SHELTON, Conn. – Hubbell Incorporated today reported operating results for the first quarter ended March 31, 2026.
“Hubbell delivered strong performance in the first quarter, with double digit growth in sales, operating profit and earnings per share,” said Gerben Bakker, Chairman, President and CEO.
Bakker continued, “Organic sales growth of 8% in the first quarter was driven by double digit organic growth in our Electrical Solutions segment, as well as Grid Infrastructure products within our Utility Solutions segment. Core utility T&D markets remain strong, with load growth driving strength in transmission and substation markets, and aging infrastructure resiliency investment driving strength in distribution markets. Electrical Solutions growth was driven by strong datacenter and light industrial markets. Operationally, margin expansion in the first quarter was driven by volume growth in high margin businesses and effective management of price and productivity, partially offset by higher cost inflation and investment in restructuring and growth initiatives.”
Bakker concluded, “We are confident in our ability to deliver on our increased full year 2026 financial outlook. We anticipate that Hubbell’s leading positions in attractive end markets, along with continued execution on our strategy, will enable us to manage effectively through a dynamic operating environment while achieving strong full year organic and adjusted operating profit growth.”
Certain terms used in this release, including “net debt”, “free cash flow”, “organic net sales”, “organic net sales growth”, “restructuring-related costs”, “Adjusted EBITDA”, and certain other “adjusted” measures, are defined under the section entitled “Non-GAAP Definitions.” See page 10 for more information.
FIRST QUARTER FINANCIAL HIGHLIGHTS
The comments and year-over-year comparisons in this segment review are based on first quarter results in 2026 and 2025.
Utility Solutions segment net sales in the first quarter of 2026 increased 11% to $949 million compared to $857 million reported in the first quarter of 2025. Organic net sales increased approximately 7% in the quarter compared to the first quarter 2025. Grid Infrastructure net sales increased approximately 18% and Grid Automation net sales decreased approximately 7%. Segment operating income in the first quarter of 2026 was $175 million, or 18.5% of net sales, compared to $151 million, or 17.6% of net sales in the same period of 2025. Adjusted operating income was $207 million, or 21.8% of net sales, in the first quarter of 2026 as compared to $171 million, or 19.9% 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 first quarter of 2026 increased 12% to $568 million compared to $508 million reported in the first quarter of 2025. Organic net sales increased 11% in the quarter, while acquisitions added 0.3%. Segment operating income in the first quarter of 2026 was $89 million, or 15.6% of net sales, compared to $80 million, or 15.7% of net sales in the same period of 2025. Adjusted operating income was $93 million, or 16.4% of net sales, in the first quarter of 2026 as compared to $85 million, or 16.7% 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, tariffs and restructuring investment.
Adjusted diluted EPS in the first quarter 2026 excluded $0.47 of amortization of acquisition-related intangible assets and $0.05 of transaction, integration, and separation costs. Adjusted diluted EPS in the first quarter 2025 excluded $0.34 of amortization of acquisition-related intangible assets and $0.01 of transaction, integration, & separation costs.
Net cash provided by operating activities was $87 million in the first quarter of 2026 versus net cash provided by operating activities of $37 million in the 2025 period. Free cash flow was $46 million in the first quarter of 2026 versus $11 million in the comparable period of 2025.
SUMMARY & OUTLOOK
For the full year 2026, Hubbell anticipates total sales growth of 8-11% including organic sales growth of 6-9%. Hubbell expects 2026 GAAP diluted earnings per share in the range of $17.45 to $18.00 and adjusted diluted earnings per share (“Adjusted EPS”) in the range of $19.30 to $19.85. For the full year, Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.70 per share, and transaction, integration, and separation costs, which the Company expects to be approximately $0.15 per share. The Company believes Adjusted EPS is a useful measure of underlying 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 continues to expect full year 2026 free cash flow conversion of 90% or greater on adjusted net income.
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