Hubbell’s adjusted earnings rise 14% to $5.91 per share as it raises full-year outlook
Key Facts
Hubbell reported adjusted diluted earnings per share of $5.91 in the third quarter of 2026, up 14% year over year, while GAAP earnings per share were $4.94, according to results published by the company via GlobeNewswire. Net sales rose 25% to $1,872.5 million, driven by 11% organic growth and a 13% contribution from acquisitions. Zacks reported a consensus earnings estimate of $5.75 per share, compared with earnings of $5.17 in the year-earlier period. Adjusted operating margin also exceeded last year’s level, rising 160 basis points to 25.5%, while GAAP operating margin was 21.8%. Alongside the growth in earnings and sales, the company raised its full-year outlook, citing primarily stronger expected growth in Electrical Solutions.
Electrical Solutions was the fastest-growing sales segment, with revenue rising 51% to $845 million. Organic growth was 22%, while acquisitions added 29% to the segment’s sales growth. Management said organic growth exceeded 20%, led by strength in data center markets. The segment’s adjusted operating income rose to $210 million, compared with $116 million in the third quarter of the prior year. The company also attributed the segment’s strength to content gains and capacity expansion investments, saying demand and orders supported continued growth in its backlog.
Utility Solutions sales rose 9% to $1,028 million, with organic growth of about 5%, a slower pace than in the other segment. Within the segment, Grid Infrastructure sales rose about 13%, while Grid Automation sales fell about 4%. The divergence reflects the differing trajectories of the businesses grouped within utility solutions, with grid infrastructure growth remaining stronger than automation. The company said volume growth, the impact of acquisitions, improved price realization and productivity, and the net benefit of tariffs supported margins in both segments. These factors were partly offset by higher cost inflation and raw material prices.
Cash generated from operating activities totaled $323 million in the third quarter, compared with $284 million in the same period a year earlier. Free cash flow reached $280 million, compared with $254 million a year earlier. The improvement in both cash flow measures came alongside higher sales and adjusted earnings per share, while recent acquisitions accounted for a clear share of revenue growth. Hubbell announced in the second quarter that it had acquired NSI Industries for about $3.0 billion, financing the deal with a $900 million term loan facility and $1.9 billion in notes. Acquisitions contributed to third-quarter sales growth, with the size of their contribution varying between the company’s two segments.
Hubbell raised its outlook for total sales growth in fiscal 2026 to a range of 18–19%, including organic growth of 10% to 11%. It also expects GAAP diluted earnings of $17.30 to $17.50 per share and adjusted diluted earnings of $20.40 to $20.60. The company said the higher full-year outlook was primarily due to stronger expected growth in Electrical Solutions. It scheduled a call to discuss third-quarter results for October 27, 2026, at 10:00 a.m. Eastern time. The call will allow management to present details of the results and updated full-year outlook.