HUBB

Hubbell Incorporated

Next est. report 2026-07-28 · BMO

Buying a House '26: Electric & Smart HomeData Centers '25: Electrical & Lighting SystemsFiscal Spend '25: Grid Modernization & Infra

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Overview

Hubbell Incorporated designs and manufactures electrical products for utility and construction markets. Its Utility Solutions segment (approx. 63% of sales) pro

Hubbell Incorporated designs and manufactures electrical products for utility and construction markets. Its Utility Solutions segment (approx. 63% of sales) provides critical components for power transmission, distribution, and substations, serving utilities. The Electrical Solutions segment (approx. 37% of sales) offers wiring, lighting, and controls for data centers, light industrial, and non-residential applications, primarily in the U.S.

What They Do (Plain English & Analogies): Hubbell Incorporated designs, manufactures, and sells essential electrical and electronic products that power our modern world. Think of them as a crucial supplier for the entire electrical infrastructure, from the massive transmission lines that carry electricity across long distances (like major power highways) down to the electrical outlets and light switches in homes and businesses (the local connections). They also provide specialized equipment for high-demand areas such as large data centers, which are like huge digital brains requiring a constant and reliable power supply. Essentially, Hubbell provides the critical components and solutions that ensure electricity is safely and efficiently delivered from its source to its point of use.
Very Brief History: Hubbell Incorporated was founded by Harvey Hubbell II in 1888 and is headquartered in Shelton, CT. The company was incorporated in Connecticut in 1905. Over its history, Hubbell has evolved into a leading designer, manufacturer, and seller of electrical and electronic products for non-residential and residential construction, industrial, and utility applications.
"Street Stereotype": Hubbell is generally perceived by investors and analysts as a focused play on utility-grade transmission and distribution components. The company is seen as a beneficiary of massive recurring demand as utilities replace aging infrastructure. Increasingly, it is also recognized for its strong exposure to secular growth markets such as data center capital expenditure and the emerging high-voltage transmission market.
Subsidiaries On Linked In*: DMC Power — Acquired company, mentioned in transcript; LinkedIn: dmc-power
Systems Control — Acquired company, mentioned in transcript; LinkedIn: systems-control
Customer Sectors & Example Clients: Hubbell's customer sectors include utility transmission and distribution (T&D), data centers (serving both hyperscaler and colocation customers), light industrial, non-residential construction, telecom, and gas distribution. While specific client names are not provided in the transcript, based on its business model and industry, likely clients include: major electric utility companies (e.g., Duke Energy, Southern Company, Pacific Gas and Electric), hyperscale cloud providers (e.g., Amazon Web Services, Microsoft Azure, Google Cloud), large colocation data center operators (e.g., Equinix, Digital Realty), and various industrial and commercial construction firms.
New Customers / Segments They'Re Targeting: Hubbell is actively targeting an emerging growth opportunity in high-voltage transmission, specifically 765 kV transmission. This market represents a significant multi-year opportunity that is largely incremental to their existing strength in traditional 345 kV transmission markets. The company is also expanding its offerings to provide a comprehensive 'full package of critical components' for these high-voltage projects, aiming to be a preferred partner for utilities in this space.
Supply Chain And Sourcing Geographies: Hubbell's supply chain is currently stable, with no significant constraints or impacts reported. The company experienced some disruption related to aluminum purchases from the Middle East due to geopolitical events, but successfully transitioned to other qualified global suppliers without significant impact. Hubbell continues to manage cost inflation, particularly for metals like copper, aluminum, and steel, through strategic pricing and productivity actions. While specific countries beyond the Middle East are not detailed, the use of 'other qualified sources of supply around the globe' indicates a diversified global sourcing strategy.
Sales Geographies And Expansion Plans: Hubbell has a significant sales exposure, with more than 90% of its sales generated in the U.S. The company's current focus for growth is within its existing U.S. markets, particularly in expanding opportunities within utility T&D and data centers. The transcript does not explicitly mention plans to expand sales into new international geographies.
How Key Themes May Help/Hurt: Hubbell is significantly impacted by the 'Fiscal Spend '25: Grid Modernization & Infra' theme. The unprecedented and accelerating demand for electricity from AI data centers, electric vehicles, and industrial reshoring is driving a multi-decade 'super cycle' of investment in power infrastructure, directly benefiting Hubbell's utility T&D and data center businesses, leading to strong demand and record backlogs. The need to modernize aging global grid infrastructure and integrate renewables also necessitates massive, sustained investment, which Hubbell's utility segment, including its emerging high-voltage transmission opportunity, is well-positioned to capture. However, the company faces potential headwinds from ongoing inflation, elevated material costs, and tariffs, which can pressure gross margins despite pricing efforts. The increasing complexity of large infrastructure projects and potential labor shortages could also introduce execution risks and delays, indirectly impacting demand for Hubbell's components.

