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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 driven by strong demand for data center and grid infrastructure solutions. The company's strategic shift towards higher-margin, faster-growing markets has significantly improved revenue growth and profitability. Structural tailwinds, including grid modernization, renewables, data centers, and EVs, support sustained revenue and EPS growth. Additionally, Hubbell's US-centric operations, diversified product portfolio, and strategic divestitures reduce cyclicality and focus growth on higher-margin segments. Strong data center and grid infrastructure demand, along with robust pricing power, support sustained revenue and margin expansion.

1.c. Company Highlights

2. Hubbell's Q3 2025 Earnings: Strong Growth and Margin Expansion

Hubbell delivered double-digit adjusted earnings growth in Q3 2025, driven by strong high single-digit organic growth in Electrical Solutions and Grid Infrastructure. The company's adjusted earnings per share (EPS) came in at $5.17, beating analyst estimates of $4.98. Revenue growth was robust, with the Utility segment showing strong growth in Grid Infrastructure and the Electrical segment growing double digits. The company's operating profit margin also expanded, driven by good pricing and productivity initiatives. With a current P/E Ratio of 29.29 and EV/EBITDA of 20.22, the market seems to be pricing in a certain level of growth and profitability.

Publication Date: Oct -31

📋 Highlights
  • Double-Digit Adjusted Earnings Growth: Hubbell reported double-digit growth driven by high single-digit organic growth in Electrical Solutions and Grid Infrastructure, plus a lower tax rate.
  • Strong Organic Growth in Segments: Electrical Solutions grew high single digits with double-digit operating profit, while Grid Infrastructure saw high single-digit growth with improved order activity.
  • DMC Power Acquisition Impact: Acquisition closed in October 2025, expected to add $0.20/share accretion in 2026, leveraging high-margin substation solutions (40%+ EBITDA margins).
  • Upward EPS Guidance: Full-year 2025 EPS midpoint raised to $18.20 (from $17.90), reflecting operational gains and tax efficiency, with 34% free cash flow growth to $254M.
  • Q4 Growth Momentum: Anticipates 8-10% organic growth in Q4 2025, driven by both segments, with margin expansion and project pipelines supporting 2026 double-digit exit rates.

Segment Performance

The Utility segment showed strong growth in Grid Infrastructure, driven by modernization initiatives and a strong project pipeline. The Electrical segment also grew double digits, driven by outgrowth in key vertical markets such as data centers and light industrial. The company's segment unification efforts and strategy to compete collectively are driving growth and margin expansion.

Outlook and Guidance

Hubbell has raised its full-year 2025 outlook, driven by operational factors and a lower full-year tax rate. The company expects 3% to 4% organic growth and operating profit margins to expand in the 50 to 100 basis point range. For Q4 2025, the company expects 8% to 10% organic growth, driven by contributions from both segments. Looking ahead to 2026, the company sees an attractive end market environment, which is expected to enable it to deliver organic growth in line with its long-term targets.

Acquisition and Integration

The company announced the closing of its acquisition of DMC Power in early October, adding a unique technical solution in high-growth substation markets. The acquisition is expected to contribute approximately $0.20 of adjusted EPS accretion in 2026. DMC Power has rich EBITDA margins above 40%, driven by its unique solution of crimping connectors onto conductors in substations.

Valuation and Return Metrics

With a ROE of 25.28% and ROIC of 14.48%, Hubbell is demonstrating strong return on equity and invested capital. The company's dividend yield is 1.12%, and its free cash flow yield is 3.4%. The Net Debt / EBITDA ratio is 1.02, indicating a manageable level of debt. Overall, Hubbell's strong growth, margin expansion, and attractive valuation metrics make it an interesting investment opportunity.

3. NewsRoom

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All You Need to Know About Hubbell (HUBB) Rating Upgrade to Buy

Dec -02

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First Look: CME outage, Black Friday shifts, AI job impact

Nov -28

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Hubbell Inc $HUBB Shares Sold by American Century Companies Inc.

Nov -28

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Creative Planning Acquires 2,179 Shares of Hubbell Inc $HUBB

Nov -24

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Bahl & Gaynor Inc. Grows Stake in Hubbell Inc $HUBB

Nov -22

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ABN Amro Investment Solutions Takes Position in Hubbell Inc $HUBB

Nov -14

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Hubbell Incorporated Prices Offering of Senior Notes Due 2035

Oct -30

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Hubbell Incorporated (HUBB) Q3 2025 Earnings Call Transcript

Oct -28

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

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EnerSys

A-Score: 5.2/10

Value: 4.4

Growth: 6.2

Quality: 5.7

Yield: 2.0

Momentum: 6.5

Volatility: 6.3

1-Year Total Return ->

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Acuity Brands

A-Score: 5.2/10

Value: 2.8

Growth: 6.8

Quality: 7.0

Yield: 0.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

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Hubbell

A-Score: 5.1/10

Value: 2.0

Growth: 6.8

Quality: 7.2

Yield: 3.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Atkore

A-Score: 4.6/10

Value: 6.1

Growth: 8.0

Quality: 4.8

Yield: 2.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Hayward Holdings

A-Score: 4.3/10

Value: 3.6

Growth: 3.2

Quality: 7.4

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Advanced Energy Industries

A-Score: 4.1/10

Value: 0.6

Growth: 4.9

Quality: 5.3

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

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

440.53$

Current Price

440.53$

Potential

-0.00%

Expected Cash-Flows