Hubbell 2025-26: Q4 +12%, FY26 EPS $19-$19.85, DMC Power $0.20
FY25 revenue $5.84B (+4%); op income $1.22B (+12%); NI $887M (+14%); EPS $16.54. Q4 +12% sales / +140bp adj margin / +19% adj OP / +15% adj EPS. Utility +10% Q4 (Grid Infra +12% organic); Electrical +13% organic (data center +60%). DMC Power acquired Q4 (~$0.20 FY26 EPS). FY26 guide: 5-7% organic / 7-9% total revenue; adj EPS $19.15-$19.85.
Key takeaways
- Q4 was the standout quarter — +12% sales / +9% organic / +140bp margin / +15% EPS. Both segments accelerated in 4Q. Data center Q4 organic growth >60%. The grid + electrification + AI infra capex super-cycle is showing up in HUBB's print.
- Electrical Solutions segment hit 20% adj operating margin for the first time. FY24 → FY25 saw +14% adj OP growth on +7% organic. Segment unification post-LSI acquisition paying off; data center the standout vertical.
- DMC Power acquisition closes Q4 — $0.20 FY26 EPS accretion. High-growth + margin acquisition. Complementary to utility connector offerings. Closes at modest dilution Q4 FY25 (neutral); kicks in 2026.
- Grid Automation drag fading. Q3 -18% organic on project roll-offs; Q4 saw moderation. The metering + AMI weakness is identified and being mitigated. Grid Infrastructure 12% organic Q4 covers it.
- FY26 guide: revenue 7-9%, organic 5-7%, adj EPS $19.15-$19.85 (+16-19% vs $16.54 FY25 GAAP). ~90% FCF/adj NI conversion. Strong operating leverage on data center + grid build.
Business
Hubbell Incorporated is a manufacturer of electrical + utility infrastructure products serving data centers + utilities + industrial markets. Two reportable segments:
- Utility Solutions (~58% of revenue). Grid Infrastructure (~75% of segment) — transmission, substation, distribution. Plus Grid Automation (meters, AMI, sensors, telecom + enclosures). Q4 revenue $936M (+10%); +7% organic + 4% acquisition; +20% adj OP. Margin expanded 200bp.
- Electrical Solutions (~42%). Lighting + connectors + grounding + wiring devices + commercial electrical + Birdy (light industrial / data center cooling) + PCX (data center power distribution). Q4 revenue $557M; +13% organic. +18% adj OP, +60bp margin expansion. Data center >60% growth Q4.
Strategic moves FY25:
- DMC Power acquired Q4 (high-growth utility connector tech, $0.20 EPS FY26)
- Bill Sperry retired as CFO Q4; Joe Capozzoli succeeded
- Ventev acquired earlier (small)
- Segment unification at Electrical Solutions complete
- 80/20 simplification driving margin
- Tariff mitigation through pricing + productivity
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 4.95 | 5.37 | 5.63 | 5.84 |
| Revenue YoY | n/a | +9% | +5% | +4% |
| Op income ($M) | 709 | 1,039 | 1,092 | 1,217 |
| Op margin | 14.3% | 19.3% | 19.4% | 20.8% |
| Net income ($M) | 546 | 760 | 778 | 887 |
| Diluted EPS ($) | 9.43 | 14.04 | 14.37 | 16.54 |
| FCF ($M) | 454 | 715 | 811 | 875 |
| Capex ($M) | -129 | -166 | -180 | -155 |
| Total debt ($B) | 1.56 | 2.29 | 1.72 | 2.61 |
| Dividends ($M) | -230 | -246 | -267 | -287 |
| Buyback ($M) | -182 | -30 | -40 | -225 |
The earnings progression: revenue 4-yr CAGR ~6%; op margin 14.3% → 20.8% (+650bp); EPS $9.43 → $16.54 (+75% over 3 yrs). The structural margin uplift is the structural story.
Total debt $2.61B (+$0.89B YoY) reflects DMC Power acquisition financing.
Capital allocation
- Capex: $-155M FY25 (2.7% of revenue, -14% YoY).
- Dividends: $-287M FY25 (+7% YoY); $5.04 annual.
- Buybacks: $-225M FY25 (vs $-40M FY24, +5x).
- M&A: DMC Power Q4 (high-growth + margin); Ventev earlier.
- Debt: $2.61B (+$0.89B for DMC).
- FCF: $875M (+8%).
FY26 outlook (per Q4 2025 call, 2026-02-03)
| FY26 framework | Detail |
|---|---|
| Total revenue growth | 7-9% |
| Organic growth | 5-7% |
| Utility Solutions organic | 5-7% |
| Electrical Solutions organic | 4-6% (data center mid-teens) |
| Adj EPS | $19.15 to $19.85 (+16-19% vs FY25 GAAP) |
| FCF / adj NI conversion | ~90% |
Implied FY26 revenue $6.25-$6.35B. Adj EPS step-up driven by DMC accretion ($0.20) + organic growth + buyback contribution + margin expansion.
Key risks
- Tariff persistence + cost inflation. Q4 cost inflation accelerated; pricing + productivity offset. FY26 tariff regime stability matters.
- Grid Automation persistent weakness. Meters + AMI in transition; full recovery timing unclear.
- Data center concentration. Q4 ~60% growth in data center is exceptional; deceleration risk if hyperscaler capex rationalizes.
- DMC integration. First-year $0.20 EPS accretion depends on smooth integration + synergy capture.
- Macroeconomic + housing. Light industrial + nonresidential construction + renewables sensitivity.
- Segment unification execution. Electrical Solutions hit 20% margin first time; durability of multi-product unified GTM uncertain.
Bottom line
HUBB FY25 is the Q4 acceleration story: +12% sales / +140bp margin / +15% EPS, both segments at strength, data center >60% growth, grid investments compounding. FY26 guide of 7-9% revenue + $19.15-$19.85 adj EPS implies +16-19% earnings growth on operating leverage + DMC Power. Risks are tariffs + grid automation + data center concentration. Quality electrification / grid + data center compounder with transformation operating leverage thesis intact.
Citations
- Hubbell Incorporated FY25 Form 10-K (filed February 2026, SEC EDGAR).
- HUBB Q4 2025 earnings call, 2026-02-03 — Q4 +12% sales / +9% organic / +140bp adj margin / +19% adj OP; Utility +10% / Grid Infra +12% organic; Electrical +13% organic / data center +60%; FY26 guide ($19.15-$19.85 adj EPS, 7-9% rev, 5-7% organic).
- HUBB Q3 2025 earnings call, 2025-10-28 — DMC Power announced ($0.20 EPS FY26 accretion); Bill Sperry retirement / Capozzoli new CFO; FY guide raised to $18.10-$18.30.
- HUBB Q2 2025 earnings call, 2025-07-29 — Electrical 22.5% margin; FIFO accounting unification; FY guide $17.65-$18.15.
- HUBB Q1 2025 earnings call, 2025-05-01 — Data centers double-digit growth; Birdy + PCX; tariff playbook; $16.85-$17.35 EPS guide.
- Internal financial_statements view (consolidated annual + cash flow + capital structure).