3 Main Long-Term Bull Details

Secular Growth in Core End Markets: Hubbell's most profitable businesses are exposed to long-term investment cycles in utility transmission and distribution (T&D) and data center capital expenditure. These markets are experiencing secular growth driven by factors like load growth, aging infrastructure resiliency investments, electrification, and accelerating electricity demand from AI data centers, providing strong and visible demand.
Significant High-Voltage Transmission Opportunity: The company is demonstrating early success in the emerging 765 kV high-voltage transmission market, which represents a substantial multi-year opportunity. This market is largely incremental to existing transmission markets and is estimated to be an addressable market of approximately $1.5 billion over the next 10 years, where Hubbell holds a leading position.
Strategic Investments and Portfolio Strength: Hubbell consistently delivers strong financial performance through strategic execution and active investments in high-growth areas. This includes capacity expansion and new product development in high-voltage transmission and data centers, coupled with a broad portfolio and strong customer relationships that position them as a preferred partner offering comprehensive solutions.

3 Main Long-Term Bear Details

Persistent Inflationary and Supply Chain Pressures: Hubbell operates in a dynamic environment with ongoing macroeconomic and geopolitical uncertainty, leading to persistent inflationary and supply chain challenges. While the company has demonstrated an ability to manage price/cost, accelerated cost inflation, particularly in metals, can continue to pressure margins and necessitate ongoing pricing actions, which may face customer pushback.
Vulnerability in Specific Market Segments: Despite overall strength, certain segments like grid automation, including Aclara, and meters/AMI markets have experienced anticipated softness and weakness. While stabilization is expected, these areas may not contribute significantly to overall growth in the near term, and prolonged weakness could impact overall performance.
Intense Competition and Capital Intensity: The electrical equipment and utility solutions market is highly competitive, with numerous large players also investing heavily in grid modernization and data center solutions. Hubbell's strategy of continuous investment in capacity expansion and new product development, while essential for growth, also entails significant capital outlays and execution risks in a competitive landscape.

Competitors And Differentiation: While the transcript does not name specific competitors, Hubbell operates in the electrical equipment and utility solutions industry. Its competitors likely include large industrial and electrical equipment manufacturers such as Eaton (ETN), Schneider Electric (SU.PA), ABB Ltd (ABBN.SW), Siemens Energy (SIE.XETRA), and nVent (NVT). Hubbell differentiates itself through its 'leading brands' and 'strong customer relationships'. The company's strategy involves competing collectively in high-growth verticals and offering a 'full package of critical components' as a 'solutions offering'. This approach aims to provide high service levels, reliability, and installation efficiency for its customers, leveraging its portfolio depth and breadth to be a trusted partner.
Recent Performance & What The Market'S Focused On: Hubbell delivered strong financial performance in the first quarter of 2026, reporting an 11% increase in net sales to $1.517 billion, 18% growth in adjusted operating profit to $301 million, and a 16% increase in adjusted earnings per diluted share to $3.93. Organic growth stood at 8%, driven by double-digit organic growth in its Electrical Solutions segment (data center and light industrial markets) and grid infrastructure businesses within the Utility Solutions segment. The company raised its full-year 2026 outlook for total sales growth (8% to 11%), organic sales growth (6% to 9%), and adjusted earnings per diluted share ($19.30 to $19.85). The market is currently focused on Hubbell's continued strength in utility T&D and data center markets, the emerging opportunity in high-voltage transmission, the company's ability to manage price/cost dynamics amidst accelerating inflation, and the anticipated stabilization and return to growth of its grid automation business.

