01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Hubbell Incorporated's second-quarter 2026 results show net sales of $1,711.8 milliona, up from $1,484.3 million a year earlier, with the filing stating organic net sales rose 10.2% and acquisitions contributed 4.8%.
Operating income was $348.6 millionb versus $336.3 million, but operating margin fell to 20.4% from 22.7%, which the company attributes to amortization of acquisition intangibles and transaction, integration and separation costs. Net income attributable to Hubbell was $240.4 million, down 1.6%, and diluted EPS was $4.52 compared with $4.56. Adjusted operating margin, a non-GAAP measure, was 23.9%, down 50 basis points.
The defining event of the period is the June 9, 2026 acquisition of NSI Industries for $3.0 billionc, net of cash acquired, funded with a $900 million term loan, $1.9 billion of senior notes and commercial paper. Total debt rose to $5,372.6 million from $2,325.4 million at year-end 2025, and the filing reports a total debt to total capital ratio of 58% (non-GAAP net debt to total capital of 52%). Goodwill and other intangibles increased sharply as a result, and the purchase price allocation is preliminary and subject to a one-year measurement period.
Other items include the company's gain-contingency accounting for IEEPA tariff refunds, with approximately $30 milliond received after June 30, 2026 but not yet recognized, and continued restructuring charges of $6.8 million for the six months. Segment results show Electrical Solutions organic growth of 18.3% in the quarter, while Utility Solutions organic growth was 5.5%. The company repurchased $203.5 million of shares in the first half and paid $150.4 million in dividends.
02—Key points
Key Highlights
- Net sales rose to $1,711.8 million in Q2 2026 from $1,484.3 million, with organic net sales up 10.2% and acquisitions adding 4.8%.
- Operating margin declined to 20.4% from 22.7%; adjusted operating margin was 23.9%, down 50 basis points, reflecting material and tariff cost inflation.
- Diluted EPS was $4.52 versus $4.56 in the prior year; adjusted net income attributable to Hubbell rose 11.1% to $293.7 million.
- Acquired NSI Industries on June 9, 2026 for $3.0 billion net of cash acquired, adding $1,856.0 million of intangibles and $1,288.7 million of goodwill.
- Total debt increased to $5,372.6 million from $2,325.4 million at year-end 2025, with the total debt to total capital ratio at 58%, versus 38% at December 31, 2025.
- Electrical Solutions organic net sales grew 18.3% in the quarter, led by data center, light industrial and non-residential markets; Utility Solutions organic growth was 5.5%.
- Approximately $30 million of IEEPA tariff refunds received after June 30, 2026 were not recognized in the period under the gain contingency model.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Hubbell kept $0.14.
- Revenue$1.71B100.0%
- Cost of revenue−$1.10B64.2%
- Gross profit$613.0M35.8%
- Operating costs−$264.4M15.4%
- Operating income$348.6M20.4%
- Interest, other & tax−$108.2M6.3%
- Net income$240.4M14.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.71B$1.48B | +15.3% |
| Cost of Revenue | $1.10B$932.20M | +17.9% |
| Gross Profit | $613.00M$552.10M | +11.0% |
| SG&A Expenses | $264.40M$215.80M | +22.5% |
| Operating Income | $348.60M$336.30M | +3.7% |
| Net Income | $240.40M$244.20M | −1.6% |
| EPS (Basic) | $4.54$4.58 | −0.9% |
| EPS (Diluted) | $4.52$4.56 | −0.9% |
| Shares Outstanding (Basic) | 52.90M53.20M | −0.6% |
| Shares Outstanding (Diluted) | 53.10M53.50M | −0.7% |
05—Questions
Frequently Asked Questions
What drove the decline in operating margin this quarter?
The filing attributes the 230 basis point contraction in operating margin to 20.4% to the amortization of acquisition-related intangibles and transaction, integration and separation costs. On an adjusted basis, margin contracted 50 basis points to 23.9%, with margin contraction from material and other cost inflation, including tariff expense, more than offsetting favorable price realization, productivity and volume.
How was the NSI Industries acquisition financed?
The company used a new unsecured $900 million term loan (2026 Term Loan), $1.9 billion aggregate principal of senior notes issued in June 2026 with net proceeds of approximately $1,868.9 million, and commercial paper issuances. Long-term debt rose to $4,803.9 million from $2,036.3 million at year-end 2025.
What is the status of IEEPA tariff refunds?
Following the February 20, 2026 Supreme Court ruling, the company submitted refund claims and uses a gain contingency model, so recoveries are recognized only when realized or realizable. Approximately $30 million was received after June 30, 2026 and was not recognized in the June 30, 2026 financial statements.
What does the pro-forma data show for NSI Industries?
On a pro-forma basis assuming the acquisition occurred January 1, 2025, net sales for the second quarter were $1,821.8 million in 2026 versus $1,612.8 million in 2025, and net income attributable to Hubbell was $248.4 million versus $225.3 million. The company notes these figures are not indicative of actual or future results.
Is the company still returning capital to shareholders?
Yes. In the first six months of 2026 the company paid $150.4 million in dividends and used $203.5 million for share repurchases. It repurchased $29.3 million of common stock in the second quarter, leaving $298.2 million remaining under its 2025 Program, which expires in February 2028.
06—Continue