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Hubbell reported third-quarter revenue of $1.9 billion, exceeding the consensus by 0.90%. Adjusted earnings per share were $5.91, above the $5.75 consensus estimate.
Revenue rose 24.6% from $1.5 billion a year earlier. Hubbell’s filing attributed the increase to 11.3% organic sales growth, supported by higher volume and favorable pricing, as well as a 13.2% contribution from acquisitions. Utility Solutions sales increased 8.9%, while Electrical Solutions sales rose 51.2%, with data centers and light industrial markets contributing to its volume growth.
The filing said a temporary supply-chain disruption affected Grid Automation. Hubbell’s operating margin was 21.8%, down from 22.0% a year earlier, while adjusted operating margin expanded to 25.5%. The filing attributed the adjusted expansion partly to productivity, pricing, volume and acquisitions, offset in part by material and other cost inflation.
Hubbell reported diluted earnings per share of $4.98, compared with $4.77 a year earlier. Free cash flow rose to $280.4 million from $253.8 million.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.9 billion | $1.5 billion | 24.6% |
| Diluted EPS | $4.98 | $4.77 | 4.47% |
| Gross margin | 36.8% | 36.2% | 0.5 percentage points |
| Operating margin | 21.8% | 22.0% | −0.2 percentage points |
| Free cash flow | $280.4 million | $253.8 million | 10.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $5.91 | $5.75 | Beat by 2.78% |
| Revenue | $1.9 billion | $1.9 billion | Beat by 0.90% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Gerben Bakker said demand was visible in Hubbell’s order book, backlog and customer planning discussions. Utility orders had driven more than $500 million of backlog growth year to date, particularly in transmission and substations, as customers planned projects for load growth and grid resilience.
Bakker said Electrical Solutions’ quarterly organic growth was led by data-center sales, which increased more than 80% organically. He said NSI’s performance and integration were ahead of initial expectations. CFO Joe Capozzoli said content gains, new products and capacity additions supported data-center growth, while light industrial demand also contributed.
On costs, Capozzoli said price and productivity actions left the price-cost-productivity balance approximately neutral in dollar terms during the quarter, including the net effect of tariff refunds. He said Hubbell was bringing electrical-side price increases for 2027 forward into November to address inflation, with utility pricing planned around the end of the year.
Asked about the utility business, Bakker said a meter contract manufacturer could not source a component, slowing production for several weeks. He said meter production was back at full capacity and recovery was expected in the fourth quarter. Capozzoli said the disruption shifted approximately $15 million of revenue from the third quarter into the fourth. Bakker also said the substation control-house capacity ramp had taken longer than expected and should continue into next year.
On investment, Bakker said Hubbell was adding machines and assembly lines within existing factories and expanding some facilities. He said approximately $25 million per quarter of additional capacity was coming online in 2026, with that pace expected to reach about $50 million per quarter in 2027. Capozzoli said investments in capacity and new products, alongside inflation and customer considerations associated with tariff refunds, would affect fourth-quarter utility margins.
For 2027, Bakker said backlog provided greater visibility than usual, while the company intended to remain conservative when updating growth targets because many products have short cycles. Capozzoli said Hubbell would provide more detail on its data-center guidance in January.
Guidance
Hubbell raised its FY2026 sales-growth outlook to 18 to 19%, from 16.0% to 18.0%, and its organic growth outlook to 10 to 11%, from 9.00% to 11.0%. The company said the revised outlook reflected stronger expectations for Electrical Solutions and NSI.
Hubbell also raised its adjusted earnings-per-share range to $20.40 to $20.60, from $20.25 to $20.55. It now expects an adjusted operating margin of 23.0% to 23.2%, compared with its prior range of 23.1% to 23.4%.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating margin, Incremental | FY2027 | 25.0%–30.0% | — | New |
| Revenue, Organic | FY2027 | Hubbell expects its FY2027 organic growth to be at least its mid-single-digit long-term framework. | — | — |
| EPS, non-GAAP | FY2026 | $20.40–$20.60 | $20.25–$20.55 | Held |
| Free cash flow growth, Non Gaap; conversion to adjusted net income | FY2026 | 90.0% | — | New |
| Revenue growth, Nsi | FY2026 | 7.50% | — | New |
| Free cash flow growth, Conversion On Adjusted Net Income | FY2026 | 90.0% | 90.0% | Held |
| Operating expenses, Restructuring and Related Investment | FY2026 | $20.0 million | — | New |
| Tax rate, Adjusted | FY2026 | 22.0%–22.5% | 22.0%–22.5% | Held |
| EPS, Non Gaap Transaction Integration Separation Costs Exclusion Per Share | FY2026 | $0.60 | — | New |
| EPS, Non Gaap Amortization Exclusion Per Share | FY2026 | $2.50 | — | New |
| EPS, GAAP | FY2026 | $17.30–$17.50 | $17.25–$17.55 | Held |
| Operating expenses growth, Nsi Synergies | Next three years | 3.00%–5.00% | — | New |
| Operating income growth, Adjusted | FY2026 | 20.0% | — | New |
| Free cash flow growth, Adjusted Net Income Conversion | FY2026 | 90.0% | — | New |
| EPS, Adjusted | FY2026 | $20.25–$20.55 | — | New |
| Operating margin, Adjusted | FY2026 | 23.1%–23.4% | — | New |
| Revenue growth, Data Center | FY2026 | 50.0% | — | New |
| Revenue growth, Organic | FY2026 | 9.00%–11.0% | — | New |
| Revenue growth | FY2026 | 16.0%–18.0% | — | New |
| Operating margin | FY2026 | 0.20% | — | New |