)
$ 181.8
$ 163.2
11 %
Amortization of acquisition-related intangible assets
33.4
24.7
Transaction, integration & separation costs
3.5
0.4
Subtotal
$ 218.7
$ 188.3
Income tax effects
8.8
5.9
Adjusted net income
$ 209.9
$ 182.4
15 %
Reconciliation of Adjusted Earnings Per Diluted Share to the most directly comparable GAAP measure (millions, except per share amounts):
Hubbell Incorporated Three Months Ended March 31,
2026 2025 Change
Numerator:
Net income attributable to Hubbell (GAAP measure)
$ 181.8
$ 163.2
Less: Earnings allocated to participating securities
(0.2)
(0.3)
Net income available to common shareholders (GAAP measure) [a]
$ 181.6
$ 162.9
11 %
Adjusted net income
$ 209.9
$ 182.4
Less: Earnings allocated to participating securities
(0.3)
(0.3)
Adjusted net income available to common shareholders [b]
$ 209.6
$ 182.1
15 %
Denominator:
Average number of common shares outstanding [c]
53.1
53.5
Potential dilutive shares
0.2
0.3
Average number of diluted shares outstanding [d]
53.3
53.8
Earnings per share (GAAP measure):
Basic [a] / [c]
$ 3.42
$ 3.04
Diluted [a] / [d]
$ 3.41
$ 3.03
13 %
Adjusted earnings per diluted share [b] / [d]
$
3.93
$
3.38
16 %
Reconciliation of Adjusted Operating Margin to the most directly comparable GAAP measure (millions):
Hubbell Incorporated Three Months Ended March 31,
2026
2025
Change
Net Sales [a]
$ 1,516.7
$ 1,365.2
11 %
Operating Income
GAAP measure [b]
$ 263.8
$ 230.4
14 %
Amortization of acquisition-related intangible assets
33.4
24.7
Transaction, integration & separation costs
3.5
0.4
Adjusted operating income [c]
$ 300.7
$ 255.5
18 %
Operating margin
GAAP measure [b] / [a]
17.4 %
16.9 %
+50 bps
Adjusted operating margin [c] / [a]
19.8 %
18.7 %
+110 bps
Utility Solutions Three Months Ended March 31,
2026
2025
Change
Net Sales [a]
$ 948.9
$ 857.1
11 %
Operating Income
GAAP measure [b]
$ 175.1
$ 150.8
16 %
Amortization of acquisition-related intangible assets
28.7
19.8
Transaction, integration & separation costs
3.5
0.1
Adjusted operating income [c]
$ 207.3
$ 170.7
21 %
Operating margin
GAAP measure [b] / [a]
18.5 %
17.6 %
+90 bps
Adjusted operating margin [c] / [a]
21.8 %
19.9 %
+190 bps
Electrical Solutions Three Months Ended March 31,
2026
2025
Change
Net Sales [a]
$ 567.8
$ 508.1
12 %
Operating Income
GAAP measure [b]
$ 88.7
$ 79.6
11 %
Amortization of acquisition-related intangible assets
4.7
4.9
Transaction, integration & separation costs
-
0.3
Adjusted operating income [c]
$ 93.4
$ 84.8
10 %
Operating margin
GAAP measure [b] / [a]
15.6 %
15.7 %
-10 bps
Adjusted operating margin [c] / [a]
16.4 %
16.7 %
-30 bps
Reconciliation of Organic Net Sales Growth to Net Sales Growth (millions and percentage change):
Hubbell Incorporated Three Months Ended March 31,
2026
Inc/(Dec)%
2025
Inc/(Dec)%
Net sales growth (decline) (GAAP measure)
$ 151.5
11.1
$ (33.9)
(2.4)
Impact of acquisitions
31.5
2.3
4.5
0.3
Impact of divestitures
-
-
(21.1)
(1.5)
Foreign currency exchange
7.9
0.6
(8.6)
(0.6)
Organic net sales growth (decline) (non-GAAP measure)
$ 112.1
8.2
$ (8.7)
(0.6)
Utility Solutions Three Months Ended March 31,
2026
Inc/(Dec)%
2025
Inc/(Dec)%
Net sales growth (decline) (GAAP measure)
$ 91.8
10.7
$ (36.9)
(4.2)
Impact of acquisitions
30.2
3.5
-
-
Impact of divestitures
-
-
-
-
Foreign currency exchange
3.4
0.4
(4.2)
(0.5)
Organic net sales growth (decline) (non-GAAP measure)
$ 58.2
6.8
$ (32.7)
(3.7)
Electrical Solutions Three Months Ended March 31,
2026
Inc/(Dec)%
2025
Inc/(Dec)%
Net sales growth (GAAP measure)
$ 59.7
11.8
$ 3.0
0.6
Impact of acquisitions
1.3
0.3
4.5
0.9
Impact of divestitures
-
-
(21.1)
(4.2)
Foreign currency exchange
4.5
0.9
(4.4)
(0.9)
Organic net sales growth (non-GAAP measure)
$ 53.9
10.6
$ 24.0
4.8
Reconciliation of Net Debt to the most directly comparable GAAP measure (millions):
Hubbell Incorporated
March 31, 2026
December 31, 2025
Total Debt (GAAP measure)
$
2,573.0
$
2,325.4
Total Hubbell Shareholders' Equity
3,768.6
3,847.9
Total Capital
$ 6,341.6
$ 6,173.3
Total Debt to Total Capital (GAAP measure)
41 %
38 %
Less: Cash and Investments
$ 616.7
$ 596.3
Net Debt (non-GAAP measure)
$ 1,956.3
$ 1,729.1
Net Debt to Total Capital (non-GAAP measure)
31 %
28 %
Reconciliation of Free Cash Flow to the most directly comparable GAAP measure (millions):
Hubbell Incorporated Three Months Ended March 31,
2026
2025
Net cash provided by operating activities (GAAP measure)
$
86.6
$
37.4
Less: Capital expenditures
(40.6)
(26.0)
Free cash flow (non-GAAP measure) $ 46.0 $ 11.4
Disclaimer
Hubbell Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:58 UTC.