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1. Company Snapshot

1.a. Company Description

Hubbell Incorporated, together with its subsidiaries, designs, manufactures, and sells electrical and electronic products in the United States and internationally.It operates through two segments, Electrical Solution and Utility Solution.The Electrical Solution segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies for the natural gas distribution market.


It also designs and manufactures various industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries.This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product-oriented Internet sites; and special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers.The Utility Solution segment designs, manufactures, and sells distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures; and utility infrastructure products, including smart meters, communications systems, and protection and control devices.


This segment sells its products to distributors, as well as directly to users, such as utilities, telecommunication companies, industrial firms, and construction and engineering firms.Its brand portfolio includes Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, Hot Box, etc.The company was founded in 1888 and is headquartered in Shelton, Connecticut.

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1.b. Last Insights on HUBB

Hubbell Incorporated's recent performance was positively driven by its Q3 earnings beat, with quarterly earnings of $5.17 per share exceeding the Zacks Consensus Estimate of $4.99 per share. The company's upgraded rating to a Zacks Rank #2 (Buy) also contributed to its momentum. Institutional investors' increased interest, such as Perigon Wealth Management LLC's purchase of 12,540 shares, valued at approximately $5,396,000, further supported the stock. Additionally, Hubbell's strong earnings call and management's optimistic outlook likely fueled investor confidence.

1.c. Company Highlights

2. Hubbell's Strong 2025 Results Set Stage for Continued Growth

Hubbell Incorporated reported robust financial results for the fourth quarter and full year 2025, with 12% total sales growth, 140 basis points of adjusted operating margin expansion, 19% adjusted operating profit growth, and 15% adjusted earnings per share growth. The company's organic growth was 9% in the fourth quarter, driven by double-digit organic growth in Electrical Solutions and Grid Infrastructure businesses. For the full year 2025, Electrical Solutions generated 7% organic growth and 14% adjusted operating profit growth, with adjusted operating margins reaching 20% for the first time. The actual EPS came out at $4.19, slightly below estimates of $4.7.

Publication Date: Feb -04

📋 Highlights
  • Strong 2025 Financial Performance:: Hubbell achieved 12% total sales growth, 19% adjusted operating profit growth, and 15% adjusted EPS growth, with Electrical Solutions reaching 20% adjusted operating margins for the first time.
  • Grid Infrastructure Momentum:: Utility Solutions delivered double-digit growth for the full year, driven by transmission and substation markets, with backlog visibility supporting high single-digit to low double-digit growth in 2026.
  • Free Cash Flow and ROIC Strength:: 2025 free cash flow margin hit 15%, ROIC reached 19%, and the company expects $900M–$1B free cash flow in 2026, with 90% conversion of adjusted net income.
  • 2026 Guidance and Pricing Discipline:: Organic growth of 5–7% and total sales growth of 7–9% projected, with $19.15–$19.85 adjusted EPS and mid-single-digit cost inflation, supported by price-cost productivity and $15M–$20M restructuring savings.
  • Data Center and M&A Synergies:: Data center growth expected at mid-teens (driven by modular power distribution), DMC acquisition to add $130M revenue with 40% margins, and a robust M&A pipeline with high-quality capital deployment plans.

Segment Performance

The Utility Solutions segment delivered strong performance in grid infrastructure businesses, with double-digit growth for the full year. The grid infrastructure business is expected to see high single-digit growth in transmission and substation, and mid-single digits in distribution. The backlog on the transmission and substation side looks good, with visibility into high single-digit to low double-digit growth throughout the year. The data center growth is expected to be in the mid-teens, driven by modular power distribution skid business and connectors and grounding products.

Outlook and Guidance

For 2026, Hubbell anticipates 5% to 7% organic growth, driven by strength in utility T&D, data center, and light industrial end markets. The company expects 7% to 9% total sales growth, $19.15 to $19.85 of adjusted earnings per share, and approximately 90% free cash flow conversion on adjusted net income. Analysts estimate next year's revenue growth at 5.3%, which is within the company's guidance range.

Valuation and Returns

With a P/E Ratio of 30.01 and an EV/EBITDA of 21.29, the market appears to be pricing in a certain level of growth and profitability. The company's ROIC is 13.93%, and ROE is 25.0%, indicating a strong return on equity. The Free Cash Flow Yield is 3.18%, which is a relatively attractive metric. The Net Debt / EBITDA ratio is 1.37, indicating a manageable level of debt.

