Hubbell’s third quarter was met with a positive market reaction, driven by improved profitability and strong performance in key business segments, despite falling short of Wall Street’s revenue expectations. Management attributed the quarter’s results to robust organic growth in Electrical Solutions and Grid Infrastructure, while noting that Grid Automation sales faced a significant decline due to project roll-offs. CEO Gerben Bakker emphasized continued strength in utility transmission and distribution markets, and highlighted successful cost management and productivity initiatives that helped offset rising input costs.
Is now the time to buy HUBB? Find out in our full research report (it’s free for active Edge members).
Hubbell (HUBB) Q3 CY2025 Highlights:
- Revenue: $1.50 billion vs analyst estimates of $1.53 billion (4.1% year-on-year growth, 1.6% miss)
- Adjusted EPS: $5.17 vs analyst estimates of $4.98 (3.9% beat)
- Adjusted EBITDA: $380 million vs analyst estimates of $388.4 million (25.3% margin, 2.2% miss)
- Management raised its full-year Adjusted EPS guidance to $18.20 at the midpoint, a 1.7% increase
- Operating Margin: 22%, in line with the same quarter last year
- Organic Revenue rose 3.2% year on year vs analyst estimates of 5.3% growth (213 basis point miss)
- Market Capitalization: $24.85 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hubbell’s Q3 Earnings Call
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Jeffrey Sprague (Vertical Research): Asked about the sustainability of Utility segment growth into 2026. CFO William Sperry reiterated a prudent approach, noting easy comparisons in the fourth quarter and potential for strong growth, but cautioned against overestimating exit rates.
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Thomas Moll (Stephens): Inquired whether reduced revenue guidance was isolated to the Utility segment and if the recovery shape matched expectations. Sperry confirmed the timing shifted but the recovery shape remained as anticipated.
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C. Stephen Tusa (JPMorgan): Questioned visibility into bottoming of Grid Automation and meters businesses. CEO Bakker explained the shift to smaller, more predictable public power projects and said distribution remains strong.
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Christopher Snyder (Morgan Stanley): Sought clarity on causes of softer back half Utility growth versus prior expectations. Sperry attributed it to a steadier improvement in T&D rather than a sharp third-quarter rebound, with a snapback expected in the fourth quarter.
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Joseph O’Dea (Wells Fargo): Asked about the content opportunity from behind-the-meter versus in-front-of-the-meter data center investments. Bakker detailed strong positioning in both electrical connectors and utility-side interconnections, benefiting from the surge in data center construction.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the pace of demand recovery in Grid Automation and meters, (2) order momentum in Grid Infrastructure and data center verticals, and (3) margin performance following the integration of DMC Power. We will also track any shifts in macroeconomic conditions that could affect industrial and construction markets, as well as the impact of ongoing operational productivity initiatives.
Hubbell currently trades at $467.61, up from $433.83 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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