Revenue Segments And Estimated Mix: Utility Solutions — Mix: ~62.6%; Source: Q1 2026 sales of $949 million; Trend: 11% growth vs prior year, 7% organic growth
Electrical Solutions — Mix: ~37.4%; Source: Q1 2026 sales of $568 million; Trend: 12% growth vs prior year, 11% organic growth
Product Brands: Aclara
DMC Power
Systems Control
Hubbell Industrial Controls
Cableform
EC&M
Gleason Reel
ToolAssistPro
Powerohm
PCX
Connector Manufacturing Company (CMC)
Hubbell Gas Utility Solutions (HGUS)
Hubbell Premise Wiring
Hubbell Wiring-Device Kellems
Wiegmann
Burndy
Chance
Ohio Brass
Anderson
Fargo
RACO
Killark
Hipotronics
USCO

Bull / Bear Details

Hubbell is well-positioned in an accelerating multi-decade supercycle for grid modernization, driven by unprecedented AI data center demand and robust utility T

Thesis

Hubbell is well-positioned in an accelerating multi-decade supercycle for grid modernization, driven by unprecedented AI data center demand and robust utility T&D investments. Strong Q1 2026 performance, a raised full-year outlook, and an incremental $1.5 billion high-voltage transmission opportunity underscore a compelling bull case. While inflation and geopolitical uncertainty persist, Hubbell's pricing power and strategic investments support continued growth. (July 21, 2026)

Bull case

Accelerating demand from AI data centers and light industrial markets is a significant growth driver. Hubbell's Electrical Solutions segment achieved approximately 40% growth in data centers in Q1 2026, leading to a raised full-year outlook of over 25%. This strong performance, coupled with robust order activity for modular power distribution skids, provides enhanced visibility and sustained demand for Hubbell's specialized electrical components.
Hubbell is capitalizing on the multi-year investment cycle in utility transmission and distribution (T&D) infrastructure. Core utility T&D markets remain strong, driven by highly visible load growth and aging infrastructure resiliency investments. The emerging 765 kV high-voltage transmission market presents a significant, incremental $1.5 billion opportunity over the next decade, where Hubbell is demonstrating early success and actively investing in new products and capacity.
Strategic acquisitions and continuous investment in capacity expansion enhance Hubbell's market position and content per mile. Recent acquisitions like DMC Power and Systems Control are performing well and increasing Hubbell's scope in high-investment transmission and substation applications. The company is also investing in capacity to meet strong demand in high-growth areas like data centers and high-voltage transmission.

Bear case

Persistent cost inflation, particularly in metals, continues to challenge operating margins. While Hubbell has implemented additional pricing actions and productivity initiatives to offset inflation on a dollar-for-dollar basis, management noted that the price/cost math is margin dilutive, impacting full-year margin expansion. Macroeconomic and geopolitical uncertainties also pose ongoing risks to the operating environment.
The Grid Automation business, including Aclara, experienced anticipated softness with a 7% organic sales decline in Q1 2026. Although management expects a return to slight year-over-year growth in Q2, this segment has been more challenged as utilities prioritize other investments. A prolonged or deeper slowdown in this area could temper overall Utility Solutions segment growth.
While not explicitly stated as a current constraint for Hubbell, the broader theme faces risks from the increasing scale and complexity of large infrastructure projects, which can lead to execution risks, cost overruns, and prolonged permitting and interconnection delays. Additionally, a persistent shortage of skilled craft labor across North America could constrain project execution capacity, impacting the pace of grid modernization.

