Hubbell Raises 2026 Earnings Outlook and Electrical Solutions Growth Forecast
Key Facts
Management attributed the revision mainly to stronger expected growth in Electrical Solutions, which it expects to deliver organic growth of between 17% and 18% this year. By contrast, the company lowered its forecast for Utility Solutions growth to 6%–7%. The outlook update follows organic growth of more than 20% in Electrical Solutions in the third quarter, according to the earnings call coverage. Management said, "We now expect organic growth of between 17% and 18% in 2026," while indicating a slight reduction to its Utility Solutions forecast.
The adjusted earnings-per-share range differs from the company’s U.S. GAAP forecast: Hubbell set its 2026 GAAP diluted earnings-per-share range at $17.30–$17.50. The previous GAAP range, announced on July 28, was $17.25–$17.55, while the adjusted earnings-per-share estimate at that time was $20.25–$20.55. This means the announced increase applies to the adjusted estimate, while the accounting forecast range narrowed compared with the previous estimate. In the second quarter, the company’s sales rose 15% year over year, including 10% organic growth and a 5% contribution from acquisitions. That comparison provides context for assessing the mix of growth preceding the annual outlook update.
Electrical Solutions was the leading driver behind management’s new outlook. The segment posted organic growth of more than 20% in the third quarter, according to the earnings call coverage, while the company cited strength in data center markets, content gains and investment in expanding production capacity as supporting factors. Quarterly figures show that not all of the segment’s sales growth came from organic activity: organic growth was 22%, while acquisitions contributed to lift sales growth to 29%. Management linked data center-related demand with expanded capacity to meet demand, while Utility Solutions remained on a relatively slower growth path. The gap between the two segments helps explain the increase in the Electrical Solutions forecast alongside the revision to the Utility Solutions outlook.
The outlook increase came as results showed improved adjusted profitability, with cost pressures still part of the operating picture. Adjusted earnings per share were $5.91 in the third quarter, above the analyst consensus estimate of $5.76. The company also pointed to wider adjusted margins, while the pressures it discussed included inflation and raw material costs. Adjusted profitability measures exclude some items included in GAAP results, so the adjusted earnings-per-share range does not match the reported accounting range.
Despite beating the adjusted earnings-per-share consensus and raising its annual estimate, the stock fell 4.75% to $435.35 in premarket trading on October 27, according to Investing.com. On cash flow, Hubbell expects to convert about 90% of adjusted net income into free cash flow in 2026. That cash estimate provides another indication of the company’s expectations for converting adjusted earnings into cash during the year. In the second quarter, the company had forecast sales growth of 15%, including 10% organic growth and a 5% contribution from acquisitions, before the third-quarter performance and annual outlook update. The latest update focuses on the 2026 fiscal year outlook, with growth trajectories differing between Electrical Solutions and Utility Solutions.