Hubbell (HUBB) is a key beneficiary of the U.S. power grid modernization and the surge in demand for power infrastructure for AI data centers. Adjusted EPS for Q1 2026 grew by +161% year-over-year, and based on the acquisition of NSI, we set a 12-month baseline target price of 500 (approx. 753,500 KRW) and a Hold rating.
📊 Analysis 기준일: 2026-05-20 | Applicable exchange rate: 1 USD = 1,507 KRW
index
- Key Summary of Hubbell HUBB Stock Price Outlook
- What kind of company is Hubbell (HUBB)?
- Key terms to know before Hubbell analysis
- Hubbell Recent Q4 Earnings Analysis
- Hubbell Fair Value Analysis (DCF/Multiple)
- Hubbell vs. Competitor Comparison
- Hubbell Growth Outlook and Key Drivers
- Hubbell 12-Month Target Price Scenario
- Hubbell's Recent Major Issues
- Key Risks When Investing in Hubbell
- Hubbell Investment Opinion Conclusion
- 5 Frequently Asked Questions about Hubbell
Key Summary of Hubbell HUBB Stock Price Outlook
Hubbell (HUBB)'s 12-month baseline target price is $500 (approx. 753,500 won).
The investment opinion is Hold (Neutral).
The key rationale is the power demand of AI data centers, benefits from power grid modernization, and the expansion of the Electrical Solutions portfolio following the acquisition of NSI Industries (approx. 4.521 trillion won).
Hubbell Incorporated (NYSE: HUBB) is a U.S. electric and utility solutions company with over 130 years of history and is a key beneficiary of the modernization of power grid (T&D) infrastructure and the surge in power demand from AI data centers.
The current share price is 470 (approx. 708,290 KRW), and Q1 2026 adjusted EPS was 3.93 (approx. 5,922 KRW, +161 YoY) and revenue was 1,520M (approx. 2.2906 trillion KRW, +11.11 YoY), exceeding market expectations.
The company raised its FY2026 adjusted EPS guidance to 19.30–19.85 and aims for 7–91 revenue growth based on demand for power grid modernization and data center infrastructure.
| item | black eye | Converted to Korean Won |
|---|---|---|
| Current price (2026-05-18) | $470 | Approximately 708,290 won |
| 52-week high | $565.50 | Approximately 852,209 won |
| 52-week low | $346.07 | Approximately 521,527 won |
| Market capitalization | $25.1B | Approximately 37 trillion 825.7 billion won |
| Basic target price | $500 | Approximately 753,500 won |
| Bullish target price | $570 | Approximately 858,990 won |
| Weak target price | $380 | Approximately 572,660 won |
| Investment opinion | Hold (Neutral) | – |
| Quarterly dividend | $1.42/week | Approximately 2,140 won/week |
What kind of company is Hubbell (HUBB)?
Hubbell is a specialized manufacturer of electric and utility solutions founded in Shelton, Connecticut in 1888.
It designs, manufactures, and sells high-reliability electrical components essential for building power grid infrastructure and managing industrial and commercial power, and is a leading power infrastructure beneficiary listed on the NYSE.
| segment | Sales (USD) | Converted to Korean Won | specific gravity |
|---|---|---|---|
| Utility Solutions (HUS) | $3,700M | Approximately 5.5759 trillion won | ~64% |
| Electrical Solutions (HES) | $2,100M | Approximately 3.1647 trillion won | ~36% |
| Total (FY2025) | $5,800M | Approximately 8.7406 trillion won | 100% |
Core Product: Power grid poles, insulators, transformer hardware, connectors (HUS), electric panels, circuit breakers, wiring devices, industrial lighting (HES), smart grid communication and control systems.
Business Model: Focusing on direct hardware sales, major B2B clients include utility companies, EPC firms, and data center operators.
Competitive Landscape: Eaton (ETN), nVent Electric (NVT), and Emerson Electric (EMR) are the major competitors, and Hubbell maintains a differentiated position as a provider specializing in T&D infrastructure.
Key terms to know before Hubbell analysis
- T&D (Transmission & Distribution)
- It refers to the entire infrastructure for power transmission (high-voltage long-distance transport) and distribution (low-voltage allocation to demand centers). It is a core market for Hubbell Utility Solutions and a direct beneficiary of U.S. grid modernization investments.
