SHELTON, Conn. — Hubbell Incorporated today reported operating results for the fourth quarter and full year ended December 31, 2025.
“Hubbell delivered double-digit growth in net sales, operating profit and diluted earnings per share in the fourth quarter,” said Gerben Bakker, Chairman, President and CEO. “9% organic sales growth was driven by strength in Electrical Solutions and Utility T&D markets as datacenter projects, load growth and aging infrastructure resiliency investment generated strong customer demand in front of and behind the meter. Margin expansion was driven by strong organic growth and continued operational execution.”
Mr. Bakker continued, “On a full year basis, Hubbell delivered strong financial performance with double digit growth in diluted earnings per share. We made significant further progress in unifying our HES segment to compete collectively, achieved attractive growth across key utility and electrical verticals, proactively managed price/cost/productivity and drove shareholder value creation through strategic capital allocation.”
Mr. Bakker concluded, “We are confident in our ability to deliver on our initial 2026 outlook which anticipates continued attractive growth in net sales, operating margin, operating profit and free cash flow. Our outlook is consistent with our long-term financial framework which we believe will deliver differentiated performance for our shareholders in 2026 and beyond.”
FOURTH QUARTER FINANCIAL HIGHLIGHTS
The comments and year-over-year comparisons in this segment review are based on fourth quarter results in 2025 and 2024.
Utility Solutions segment net sales in the fourth quarter of 2025 increased 10% to $936 million compared to $847 million reported in the fourth quarter of 2024. Organic net sales increased 7% compared to the fourth quarter of 2024, while acquisitions added 4%. Grid Infrastructure net sales increased approximately 18% and Grid Automation net sales decreased by approximately 8%. Segment operating income in the fourth quarter of 2025 was $202 million, or 21.5% of net sales, compared to $168 million, or 19.8% of net sales in the same period of 2024. Adjusted operating income was $235 million, or 25.1% of net sales, in the fourth quarter of 2025 as compared to $196 million, or 23.1% of net sales in the same period of the prior year. Changes in operating income and operating margin were primarily due to volume growth in Grid Infrastructure, the impact of acquisitions and favorable price and productivity, partially offset by volume declines in Grid Automation as well as higher cost inflation, raw material costs and tariffs.
Electrical Solutions segment net sales in the fourth quarter of 2025 increased 14% to $557 million compared to $487 million in the fourth quarter of 2024. Organic net sales increased 13% in the quarter, while acquisitions added 1%. Segment operating income in the fourth quarter of 2025 was $110 million, or 19.7% of net sales, compared to $92 million, or 18.9% of net sales in the same period of 2024. Adjusted operating income was $114 million, or 20.5% of net sales, in the fourth quarter of 2025 as compared to $97 million, or 19.9% of net sales in the same period of the prior year. Changes in operating income and operating margin were driven primarily by volume growth and favorable price realization and productivity, partially offset by higher cost inflation, raw material costs and tariffs.
Adjusted diluted EPS in the fourth quarter of 2025 excludes $0.50 of amortization of acquisition-related intangible assets and $0.04 of transaction, integration, and separation costs. Adjusted diluted EPS in the fourth quarter of 2024 results exclude $0.44 of amortization of acquisition-related intangible assets and $0.03 of transaction, integration, and separation costs.
Net cash provided by operating activities was $447.5 in the fourth quarter of 2025 versus $432.4 in the comparable period of 2024. Free cash flow was $388.8 in the fourth quarter of 2025 versus $364.4 reported in the comparable period of 2024.
SUMMARY & OUTLOOK
For the full year 2026, Hubbell anticipates total sales growth of 7-9%, including organic sales growth of 5-7%. Hubbell expects 2026 GAAP diluted earnings per share in the range of $17.30 to $18.00 and adjusted diluted earnings per share (“Adjusted EPS”) in the range of $19.15 to $19.85. Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.70 per share and approximately $0.15 per share for transaction, integration, and separation costs for the full year. The Company believes Adjusted EPS is a useful measure of underlying financial performance in light of our acquisition strategy.
The diluted earnings per share and Adjusted EPS ranges are based on an adjusted tax rate of approximately 22.5% and include $15-20 million of anticipated restructuring and related investment. The Company expects full year 2026 free cash flow conversion of 90% or greater on adjusted net income.
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