Full-year guidance raised on strong demand and pricing.
Hubbell reported a strong Q1 with double-digit sales and EPS growth, driven by robust demand in utility T&D and data center markets. Management raised full-year guidance and provided an optimistic outlook on high-voltage transmission growth. Raised FY26 EPS guidance to $19.30-$19.85, up from prior range.
Buzzberg readFull-year guidance raised on strong demand and pricing.Hubbell reported a strong Q1 with double-digit sales and EPS growth, driven by robust demand in utility T&D and data center markets. Management raised full-year guidance and provided an optimistic outlook on high-voltage transmission growth. Raised FY26 EPS guidance to $19.30-$19.85, up from prior range.Read full analysisCollapse analysis
Hubbell reported a strong Q1 with double-digit sales and EPS growth, driven by robust demand in utility T&D and data center markets. Management raised full-year guidance and provided an optimistic outlook on high-voltage transmission growth. Raised FY26 EPS guidance to $19.30-$19.85, up from prior range.
Full-year organic sales growth increased to 6-9% from 5-8%.
Data center market growth expected to exceed 25% for the year.
Grid infrastructure grew 12% organically with broad-based T&D strength.
Revenue$1.5167B
+2% QoQ
EPS$3.93
-17% QoQ
Gross margin33.32%
reported
Op margin17.39%
reported
What changed this quarter
01
Guidance
Full-year guidance raised on strong demand and pricing.
Guidance · revenue to $6.4B
02
Growth
New 765 kV opportunity estimated at $1.5B over 10 years.
Raised FY26 EPS guidance to $19.30-$19.85, up from prior range.
03
Demand
Data center growth now expected above 25% for 2026.
Management expressed confidence in raising full-year guidance, citing strong order patterns, demand visibility, and successful price/cost management despite inflationary and geopolitical uncertainty.
04
Pricing
Additional price actions implemented in Q2 to offset inflation.
Data center market growth expected to exceed 25% for the year.
Demand & capex
Demand
Bookings & conversion
Data center growth now expected above 25% for 2026.. Management expressed confidence in raising full-year guidance, citing strong order patterns, demand visibility, and successful price/cost management despite inflationary and geopolitical uncertainty.
Capex
Investment and capacity
Management is actively investing to support future growth, including capacity expansion investments in high-voltage transmission and data center markets. They accelerated investment levels in Q1 2026, most notably to expand capacity in high-growth areas and generate future productivity, and they continue to invest in productive capacity for data center short-cycle products with more capacity comin
Tone · Confident
Management expressed confidence in raising full-year guidance, citing strong order patterns, demand visibility, and successful price/cost management despite inflationary and geopolitical uncertainty.
Supply-chain alpha
A1
Hubbell raised prices by ~1 point for the year due to metals inflation (copper, aluminum, steel) but expects price-cost to be margin-dilutive by about 100 basis points in 2026.
“in our 20 basis point of margin expansion at the midpoint of the guide, there's about a point of dilution just from that price cost math.”
Hubbell sees the 765kV high-voltage transmission buildout as a $1.5B addressable market over 10 years, which is incremental to its existing strong 345kV business, driven by large-scale grid buildout.
“we believe 765 kV transmission represents an addressable market opportunity of approximately $1.5 billion over the next 10 years”
Management stated that the recent updates to various tariff frameworks are largely neutral to their existing tariff cost structure, based on their use of US-melted steel.
“we anticipate that recent updates to various tariff frameworks are largely neutral to our existing tariff cost structure”