AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 19/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Brands, patents and a stated quality reputation provide plausible differentiation, but substantial competition and lack of dependence on patent protection leave structural superiority unestablished. Pricing outcomes alone cannot resolve this.
durability · — · Multiyear pricing success establishes persistence of commercial execution, but the catalog cannot establish how long any competitive barrier would last. Existing patents and acquired relationship valuations do not establish durable exclusion.
customer dependency · — · Maintenance contracts and some multiyear meter and sensor backlog establish ongoing relationships. They disclose neither material switching friction nor customer dependence, and most revenue comes from inventoried or quickly manufactured products.
erosion resilience · — · Continuing organic growth and pricing coexist with inflation-driven margin compression. These outcomes establish partial operating resilience but cannot establish resilience of an unidentified structural moat; technology risks remain possibilities.
Pricing power56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 3/4 · Reported favorable pricing spans 2023, 2024 and 2025 and continues into 2026. Second-quarter Electrical Solutions pricing rose by a mid-single-digit percentage alongside low-double-digit volume growth. These are strong observed outcomes, although inflation recovery and aggregate product mix limit inference about durable premiums.
retention · 2/4 · Indirect demand evidence is mixed: backlog recovered in 2025 after declining in 2024, and volumes increased alongside pricing in 2025 and second-quarter 2026. Earlier volume declines and the absence of customer-level repeat-purchase data constrain the assessment. Maintenance contracts support continuing relationships without establishing renewal rates.
margin resilience · 2/4 · Pricing and productivity supported 2025 operating-margin expansion, but second-quarter 2026 adjusted margin contracted 50 basis points as inflation more than offset favorable drivers. Cost protection is demonstrated but incomplete; productivity, volumes and acquisitions also affect margins.
contractual freedom · 2/4 · Actual pricing actions, realized increases and advance payment for certain maintenance contracts demonstrate some discretion over commercial terms. Industry-standard payment practices and customary negotiated discounts limit the evidence of superior freedom. Broad unilateral repricing rights and automatic cost pass-through are not established.
Predictability100
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 5.59
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 2.06
Financial strength—
Missing required inputs: interestCoverageGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 76.31
- netDebtEbitGrade
- 69.51
- currentRatioGrade
- 77.55
- Debt / FCF (x)
- 2.66
- Net debt / operating income (x)
- 1.52
- Current ratio (x)
- 1.72
Capital allocation99
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 24.36
- 3-year average dilution (%)
- -0.31
- 3-year average SBC / revenue (%)
- 0.53
- cashConversionGrade
- 99.01
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · 2025 operating cash flow of $1,029.8 million and free cash flow of $874.7 million demonstrate funding capacity alongside actual investment and distributions. Acquisition financing subsequently lifted long-term debt to $4,803.9 million while repurchases continued. NSI returns remain unproven, and first-half cash-flow improvement partly reflects pension timing. This supports a mixed assessment rather than accepting management's discipline claims.
incentive alignment · 3/4 · Actual disclosures show that the CEO exceeds a five-times-salary ownership requirement, performance shares use three-year performance periods with relative growth, margin and shareholder-return metrics, and executives face hedging and pledging prohibitions and clawback provisions. These demonstrate strong alignment safeguards, without establishing exceptional incentive effectiveness or implying that prospective awards have vested.
execution · 3/4 · Multiyear pricing realization, 2025 productivity-related margin improvement, cash generation and 2026 organic growth support strong demonstrated operating execution. Attribution to management is indirect and favorable end-market demand contributes. Recent margin compression and NSI's limited post-closing contribution constrain conclusions about integration success; cross-selling opportunities remain prospective.
governance · 3/4 · Independent key committees, an implemented majority voting standard, an independent Lead Director and no reportable related-person transactions in fiscal 2025 establish strong disclosed safeguards. Combined CEO and Chairman authority remains a concentration of power. Governance procedures and transaction disclosures do not establish exceptional oversight effectiveness.
Evidence
Recognized for our innovation, quality, and deep commitment to serving our customers for over 135 years, Hubbell is a world-class manufacturer of electrical and utility solutions, with more than 75 brands used around the world.
Business / brands and issuer positioning · Filed 12/02/2026
Hubbell considers product performance, reliability, quality and technological innovation to be important factors relevant to all areas of its business and considers its reputation as a manufacturer of quality products to be an important factor in its business.
Business / competition and reputation · Filed 12/02/2026
Hubbell has approximately 3,250 active United States and foreign patents covering a portion of its products, which expire at various times.
Business / active patents · Filed 12/02/2026
While Hubbell deems these patents to be of value, it does not consider its business to be dependent upon patent protection.
Business / lack of dependence on patent protection · Filed 12/02/2026
Competition Hubbell experiences substantial competition in all categories of its business, but does not compete with the same companies in all of its product categories.
Business / substantial competition · Filed 12/02/2026
In addition, product price, service levels and other factors can affect Hubbell’s ability to compete.
