Hubbell Incorporated

HUBB · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

Four calls show a company whose orders are running ahead of its profits. Hubbell keeps raising its sales outlook on data center and grid demand, while higher costs and heavier investment mean less of each extra dollar of revenue reaches the bottom line. How much of Hubbell's second-half growth is already booked?

  • Orders are running ahead of reported sales.

    Utility book-to-bill reached about 1.2x in the first half, with transmission and substation orders now booked into 2027. A short-cycle company now has an unusually long look at demand, which is why management raised its sales outlook twice. Which Hubbell businesses hold the orders booked into 2027?

  • Every extra dollar of sales is costing more to earn.

    Metals and tariff costs arrived faster than the prices answering them, so price and productivity only just cover inflation. Margin guidance was trimmed below a percentage point and Electrical margin fell in Q2 FY2026. Why did Hubbell's Electrical segment margin fall in Q2 2026?

  • Grid Automation stopped shrinking.

    Meters and AMI dragged on Utility for about five quarters as big projects rolled off. Management refocused on smaller municipal and co-op work, and the segment returned to growth in Q2 FY2026 on orders above shipments.

Bullish
  • Grid and data center spending
    Hubbell sells into two multiyear build-outs, grid upgrades and data centers, where spending follows utility capital plans rather than the economic cycle.
  • Utility order book coverage
    Utility orders now exceed shipments and some are booked into next year, so the second-half growth the company guides to rests on work already won.
  • Data center outlook raised
    Management has raised its data center outlook twice, and the bull case assumes added factory capacity lets the short-cycle connector business serve that demand.
Bearish
  • Growth from acquisitions
    Much of the reported growth comes from acquisitions like DMC Power and NSI, so the bear case says the existing businesses are expanding more slowly than the headline numbers.
  • Margin from one-time items
    Margin expansion leans on a one-time tariff refund and the acquired NSI business, so the bear case argues the existing operations are not adding margin by themselves.
  • Leverage after NSI
    The NSI purchase turned a lightly indebted balance sheet into a leveraged one, so the bear case says debt repayment will compete with buybacks and further deals for years.
See the full bull & bear case
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Sale≥$100KAug 21Oct 8
Donald Trump
Republican · Executive
Purchase≥$15KMar 12May 13
Donald Trump
Republican · Executive
Purchase≥$15KMar 2May 13
Donald Trump
Republican · Executive
Purchase≥$100KJan 6May 13
April McClain Delaney
Democratic · House · MD-6
Purchase≥$1KAug 14Sep 9

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Product segmentsGeography
FY2025 · USD

How Hubbell Incorporated turned $5.8B of revenue into $1.2B of operating income.

Revenue
Utility Solutions Segment$3.7B▲ 1.99% YoY
Electrical Segment$2.2B▲ 7.13% YoY
Total revenue$5.8B
Gross profit$2.1B35.3%
Operating income$1.2B20.7%
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