filings.toolsHubbell 10-Q 2026-06-30
Filed 2026-07-29. 8 sections, 216K characters. Original on sec.gov · Markdown · JSON
Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Commission File Number 1-2958
HUBBELL INCORPORATED
(Exact name of registrant as specified in its charter)
| Connecticut | 06-0397030 | |||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| 40 Waterview Drive | ||||||||
| Shelton, | CT | 06484 | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
| (475) | 882-4000 | |||||||
| (Registrant’s telephone number, including area code) |
| N/A | ||
| (Former name, former address and former fiscal year, if changed since last report.) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Common Stock - par value $0.01 per share | HUBB | New York Stock Exchange |
| Indicate by check mark | |||||||||||||||||||||||||||||
| •whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Yes | ☑ | No | ☐ | |||||||||||||||||||||||||
| •whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Yes | ☑ | No | ☐ | |||||||||||||||||||||||||
| •whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act: | |||||||||||||||||||||||||||||
| Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||||||||||
| Emerging growth company | ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standard provided pursuant to Section 13(a) of the Exchange Act. ☐ | |||||||||||||||||||||||||||
| •whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes | ☐ | No | ☑ |
The number of shares outstanding of Hubbell common stock as of July 23, 2026 was 52,832,571.
HUBBELL INCORPORATED-Form 10-Q 1
Index
HUBBELL INCORPORATED-Form 10-Q 2
| PART I | FINANCIAL INFORMATION |
Item 1. Financial Statements
Condensed Consolidated Statements of Income (unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (in millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net sales | $ | 1,711.8 | $ | 1,484.3 | $ | 3,228.5 | $ | 2,849.5 | ||||||
| Cost of goods sold | 1,098.8 | 932.2 | 2,110.2 | 1,854.8 | ||||||||||
| Gross profit | 613.0 | 552.1 | 1,118.3 | 994.7 | ||||||||||
| Selling & administrative expenses | 264.4 | 215.8 | 505.9 | 428.0 | ||||||||||
| Operating income | 348.6 | 336.3 | 612.4 | 566.7 | ||||||||||
| Interest expense, net | (39.1) | (14.5) | (61.1) | (28.3) | ||||||||||
| Loss on disposition of business | — | (0.4) | — | (0.4) | ||||||||||
| Other expense, net | (5.8) | (6.2) | (11.2) | (11.5) | ||||||||||
| Total other expense, net | (44.9) | (21.1) | (72.3) | (40.2) | ||||||||||
| Income before income taxes | 303.7 | 315.2 | 540.1 | 526.5 | ||||||||||
| Provision for income taxes | 61.5 | 69.7 | 114.9 | 116.5 | ||||||||||
| Net income | 242.2 | 245.5 | 425.2 | 410.0 | ||||||||||
| Less: Net income attributable to noncontrolling interest | $ | (1.8) | $ | (1.3) | $ | (3.0) | $ | (2.6) | ||||||
| Net income attributable to Hubbell Incorporated | $ | 240.4 | $ | 244.2 | $ | 422.2 | $ | 407.4 | ||||||
| Earnings per share: | ||||||||||||||
| Basic earnings per share | $ | 4.54 | $ | 4.58 | $ | 7.96 | $ | 7.62 | ||||||
| Diluted earnings per share | $ | 4.52 | $ | 4.56 | $ | 7.93 | $ | 7.58 | ||||||
See notes to unaudited Condensed Consolidated Financial Statements.
HUBBELL INCORPORATED-Form 10-Q 3
Condensed Consolidated Statements of Comprehensive Income (unaudited)
| Three Months Ended June 30, | ||||||||
| (in millions) | 2026 | 2025 | ||||||
| Net income | $ | 242.2 | $ | 245.5 | ||||
| Other comprehensive income (loss): | ||||||||
| Foreign currency translation adjustments | 3.4 | 31.0 | ||||||
| Defined benefit pension and post-retirement plans, net of taxes of $(0.5) and $(0.6) | 1.9 | 2.1 | ||||||
| Unrealized gain on investments, net of taxes of $0.0 and $(0.1) | 0.1 | 0.3 | ||||||
| Unrealized loss on cash flow hedges, net of taxes of $(0.2) and $0.4 | (0.4) | (1.1) | ||||||
| Other comprehensive income | 5.0 | 32.3 | ||||||
| Comprehensive income | 247.2 | 277.8 | ||||||
| Less: Comprehensive income attributable to noncontrolling interest | 1.8 | 1.3 | ||||||
| Comprehensive income attributable to Hubbell Incorporated | $ | 245.4 | $ | 276.5 |
See notes to unaudited Condensed Consolidated Financial Statements.