Operational Highlights

The company's business is currently smaller, with more replacement projects, and has stabilized at a lower base. The book-to-bill ratio is around one, and modest growth is expected from here. The Aclara business has been reshaped, focusing on its strong position in the market, and expects margins to improve. The substation business is attractive, with a strong position and growth aided by data centers.

M&A and Capital Allocation

The M&A pipeline is still full, with multiples having gone up but returns on businesses still being good due to growth rates. The company sees the entire pipeline and is very active in it. The DMC acquisition is expected to add $130 million in revenue with 40% operating margins, net of integration costs.

3. NewsRoom

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BNP PARIBAS ASSET MANAGEMENT Holding S.A. Buys 57,291 Shares of Hubbell Inc $HUBB

Feb -20

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Hubbell Incorporated (HUBB) Presents at Barclays 43rd Annual Industrial Select Conference Transcript

Feb -19

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Aberdeen Group plc Sells 14,876 Shares of Hubbell Inc $HUBB

Feb -16

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ABN Amro Investment Solutions Reduces Position in Hubbell Inc $HUBB

Feb -16

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Caprock Group LLC Buys New Shares in Hubbell Inc $HUBB

Feb -15

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Hubbell to Participate in Upcoming Investor Conference

Feb -12

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Hubbell Inc $HUBB Shares Acquired by Envestnet Asset Management Inc.

Feb -11

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Hubbell: An Unexpected AI Beneficiary, But Shares Look Fully Valued

Feb -05

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.79%)

6. Segments

Utility Solutions

Expected Growth: 5%

Hubbell's Utility Solutions segment growth is driven by increasing demand for grid modernization, renewable energy integration, and energy efficiency. Strong government initiatives, aging infrastructure, and rising concerns over climate change are also contributing factors. Additionally, the company's strategic acquisitions and investments in digital technologies are enhancing its product offerings and expanding its customer base.

Electrical Solutions

Expected Growth: 7%

Hubbell's Electrical Solutions segment growth is driven by increasing demand for energy-efficient and sustainable solutions, rising infrastructure investments, and growing adoption of electric vehicles. Additionally, the company's strategic acquisitions and expansion into new markets, such as data centers and renewable energy, contribute to its 7% growth.

7. Detailed Products

Electrical Solutions

Hubbell's electrical solutions provide a range of products and services for electrical distribution and transmission, including connectors, cable assemblies, and electrical test equipment.

Lighting Solutions

Hubbell's lighting solutions offer a variety of lighting products, including LED lighting, fixtures, and controls for commercial, industrial, and residential applications.

Power Systems

Hubbell's power systems provide a range of products and services for electrical power distribution, transmission, and generation, including switchgear, transformers, and substations.

Industrial Solutions

Hubbell's industrial solutions offer a range of products and services for industrial automation, control, and monitoring, including sensors, actuators, and control systems.

Telecom and Datacom

Hubbell's telecom and datacom solutions provide a range of products and services for telecommunications and data communications, including fiber optic connectors, cable assemblies, and network infrastructure.

8. Hubbell Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Hubbell Incorporated's products are moderately substitutable, as customers have some alternatives, but they are not easily replaceable.

Bargaining Power Of Customers

Hubbell Incorporated's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Hubbell Incorporated's suppliers have moderate bargaining power, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants is low for Hubbell Incorporated, as the company has a strong market presence and significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry in Hubbell Incorporated's industry is high, with several established competitors vying for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.01%
Debt Cost 3.95%
Equity Weight 56.99%
Equity Cost 8.75%
WACC 6.68%
Leverage 75.47%

11. Quality Control: Hubbell Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
EnerSys

A-Score: 5.8/10

Value: 4.9

Growth: 6.3

Quality: 5.8

Yield: 2.0

Momentum: 9.0

Volatility: 7.0

1-Year Total Return ->

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Acuity Brands

A-Score: 5.2/10

Value: 2.9

Growth: 6.8

Quality: 7.1

Yield: 0.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Hubbell

A-Score: 5.1/10

Value: 2.3

Growth: 6.7

Quality: 7.0

Yield: 2.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Hayward Holdings

A-Score: 4.4/10

Value: 4.2

Growth: 3.1

Quality: 7.5

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Advanced Energy Industries

A-Score: 4.3/10

Value: 0.6

Growth: 5.0

Quality: 6.5

Yield: 0.0

Momentum: 9.5

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Atkore

A-Score: 3.9/10

Value: 6.9

Growth: 4.3

Quality: 3.4

Yield: 2.0

Momentum: 3.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

526.73$

Current Price

526.73$

Potential

-0.00%

Expected Cash-Flows