Business / price and service competition · Filed 12/02/2026
Advancements in, and increased adoption of, artificial intelligence (AI), machine learning, automation, and other advanced technologies may result in a long-term competitive disadvantage.
Risk Factors / potential technological disadvantage · Filed 12/02/2026
In 2023, Net sales increased by 8.6% or $425 million and organic Net sales(1) increased by 6.6% or $325 million on favorable price realization partially offset by modestly lower volumes, as further discussed in segment results below.
MD&A / 2023 organic growth, pricing and volumes · Filed 08/02/2024
Organic net sales were flat driven by a low single digit percentage increase in price realization, partially offset by a low single digit percentage decrease in unit volume.
MD&A / 2024 organic sales, pricing and volumes · Filed 12/02/2026
In 2025, Net sales increased by 3.8% or $216 million and organic Net sales(1) increased by $186 million on favorable price realization and higher unit volumes, as further discussed in segment results below.
MD&A / 2025 organic sales, pricing and volumes · Filed 12/02/2026
Operating margin increased in 2025, by 130 basis points and adjusted operating margin(1) increased by 80 basis points, driven by favorable price realization and improved operational productivity.
MD&A / 2025 operating-margin improvement · Filed 12/02/2026
The increase in organic net sales was driven by a low double digit percentage increase due to unit volume and a mid single digit percentage increase due to price realization.
MD&A / second-quarter 2026 Electrical Solutions pricing and volumes · Filed 29/07/2026
Overview
Second quarter 2026 net sales were $1,711.8 million and increased by 15.3%, driven by a 10.2% increase in organic sales due to higher volume and favorable price realization.
MD&A / second-quarter 2026 consolidated organic growth · Filed 29/07/2026
Adjusted operating margin, which excludes amortization of acquisition-related intangibles and transaction, integration and separation costs, was 23.9% and contracted by 50 basis points.
MD&A / second-quarter 2026 adjusted operating-margin contraction · Filed 29/07/2026
That result includes margin expansion in the quarter, primarily driven by favorable price realization, benefits from operational productivity, and higher unit volume, and the impact of acquisitions, that was more than offset by margin contraction from material and other cost inflation, including tariff expense.
MD&A / inflation exceeding favorable operating drivers · Filed 29/07/2026
The backlog of orders believed to be firm at December 31, 2025 was $2,159 million compared to $1,898 million at December 31, 2024.
Business / 2025 and 2024 backlog · Filed 12/02/2026
The backlog of orders believed to be firm at December 31, 2024 was $1,898 million compared to $2,328 million at December 31, 2023.
Business / 2024 and 2023 backlog · Filed 13/02/2025
Although this backlog is important, the majority of Hubbell’s revenues result from sales of inventoried products or products that have short periods of manufacture.
Business / inventoried products and short manufacturing periods · Filed 12/02/2026
In addition, in the Utility Solutions segment, certain businesses offer annual maintenance service contracts that require payment at the beginning of the contract period.
Revenue / annual maintenance contracts with advance payment · Filed 29/07/2026
Working Capital
Inventory, accounts receivable and accounts payable levels, payment terms and, where applicable, return policies are in accordance with the general practices of the electrical products industry and standard business procedures.
Business / industry-standard payment terms and return policies · Filed 12/02/2026
These arrangements include sales discounts and allowances based on sales volumes, specific programs and special pricing allowances, and returned goods, as are customary in the electrical products industry.
Revenue / discounts and special pricing allowances · Filed 12/02/2026
We have had to take various pricing actions to cover the increase in our costs associated with inflationary pressure and protect our margin profile.
Risk Factors / historical pricing actions to cover inflation · Filed 12/02/2026
Net cash provided by operating activities (GAAP measure)
1,029.8
991.2
Less: Capital expenditures
(155.1)
(180.4)
Free cash flow
874.7
810.8
Free cash flow as a percent of net income attributable to Hubbell
98.6
104.1
Free cash flow is a non-GAAP measure that we define as cash flow from operations less capital expenditures.
Liquidity / 2025 and 2024 operating cash flow, capital expenditure and free cash flow · Filed 12/02/2026
In 2025 we also invested $958.3 million in acquisitions within high growth markets, made $155.1 million of capital expenditures supporting footprint optimization, automation and productivity initiatives, and repurchased $225.0 million of shares.
MD&A / actual 2025 acquisitions, capital expenditure and repurchases · Filed 12/02/2026
HUBBELL INCORPORATED-Form 10-Q 28 Back to Contents Long-Term Debt As of June 30, 2026 and December 31, 2025, the carrying value of long-term debt, net of unamortized discount and debt issuance costs, was $4,803.9 million and $2,036.3 million, respectively.
