HUBB · Q2 2026 Earnings

Bullish

Hubbell Incorporated

Reported July 28, 2026

30-second summary

Hubbell delivered Q2 revenue of $1.71B (+15.3% YoY) with organic growth of 10.2% — above the prior-quarter qualitative "high single digits" bar — and adjusted EPS of $5.52 (+12% YoY). Management raised FY2026 total sales guidance to 16–18% (from 8–11%), organic to 9–11% (from 6–9%), and adjusted EPS to $20.25–$20.55 (midpoint $20.40, up from $19.58 — a $0.82 midpoint raise). Grid Infrastructure momentum and data center strength are now supplemented by Electrical Solutions accelerating to 18.3% organic — the segment mix that carried the Q4/Q1 thesis is broadening, and the raise is asymmetric to the upside for the first time in this cycle.

Headline numbers

EPS

Q2 FY2026

$5.52

+1.7% vs est.

Revenue

Q2 FY2026

$1.71B

+15.3% YoY

+1.9% vs est.

Gross margin

Q2 FY2026

35.8%

Free cash flow

Q2 FY2026

$0.21B

Operating margin

Q2 FY2026

20.4%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$1.71B	$1.48B	+15.3%	$1.52B	+12.9%
EPS	$5.52	$4.93	+12.0%	$3.93	+40.5%
Gross margin	35.8%	37.2%	-140bps	33.3%	+250bps
Operating margin	20.4%	22.7%	-230bps	17.4%	+300bps
Free cash flow	$0.21B	$0.22B	-3.5%	$0.05B	+363.0%

Guidance

Hubbell significantly raised full-year sales growth guidance (8-11% to 16-18% total, 6-9% to 9-11% organic) and Adjusted EPS guidance ($19.30-$19.85 to $20.25-$20.55) on the back of strong Q2 beat (10.2% organic growth, 5.52 Adjusted EPS), though GAAP EPS guidance was narrowed slightly lower.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Organic Revenue Growth	Q2 FY2026	high single digits	10.2%	+0.2-2.2pts above guide	Beat

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Adjusted Diluted EPS	FY2026	$19.30-$19.85	$20.25-$20.55	+$0.95 at low end, +$0.70 at high end	Raised
GAAP Diluted EPS	FY2026	$17.45-$18.00	$17.25-$17.55	-$0.20 at low end, -$0.45 at high end	Raised
Total Sales Growth	FY2026	8-11%	16-18%	+5-7pts	Raised
Organic Sales Growth	FY2026	6-9%	9-11%	+2-3pts	Raised

Reaffirmed unchanged this quarter: Free Cash Flow Conversion (approximately 90% on adjusted net income)

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Utility Solutions	$1.026B	$0.936B	+9.7%
Electrical Solutions	$0.686B	$0.549B	+25.0%
Utility Solutions Organic Growth	5.5%	—	—
Electrical Solutions Organic Growth	18.3%	4%	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Adjusted Operating Margin	23.9%	24.4%	—
Organic Revenue Growth	10.2%	—	—
Utility Solutions Adjusted Operating Margin	25.6%	25.5%	—
Electrical Solutions Adjusted Operating Margin	21.2%	22.5%	—
Adjusted EBITDA	$416.2M	—	—
Free Cash Flow	$212.8M	—	—

Management tone

Narrative arc: Q3'25 Timing slipped, sell 2026 → Q4'25 Multi-year cycle, early innings → Q1'26 Cycle confirmed, raise the guide → Q2'26 Visibility replaces confidence.

Last quarter management's framing was still forward-leaning language ("confidence in our ability to deliver"). This quarter the anchor phrase shifts to explicit visibility: "Strong first half order trends provide visibility to our second half outlook." Visibility is a stronger word than confidence — it implies backlog and order coverage rather than pipeline optimism. The pairing of that phrase with a 200–300bps raise in the FY organic bar suggests management is now pricing in H2 as substantially derisked, not merely tracking.

The megatrend articulation tightened. In Q4'25 and Q1'26, "grid modernization, load growth and datacenter investment" was named as the demand backdrop. This quarter the same three drivers are quantified: they "drove 10% organic growth." Attaching the actual growth print to the named drivers — rather than treating them as abstract tailwinds — is a step toward the kind of secular positioning that lets management refresh guidance without relitigating the demand thesis every quarter.

The reinvestment posture stayed intact and got sharper. Q4'25's language of "re-accelerating investment back into our business" and Q1'26's front-loaded restructuring have now transitioned to explicit capacity expansion: "investing in capacity expansion to serve our customers in high growth areas." That is a different mode than the "proactive cost management" Q3'25 posture — Hubbell has moved from preserving to spending to expanding capacity, in three quarters. Capacity expansion is the operational tell that management believes the demand backdrop is durable beyond FY2026.

