Hubbell lifts guidance after $3 billion acquisition
The electrical-products maker raised its full-year earnings forecast to $19.30-$19.85 a share.
The electrical-products manufacturer Hubbell (HUBB) completed a $3.0 billion acquisition and raised its full-year earnings guidance after first-quarter results showed steady organic growth and margin expansion.
The quarter marked a strategic shift for Hubbell, which closed the purchase of NSI Industries in April and disclosed it as a new segment expected to contribute about $570 million in 2026 revenue. The deal was financed with $900 million in term loans, $1.9 billion in senior notes, and commercial paper, pushing short-term debt to $536 million from $289.1 million in the prior quarter.
Net sales rose 11% year-over-year to $1.63 billion, with organic growth of 8.2% and M&A contributing 2.3%. Adjusted diluted earnings reached $3.93 a share, up 16% from the year-earlier period, though down sequentially from $4.73 in the fourth quarter as margins compressed 360 basis points to 19.8%.
Electrical Solutions led the growth, with organic net sales up 11% on strength in datacenter and light industrial markets, while Utility Solutions posted 7% organic growth, unchanged from the prior quarter. Within Utility, Grid Infrastructure surged 18%, offsetting a 7% decline in Grid Automation, which has now fallen for two consecutive quarters.
Hubbell raised its 2026 adjusted diluted EPS guidance to $19.30-$19.85 a share, up $0.15 at the low end, citing strong first-quarter performance and confidence in the outlook. The company did not disclose free cash flow for the quarter, a metric it had reported in prior periods.
Adjusted earnings excluded $0.47 a share of amortization related to acquisition intangibles and $0.05 of transaction costs, up from $0.50 and $0.04 in the prior quarter. Goodwill remained at $3.06 billion, while other intangible assets rose to $1.37 billion from $1.39 billion, reflecting acquisition accounting.