Bull / Bear Case

Bear Case: Hubbell faces persistent challenges from accelerating cost inflation, particularly in metals, which management notes is margin dilutive despite being offset by pricing and productivity actions on a dollar-for-dollar basis. This dynamic could limit full-year margin expansion. Macroeconomic and geopolitical uncertainties also pose ongoing risks to the operating environment. The Grid Automation business, including Aclara, experienced anticipated softness with a 7% organic sales decline in Q1 2026, and while a return to slight growth is expected, this segment remains a potential drag on overall Utility Solutions performance. Additionally, the broader industry faces risks from the increasing scale and complexity of large infrastructure projects, which could lead to execution risks, cost overruns, and potential skilled labor shortages, impacting the pace of grid modernization.
Bull Case: Hubbell is strongly positioned to capitalize on accelerating multi-decade secular growth trends in grid modernization and AI-driven data center expansion. The company delivered robust Q1 2026 financial performance with double-digit growth in sales, adjusted operating profit, and EPS, leading to a raised full-year outlook. Its Electrical Solutions segment saw approximately 40% growth in data centers in Q1, with a raised full-year outlook of over 25%. The Utility Solutions segment benefits from strong core T&D markets and an incremental $1.5 billion opportunity in 765 kV high-voltage transmission over the next decade. Strategic acquisitions like DMC Power and Systems Control are performing well, enhancing Hubbell's market scope and content per mile, while active investments in capacity expansion support future growth and market leadership.
More Compelling & Why: Bull Case. Hubbell's forward P/E of 23.76x is below the US Electrical industry average of 37x and peer average of 50.6x, suggesting a reasonable valuation given its strong growth drivers. The strongest argument for the bull case is the company's deep exposure to accelerating multi-decade secular growth trends in grid modernization and AI-driven data center expansion, which provides highly visible and sustained demand, validated by strong Q1 results and raised full-year guidance. My view would flip if Hubbell consistently fails to achieve its guided operating margin expansion due to unmanageable inflation or if there's a significant, sustained slowdown in organic growth rates within its key data center or T&D markets.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Data Center Organic Growth & Capacity Expansion	Data centers are a high-growth vertical for Hubbell, contributing significantly to Electrical Solutions' performance. Sustained strong demand and the company's ability to meet it through ongoing capacity additions are crucial for continued outperformance and market share capture.	Q2 2026 organic growth rate for the Electrical Solutions segment's data center business. Updates on order activity for modular power distribution skids and progress on capacity additions for short-cycle components. Monitor if the full-year growth outlook remains above 25%.	Bullish: Data center organic growth consistently above 25% year-over-year, or further increases in the full-year outlook. Continued strong order backlog for long-cycle products and successful, timely capacity additions for short-cycle. Bearish: Growth falling below 25% or significant delays in capacity expansion.	Hubbell's Q2 2026 earnings release and conference call on July 28, 2026, company press releases, and investor presentations.	Goldman Sachs reports on U.S. data center power demand (e.g., projected 41 GW in 2026). Google Trends: 'AI data center power demand,' 'hyperscaler build-out.'	Synergy Research Group: Data Center Market Share & Growth; CBRE Data Center Market Reports: Regional capacity additions and demand.
