01—Abstract
Summary
Summary of the 10-Q filed October 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Hubbell Incorporated's third-quarter 2026 results showed net sales of $1,872.5 milliona, up from $1,502.4 million in the third quarter of 2025, with the filing stating a 24.6% increase.
Organic sales rose 11.3%, and acquisitions contributed 13.2%, mainly from NSI Industries, which was acquired on June 9, 2026 for $3.0 billionb net of cash acquired. Operating income was $408.7 million (21.8% of net sales, versus 22.0% a year earlier), and net income attributable to Hubbell was $262.5 million, with diluted EPS of $4.94 compared with $4.77. The company reported adjusted operating margin of 25.5% for the quarter, which excludes amortization of acquisition-related intangibles and transaction costs, and the filing attributes the margin gain mainly to productivity, price realization, volume, acquisitions and a net tariff benefit, partly offset by material and other cost inflation.
The acquisition materially changed the balance sheet and cost structure. Long-term debt rose to $4,506.4 millionc from $2,036.3 million at year-end 2025, and total debt was $5,120.2 million, giving a total debt to total capital ratio of 55% versus 38% at December 31, 2025. Interest expense, net was $58.0 million in the quarter versus $13.6 million a year earlier, which reduced the quarter's pre-tax income growth.
Goodwill increased to $4,368.2 million and other intangible assets to $3,143.4 milliond. Cash and cash equivalents fell to $334.5 million. Nine-month operating cash flow was $659.0 million, and the company paid $225.4 million in dividends and repurchased $203.5 million of shares in that period.
The filing also notes that the company received about $31 million of IEEPA tariff refunds in the quarter, recognized as a reduction to cost of goods sold, under a gain contingency model. The company repaid $300.0 million of its 2025 Term Loan in October 2026 using commercial paper, and $298.2 million remained under its share repurchase authorization at September 30, 2026. The company reported no share purchases under its publicly announced program during the third quarter.
02—Key points
Key Highlights
- Third-quarter net sales of $1,872.5 million, up 24.6% year over year; organic sales up 11.3% and acquisitions contributed 13.2%.
- Electrical Solutions net sales rose 51.2% to $844.7 million, with organic growth of 22.0%, led by datacenter, light industrial and utility markets.
- GAAP operating margin was 21.8% versus 22.0%; adjusted operating margin expanded to 25.5% from 23.9%.
- Diluted EPS was $4.94 versus $4.77; net income attributable to Hubbell rose 2.7% to $262.5 million.
- Interest expense, net increased to $58.0 million from $13.6 million, reflecting debt raised to fund the NSI Industries acquisition.
- Total debt to total capital was 55% at September 30, 2026, up from 38% at December 31, 2025; net debt was $4,664.7 million.
- Received approximately $31 million of IEEPA tariff refunds, recognized as a reduction to cost of goods sold in the third quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Hubbell kept $0.14.
- Revenue$1.87B100.0%
- Cost of revenue−$1.18B63.2%
- Gross profit$688.2M36.8%
- Operating costs−$279.5M14.9%
- Operating income$408.7M21.8%
- Interest, other & tax−$146.2M7.8%
- Net income$262.5M14.0%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 28, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.87B$1.50B | +24.6% |
| Cost of Revenue | $1.18B$958.10M | +23.6% |
| Gross Profit | $688.20M$544.30M | +26.4% |
| SG&A Expenses | $279.50M$213.70M | +30.8% |
| Operating Income | $408.70M$330.60M | +23.6% |
| Net Income | $262.50M$255.50M | +2.7% |
| EPS (Basic) | $4.96$4.80 | +3.3% |
| EPS (Diluted) | $4.94$4.77 | +3.6% |
| Shares Outstanding (Basic) | 52.90M53.10M | −0.4% |
| Shares Outstanding (Diluted) | 53.10M53.40M | −0.6% |
05—Questions
Frequently Asked Questions
What drove the growth in third-quarter 2026 net sales?
Net sales rose $370.1 million to $1,872.5 million. The filing attributes $169.3 million of the increase to organic growth (11.3%), driven by higher unit volume and favorable price realization, and $198.8 million (13.2%) to acquisitions, mainly NSI Industries, which was acquired in June 2026, plus DMC Power and Nicor from the second half of 2025.
How did the NSI Industries acquisition affect Hubbell's financial position?
Hubbell acquired NSI Industries for $3.0 billion, net of cash acquired, and recognized $1,856.0 million of intangible assets and $1,303.9 million of goodwill. It was funded with a $900 million term loan, $1.9 billion of senior notes and commercial paper. Long-term debt rose to $4,506.4 million from $2,036.3 million at year-end 2025, and total debt was $5,120.2 million at September 30, 2026.
Why did operating margin decline on a GAAP basis while adjusted margin improved?
GAAP operating margin fell 20 basis points to 21.8%, including amortization of acquisition-related intangibles and transaction, integration and separation costs. Amortization of acquisition-related intangible assets was $62.2 million in the quarter, versus $24.7 million a year earlier. Excluding these items, adjusted operating margin rose 160 basis points to 25.5%, driven by productivity, pricing, volume, acquisitions and a net tariff benefit, partly offset by material and other cost inflation.
What were the main sources of the increase in interest expense and what debt actions occurred after quarter-end?
Net interest expense rose to $58.0 million from $13.6 million, due to higher average debt balances from the 2026 Term Loan, the June 2026 senior notes offering and commercial paper. The filing states that in October 2026 the company repaid $300.0 million of its 2025 Term Loan using additional commercial paper borrowings.
How much cash did Hubbell return to shareholders and what remains under its repurchase program?
In the first nine months of 2026, Hubbell paid $225.4 million in dividends and used $203.5 million for share acquisitions. The company made no purchases under its publicly announced 2025 Program in the third quarter, and $298.2 million of authorization remained at September 30, 2026.
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