Hubbell (HUBB) JPMorgan Industrials Conference 2026 summary

Near-term business fundamentals

• Strong fourth quarter momentum in utility T&D, data center, and light industrial carried into Q1, with order rates and revenue growth in line with prior outlook.

• Price increases announced for Q1 to offset incremental inflation, with implementation in Q2; targeting dollar-neutral or better impact, though with some margin drag.

• Light industrial remains solid, supported by mega projects and reshoring, while heavy industrial continues to be soft.

• Seasonality expected to be normal, with some additional volume in the back half as new capacity comes online.

• Q1 revenue expected to be flat sequentially but up high single digits year-over-year, with continued growth anticipated.

Utility segment trends and outlook

• Utility T&D orders remain strong, with book-to-bill above one; grid automation and Aclara expected to return to modest growth in the back half of the year.

• MRO orders rebounded in Q1 after inventory normalization, with mid-single-digit growth expected for the year.

• New product innovation includes LineDefender and Aclara360, both seeing strong market interest and bookings.

• Telecom orders up double digits year-over-year, with BEAD funding expected to support further growth.

• Large 10-million-endpoint meter deal in the Philippines will support Aclara’s backlog over the next decade.

Capacity, productivity, and margin outlook

• Capacity additions focus on expanding existing facilities and equipment, with some incremental floor space in high-growth areas.

• Labor availability is a key constraint in high-growth segments.

• CapEx expected to be up 10%-20% year-over-year, around 3% of sales.

• Operating margin expansion of 50 basis points targeted, with more growth in utility; productivity initiatives to benefit margins in the second half.

• Accounting changes have improved price-cost absorption and margin predictability.