Hubbell (NYSE:HUBB) reported third-quarter 2026 results marked by double-digit growth in sales, adjusted operating profit, adjusted earnings per share and free cash flow, supported by strong demand in electrical infrastructure markets and contributions from recent acquisitions.
Net sales rose 25% from a year earlier to $1.873 billion. Organic sales increased 11%, including 22% organic growth in Electrical Solutions and 5% growth in Utility Solutions. Acquisitions added 13 percentage points to sales growth, with NSI contributing to the electrical segment and DMC Power supporting utility results.
Adjusted operating profit increased 33% to $477 million, while adjusted operating margin expanded 160 basis points to 25.5%. Adjusted diluted earnings per share rose 14% to $5.91, and free cash flow increased 10% to $280 million.
Electrical Solutions Leads Growth
Electrical Solutions posted sales of $845 million, an increase of 51% from the prior-year quarter. NSI accounted for 29 percentage points of the segment’s revenue growth, while organic sales climbed 22%.
Chairman, President and CEO Gerben Bakker said data-center sales rose more than 80% organically during the quarter. He cited content gains, new product introductions and capacity additions, particularly in wiring devices and pin-and-sleeve products, as contributors to the performance.
“Our wiring device and pin and sleeve product lines have driven accelerated data center penetration through our vertical market strategy,” Bakker said.
The segment also saw strong demand in light industrial markets, electric transmission and distribution, and renewable-energy markets. Nonresidential markets were solid, while heavy industrial markets remained relatively soft, according to management.
Electrical Solutions generated adjusted operating profit of $210 million, up 80% year over year. Its adjusted operating margin rose 400 basis points to 24.8%, driven by volume growth, the NSI acquisition, price realization, productivity actions and a net tariff benefit.
CFO Joe Capozzoli said the third quarter is typically the company’s strongest seasonal period for revenue and margins, but added that Hubbell expects Electrical Solutions to continue expanding margins beyond 2026 through product introductions, commercial initiatives, portfolio management and simplification efforts.
Utility Results Affected by Meter Component Shortage
Utility Solutions sales increased 9%, comprising 5% organic growth and a four-percentage-point contribution from DMC Power. Adjusted operating profit rose 10% to $267 million, and adjusted operating margin increased 30 basis points from a year earlier.
Grid Infrastructure organic sales increased 8%, led by distribution and transmission demand. Substation sales also grew, though below Hubbell’s prior expectations due to the timing of capacity expansion in its substation control house business.
Grid Automation organic sales declined 4% because of a component availability issue in the meters business. Management said the issue shifted approximately $15 million of third-quarter revenue into the fourth quarter and is expected to be resolved by the end of the year.
Bakker said the meter disruption stemmed from a contract manufacturer’s inability to source a component, resulting in a temporary production slowdown. He said the business had returned to full production and expected recovery during the fourth quarter.
Protection and Controls delivered double-digit growth, supported by demand for substation switching products. Hubbell said utility customers continued to plan projects related to load growth, grid hardening and resiliency, resulting in additional backlog growth across transmission, distribution and substation markets.
Higher 2026 Outlook and Early View of 2027
Hubbell raised its full-year 2026 sales-growth outlook to 18% to 19%, including expected organic growth of 10% to 11%. The company now expects Electrical Solutions organic sales to grow 17% to 18% for the year, while Utility Solutions organic growth is expected to be 6% to 7%.
The company expects NSI to contribute approximately 7.5% to full-year sales growth. Hubbell also forecast adjusted operating profit growth of more than 20% at the midpoint of its outlook and projected a full-year adjusted operating margin of 23.0% to 23.2%.
Adjusted earnings per share guidance was raised to $20.40 to $20.60, representing expected growth of 12% to 13% from 2025. Hubbell maintained its expectation that free cash flow will equal approximately 90% of adjusted net income for the year, including the effects of increased capital spending, acquisition costs and working-capital investments.
Looking toward 2027, management said the company has greater-than-usual visibility due to order rates and backlog growth. Capozzoli said Hubbell expects organic growth of at least its long-term mid-single-digit framework next year, with price-cost-productivity neutral to positive on a dollar basis and incremental margins in the company’s long-term 25% to 30% range.
Bakker said Utility Solutions backlog had increased by more than $500 million year to date, with particular strength in transmission and substation project activity. He said the company expects to add roughly $50 million per quarter of capacity during 2027, about double the approximately $25 million per quarter coming online during 2026.
Management expects data-center markets, electric transmission and distribution, and renewable markets to remain strong in 2027. Hubbell anticipates more modest growth in nonresidential and heavy-industrial markets, as well as in the approximately 20% of its Utility Solutions portfolio exposed to gas, telecommunications, meters and advanced metering infrastructure.
About Hubbell (NYSE:HUBB)
Hubbell Incorporated (NYSE:HUBB) is an electrical products manufacturer that develops and supplies products used in utility, commercial, industrial, and telecommunications applications. Founded in 1888 by Harvey Hubbell, the company has built a portfolio focused on improving the reliability, safety, and efficiency of electrical systems.
Hubbell’s Utility Solutions products support the generation, transmission, distribution, and control of electricity. Its offerings include electrical connectors and fittings, insulators, arresters, transmission and distribution hardware, communications infrastructure products, and equipment used in underground and overhead utility networks.
Its Electrical Solutions business serves commercial and industrial customers with wiring devices, electrical enclosures, grounding and bonding products, cable management systems, lighting-related products, and solutions designed for harsh, hazardous, and demanding operating environments.
