Hubbell Raises Profit Outlook as Sales Growth Accelerates
Second-quarter net sales rose 15% to $1.712 billion.
Electrical equipment maker Hubbell Incorporated (HUBB) raised its full-year adjusted profit outlook after second-quarter sales growth accelerated, though acquisition costs and weaker margins weighed on its GAAP results.
The quarter marked the first to include NSI Industries following Hubbell’s approximately $3.0 billion acquisition. The addition helped lift acquisition-driven growth to 5% from 2.3% in the first quarter, while organic growth quickened to 10% from 8.2%.
Net sales rose 15% from a year earlier to $1.712 billion, accelerating from 11% growth in the first quarter. Adjusted diluted earnings increased 12% to $5.52 a share, slowing from the prior quarter’s 16% year-over-year gain.
Utility Solutions sales increased 10% to $1.026 billion, while organic growth eased to about 6% from 7% in the first quarter. Grid Infrastructure growth slowed to about 12% from 18%, while Grid Automation improved to roughly 1% growth after declining 7% in the prior quarter.
Electrical Solutions supplied the acceleration, with sales rising 25% after a 12% increase in the first quarter. Organic growth reached 18%, and acquisitions contributed 6.5%. Adjusted operating margin rose sequentially to 21.2% but contracted 130 basis points from a year earlier; GAAP operating income fell to $115 million despite the sales increase.
Companywide adjusted operating margin climbed sequentially to 23.9% from 19.8%, but contracted 50 basis points year over year after expanding 110 basis points in the first quarter. GAAP operating margin followed the same pattern, rising from the prior quarter while falling 230 basis points from a year earlier to 20.4%.
Hubbell now expects 2026 adjusted earnings of $20.25 to $20.55 a share, up from its previous range of $19.30 to $19.85. Its GAAP forecast is lower at $17.25 to $17.55 a share, compared with the prior range of $17.45 to $18.00, as transaction, integration and separation costs increased to $0.44 a share from $0.05 in the first quarter.