10-Q · May 1, 2026
Hubbell Inc. reported solid Q1 2026 results, with revenues up 11.1% to $1.52 billion, exceeding estimates and driven by both organic growth and acquisitions. Diluted EPS increased to $3.41, reflecting improved operating…
Earnings analysis · 10-Q
HUBB earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Hubbell delivered strong Q2 sales growth, with revenue up 15.3% to $1,711.8 million and organic growth of 10.2%, led by Electrical Solutions and continued utility transmission-and-distribution demand. However, reported…
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Hubbell delivered strong Q2 sales growth, with revenue up 15.3% to $1,711.8 million and organic growth of 10.2%, led by Electrical Solutions and continued utility transmission-and-distribution demand. However, reported gross margin fell 140 basis points to 35.8%, operating margin declined 230 basis points to 20.4%, and GAAP diluted EPS slipped to $4.52 from $4.56 as tariffs, inflation, acquisition amortization and integration costs outweighed volume, pricing and productivity benefits. The $3.0 billion NSI acquisition expands the Electrical Solutions portfolio but drove net debt to $4,874.2 million; operating cash flow remained solid at $336.4 million for the first half.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $4.52
What stood out
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Double-digit organic sales growth
Q2 net sales rose $227.5 million, or 15.3%, to $1,711.8 million. Organic sales grew 10.2%, supported by high-single-digit unit-volume growth and mid-single-digit price realization; acquisitions added 4.8%.
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Utility Solutions grew on T&D demand
Utility Solutions revenue increased $90.3 million, or 9.7%, to $1,025.8 million, led by substation, transmission and distribution demand. Segment operating income increased 7.2% to $233.9 million.
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Electrical Solutions posted 25.1% growth
Electrical Solutions revenue increased $137.2 million, or 25.1%, to $686.0 million, including 18.3% organic growth. Management cited data center, light industrial and non-residential strength as the principal volume drivers.
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Cash generation improved despite investment
First-half operating cash flow increased to $336.4 million from $298.0 million, while capital expenditures were $77.6 million. This produced calculated free cash flow of $258.8 million, with capex equal to 2.4% of $3,228.5 million in six-month sales.
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Adjusted earnings increased despite deal costs
Adjusted Q2 diluted EPS rose to $5.52 from $4.93, while adjusted operating income increased to $408.5 million from $362.2 million. The reported GAAP results include $39.1 million of acquisition-related intangible amortization and $20.8 million of transaction, integration and separation costs.
What to watch
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Tariffs and cost inflation compressed margins
Reported profitability weakened despite revenue growth: gross margin declined 140 basis points to 35.8%, operating margin declined 230 basis points to 20.4%, and GAAP diluted EPS fell to $4.52 from $4.56. Management attributed approximately six percentage points of gross-margin contraction to material and other cost inflation, including tariff expense, plus higher intangible amortization.
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NSI acquisition sharply increased leverage
The $3,008.1 million NSI Industries acquisition materially increased leverage. Total debt rose to $5,372.6 million from $2,325.4 million, net debt increased to $4,874.2 million from $1,729.1 million, and total debt-to-total-capital increased to 58% from 38%.
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Electrical segment margin deterioration
Electrical Solutions operating income fell 2.9% to $114.7 million despite 25.1% sales growth, and its operating margin contracted 480 basis points to 16.7%. Management cited roughly eight percentage points of contraction from material and other cost inflation, tariffs and higher restructuring investment.
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Tariff refund remains unrecognized
IEEPA tariff refunds are not included in the June 30 financial statements: the company received approximately $30 million after quarter-end, but concluded the amount was not realized or realizable at June 30, 2026. Timing and eligibility for the refund remain uncertain.
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No formal risk-factor update; demand pockets weak
No material risk-factor updates were reported versus the 2025 Form 10-K. The filing nevertheless identifies continued softness in Electrical Solutions heavy industrial and residential markets; first-half Grid Automation sales were $462.1 million versus $476.2 million, reflecting weak advanced-metering and meter-project activity.
Management's outlook
The 10-Q does not provide quantitative revenue, EPS, or cash-flow guidance. Management states that restructuring investments and related initiatives are expected to continue in 2026, with $5.3 million of remaining GAAP restructuring costs and $8.7 million of remaining restructuring-and-related costs expected through 2027.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.