| Six Months Ended June 30, | ||||||||
| (in millions) | 2026 | 2025 | ||||||
| Net income | $ | 425.2 | $ | 410.0 | ||||
| Other comprehensive income (loss): | ||||||||
| Foreign currency translation adjustments | 2.3 | 48.3 | ||||||
| Defined benefit pension and post-retirement plans, net of taxes of $(1.5) and $(1.3) | 3.3 | 4.5 | ||||||
| Unrealized (loss) gain on investments, net of taxes of $0.1 and $(0.2) | (0.2) | 0.5 | ||||||
| Unrealized gain (loss) on cash flow hedges, net of taxes of $(0.4) and $0.5 | 0.2 | (1.5) | ||||||
| Other comprehensive income | 5.6 | 51.8 | ||||||
| Comprehensive income | 430.8 | 461.8 | ||||||
| Less: Comprehensive income attributable to noncontrolling interest | 3.0 | 2.6 | ||||||
| Comprehensive income attributable to Hubbell Incorporated | $ | 427.8 | $ | 459.2 | ||||
| See notes to unaudited Condensed Consolidated Financial Statements. |
See notes to unaudited Condensed Consolidated Financial Statements.s to unaudited Condensed Consolidated Financial Statements.
See notes to unaudited Condensed Consolidated Financial
HUBBELL INCORPORATED-Form 10-Q 4
Condensed Consolidated Balance Sheets (unaudited)
| (in millions) | June 30, 2026 | December 31, 2025 | ||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 378.6 | $ | 482.5 | ||||
| Short-term investments | 16.1 | 15.4 | ||||||
| Accounts receivable (net of allowances of $17.0 and $13.9) | 1,150.9 | 856.9 | ||||||
| Inventories, net | 1,267.5 | 1,083.8 | ||||||
| Other current assets | 197.2 | 155.4 | ||||||
| Total Current Assets | 3,010.3 | 2,594.0 | ||||||
| Property, Plant, and Equipment, net | 902.4 | 841.2 | ||||||
| Other Assets | ||||||||
| Investments | 103.7 | 98.4 | ||||||
| Goodwill | 4,354.1 | 3,060.8 | ||||||
| Other intangible assets, net | 3,189.9 | 1,394.3 | ||||||
| Other long-term assets | 285.8 | 240.1 | ||||||
| TOTAL ASSETS | $ | 11,846.2 | $ | 8,228.8 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Short-term debt | $ | 568.7 | $ | 289.1 | ||||
| Accounts payable | 650.5 | 570.5 | ||||||
| Accrued salaries, wages and employee benefits | 117.1 | 115.4 | ||||||
| Accrued insurance | 84.9 | 83.0 | ||||||
| Other accrued liabilities | 449.3 | 450.7 | ||||||
| Total Current Liabilities | 1,870.5 | 1,508.7 | ||||||
| Long-Term Debt | 4,803.9 | 2,036.3 | ||||||
| Deferred tax liabilities | 816.0 | 420.1 | ||||||
| Other Non-Current Liabilities | 432.8 | 405.8 | ||||||
| TOTAL LIABILITIES | 7,923.2 | 4,370.9 | ||||||
| Commitments and contingencies (Note 15) | ||||||||
| Hubbell Incorporated Shareholders’ Equity | 3,911.9 | 3,847.9 | ||||||
| Noncontrolling interest | 11.1 | 10.0 | ||||||
| TOTAL EQUITY | 3,923.0 | 3,857.9 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 11,846.2 | $ | 8,228.8 |
*See no
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Executive Overview of the Business
Hubbell is a global manufacturer of quality electrical products and utility solutions for a broad range of customer and end market applications. We provide utility and electrical solutions that enable our customers to operate critical infrastructure reliably and efficiently, and we empower and energize communities through innovative solutions supporting energy infrastructure In Front of the Meter, on The Edge, and Behind the Meter. In Front of the Meter is where utilities transmit and distribute energy to their customers. The Edge connects utilities with owner/operators and allows energy and data to be distributed back and forth. Behind the Meter is where owners and operators of buildings, and other critical infrastructure consume energy. Products are either sourced complete, manufactured or assembled by subsidiaries in the United States, Canada, Puerto Rico, Mexico, China, the UK, Brazil, Australia, Spain, and the Republic of the Philippines. The Company also participates in joint ventures in Hong Kong and the Republic of the Philippines, and maintains offices in Singapore, Italy, China, India, Mexico, South Korea, Chile, and countries in the Middle East. The Company employed approximately 19,400 individuals worldwide as of June 30, 2026.
