Hubbell Posts Record Sales of $1,872.5 Million in Third Quarter
Key Facts
Hubbell reported on October 27 results for the third quarter ended September 30, posting net sales of $1,872.5 million, compared with $1,502.4 million in the same period of 2025. GAAP diluted earnings per share were $4.94, while adjusted earnings reached $5.91 per share, up 14% year over year. The company said demand remained strong and its backlog continued to grow during the quarter. Results showed different growth rates across the company’s two segments, with faster performance at Electrical Solutions. Hubbell raised its full-year outlook, citing primarily stronger expected growth in that segment.
The company reported revenue of $1.87 billion, exceeding the $1.86 billion revenue estimate compiled from a survey of five analysts by Zacks, according to the Associated Press. This comparison is distinct from reporting the company’s actual results; it concerns the revenue estimates in that survey. Hubbell’s official release reported net sales of $1,872.5 million, compared with $1,502.4 million a year earlier. These figures show the expansion in activity compared with the same period last year. The official release did not provide a comparison between actual earnings per share and analyst estimates.
At Utility Solutions, sales rose 9% to $1,028 million from $944 million a year earlier, with organic growth of about 5%. Electrical Solutions posted a larger increase, with sales up 51% to $845 million from $559 million. Organic growth was 22%, while acquisitions added 29% to sales growth. The chief executive said organic growth exceeding 20% at Electrical Solutions was led by strength in data center markets. He said, "Orders and end-market demand remained strong, leading to continued backlog growth during the quarter."
The company attributed support for margins in both segments to volume growth, the impact of acquisitions, positive price realization, productivity and the net positive impact of tariffs. These factors were partly offset by increased cost inflation and higher raw material costs. The drivers distinguish the contribution from growth in existing operations from the additional impact of acquisitions, which was prominent at Electrical Solutions. In that segment, organic growth accounted for 22% of the increase, while acquisitions added 29%. The difference between the segments shows that growth at Utility Solutions was slower, while its sales remained above year-earlier levels.
Cash generated from operations improved to $323 million in the quarter, compared with $284 million in the same period of 2025. Free cash flow was $280 million, versus $254 million a year earlier. For fiscal 2026, the company expects free cash flow conversion of about 90% of adjusted net income. This places the liquidity outlook alongside the updated sales and earnings forecasts, with the company retaining its cash conversion measure in its annual guidance. The release did not specify a time frame beyond the fiscal year for these forecasts.
Hubbell expects fiscal 2026 total sales growth of 18% to 19%, and organic growth of 10% to 11%. It also set a range for GAAP diluted earnings per share of $17.30 to $17.50, and adjusted earnings of $20.40 to $20.60 per share. The chief executive said, "We are raising our full-year 2026 outlook, driven primarily by stronger expected growth in Electrical Solutions." Coverage dated before the market open on October 27 said the stock fell, without attributing the move to a specific cause. The higher annual outlook thus coincided with a decline in premarket trading, with no explanation for the price move given in the available information.