Company raises full-year 2026 guidance on strong demand
Hubbell reported a strong double-digit quarter, boosted by robust demand in data centers and utility T&D, and announced a major acquisition (NSI) that is set to be accretive. The company raised its full-year guidance across all key metrics, citing accelerating organic growth and a strong order book. Management expressed high confidence in sustaining momentum into 2027. Reported Q2 revenue of $1.712B (+15% y/y) and adj. EPS of $5.52 (+12% y/y).
Buzzberg 분석Company raises full-year 2026 guidance on strong demandHubbell reported a strong double-digit quarter, boosted by robust demand in data centers and utility T&D, and announced a major acquisition (NSI) that is set to be accretive. The company raised its full-year guidance across all key metrics, citing accelerating organic growth and a strong order book. Management expressed high confidence in sustaining momentum into 2027. Reported Q2 revenue of $1.712B (+15% y/y) and adj. EPS of $5.52 (+12% y/y).전체 분석 보기분석 접기
Hubbell reported a strong double-digit quarter, boosted by robust demand in data centers and utility T&D, and announced a major acquisition (NSI) that is set to be accretive. The company raised its full-year guidance across all key metrics, citing accelerating organic growth and a strong order book. Management expressed high confidence in sustaining momentum into 2027. Reported Q2 revenue of $1.712B (+15% y/y) and adj. EPS of $5.52 (+12% y/y).
Raised full year 2026 organic growth guide to 9-11%, driven by data center (50% growth) and utility T&D strength.
Closed NSI acquisition for $3B in June 2026; expect 20c/80c accretion in 2026/2027 with synergies.
Utility solutions saw a strong 1.2x book-to-bill in H1, with orders already coming in for 2027.
Revenue$1.7118B
+13% QoQ
EPS$5.52
+40% QoQ
Gross margin35.81%
reported
Op margin20.36%
reported
이번 분기에 달라진 점
01
Guidance
Company raises full-year 2026 guidance on strong demand
Guidance · revenue to 17%
02
Demand
Data center sales up 65% in Q2, 50% growth expected for full year
Management expressed strong confidence in the multi-year investment cycle, raised full-year guidance, and highlighted robust order books and visibility into 2027.
03
Demand
Utility solutions book-to-bill 1.2x signals strong second half
Data center sales up 65% in Q2, 50% growth expected for full year. Management expressed strong confidence in the multi-year investment cycle, raised full-year guidance, and highlighted robust order books and visibility into 2027.
04
M&A
NSI acquisition expected to drive significant accretion
Closed NSI acquisition for $3B in June 2026; expect 20c/80c accretion in 2026/2027 with synergies.
수요 및 자본지출
수요
수주 및 전환
Data center sales up 65% in Q2, 50% growth expected for full year. Management expressed strong confidence in the multi-year investment cycle, raised full-year guidance, and highlighted robust order books and visibility into 2027.
자본지출
투자 및 생산능력
Management is investing aggressively in capacity expansion to serve high-growth areas like data centers and utility T&D, with CapEx expected to be $175-190 million in 2026, up from $155 million last year. These investments are supporting new capacity that is being brought online each quarter.
톤 · Confident
Management expressed strong confidence in the multi-year investment cycle, raised full-year guidance, and highlighted robust order books and visibility into 2027.
공급망 알파
A1
Data center sales were up ~65% in the quarter, and they are now guiding to ~50% growth for the full year, implying a potential deceleration in the back half of the year.
“Data center sales were up approximately 65% in the quarter as capacity additions, new product introductions, and content gains drove out growth in a strong underlying market.”
Hubbell has seen a significant increase in quoting for transmission and substation projects, specifically at higher voltage levels like 765 kV and 550 kV, which are the key links for data center interconnections.
“The quote and pipeline activity is strong. ... We're quoting about twice the volume that we were a couple of years ago. And a lot of this is driven by those higher KV projects.”
Hubbell expects to see continued margin expansion in electrical solutions in the back half of 2026, and it will be returning to growth in grid automation and meters after a period of decline.
“We see electrical margin returning to expansion in the back half, both in 3Q and in 4Q.”
Bridgeport Fittings and related NSI assets are being integrated into Hubbell to fill product gaps in the high-growth data center and network infrastructure markets; management expects accretive growth, which is a positive for NSI's ongoing operations.
“Strategically acquiring a leading electrical fittings brand in Bridgeport Fittings fills a key product line gap in our HES segment in a high value niche.”
… we know very well and have followed for a long time. It operates in markets with common customers, similar manufacturing processes and a broad portfolio of critical electrical components with low cost of ownership and high cost of failure. The acquisition of NSI fits squarely within our overall strategy and enables us to double down on our attractive core while adding another high growth, high margin business to our portfolio. Strategically acquiring a leading electrical fittings brand in Bridgeport Fittings fills a key product line gap in our HES segment in a high value niche. While the Polaris brand complements our leading Burndy brand in electrical grounding and connectors, and NSI's exposure in network infrastructure provides opportunity to further penetrate datacom, broadband, and data center markets. We're also confident that the addition of NSI will further accelerate our successful HES segment unification journey, which has resulted in market outgrowth and significant margin expansion over the last several years. Our recent Salesforce realignment and vertical market investment will enable enhanced cross-selling and deeper penetration into high-growth verticals, …
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