John O'Dea

John O'Dea asked for insights into the first half versus second half growth in Hubbell's grid infrastructure segment, specifically differentiating between transmission and substation versus electrical distribution, and the underlying growth rate for distribution in the back half. He also inquired about the backlog for transmission and substation and Hubbell's approach to deploying its strong free cash flow, considering M&A and share repurchases.

Answer

Gerben Bakker, Chairman, President, and CEO, expressed optimism for investments in grid infrastructure, expecting transmission and substation to continue growing in high single digits to low double digits, and distribution to grow mid-single digits in 2026. Joe Capozzoli, CFO, projected $900 million-$1 billion in free cash flow for 2026, with deployment similar to 2025, combining high-quality CapEx, M&A, and share repurchases. Mr. Bakker added that CapEx remains the highest return, with a disciplined M&A pipeline focused on bolt-ons and larger deals in core electrical and T&D markets, viewing dividends and share repurchases as good alternatives when M&A execution is lower.