Price/Cost Productivity & Operating Margin Expansion	Effective price/cost management is critical for protecting and expanding profitability in an inflationary environment. Achieving the projected 20 basis points of adjusted operating margin expansion, especially in high-margin segments, directly impacts earnings and financial health.	Q2 2026 adjusted operating margins for Hubbell and its segments (Utility Solutions vs. Electrical Solutions). Specific commentary on price realization, cost inflation, and productivity gains. Confirmation of 'neutral or better' price/cost on a dollar-for-dollar basis.	Bullish: Adjusted operating margin expansion exceeding 20 basis points for the full year, or price/cost remaining positive on a dollar-for-dollar basis. Utility Solutions margin expansion remaining consistent. Bearish: Margin contraction, or price/cost turning negative, indicating inability to offset inflation.	Hubbell's Q2 2026 earnings release and conference call on July 28, 2026.	Bureau of Labor Statistics (BLS): Producer Price Index (PPI) for Electrical Equipment Manufacturing (e.g., May 2026 PPI was 246.537). Metal price indices (copper, aluminum) from public sources.	S&P Global Market Intelligence: Commodity price forecasts (copper, aluminum, steel); FactSet: Company-reported gross margin and operating margin trends.
Grid Automation (Aclara) Business Return to Growth	The Grid Automation business has been a drag on the Utility Solutions segment. Its stabilization and anticipated return to growth would remove a significant headwind, improve overall segment performance, and validate management's confidence in its long-term potential.	Organic sales growth for the Grid Automation business in Q2 2026. Any updates on new multi-year project wins or signs of sustained stabilization in meter and AMI markets.	Bullish: Grid Automation organic sales turning positive in Q2 2026 and continuing to show modest growth. Announcement of additional significant multi-year project wins. Bearish: Continued year-over-year decline in Grid Automation sales, or further delays in market stabilization.	Hubbell's Q2 2026 earnings release and conference call on July 28, 2026.	Industry reports on smart meter deployments and grid automation market trends (e.g., from utility associations).	Guidehouse Insights: Smart Grid and AMI Market Forecasts; Industrial Info Resources (IIR): Utility project tracking for grid automation.
Overall Organic Sales Growth (Volume Component)	Organic volume growth is a direct indicator of underlying market demand and Hubbell's competitive strength, reflecting true business expansion beyond pricing adjustments. Achieving the higher end of the guidance range signals robust execution and potential market share gains.	Hubbell's reported Q2 2026 organic sales growth, specifically the breakdown between price and volume contribution. Monitor if the company maintains or further raises its full-year 2026 organic sales growth outlook of 6% to 9%.	Bullish: Organic sales growth consistently at or above the high end of the 6-9% range, with volume contributing more than 50% of the growth. Bearish: Organic growth falling below the guided range, or growth primarily driven by price rather than volume.	Hubbell's Q2 2026 earnings release and conference call on July 28, 2026.	U.S. Census Bureau: Manufacturing Shipments, Inventories, and Orders (M3) for electrical equipment. ISM Manufacturing PMI (new orders component).	Bloomberg Terminal: Consensus estimates for organic growth; FactSet: Company-specific revenue breakdown.
High-Voltage Transmission (765 kV) Project Wins & Capacity Expansion	This represents a significant, incremental growth opportunity for Hubbell, driven by long-term megatrends like electrification and load growth. Early project wins and active investment signal strong future revenue potential and market leadership in a critical infrastructure area.	Announcements of new 765 kV project awards, including specific utility names or project scope (e.g., miles, GW). Updates on capacity expansion investments and progress in new product development for higher voltages. Look for any revised outlook on the $1.5 billion addressable market opportunity over 10 years.	Bullish: Announcement of new multi-year 765 kV project wins, particularly those exceeding initial expectations, or faster-than-anticipated capacity expansion. Bearish: Delays in project awards, slower capacity build-out, or increased competition impacting Hubbell's market share.	Hubbell's Q2 2026 earnings release and conference call on July 28, 2026, company press releases, and investor presentations. Industry news from utility publications or regulatory bodies like FERC, RTOs/ISOs.	Lawrence Berkeley National Laboratory's 'Queued Up' reports for transmission projects. Regional Transmission Organizations (RTOs)/Independent System Operators (ISOs) for interconnection queue updates.	Industrial Info Resources (IIR): Transmission Project Starts & Awards; S&P Global Market Intelligence: Utility Capital Expenditure forecasts for transmission.

