HUBBELL (HUBB)·Q4 2025 Earnings Summary

Hubbell Delivers Double-Digit Growth on Datacenter and Grid Strength

February 3, 2026 · by Fintool AI Agent

Hubbell Incorporated (NYSE: HUBB) delivered a solid Q4 2025, posting double-digit growth in sales, adjusted operating profit, and adjusted EPS while narrowly beating consensus estimates. The industrial electrical equipment maker benefited from robust demand in datacenter projects, utility grid infrastructure, and aging infrastructure resiliency investments.

Full-year 2025 marked a milestone with net sales of $5.84B (+4% YoY), adjusted EPS of $18.21 (+10% YoY), and free cash flow of $875M representing 90% conversion on adjusted net income. The company initiated 2026 guidance of $19.15-$19.85 adjusted EPS, implying ~10% operating profit growth at the midpoint.

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Did Hubbell Beat Earnings in Q4 2025?

Yes — Hubbell modestly beat on both revenue and EPS.

The quarter benefited from strong volume growth, favorable price realization, and productivity gains, partially offset by cost inflation, higher raw materials, and tariff costs.

Hubbell has beaten EPS estimates in 7 of the last 8 quarters, demonstrating consistent execution.

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What Drove the Strong Q4 Performance?

Datacenter buildouts and grid infrastructure strength were the primary growth engines.

Hubbell Utility Solutions (HUS) — 63% of Revenue

Key drivers:

• Grid Infrastructure (+12% organic): Broad-based strength across distribution, transmission, and substation markets
• Load growth and datacenter buildouts drove robust grid interconnection activity
• Aging infrastructure investments supported hardening and resiliency spending
• Grid Automation (-8% organic): Weak meter & AMI new project activity partially offset by solid grid protection & controls growth

Hubbell Electrical Solutions (HES) — 37% of Revenue

Key drivers:

• Datacenter sales up >60% — the standout performer
• Light industrial markets strong
• Non-residential and heavy industrial markets softer
• Vertical market strategy, new product introductions, and commercial alignment driving outgrowth

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What Did Management Guide for 2026?

Hubbell initiated attractive guidance in line with its long-term framework.

Key modeling assumptions:

• Price/Cost/Productivity planned to be neutral or better
• Planning for higher investment following period of cost management
• DMC Power acquisition expected to contribute ~$130M at ~40% operating margins net of integration costs
• $15-20M restructuring spend planned, front-end loaded (~1/3 in Q1)
• Mid-single digit cost inflation expected; managed with price and productivity
• Free cash flow expected $900M-$1B

Q1 2026 Seasonality: Management guided to a "strong start from an organic growth and margin expansion perspective" but cautioned on using rigid percentage-of-year math:

• Q1 tax rate tends to run higher
• Restructuring expense front-loaded
• Expect "nice 1Q year-over-year growth" and margin expansion

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What's the Outlook by Segment?

Utility Solutions — Robust, Highly Visible Growth

Management expressed confidence in the HUS outlook for 2026 and beyond:

• Transmission & Substation: High single-digit growth expected, with strong project visibility extending into 2027+
• Distribution: Mid-single digit growth expected, driven by hardening and resiliency investment
• Grid modernization driving protection & controls growth
• Meters & AMI at trough; expected to "grow modestly from here"
• "Load growth and inflecting utility investment budgets support robust, highly visible HUS growth outlook in 2026 and beyond"

Electrical Solutions — Execution on Growth Playbook

HES outlook reflects continued execution:

• Well-positioned for continued light industrial strength on megaprojects
• Solid growth anticipated in electric T&D and renewables
• Robust datacenter markets supplemented with new products and share gain
• Planning for continued non-res and heavy industrial softness
• "Solid end market backdrop and further execution on growth and productivity playbook positions HES for continued success in 2026"

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How Did the Stock React?

Hubbell shares rose +1.6% to $495.59 during regular trading on February 3, 2026, with aftermarket trading pushing to $500.00. The stock is near its 52-week high of $501.32 and has significantly outperformed over the past year:

The muted positive reaction reflects results that came in largely as expected — solid execution but no major upside surprise to re-rate the stock higher.

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What Changed From Last Quarter?

