Key Highlights

  • Net sales rose 25% on 11% organic growth and 13% from acquisitions, and adjusted EPS rose 14% to USD 5.91.
  • GAAP diluted EPS was USD 4.94, and adjusted operating margin reached 25.5%, up 160 basis points from a year earlier.
  • Electrical Solutions sales rose 51% to USD 845 million, including 22% organic growth, led by datacenter markets.
  • Management raised 2026 adjusted EPS guidance to USD 20.40 to USD 20.60, with free cash flow conversion near 90%.

Electrical Solutions Leads Growth

Hubbell (NYSE:HUBB) reported third-quarter results on Tuesday with net sales up 25%, made up of 11% organic growth and 13% from acquisitions. GAAP diluted earnings per share were USD 4.94, and adjusted diluted EPS rose 14% to USD 5.91. Adjusted EPS excludes USD 0.89 of amortization of acquisition-related intangible assets and USD 0.08 of transaction, integration and separation costs, against USD 0.35 and USD 0.05 a year earlier. Net income attributable to the company rose 3% to USD 262.5 million.

The operating margin was 21.8% on a GAAP basis, and the adjusted operating margin was 25.5%, up 160 basis points. Chairman, President and Chief Executive Gerben Bakker pointed to double-digit growth in organic sales, adjusted operating profit, adjusted EPS and free cash flow.

Segment Results

Electrical Solutions net sales rose 51% to USD 845 million against USD 559 million, with organic growth of 22% and acquisitions adding 29%. Management cited strong datacenter markets, content gains and capacity expansion investments. Segment operating income was USD 168 million, a 19.8% margin, and adjusted operating income was USD 210 million, a 24.8% margin against 20.8% a year earlier. Management said integration and performance of the NSI business are trending ahead of initial expectations.

Utility Solutions net sales rose 9% to USD 1.028 billion against USD 944 million, with organic growth of about 5%. Grid Infrastructure sales rose about 13%, while Grid Automation sales fell about 4%. Segment operating income was USD 241 million, or 23.5% of sales, and adjusted operating income was USD 267 million, or 26.0%, against 25.7%. Distribution, transmission and substation markets led growth.

Margin changes in both segments reflected volume growth, acquisitions, favorable price realization, productivity and a net tariff benefit, partly offset by cost inflation and higher raw material costs. Orders and end-market demand remained strong, building backlog, and management said it is investing ahead in capacity expansion for high-growth areas.

Cash Flow and 2026 Outlook

Net cash provided by operating activities was USD 323 million against USD 284 million, and free cash flow was USD 280 million against USD 254 million. For nine months, net income attributable to the company was USD 684.7 million against USD 662.9 million.

For 2026, management guided to total sales growth of 18% to 19%, including organic growth of 10% to 11%. It guided to GAAP diluted EPS of USD 17.30 to USD 17.50 and adjusted EPS of USD 20.40 to USD 20.60, a raised range that management tied mainly to stronger Electrical Solutions growth. Adjusted EPS excludes about USD 2.50 per share of acquisition-related amortization and about USD 0.60 of transaction, integration and separation costs.

The ranges assume an adjusted tax rate of 22.0% to 22.5% and about USD 20 million of restructuring and related investment. Management guided to free cash flow conversion of approximately 90% on adjusted net income.

Electrical Markers to Follow

Tracking points include Electrical Solutions organic growth against 22%, Utility Solutions organic growth relative to about 5%, and backlog after the build reported in the quarter.

Further items are Grid Automation sales against the 4% decline, adjusted operating margin relative to 25.5%, and free cash flow conversion against the 90% guide.