Key Reported Metrics, Reratings Triggers & Results3 rows

This metric reflects Hubbell's core business expansion, excluding acquisitions. Strong organic growth signals healthy demand in Hubbell's key end markets, parti

Key reported metrics
Metric	Last period	Why it matters
Organic Sales Growth	8%	This metric reflects Hubbell's core business expansion, excluding acquisitions. Strong organic growth signals healthy demand in Hubbell's key end markets, particularly utility T&D and data centers, and validates its strategic execution. Investors will watch this for overall business health.
Electrical Solutions Segment Organic Growth	11%	This segment's performance, particularly driven by data center and light industrial markets, is crucial for Hubbell's overall growth. Continued double-digit organic growth here indicates successful penetration into high-growth verticals and strong demand from electrification trends.
Utility Solutions Segment Organic Growth	7%	As Hubbell's largest and most profitable segment, its organic growth, especially from grid infrastructure and high-voltage transmission, is a key long-term driver. Sustained growth confirms robust utility CapEx and critical infrastructure investment, signaling strong market demand.

Key Questions

How quickly and effectively can Hubbell convert its early success in 765 kV transmission project wins into sustained order growth and capacity expansion, and wi

How quickly and effectively can Hubbell convert its early success in 765 kV transmission project wins into sustained order growth and capacity expansion, and will this translate into a measurable acceleration of its Utility Solutions segment's organic growth beyond current expectations?

Question 2: Can Hubbell continue to meet the accelerating demand in data center markets, particularly by successfully expanding capacity for its short-cycle products, and will this sustain or further elevate the Electrical Solutions segment's organic growth rate?
Question 3: Will Hubbell's Q2 price increases and productivity actions effectively offset accelerating cost inflation to maintain "neutral or better" price/cost on a dollar-for-dollar basis, and will this allow for the anticipated operating margin expansion, especially in the Electrical Solutions segment which faces first-half headwinds?

Earnings Transcript SummaryTable

2026-04-30 · 2026Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
1. Delivering strong financial performance and raising the full-year 2026 outlook: Management emphasized Hubbell's strong Q1 results with double-digit growth in sales, adjusted operating profit, and adjusted EPS, leading to an increased full-year outlook for total sales, organic sales, and adjusted EPS. 2. Capitalizing on the emerging high-voltage transmission opportunity: Management highlighted 765 kV transmission as a significant, multi-year, incremental market opportunity of approximately $1.5 billion over the next 10 years, where Hubbell is demonstrating early success and actively investing. 3. Effectively managing price/cost dynamics and productivity in an inflationary environment: Management expressed confidence in their ability to manage through accelerating cost inflation by implementing additional price and productivity actions, aiming for a neutral or better price/cost outcome on a dollar-for-dollar basis.	The overall takeaway of the call is that Hubbell delivered strong first-quarter 2026 results, exceeding expectations and leading to a raised full-year outlook. The company is well-positioned in attractive end markets, particularly utility T&D and data centers, and is actively investing in high-growth opportunities like high-voltage transmission. Management is confident in its ability to navigate inflationary pressures through pricing and productivity. The tone of the call was positive and confident, reflecting strong execution and optimism about future growth prospects despite a dynamic operating environment.	Utility Solutions: 10% net sales increase (7% organic growth); Electrical Solutions: 14% net sales increase (13% organic growth).	1. High-voltage transmission outlook and market impact: Analysts inquired about the pacing of the 765 kV transmission rollout and if the $1.5 billion total addressable market (TAM) is incremental. Management confirmed it is incremental to existing strength and does not see it crowding out other spending, as utilities are increasing CapEx budgets across all areas. 2. Operating margins and cadence through the year: Analysts asked for insights into the expected operating margin performance and leverage cadence for the remainder of the year. Management guided for a full-year margin expansion of 20 basis points, with Utility Solutions showing consistent expansion and Electrical Solutions experiencing some first-half headwinds that normalize in the second half, noting that price/cost coverage is margin dilutive. 3. Breakdown of organic growth (price vs. volume) and demand pull-forward: Analysts sought clarification on the split between price and volume within the 6%-9% organic growth outlook and whether recent price increases led to demand pull-forward. Management stated that the full-year organic growth includes about 3 points of price (up from 2 points initially due to Q2 actions) with the remainder being volume, and they did not observe any significant demand pull-forward.	Electrical Solutions: 12% growth (11% organic); Utility Solutions: 11% growth (7% organic); Within Utility Solutions, Grid Infrastructure: 12% organic growth; Within Utility Solutions, Grid Automation: declined 7% year-on-year.