The Company’s reporting segments consist of the Utility Solutions segment and Electrical Solutions segment.
Results for the six months ended June 30, 2026 by segment are included under “Segment Results” within this Management’s Discussion and Analysis.
The Company's long-term strategy is to serve its customers with reliable and innovative electrical and related infrastructure solutions with desired brands and high-quality service, delivered through a competitive cost structure; to complement organic revenue growth with acquisitions that enhance its product offerings; and to allocate capital effectively to create shareholder value.
Our strategy to complement organic revenue growth with acquisitions is focused on acquiring assets that extend our capabilities, expand our product offerings, and present opportunities to compete in core, adjacent or complementary markets. We believe our acquisition strategy also provides the opportunity to advance our revenue growth objectives during periods of weakness or inconsistency in our end-markets.
Our strategy to deliver products through a competitive cost structure has resulted in an ongoing program of restructuring and related activities. Our restructuring and related efforts include the consolidation of manufacturing and distribution facilities, and workforce actions, as well as streamlining and consolidating our back-office functions. The primary objectives of our restructuring and related activities are to optimize our manufacturing footprint, cost structure, and effectiveness and the efficiency of our workforce.
Our goal is to have pricing and productivity programs that offset the impact of cost increases as well as pay for investments in key growth areas. Our cost structure may be subject to material and production cost increases from inflationary periods within the U.S. and global economies, and from trade and other tensions. In particular, we have been subject to recent periods of inflationary pressure in the global economy and also subject to cost increases as a result of tariff and other material cost increases from trade actions taken by the United States and other countries, as well as increasing energy costs. Because material costs are approximately half of our cost of goods sold, volatility in this area can significantly impact profitability. Our pricing and productivity programs are intended to mitigate the risk to our operating margins related to these inflationary pressures and cost increases as a result of tariffs. For additional information, please refer to the risk factor titled; "Changes in U.S. and international trade policies may adversely impact our business and operating results; changes in U.S. trade policies could have a material adverse effect on us," which is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Our sales are subject to market conditions that may cause customer demand for our products to be volatile. Product demand can be affected by fluctuations in domestic and international economic conditions, as well as currency fluctuations, commodity costs, and a variety of other factors. Although inflation has generally moderated since its high point in 2022, we continue to be affected by ongoing inflationary pressures. We could also be affected by additional inflationary pressures resulting from energy market and other disruptive conditions resulting from ongoing hostilities in the Middle East. Accordingly, there can be no assurance that we will be able to maintain our margins in response to further changes in inflationary pressures.
HUBBELL INCORPORATED-Form 10-Q 37
Acquisition of NSI Industries
On June 9, 2026 (the "NSI Industries Closing Date"), the Company acquired all of the issued and outstanding equity of NSI Electrical Buyer, Inc., a Delaware corporation ("NSI Industries") for approximately $3.0 billion, net of cash acquired, subject to customary adjustments related to cash, indebtedness, working capital and transaction expenses. NSI Industries is a leading provider of electrical fittings, connectors, components and wire management products.
For additional information about the NSI acquisitions, refer to Note 2 - Business Acquisitions in the Notes to the Condensed Consolidated Financial Statements as well as the Company's current reports on Form 8-K filed on May 4, 2026 and June 9, 2026.
HUBBELL INCORPORATED-Form 10-Q 38
Results of Operations – Second Quarter of 2026 compared to the Second Quarter of 2025
The following is a discussion and analysis of our business, financial condition and results of operations as of and for the three and six months ended June 30, 2026 and 2025. This discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and notes thereto in Item 1 of this Quarterly Report on Form 10-Q (the “Condensed Financial Statements”), and the audited consolidated financial statements, accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Overview
Second quarter 2026 net sales were $1,711.8 million and increased by 15.3%, driven by a 10.2% increase in organic sales due to higher volume and favorable price realization. Acquisitions contributed to a 4.8% increase in sales, driven by the acquisitions of NSI Industries in the second quarter of 2026, and the acquisitions of DMC and Nicor in the second half of 2025, while the impact of foreign exchange was a 0.3% increase.
