HUBB US S&P 500Russell 1000 Earnings call · transcribed from the recording
Hubbell Incorporated (HUBB) · Q2 2026 results and valuation
Share price: $443.48 · 2026-11-11
Hubbell Incorporated manufactures electrical and utility solutions for infrastructure, including components for power transmission, distribution, and management. The company serves utilities, industrial, and commercial customers across various markets, including telecommunications and gas distribution. It operates globally with manufacturing, assembly, and distribution facilities in North America, Europe, Asia, and the Middle East. Source: 10-K annual report (2026-02-12)
Results Q2 2026 vs Q1 2026 · previous quarter · published 28 Jul 2026 and 30 Apr 2026
Net income up 32.2% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.
1 · Numbers
+32.2%
Net income vs Q1 2026
Outlook given
Net income 240.4M vs 181.8M
Revenue +12.9%
Against the same quarter last year (Q2 2025) it is −1.6%, so the move on last quarter looks seasonal or timing-related rather than a trend.
Why Against the same quarter last year (−1.6%), revenue rose because of strong volume growth in high-margin areas and price realization, while net income fell slightly because higher interest expenses from the NSI acquisition were only partially offset by a lower tax rate and lower share count.
2 · How management spoke
Very upbeat
Among the most upbeat of all company calls
Answers to analysts: upbeat, but clearly less so than the script.
The step down under questioning is bigger than last call.
3 · What stood out
Hubbell Incorporated's data center sales increased by approximately 65% in the quarter due to capacity additions, new product introductions, and content gains.
Valuation
Is Hubbell Incorporated undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 5.7% growth a year (3-year revenue growth), the model's fair value is $235.39 a share — the stock trades 88% above it. Today's price assumes 13.1% growth a year.
Current price
$443.48
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.1% for 10 yrs
Fair value / share
$235.39
Buy below
$176.55
Price vs fair value
Overvalued 88%
Price vs buy-below price
Overvalued 151%
Read between the lines
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Guidance
The full year outlook reflects approximately 20% adjusted operating profit growth at the midpoint of the range due to underlying operating performance.
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Guidance
The company expects the acquisition to add adjusted earnings accretion of approximately $0.20 in 2026 and approximately $0.80 in 2027.
Source quote
“We anticipate approximately 90% free cash flow conversion on adjusted net income in 2026, which reflects the impact of increased year over year spending on capital expenditures and NSI acquisition costs.”
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Figure
Net sales increased by 15% over the prior year to $1.712 billion in the second quarter of 26.
Source quote
“Net sales of $1.712 billion in the second quarter of 26 increased by 15% as compared to the prior year.”
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Figure
Data center sales increased by approximately 65% in the quarter due to capacity additions, new product introductions, and content gains.
Source quote
“Data center sales were up approximately 65% in the quarter as capacity additions, new product introductions and content gains drove outgrowth in a strong underlying market.”
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Guidance
The company expects approximately $20 million in restructuring costs for the full year as previously implied in its guidance.
3 more
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Guidance
HUBB raised its full-year 2026 guidance to reflect double digit growth in organic sales, adjusted operating profit, and adjusted earnings per share at the midpoint of its range.
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Guidance
Growth in data center markets and utility transmission and distribution investment resulted in a stronger order book, providing increased visibility into the second half outlook.
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Key theme
The company expects a price increase of about another half a point in the back half of the year.
Source quote
“And our expectation for that most recent price increase is about another half a point in the back half of the year.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Growth in adjusted operating profit was primarily driven by strong volume growth in high margin areas, as well as the impact of acquisitions.”
“Operating profit growth was primarily driven by strong volume growth and acquisitions, while we continued to drive price and productivity actions to mitigate increased cost inflation.”
“Operationally, we are managing inflation effectively through price and productivity actions, investing in capacity expansion to serve our customers in high growth areas, and deploying capital to further upgrade our...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.71B | 1.52B | +12.9% | 1.48B | +15.3% |
| Gross profit | 613.0M | 505.3M | +21.3% | 552.1M | +11.0% |
| Operating income | 348.6M | 263.8M | +32.1% | 336.3M | +3.7% |
| Net income | 240.4M | 181.8M | +32.2% | 244.2M | −1.6% |
| EPS | 4.52 | 3.41 | +32.6% | 4.56 | −0.9% |
| P/E today 25.2 | 31.0 | 29.0 | +2.0 | 26.5 | +4.5 |
Topics
Most discussed now
- Operationally, Hubbell is managing inflation effectively through price and productivity actions, investing in capacity expansion to serve…
- Hubbell's strong positions in attractive end markets as well as continued execution on its strategy are demonstrated by its first...
- New You can do a crimp in the field with less skilled labor requirement quicker.
- As megatrends continue to accelerate, most notably in data center markets and load-growth-related investment in utility T and D markets,...
- Looking further ahead, Hubbell is targeting attractive revenue and cost over the next 3 years.
Faded since Q1 2026
- Fading This improvement in adjusted operating profit and adjusted operating margin was primarily driven by strong volume growth in high-margin…
- Fading From a price/cost standpoint, while inflation has increased relative to its initial full-year outlook, Hubbell has implemented additional…
- Fading From where Hubbell sits today with this business decline, it should expect, going forward, to start seeing this business realizing...
- Fading As utilities manage budgets—it goes back a little bit to Jeff’s very first question of how are utilities managing budgets—Hubbell's...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure; Other events · SEC 8-K
Hubbell Incorporated completed the acquisition of NSI Industries, financed by a $900 million term loan and $1.9 billion in senior notes, while reporting 2025 revenues of $5.8 billion.
- Material agreement; New financial obligation; Other events · SEC 8-K
Hubbell Incorporated priced an offering of $1.9 billion in senior notes to fund the acquisition of NSI Electrical Buyer, Inc. and for general corporate purposes.
- Material agreement; New financial obligation · SEC 8-K
Hubbell Incorporated entered into a Term Loan Agreement dated May 15, 2026, with JPMorgan Chase Bank, N.A. as the Administrative Agent.
- Shareholder vote results · SEC 8-K · routine
- Material agreement; Regulation FD disclosure; Other events · SEC 8-K
Hubbell entered into a definitive agreement to acquire NSI Industries for $3.0 billion, with NSI expected to generate approximately $570 million in revenue in 2026.
- Results of operations · SEC 8-K
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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2026
expected adjusted earnings accretion from NSI acquisition
Source quote
“And we expect the acquisition to add adjusted earnings accretion of approximately $0.20 in 2026”
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over the next 3 years
targeting attractive revenue and cost
Source quote
“Looking further ahead, we are targeting attractive revenue and cost over the next 3 years.”
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second half of 26 and beyond
generating strong free cash flow and investing in high return CapEx
Source quote
“As we continue to generate strong free cash flow in the second half of 26 and beyond, we intend to continue aggressively investing in high return CapEx to drive further growth and productivity.”
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over the next 24 to 30 months
pay down significant portions of debt and deleverage balance sheet
Source quote
“We also intend to pay down significant portions of debt and deleverage our balance sheet over the next 24 to 30 months.”
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2027
strong adjusted EPS accretion
Source quote
“Which will drive strong adjusted EPS accretion in 2027, and position our strong balance sheet for further accretive M&A investment over the next several years.”