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what it is
Hubbell sells the boring electrical parts that keep utilities, factories, and buildings from going dark.
how it gets paid
Last year Hubbell made $5.8B in revenue.
why it's growing
Revenue grew +3.8% FY. Q4 sales rose about 12% vs. prior year—that is a quarter pace, not the full-year +3.8%. The 35.2% gross margin (see earnings) is the clean read alongside that split.
what just happened
Quarterly revenue hit $1.5B and rose 12%, but EPS of $4.19 still came in below the $4.65 consensus.
At a glance
A balance sheet — strong enough to weather a downturn
90/100 earnings predictability — you can trust these numbers
26.8x trailing p/e — priced about right
1.3% dividend yield — cash in your pocket every quarter
22.5% return on capital — every dollar works hard here
xvary composite: 81/100 — above average
What they do
Hubbell sells the boring electrical parts that keep utilities, factories, and buildings from going dark.
You do not rip out grid hardware on a whim. Hubbell sells parts utilities and contractors need to trust for years, and that lets it post a 20.7% operating margin and 22.5% return on capital. Return on capital → profit earned on each dollar invested → so what: at 22.5%, this business turns ordinary hardware into elite economics.
How they make money
$5.8B
annual revenue · their business grew +3.8% last year
total revenue
$5.8B
+3.8%
The products that matter
connects and protects circuits
wiring devices
part of a $5.8B revenue base
These are the boring components that have to work every time. The page does not split revenue by product, but the full company still produced $5.8B last year because customers keep buying proven gear, not experimental replacements.
mission-critical
commercial and utility lighting
lighting fixtures
Q4 demand helped push sales to $1.5B
Management pointed to stronger project activity and data center demand when quarterly sales rose 12%. Lighting and adjacent electrical products ride that same capex wave.
project-driven
electrical gear for dangerous sites
devices for hazardous locations
margin support inside ~17.3% net margin (health panel)
This is the kind of category where certification matters more than branding. The data here is thin on product mix, but specialized gear is part of why Hubbell earns more than a commodity manufacturer.
specialized
Key numbers
$8.0B
2029 sales
Revenue estimate → annual sales expected by 2029 → so what: that is about 38% above the current $5.8B revenue base, which sets a clear bar for execution.
22.5%
return on capital
Return on capital → profit earned on invested money → so what: Hubbell gets $0.225 back for every $1 it puts to work, versus companies that struggle to clear the teens.
20.7%
operating margin
Operating margin → profit after running the business, before interest and taxes → so what: on every $100 of sales, about $20.70 stays behind.
$2.2B
long-term debt
Long-term debt → money owed over years → so what: debt is only 8% of capital, which is tame for a $26B company with an A balance-sheet grade.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- long-term debt $2.2B (8% of capital)
- net profit margin 17.3% — keeps 17 cents of every dollar in revenue
- return on equity 30% — $0.30 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in HUBB 3 years ago → it's now worth $20,560.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
Quarterly revenue hit $1.5B and rose 12%, but EPS of $4.19 still came in below the $4.65 consensus.
Gross margin was 35.2%, and the company said both operating segments posted double-digit sales growth in Q4 2025. The awkward part is simple: operations looked strong, but the Street wanted more.
$1.5B
revenue (Q)
$4.19
eps (Q)
35.2%
gross margin (Q)
the number that mattered
The 35.2% gross margin mattered most because margin held up while revenue grew 12%, which says pricing and mix are still doing real work.
-
hubbell inc. closed 2025 on solid footing.
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during the fourth quarter, sales and earnings beat our estimates, and increased at double-digit clips to $1.5 billion and $4.73 a share, respectively.
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full-year comparisons showed single-digit top- and bottom-line progression.
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both operating segments, utility solutions and electrical solutions, recorded double-digit sales increases.hubbell’s favorable product mix combined with an uptick in project activities helped the strong sales showing.
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also, share earnings benefited from the healthy sales stream and combined efforts to pare expenses.
source: company earnings report, 2026
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What could go wrong
The biggest risk is not that someone invents a better electrical box. It is grid and infrastructure spending slowing down after the stock has already been priced for durability.
med
federal and utility spending cadence
The page already flags budget exposure as the top threat. If public-sector or utility spending slips, Hubbell feels it because this business is tied to real projects, not recurring software contracts.
The published risk range points to roughly $870M–$1.4B of revenue exposure.
med
premium multiple meets modest annual growth
Hubbell trades at 26.8x trailing earnings after growing revenue 3.8% for the year. That can work if growth stays firm and margins hold. It gets awkward fast if the business falls back to low-single-digit growth.
The market is paying growth-stock prices for a company that still has a project-cycle profile.
med
Q4 momentum may prove too hot to extrapolate
Q4 revenue rose 12% to $1.5B, far above the 3.8% full-year pace. That is encouraging. It is also a reminder that one strong quarter can flatter expectations for the next four.
If project activity cools or data center demand normalizes, the stock loses one of the clearest arguments for paying up.
This is a good business priced like a great one. If growth slips back toward the 3.8% annual pace and margins stop improving, the multiple has less room to hide.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
whether growth stays above the 3.8% annual pace
Q4 printed 12% revenue growth on a $1.5B quarter. If that drops back near the full-year pace, the market will notice.
margin trend
gross margin holding around 35%
The latest quarter came in at 35.2%. That margin is doing real work in defending a 26.8x earnings multiple.
risk
grid-spending slowdown
The disclosed risk range suggests $870M–$1.4B of revenue could be exposed if budget and infrastructure demand soften.
next catalyst
the next earnings print
You want to see whether utility and data center demand remain broad enough to keep both operating segments growing together.
Analyst rankings
short-term outlook
top 20%
outlook rank 2 — in human-speak, analysts expect HUBB to perform better than most stocks over the next year.
risk profile
above average
risk rank 2 — safer than roughly 80% of stocks, which fits the A balance sheet and stable end markets.
chart momentum
average
momentum rank 3 — the stock is not flashing a dramatic technical signal right now.
earnings predictability
90 / 100
management's numbers are usually dependable. That predictability is part of why investors tolerate the premium multiple.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 343 buyers vs. 271 sellers in 4q2025. total institutional holdings: 51.6M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$395
$761
$488
current price
$578
target midpoint · +19% from current · 3-5yr high: $800 (+65% · 14% ann'l return)
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