01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Hubbell Incorporated's first quarter 2026 results showed net sales of $1,516.7 milliona, up from $1,365.2 million in the first quarter of 2025, with the filing stating an 11.1% increase driven by an 8.2% increase in organic sales from favorable price realization and higher volume.
Acquisitions contributed a 2.3% increase, and foreign exchange a 0.6% increase. Operating income rose to $263.8 millionb from $230.4 million, with operating margin of 17.4% versus 16.9%. Adjusted operating margin, which excludes acquisition-related intangible amortization and transaction, integration and separation costs, was 19.8%, up 110 basis points.
Diluted earnings per share were $3.41c compared with $3.03 a year earlier, and net income attributable to Hubbell Incorporated was $181.8 million. Total other expense rose to $27.4 million from $19.1 million, primarily due to higher net interest expense tied to the $600 million 2025 Term Loan used to fund the DMC Power acquisition. Total debt increased to $2,573.0 million from $2,325.4 million, largely due to higher short-term commercial paper borrowings of $534.0 million, and net debt rose to $1,956.3 million from $1,729.1 million.
Net cash from operating activities was $86.6 milliond, compared with $37.4 million in the prior-year quarter. During the quarter the company repurchased $172.5 million of shares and paid $75.4 million in dividends, and $327.5 million remained under its share repurchase authorization at March 31, 2026. The filing notes that the U.S. Supreme Court ruled on February 20, 2026 that IEEPA tariffs were invalid, and that Hubbell may be entitled to refunds, though timing and amount are uncertain; no recovery has been recorded.
Management also reports ongoing material and tariff-related cost inflation, partially offset by pricing and productivity. The revolving credit facility of $1.0 billion was undrawn and fully available at March 31, 2026.
02—Key points
Key Highlights
- Net sales of $1,516.7 million, up 11.1% from $1,365.2 million, with organic growth of 8.2%, acquisitions contributing 2.3%, and foreign exchange 0.6%.
- Operating income of $263.8 million (17.4% of net sales) versus $230.4 million (16.9%); adjusted operating margin of 19.8%, up 110 basis points.
- Diluted EPS of $3.41 versus $3.03, and net income attributable to Hubbell Incorporated of $181.8 million versus $163.2 million.
- Utility Solutions net sales of $948.9 million (up 10.7%) with operating income of $175.1 million; Electrical Solutions net sales of $567.8 million (up 11.8%) with operating income of $88.7 million.
- Total debt rose to $2,573.0 million from $2,325.4 million, driven by $534.0 million of commercial paper; net debt to total capital was 31% versus 28% at year-end 2025.
- Operating cash flow of $86.6 million versus $37.4 million, with capital expenditures of $40.6 million and $167.5 million of cash used for share repurchases.
- IEEPA tariffs were ruled invalid by the Supreme Court on February 20, 2026; the company may be entitled to refunds but has recorded no recovery.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Hubbell kept $0.12.
- Revenue$1.52B100.0%
- Cost of revenue−$1.01B66.7%
- Gross profit$505.3M33.3%
- Operating costs−$241.5M15.9%
- Operating income$263.8M17.4%
- Interest, other & tax−$82.0M5.4%
- Net income$181.8M12.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.52B$1.37B | +11.1% |
| Cost of Revenue | $1.01B$922.60M | +9.6% |
| Gross Profit | $505.30M$442.60M | +14.2% |
| SG&A Expenses | $241.50M$212.20M | +13.8% |
| Operating Income | $263.80M$230.40M | +14.5% |
| Net Income | $181.80M$163.20M | +11.4% |
| EPS (Basic) | $3.42$3.04 | +12.5% |
| EPS (Diluted) | $3.41$3.03 | +12.5% |
| Shares Outstanding (Basic) | 53.10M53.50M | −0.7% |
| Shares Outstanding (Diluted) | 53.30M53.80M | −0.9% |
05—Questions
Frequently Asked Questions
What drove the increase in first quarter 2026 sales?
Net sales rose 11.1% to $1,516.7 million. The filing attributes 8.2% to organic growth, driven by favorable price realization and higher volume, with acquisitions adding 2.3% and foreign exchange adding 0.6%. Electrical Solutions organic sales grew 10.6%, led by datacenter demand, and Utility Solutions organic sales grew 6.8%, driven by transmission and distribution markets.
How did profitability change?
Operating income increased to $263.8 million from $230.4 million, and operating margin expanded to 17.4% from 16.9%. Adjusted operating margin was 19.8%, up 110 basis points. Gross margin improved to 33.3% from 32.4%, though the filing cites material and tariff-related cost inflation as a partial offset.
Why did interest and other expense increase?
Total other expense rose to $27.4 million from $19.1 million, primarily due to higher net interest expense of $8.2 million from higher average debt. The increase reflects the $600 million 2025 Term Loan borrowed to finance most of the DMC Power acquisition.
How is the company's balance sheet and liquidity position?
Cash and cash equivalents were $501.6 million at March 31, 2026. Short-term debt increased to $536.0 million, mostly commercial paper, and long-term debt was $2,037.0 million. The $1.0 billion revolving credit facility was undrawn and fully available, and the company was in compliance with its 65% debt-to-capitalization covenant.
What is the status of potential tariff refunds?
The U.S. Supreme Court ruled on February 20, 2026 that IEEPA tariffs were invalid. The filing states that Hubbell may be entitled to refunds, but the process and timing remain uncertain, and no recovery has been recorded as of March 31, 2026.
06—Continue