Organic net sales in the Electrical Solutions segment grew by 18.3% in the second quarter of 2026 led by continued strength in the data center, light industrial and non-residential markets. In the Utility Solutions segment, organic net sales expanded 5.5% on strength in transmission and distribution markets.
Operating margin in the second quarter of 2026 contracted by 230 basis points to 20.4% and includes the effect of amortization of acquisition-related intangibles and transaction, integration and separation costs. Adjusted operating margin, which excludes amortization of acquisition-related intangibles and transaction, integration and separation costs, was 23.9% and contracted by 50 basis points. That result includes margin expansion in the quarter, primarily driven by favorable price realization, benefits from operational productivity, and higher unit volume, and the impact of acquisitions, that was more than offset by margin contraction
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
In the operation of its business, the Company has exposures to fluctuating foreign currency exchange rates, availability of purchased finished goods and raw materials, changes in material prices, foreign sourcing issues, and changes in interest rates. There have been no significant changes in our exposure to these market risks during the six months ended June 30, 2026. For a complete discussion of the Company’s exposure to market risk, refer to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk”, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
HUBBELL INCORPORATED-Form 10-Q 56
Item 4. Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.
Our management carried out an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures, as defined in Exchange Act Rules 13a-15(e) and 15d-15(e), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, each of the Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2026, the Company’s disclosure controls and procedures were effective at the reasonable assurance level.
As previously announced, we acquired NSI Industries on June 9, 2026, except for any changes in internal controls related to the inclusion of NSI Industries' internal controls in the Company's control environment, if any, there have been no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recently completed quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
HUBBELL INCORPORATED-Form 10-Q 57
| PART II | OTHER INFORMATION |
Item 1A. Risk Factors
There have been no material changes in the Company's risk factors from those disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Issuer Purchases of Equity Securities
On February 12, 2025, the Board of Directors approved and announced a stock repurchase program (the “2025 Program”) that authorizes the repurchase of up to $500.0 million of common stock and expires in February 2028. In the second quarter of 2026 the Company repurchased $29.3 million of shares. At June 30, 2026, our remaining share repurchase authorization was $298.2 million. Subject to numerous factors, including market conditions and alternative uses of cash, we may conduct discretionary repurchases through open market or privately negotiated transactions, which may include repurchases under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.
The following table summarizes the Company's repurchase activity of common stock under the repurchase programs during the quarter ended June 30, 2026.
| Period | Total Number of Shares of Common Stock Purchased (000s)****(1) | Average Price Paid Per Share of Common Stock**(1)** | Approximate Value of Shares that May Yet be Purchased Under the Plans (in millions) | Total number of shares purchased as part of publicly announced plans (000s) | ||||||||||
| April 1, 2026 - April 30, 2026 | 50 | $ | 502.42 | $ | 303.2 | 48 | ||||||||
| May 1, 2026 - May 31, 2026 | 10 | $ | 512.58 | $ | 298.2 | 10 | ||||||||
| June 1, 2026 - June 30, 2026 | — | $ | — | $ | 298.2 | — | ||||||||
| TOTAL FOR THE QUARTER ENDED June 30, 2026 | 60 | $ | 504.07 | $ | 298.2 | 58 |
(1) The total number of share repurchases includes the surrender of the Company’s common shares in connection with the vesting of restricted stock awards.
Item 5. Other Information
During the three months ended June 30, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
HUBBELL INCORPORATED-Form 10-Q 58
Item 6. Exhibits
| * | Schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. Hubbell hereby undertakes to furnish supplemental copies of any of the omitted schedules upon request by the U.S. Securities and Exchange Commission; provided, that Hubbell may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any schedules so furnished. | ||||
| ** | Filed herewith | ||||
| *** | Furnished herewith | ||||
HUBBELL INCORPORATED-Form 10-Q 59
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: July 29, 2026
| HUBBELL INCORPORATED | ||||||||||||||
| By | /s/ Joseph A. Capozzoli | By | /s/ Jonathan M. Del Nero | |||||||||||
| Joseph A. Capozzoli | Jonathan M. Del Nero | |||||||||||||
| Senior Vice President, Chief Financial Officer | Vice President, Controller (Principal Accounting Officer) |
HUBBELL INCORPORATED-Form 10-Q 60