AI Takeaway
Hubbell Incorporated delivered strong Q1 FY2026 results with revenue of $1.52B (+11.1% YoY) and diluted EPS of $3.41 (+12.5% YoY), driven by solid operating leverage and improved cash generation, though long-term debt nearly doubled following acquisition activity.
Revenue
$1.52B
++11.10% YoY
EPS (Basic)
$3.42
++12.50% YoY
Gross Margin
33.3%
++0.90% YoY
Operating Income
$263.8M
++14.50% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 11.1% YoY to $1,517M in Q1 FY2026 from $1,365M in the prior-year period, reflecting strong demand in Hubbell's end markets and contributions from recent acquisitions that expanded the asset base by 21.6% YoY.
Source: Source: 10-Q Income Statement & Balance Sheet
Gross margin improved 89 basis points to 33.3% while operating margin expanded 52 basis points to 17.4%, demonstrating effective cost management even as cost of revenue rose 9.6% YoY and SG&A expenses increased 13.8% YoY to $241.5M.
Source: Source: 10-Q Income Statement, Key Ratios
Operating cash flow surged 131.6% YoY to $86.6M from $37.4M in Q1 FY2025, reflecting improved working capital management and higher earnings, providing greater financial flexibility for capital allocation.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockLong-term debt nearly doubled YoY to $2.04B, pushing the debt-to-equity ratio to 1.23x. This elevated leverage increases interest expense burden and reduces financial flexibility, particularly if end-market demand softens or interest rates remain elevated.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $3.93 versus the $3.96 analyst consensus — a -0.8% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.52B | $1.37B | +11.10% |
Cost of Revenue | $1.01B | $922.6M | +9.62% |
Gross Profit | $505.3M | $442.6M | +14.17% |
Operating Income | $263.8M | $230.4M | +14.50% |
Net Income | $181.8M | $163.2M | +11.40% |
EPS (Basic) | $3.42 | $3.04 | +12.50% |
EPS (Diluted) | $3.41 | $3.03 | +12.54% |
SG&A Expense | $241.5M | $212.2M | +13.81% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.42B | $6.92B | +21.61% |
Current Assets | $2.8B | $2.26B | +23.90% |
Total Liabilities | $4.64B | $3.65B | +27.09% |
Current Liabilities | $1.77B | $1.94B | -8.42% |
Stockholders' Equity | $3.77B | $3.26B | +15.55% |
Cash & Equivalents | $501.6M | $346.9M | +44.59% |
Long-Term Debt | $2.04B | $1.04B | +95.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $86.6M | $37.4M | +131.55% |
Investing Cash Flow | $-41.3M | $-99.3M | +58.41% |
Financing Cash Flow | $-23.4M | $75M | -131.20% |
Share Buybacks | $167.5M | $125M | +34.00% |
D&A | $60.2M | $46.9M | +28.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 33.3% | 32.4% | +0.90% |
Operating Margin | 17.4% | 16.9% | +0.52% |
Net Margin | 12.0% | — | — |
ROE | 4.8% | — | — |
ROA | 2.2% | — | — |
Current Ratio | $1.579 | — | — |
Debt to Equity | $1.231 | — | — |
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Hubbell reported strong Q1 FY2026 results with revenue of $1.52B (+11.1% YoY) and diluted EPS of $3.41 (+12.5% YoY). Gross margin expanded to 33.3% and operating margin improved to 17.4%, reflecting solid operating leverage across the business.
Hubbell's long-term debt rose 95.1% YoY to $2.04B from $1.04B, which appears to be driven by debt-financed acquisition activity, as total assets also grew 21.6% YoY to $8.42B. This elevated leverage is a key factor for investors to monitor going forward.
Yes, Hubbell repurchased $167.5M in shares during Q1 FY2026, a 34.0% increase from $125.0M in Q1 FY2025, demonstrating continued commitment to returning capital to shareholders despite higher debt levels.
Operating cash flow surged 131.6% YoY to $86.6M in Q1 FY2026, compared to $37.4M in Q1 FY2025, reflecting improved working capital management and higher net income of $181.8M. This improvement significantly enhances Hubbell's financial flexibility.
The primary risks include the near-doubling of long-term debt to $2.04B, which increases financial leverage and interest expense obligations, and the integration risk associated with significant acquisition activity that expanded total assets by 21.6% YoY. Additionally, SG&A expenses grew 13.8% YoY, outpacing revenue growth of 11.1%, which could pressure margins if not controlled.