The reaffirmed-but-softer FCF conversion language (from "90% or greater" to "approximately 90%") is the one hedge worth naming. It's a minor phrasing change but consistent with the capacity-expansion narrative — capex is stepping up, and the FCF conversion floor is being loosened accordingly.

Answers to last quarter's watch list

Q2 organic against "high single digits" qualitative guide. Resolved well above expectations. Q2 organic came in at 10.2% — comfortably above the implied 7–9% range and material enough to justify the raise to 9–11%. Total revenue of $1.71B on +15.3% reported growth easily cleared the qualitative bar. Status: Resolved positively.

Grid Automation Q2 print — first positive organic print in six quarters. Disclosed and inflected. Press release explicitly states Grid Infrastructure net sales increased approximately 12% and Grid Automation net sales increased approximately 1% in Q2. The +1% is marginal, but it is the positive print we flagged as the watch item — Grid Automation has turned. Utility Solutions overall delivered ~6% organic as Grid Infrastructure carried the segment and Grid Automation contributed at the margin. Status: Resolved positively (marginal).

Adjusted operating margin Q2 trajectory. Resolved positively on the sequential trajectory management guided to, though with a nuance. Adjusted operating margin at 23.9% moved firmly into the 22–23% zone management targeted (actually above it) and expanded 410bps sequentially from Q1's 19.8%. Both segments expanded margin sequentially (Utility Solutions to 25.6%, Electrical Solutions to 21.2%). Worth flagging: 23.9% is down 50bps YoY, with cost inflation, raw materials and tariffs cited as the offsets to volume and price/productivity. The back-half delivery risk we flagged has substantially receded, but the YoY margin compression is the counterweight. Status: Resolved positively, with YoY margin watch.

Data center growth durability above 25% FY pace. Not disclosed as a specific figure in the press release, but Electrical Solutions organic accelerated to 18.3% (from Q1's 11%), which is inconsistent with a material data center step-down and strongly implies data center held above the 25% annual pace through Q2. Status: Continue monitoring (favorable directional read).

765kV transmission as a named contributor. Not called out in the press release qualitative commentary. The megatrend framing this quarter is "grid modernization, load growth and datacenter investment" — 765kV specifically is absent. This is the second quarter running where 765kV has appeared only in one call's framing without a follow-through project or order figure. Status: Continue monitoring (mildly negative — the vector may be further out than Q1's framing implied).

What to watch into next quarter

Q3 organic against the raised 9–11% FY bar. With H1 organic tracking above the range (Q1 8.2%, Q2 10.2%), Q3 needs to hold roughly 8%+ organic to keep the FY midpoint intact. Anything sub-7% would reopen the "did H1 pull forward" question — particularly given Q3'25 delivered only 3.2% organic, meaning YoY comps ease materially.

Utility Solutions organic deceleration. Segment moved from Q4'25 +6.7% → Q1'26 +7% → Q2'26 ~6%. Watch whether Q3 arrests the sequential slowdown or continues drifting; a third consecutive deceleration would put pressure on the segment growth thesis just as Electrical Solutions is doing more of the work.

Adjusted operating margin YoY inflection. Q2 printed 23.9%, down 50bps YoY on inflation/tariffs/raw materials despite volume, price and productivity. Watch whether Q3 flips back to YoY expansion or the compression persists — the answer determines how much of the raised Adjusted EPS guide rests on volume vs. margin.

GAAP-to-adjusted EPS reconciliation widening. The gap between guided GAAP ($17.40 mid) and Adjusted ($20.40 mid) is now ~$3, versus ~$1.65 in the January original guide. Watch the 10-Q for what's driving the incremental $1+ of adjustments — acquisition amortization (management guides ~$2.50/share for FY), integration ($0.50/share), or restructuring. NSI integration is the likely largest single driver.

NSI Industries integration and M&A contribution transparency. The ~$3.0B NSI deal closed in Q2 and drives essentially all of the incremental M&A contribution now embedded in the FY guide. Watch whether Q3 breaks out acquired revenue vs. organic more clearly, integration cost cadence, and any early synergy commentary — composition matters for modeling FY2027 base.

Capacity expansion capex disclosure. The shift from cost management to capacity expansion is now the operative narrative. Watch for capex guidance updates and whether FCF conversion holds at ~90% or slips further as the "or greater" language already suggests.

Sources

Hubbell Incorporated Q2 2026 press release / 8-K exhibit, filed July 28, 2026 — https://www.sec.gov/Archives/edgar/data/48898/000162828026049934/exhibit991_07282026.htm

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