Key observations:

• Organic growth accelerated sequentially from +6% to +9%, driven by stronger performance in both segments
• Datacenter strength continued building momentum (+60% in Q4 vs. already-strong prior quarters)
• Grid Automation remains the weak spot but showed marginal improvement
• Margins held steady despite higher raw material and tariff costs

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Growth Spotlight: Burndy Datacenter Automation

Management highlighted the Burndy electrical connectors business as a key datacenter growth driver:

• Leading franchise in electrical connectors and grounding serving wide range of industrial verticals
• Strong, specified positions in high-growth datacenter markets with engineered system, inspectable UL-certified connections
• 3-year investment of >$15M in US automation capacity for high-running copper lug SKUs
• Automated lines combine 6 manual processes into single automated lines
• Flexible capacity can be utilized across full range of end markets
• Burndy datacenter sales up 4x over last 3 years

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Full-Year 2025 Summary

Key 2025 accomplishments:

• HES segment unification with +7% organic growth, +14% adj. operating profit growth, and +120bps margin expansion
• Double-digit growth achieved in transmission/substation markets
• Launched Grid Interconnection vertical to capture datacenter opportunities
• Deployed >$950M to accretive acquisitions including DMC Power

• 50% of CapEx allocated to growth and productivity projects

• Recognized with 4 customer service awards from major customers

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Q&A Highlights: What Analysts Asked

The earnings call featured detailed Q&A with several key takeaways:

Order Momentum & Visibility

Jeffrey Sprague (Vertical Research) asked about order trends:

"The recent momentum has been strong... we started to see this inflection in our order book in the September timeframe, and particularly in the areas of T&D and data center. That order momentum going into 2026 has continued."

CEO Gerben Bakker noted they "even built a little bit of backlog in some of our businesses, like the T&D business" exiting Q4.

Meters & AMI Bottom

On the weak Grid Automation business, Bakker provided clarity:

"I would say it's really at the bottom, and from here, it should start to grow modestly... the book-to-bill at 1, or close to 1, [indicates] we're kind of stabilized that business off this lower base."

Cost Inflation & Pricing

Steve Tusa (JPMorgan) pressed on raw materials assumptions. CFO Joe Capozzoli responded:

• Mid-single digit cost inflation expected in 2026 (metals, components, labor)
• Based on year-end exit rates for metals pricing
• 3 points of price realized in FY25, with wraparound and modest incremental increases planned

Tariff Exposure

Chad Dillard (Bernstein) asked about tariffs:

"We saw about $150 million worth of tariff and related costs [in 2025]... we managed that number down a little lower over the back half. There really haven't been a whole lot of changes in tariff rates recently... we're ready to react and respond if there's large changes."

Datacenter Growth Outlook

Nigel Coe (Wolfe Research) questioned the mid-teens 2026 datacenter guide vs. stronger market growth:

"That fourth quarter was pretty heavy with datacenter projects... the modular power distribution skid business had a pretty heavy project load throughout 2025... growth rates in 2026 versus 2025 will step down a little bit."

Management expects mid-to-high teens datacenter growth on the electrical side. If demand proves stronger, "we'll serve that demand" with expanded Burndy capacity.

M&A Pipeline

Joe O'Dea (Wells Fargo) asked about capital deployment with $900M-$1B of free cash flow expected:

"The deal pipeline... looks pretty good to start the year. That pipeline has bolt-ons in it. It has some larger deals in it... focused on the areas where we clearly have the right to play and right to win — think about T&D markets, think about some of the core electrical markets."

Aclara Strategic Pivot

Scott Graham (Seaport) asked about the meters/AMI business fit:

"This business has traditionally served munis and co-ops really well... the adoption of that technology at large IOUs proved more difficult. So we did a pivot last year. We reshaped that business, took a lot of cost out... to focus on the market where we have a really strong position."

Distribution Channel Normalization

Tommy Moll (Stephens) asked about destocking:

"I'm glad to stop talking about destock because it lasted way too long... we're through there. What we didn't see is customers, both retail and distributors, over-pivot. There was not an overshoot... [guidance is] indicative of demand."

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What Are the Key Risks?

Management flagged several considerations in the forward-looking statements:

• Tariff exposure: Impact of trade tariffs and potential changes in US trade policies
• Raw material costs: Continued inflation pressure on input costs
• Grid Automation weakness: Meters & AMI market remains muted
• Non-residential softness: Planning for continued weakness in commercial construction
• Integration risk: DMC Power and other recent acquisitions require successful integration
• Supply chain: Potential disruptions and component availability constraints
• Currency: Foreign exchange rate fluctuations

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Bottom Line

Hubbell delivered exactly what investors expected: solid double-digit growth driven by secular tailwinds in datacenter buildouts and grid infrastructure investment. The +0.2-0.3% beats on revenue and EPS aren't material, but the underlying trends are encouraging — organic growth accelerated, margins held steady despite cost pressures, and the 2026 outlook points to continued ~10% operating profit growth.

The Grid Automation weakness remains a watch item, but it's overwhelmed by strength elsewhere. With the stock at all-time highs and trading at ~26x forward EPS ($19.50 midpoint guidance), the multiple reflects the quality of the business and visibility into multi-year growth drivers.

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Data sources: Hubbell Q4 2025 Earnings Presentation, S&P Global consensus estimates. Stock prices as of February 3, 2026.