Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 28, 2026 · Beat 6 of last 7 quarters
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Hubbell's results underscore the accelerating AI infrastructure buildout, with data center sales up ~65% in Q2 and full-year data center growth now expected at ~50%. The company's capacity investments and strong book-to-bill in utility T&D signal sustained demand for grid infrastructure to support data center load growth. The NSI acquisition adds exposure to network infrastructure, datacom, and broadband, further aligning with AI-driven infrastructure needs.
Hubbell delivered strong Q2 results with double-digit growth in sales, adjusted operating profit, and adjusted EPS. Organic growth of 10% was driven by 6% in Utility Solutions and 18% in Electrical Solutions, with data center sales up ~65%. The NSI acquisition closed in early June, contributing $35M of sales for a partial month and expected to be accretive. Utility Solutions book-to-bill was ~1.2x in the first half, providing visibility into H2. Adjusted operating margins contracted modestly to 23.9% due to inflation and higher restructuring investment, but management expects margin expansion in H2.
Management raised full-year 2026 guidance across sales, organic growth, adjusted operating margin, and adjusted EPS. Total sales growth outlook raised to +16% to 18% (from +8% to 11%), including ~5 points from NSI; organic growth raised to +9% to 11% (from +6% to 9%). Utility Solutions organic growth raised to +7% to 9%, and Electrical Solutions to +12% to 14%, with data center growth now expected at ~50% for the full year. Adjusted operating margin guidance raised to 23.1% to 23.4% (40-70 bps expansion), and adjusted EPS raised to $20.25-$20.55 (from $19.30-$19.85). The outlook includes a $20M net benefit in Q4 from IEPA tariff refunds, partially offset by higher tariffs, and continued investment in capacity and restructuring. Management expressed confidence in second-half margin expansion, with Electrical Solutions returning to margin expansion in H2.
“As megatrends continue to accelerate, most notably in data center markets and load-growth-related investment in utility T and D markets, we are seeing continued strength in our order book, which gives us increased visibility into our second half outlook.”
on Demand visibility
“Data center sales were up approximately 65% in the quarter as capacity additions, new product introductions and content gains drove outgrowth in a strong underlying market.”
on Data center growth
“We continue to believe utility T and D markets are in the early stages of a multiyear investment cycle and we are investing proactively in additional capacity to serve the long term needs of our customers.”
on T&D investment cycle
Can we dial into the strength in distribution? Is there inventory restock? And on transmission/substation, was there timing benefit that fortifies second half?
Gerben noted strong order rates (1.2x book-to-bill) broad-based across grid infrastructure and automation. Distribution up double digits, transmission/substation growing nicely and accelerating in H2. He attributed any softness to project timing and expressed confidence based on quoting activity and backlog.
Are you starting to build visibility into 2027? And how have customer conversations trended?
Gerben confirmed orders are starting to book into 2027, particularly in transmission and substation, as utilities plan further out due to load growth and data center buildouts. He sees a multiyear investment cycle with strong momentum.
Can you give more color on capacity expansion? What verticals, revenue unlock, and timing?
Joe highlighted CapEx of $175-190M this year, up from $155M, largely for capacity. He noted the investments are focused on high-growth areas and will support future growth.