Transcript TidbitsTable

2026-04-30

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
Hubbell highlighted high-voltage transmission, specifically 765 kV, as a significant multiyear opportunity, largely incremental to existing strength in traditional 345 kV transmission markets. This represents an addressable market opportunity of approximately $1.5 billion over the next 10 years, which Hubbell is actively investing in, including new product development and capacity expansion. The company believes this can drive a point of growth above its current transmission projections. Additionally, the content per mile for 765 kV lines is expected to be slightly higher than lower voltages, increasing Hubbell's content. Acquisitions like DMC Power and Systems Control are also increasing Hubbell's scope in high-investment areas like transmission and substation applications.	Hubbell believes its leading position and strong customer relationships, along with its portfolio depth and breadth, position it as a preferred partner capable of providing a full package of critical components. The company acknowledges that it is not the only participant in the high-voltage transmission market but expects to get its fair share of the build-out, even as 'big players' like GE Vernova are also seeing strong double-digit growth in grid transmission.	The broader industry is characterized by strong core utility T&D markets, driven by highly visible load growth from electrification and data centers, as well as aging infrastructure resiliency investments. Utilities are increasing their CapEx budgets, reflecting the need to spend across all areas of the grid. Data center and light industrial markets are experiencing significant growth, with data center build-out accelerating across hyperscaler and colocation customers, and healthy U.S. manufacturing activity driving demand for electrical components. The operating environment, however, is marked by macroeconomic and geopolitical uncertainty, as well as dynamic inflationary and supply chain conditions.	Hubbell is raising its full year 2026 outlook for total sales growth to 8% to 11%, organic sales growth to 6% to 9%, and adjusted earnings per share to $19.30 to $19.85. The company anticipates double-digit growth in adjusted operating profit at the midpoint of its guidance. Hubbell expects its Utility Solutions segment to deliver high single-digit organic growth for the full year, and grid automation organic sales are expected to return to slight year-over-year growth in the second quarter after stabilizing. The company is confident in managing price/cost productivity to neutral or better on a dollar-for-dollar basis and expects at least 90% free cash flow conversion on adjusted net income in 2026. Share repurchases in Q1 2026 are expected to be neutral to 2026 earnings but provide accretion in 2027.	Grid	The accelerating demand from AI data centers is driving a rapid evolution in power architectures, including specialized 800V DC power systems and advanced liquid cooling solutions. Industrial reshoring is also contributing to demand in light industrial markets.	Hubbell delivered strong financial performance to begin the year with double-digit growth in sales, adjusted operating profit and adjusted earnings per share. Our core utility T&D markets remain strong with highly visible load growth driving continued strong demand. high-voltage transmission represents a significant multiyear opportunity, which is largely incremental to existing strength. DMC... off to a really good start. The Electrical Solutions segment achieved approximately 40% growth in data center markets in the first quarter. We are raising our full year sales growth outlook to 8% to 11% and our organic sales growth outlook to 6% to 9%. our short-cycle demand is holding up solidly and price and productivity actions are being realized. We're closer to 1.2 to start off the quarter.	partially offset by anticipated softness in grid automation. While cost inflation accelerated against 2025 exit rates, as anticipated, our pricing and productivity actions continue to keep pace, more than offsetting those higher levels of inflation. While the current operating environment poses macroeconomic and geopolitical uncertainty as well as dynamic inflationary and supply chain conditions. The challenge for utility is going to be -- this equipment is going to fail at some point, right? We did have a little bit of aluminum that we were purchasing out of that region, would be a noteworthy area.