Hubbell (HUBB) Barclays 43rd Annual Industrial Select Conference summary

Organic growth and market outlook

• Projected 5%-7% organic growth for 2026, supported by strong order momentum into the year.

• Electricity demand is rising, driven by data centers and grid interconnection needs.

• Transmission and substation segments are experiencing double-digit growth, while distribution is expected to grow at mid-single digits.

• Distribution growth is seen as a multi-decade opportunity due to the aged U.S. grid.

• Meter business has normalized post-disruption, with MRO and smaller projects now the focus.

Data center and industrial trends

• Data center-related products are expected to see mid-teens growth, with potential upside if short-cycle demand remains strong.

• Long-cycle modular power distribution business is fully booked for 2026, with focus shifting to 2027-2028 orders.

• Light industrial business is growing at mid-single digits, while non-residential and heavy industrial remain soft.

• Technology shifts to higher voltages in data centers are seen as neutral, with product adaptation ongoing.

Margin expansion and operational strategy

• Operating margins have expanded over 500 basis points in recent years, with further improvement expected.

• Margin expansion is driven by portfolio management, restructuring, and segment unification.

• Price and productivity programs are in place to offset mid-single digit inflation, aiming for neutral or better cost impact.

• Seasonal revenue and margin patterns are expected to return to normal in 2026, with Q1 as the lowest quarter.