Hubbell announced 4Q 2025 earnings on February 3. Net sales increased 4% to $5.84 billion, and 9% organically for the entire company.

Hubbell Electrical Solutions segment’s (HES) organic growth was 13% and Utility Solutions (HUS) was 8%. Adjusted operating profit was $1.33 billion, up 7% y-o-y and adjusted operating margin was 22.7%, an 80-bps increase, reflecting robust pricing and productivity gains amidst cost inflation. The strong performance of the Electrical Solutions (HES) and Utility Solutions (HUS) with grid infrastructure drove the strong performance.

Strong demand across Electrical Solutions and Utility T&D/Grid Infrastructure was driven by data center build‑outs, load growth and grid modernization and resiliency investments. The company also experienced continued operational execution and cost discipline that contributed to margin expansion.

During the quarter, Hubbell closed the DMC Power acquisition, adding a high‑growth, high‑margin utility‑focused business to the portfolio.

The HUS segment grew net sales 10% and organic sales 7% to $936 million, with operating profit growing 20%. Grid Infrastructure growing 12% organically to $717 million, while Grid Automation declined 8% due to weaker meter and AMI projects, but stronger ground protection and controls was a positive. Broad-based strength across distribution, transmission, and substation markets, as load growth drove robust grid interconnection activity. Aging infrastructure drove solid hardening and resiliency investment by customers.

Hubbell Electrical Solutions

The HES segment grew 14%, with organic sales up 13% to $557 million on the back of volume growth. Growth was driven by datacenter sales which increased 60%, behind the meter electrification, and strength in light industrial markets. Favorable price realization and productivity contributed to growth, but was offset partially by cost inflation, higher raw material, and tariff costs. It was noted that non-residential and heavy industrial end markets were softer. HES Profitability was up a strong 18%.

Grid Interconnection Division Launched

Hubbell launched a new division called “Grid Interconnection” to focus on the data center opportunities. This includes both in front of and behind the meter. These tailwinds from data centers and grid upgrades helped mitigate weakness in other areas, such as the heavy industrial end-market, during last quarter and will do so in 20206.

Hubbell Launches Aclara360

Hubbell launched Aclara360 platform, a grid‑analytics AI-enabled software platform designed to help electric utilities turn meter and grid‑edge device data into real‑time operational intelligence. It officially launched in late January 2026, following a large multi‑utility pilot across North America.

Aclara360 is a modular, scalable grid‑analytics platform built by Hubbell’s Aclara division. Its purpose is to give utilities network visibility, remote diagnostics, faster fault localization, voltage and phase imbalance detection, improved topology accuracy, and asset performance insights

It works without requiring major new capital investment, because it uses existing meters and grid‑edge devices already deployed by utilities.

The platform is explicitly built to avoid major capital projects, using data from existing AMI meters, grid‑edge devices, and current utility IT/OT systems, which lowers adoption barriers significantly. Aclara360 is modular, meaning utilities can adopt only the analytics modules they need without a full system overhaul.

Aclara360 focuses heavily on real‑time and mission critical operational diagnostics, such as voltage imbalance detection, phase identification, fault localization, and topology correction. Aclera360 competes against Eaton’s Brightlayer, GE Vernova’s GridOS, Schneider’s EcoStruxure Grid and   Oracle’s Utilities Analytics.

Analyst Concerns

Analysts questioned whether double-digit growth can be sustained and if Utility transmission and distribution and grid‑modernization demand can remain this strong through 2026. Underlying the concern with data center-driven HES growth is the question if it is cyclical or structural.

Hubbell expanded adjusted operating margin to 23.4%, up 140 bps YoY. Investors asked whether margins could remain elevated given rising labor and material costs, the integration of newly acquired businesses (e.g., DMC Power) and the potential for price normalization.

Management guided to 7–9% total sales growth and investors questioned how much of the growth is dependent on federal infrastructure spending and whether utility spending could slow if macro conditions soften.

Guidance

The 2026 growth outlook was highlighted by segment and end market with most end-markets having a solid outlook:

Hubbell 2026 Organic Projections

Management guidance is for7% to 9% total sales growth in 2026, driven by data center electrification, utility transmission & distribution (T&D) strength, grid modernization. Management emphasized continued operating margin expansion in 2026 supported by pricing discipline, operational efficiencies and mix benefits from high‑growth utility and data‑center markets.