Hubbell Q4 adjusted EPS beats estimates on margin expansion

Reuters02-03 20:38
Hubbell Q4 adjusted EPS beats estimates on margin expansion 

Overview

  • Utility and electrical solutions firm's Q4 revenue rose 12%, meeting analyst expectations

  • Adjusted EPS for Q4 beat analyst expectations, rising 15% yr/yr

  • Company expects continued growth in 2026 with strong sales and earnings outlook

Outlook

  • Hubbell anticipates 2026 total sales growth of 7-9%

  • Company expects 2026 adjusted EPS between $19.15 and $19.85

  • Company sees 2026 free cash flow conversion of 90% or greater

Result Drivers

  • ELECTRICAL SOLUTIONS - 9% organic sales growth driven by demand in datacenter projects, load growth, and infrastructure investments

  • MARGIN EXPANSION - Margin expansion attributed to strong organic growth and operational execution

  • UTILITY SOLUTIONS - Growth supported by volume increases in Grid Infrastructure and favorable pricing

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Meet

$1.49 bln

$1.49 bln (12 Analysts)

Q4 Adjusted EPS

Beat

$4.73

$4.70 (14 Analysts)

Q4 EPS

$4.19

Q4 Net Income

$225.20 mln

Q4 Adjusted Operating Margin

23.40%

Q4 Operating Margin

20.90%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Hubbell Inc is $515.00, about 3.9% above its February 2 closing price of $495.59

  • The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nGNX5Y9PZg

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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