Hubbell raises 2026 adjusted EPS outlook to $20.40-$20.60 as sales rise 25%

Hubbell Incorporated (HUBB) said Tuesday that third-quarter net sales rose 25% to $1,872.5 million, and it raised its full-year adjusted earnings outlook.

The company said in a press release attached to an 8-K filing that the results cover the three months ended Sept. 30.

Here's how the company did:

• Diluted earnings per share: $4.94 vs. $4.77 a year earlier
• Adjusted diluted earnings per share: $5.91 vs. $5.17 a year earlier
• Net sales: $1,872.5 million vs. $1,502.4 million a year earlier
• Operating income: $408.7 million vs. $330.6 million a year earlier
• Adjusted operating income: $476.8 million vs. $358.4 million a year earlier
• Net income attributable to Hubbell: $262.5 million vs. $255.5 million a year earlier
• Free cash flow: $280.4 million vs. $253.8 million a year earlier

Organic net sales, which exclude acquisitions and currency effects, grew 11.3%, according to the filing. Acquisitions added 13.2%.

GAAP operating margin was 21.8%, down from 22.0% a year earlier. On an adjusted basis, operating margin was 25.5%, up 160 basis points from 23.9%.

Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization with certain items excluded, was $506.9 million, up 32% from $383.1 million.

Net cash from operating activities was $323 million, against $284 million a year earlier. Free cash flow, which is operating cash flow less capital expenditures, was $280 million versus $254 million.

The company raised its full-year 2026 adjusted outlook. It now expects adjusted diluted earnings per share of $20.40 to $20.60, and GAAP diluted earnings per share of $17.30 to $17.50.

Total sales growth is expected to be 18% to 19% in 2026, including organic growth of 10% to 11%.

The adjusted figure excludes amortization of acquisition-related intangible assets, expected at about $2.50 per share, and transaction, integration and separation costs, expected at about $0.60 per share.

The outlook assumes an adjusted tax rate of 22.0% to 22.5% and includes about $20 million of anticipated restructuring and related investment. The company expects free cash flow conversion of about 90% of adjusted net income.

Chairman, President and CEO Gerben Bakker said, "We are raising our full year 2026 outlook, primarily driven by stronger anticipated Electrical Solutions growth."

Here's how the company's segments did during the quarter:

• Utility Solutions net sales: $1,027.8 million vs. $943.8 million a year earlier
• Electrical Solutions net sales: $844.7 million vs. $558.6 million a year earlier
• Utility Solutions adjusted operating margin: 26.0% vs. 25.7% a year earlier
• Electrical Solutions adjusted operating margin: 24.8% vs. 20.8% a year earlier

Electrical Solutions net sales rose 51%, with organic sales up 22% and acquisitions adding 29%.

Bakker said, "Third quarter results were highlighted by >20% organic growth in Electrical Solutions, led by strong datacenter markets and bolstered by content gains and capacity expansion investments."

Utility Solutions net sales rose 9% to $1,027.8 million from $943.8 million a year earlier, with organic sales up about 5%. Grid Infrastructure net sales increased about 13%, while Grid Automation net sales decreased about 4%.

Utility Solutions adjusted operating income was $267.3 million, or 26.0% of net sales, compared with $242.3 million, or 25.7%, a year earlier.

The company said NSI Industries results were strong in the quarter. Bakker said NSI "performance and integration efforts are trending ahead of our initial expectations."

Acquisitions of businesses, net of cash acquired, totaled $3,005.7 million in the nine months through Sept. 30, compared with $129.1 million a year earlier. Total debt was $5,120.2 million at Sept. 30, up from $2,325.4 million at Dec. 31, 2025.

Restructuring and related costs totaled $2.7 million in the quarter, down from $6.7 million a year earlier. For the nine months, they were $13.3 million, compared with $13.5 million.

For the nine months, net sales were $5,101.0 million, up from $4,351.9 million. Adjusted diluted earnings per share were $15.37, up 14% from $13.48, while GAAP diluted earnings per share were $12.86, up from $12.35.