Debt / June 2026 and December 2025 carrying values · Filed 29/07/2026
The Company financed the acquisition of NSI Industries with net proceeds from borrowings under a new unsecured term loan facility in an aggregate principal amount of $900 million, the issuance of $1.9 billion aggregate principal amount of senior notes and issuances of commercial paper.
Acquisitions / actual NSI Industries financing · Filed 29/07/2026
The NSI Industries acquisition contributed sales of approximately $35.4 million and operating income was not material for the period from the NSI Industries Closing Date through June 30, 2026.
Acquisitions / limited post-closing NSI Industries operating contribution · Filed 29/07/2026
HUBBELL INCORPORATED-Form 10-Q 49 Back to Contents Financial Condition, Liquidity and Capital Resources Cash Flow Three Months Ended June 30, (In millions) 2026 2025 Net cash provided by (used in): Operating activities $ 336.4 $ 298.0 Investing activities (3,086.6) (140.6) Financing activities 2,651.7 (117.5) Effect of foreign currency exchange rate changes on cash and cash equivalents (1.2) 13.1 NET CHANGE IN CASH AND CASH EQUIVALENTS $ (99.7) $ 53.0 Cash provided by operating activities for the six months ended June 30, 2026 was $336.4 million compared to cash provided by operating activities of $298.0 million for the same period in 2025.
Liquidity / first-half operating cash flow as identified in the narrative · Filed 29/07/2026
The increase in cash provided by operations is driven by higher net income on the increase in year over year operating results, higher non-cash depreciation and amortization expense in the first six months of 2026, and an increase of $20 million due to the timing of annual pension plan contributions.
Liquidity / operating cash-flow drivers and pension timing · Filed 29/07/2026
In the first six months of 2026, we returned capital to our shareholders by paying $150.4 million of dividends on our common stock and using $203.5 million of cash for share repurchases.
Liquidity / actual first-half 2026 dividends and repurchases · Filed 29/07/2026
Our CEO has an ownership requirement of 5 times his base salary, which he currently exceeds.
Compensation / CEO ownership requirement and actual compliance · Filed 23/03/2026
Long-Term Incentive: 50% Performance Shares Variable Equity 3-year performance period Provides a balance between internal and external performance.
Compensation / performance-share weighting and three-year period · Filed 23/03/2026
Performance metrics: relative sales growth, adjusted operating profit margin, and relative total shareholder return.
Compensation / performance-share metrics · Filed 23/03/2026
We prohibit our executives, including our NEOs, from hedging or engaging in derivatives trading with respect to Hubbell common stock and from pledging Hubbell stock as collateral for a loan.
Compensation / hedging and pledging prohibitions · Filed 23/03/2026
Strong Governance. We maintain a compensation recoupment (clawback) policy that complies with SEC rules and NYSE listing standards, and our Short-Term Incentive plans include the option for negative (but not upward) discretion by the Compensation Committee regarding award amounts paid.
Compensation / clawback policy and negative award discretion · Filed 23/03/2026
The Board has determined that each member of the Audit, Compensation, Finance, and NCGC is independent for purposes of the NYSE listing standards and SEC regulations.
Governance / independence of key board committees · Filed 23/03/2026
Consistent with our commitment to implementing best corporate governance practices, and in response to shareholder feedback, in 2025 we adopted amendments to our Certificate of Incorporation and By-Laws to implement a majority voting standard in uncontested Director elections.
Governance / implemented majority voting standard · Filed 23/03/2026
2026 PROXY STATEMENT | 23 Back to Contents Board Leadership Structure Our independent Lead Director counterbalances a non-independent Chair and fosters effective collaboration and communication among the independent Directors.
Governance / independent Lead Director · Filed 23/03/2026
Mr. Bakker has served as Hubbell’s Chairman, President and Chief Executive Officer since May 2021.
Governance / combined Chairman, President and CEO roles · Filed 23/03/2026
For fiscal year 2025, the Company had no related person transactions that were required to be disclosed under Item 404 of Regulation S-K.
Governance / actual fiscal 2025 related-person transaction disclosure · Filed 23/03/2026
We are not dependent on a single customer, however, our top ten customers account for approximately 42% of our Net sales.
Business / top-ten customer concentration · Filed 12/02/2026
confident that the addition of a high growth business in NSI will provide enhanced opportunities for cross-selling, channel conversions, growth across strategic verticals and manufacturing efficiencies.”
Acquisition announcement / anticipated cross-selling and manufacturing opportunities · Filed 04/05/2026
In the Utility Solutions segment, substantially all of the backlog existing at December 31, 2025 is expected to be shipped during 2026, along with approximately $20 million of backlog of contracts that span multiple years, primarily related to long-term contracts within the Utility Solutions segment to deliver and install meters and grid monitoring sensor technology.
Business / multiyear meter and sensor backlog · Filed 12/02/2026
Hubbell cannot specify with precision the number of competitors in each product category or their relative market position.
Business / uncertain competitor counts and relative positions · Filed 12/02/2026