- EPC (Engineering, Procurement, Construction)
- It refers to a comprehensive contractor that performs design, procurement, and construction in a single package. As a key B2B client type for Hubbell, it handles construction projects for power plants, substations, and data centers.
- FCF Conversion Rate (Free Cash Flow Conversion)
- It is the ratio of free cash flow (FCF) to adjusted net income. Hubbell is demonstrating high cash generation ability by providing guidance for the FY2026E 90%+ FCF conversion rate.
- EBITDA
- It is Earnings Before Interest, Taxes, Depreciation, and Amortization. As a standard criterion for valuing a company at a fair price, an NSI acquisition corresponds to ~15.5x EBITDA.
- Hyperscaler
- It refers to mega-scale cloud data center operators such as AWS (Amazon), Azure (Microsoft), and GCP (Google). As a key demand source for AI data center electrical equipment, it is an important catalyst for Hubbell's growth.
- Grid Modernization
- It is an infrastructure investment program to digitize and upgrade aging power grids. Investment in U.S. power grid modernization is expected to surge between 2025 and 2030, becoming a key growth driver for Hubbell’s Utility Solutions segment.
Hubbell Recent Q4 Earnings Analysis
Quarterly sales trends
| branch | Sales (USD) | Converted to Korean Won | YoY growth | Adjustment Op Margin |
|---|---|---|---|---|
| Q2 2025 | $1,484.3M | Approximately 2.2367 trillion won | +2.2% | ~21.3% |
| Q3 2025 | ~$1,477M | Approximately 2.2258 trillion won | +4.0% (Organic +3%) | 23.9% |
| Q4 2025 | ~$1,474M | Approximately 2.2213 trillion won | +4.3% | n/a |
| Q1 2026 ✅ | $1,520M | Approximately 2.2906 trillion won | +11.1% | 19.8% |
Q1 2026 exceeded the revenue forecast (1,500M) with the addition of the effect of price increases to the organic growth rate of 8.21T3T.
The adjusted operating margin was 19.81 TP3T, an improvement of 110 bps compared to the same period last year. Due to seasonality, Q1 is the quarter with the lowest margin for Hubbell, peaking in Q3 (23.91 TP3T) and fluctuating throughout the year.
The details of the Q1 2026 performance are Hubbell 10-Q filed with the SECYou can check it at.
Adjusted EPS Trend
| branch | Adjusted EPS | Converted to Korean Won | YoY growth |
|---|---|---|---|
| Q2 2025 | ~$4.91 | Approximately 7,399 won | +11% |
| Q3 2025 | $5.17 | Approximately 7,791 won | n/a |
| Q4 2025 | $4.73 | Approximately 7,127 won | +15% |
| Q1 2026 ✅ | $3.93 | Approximately 5,922 won | +16% |
Q1 2026 adjusted EPS of 3.93 (approx. 5,922 KRW) exceeded the market estimate of 3.87, recording an earnings surprise.
Hubbell's Q1 2026 earnings report details are SEC 8-K filingIt can be checked at.
Annual profitability and FCF
| characteristic | Figure (USD) | Converted to Korean Won |
|---|---|---|
| FY2025 Total Revenue | $5,800M | Approximately 8.7406 trillion won |
| FY2025 Net Profit | $887.1M | Approximately 1.337 trillion won |
| FY2025 FCF | $874.7M | Approximately 1.3183 trillion won |
| Cash and cash equivalents | $482.5M | Approximately 727.1 billion won |
| Total debt | $2,325M | Approximately 3.5038 trillion won |
| Debt-to-Equity Ratio (D/E) | 0.53 | – |
| Current ratio | 1.72 | – |
FY2025 free cash flow $874.7M (approx. 1.3183 trillion KRW) demonstrates Hubbell's exceptional cash generation ability.
⚠️ Changes in Debt After NSI Acquisition: Upon completion of the NSI $3.0B (approx. 4.521 trillion KRW) cash acquisition, total debt is expected to surge to approximately $4,843M (approx. 7.2976 trillion KRW), raising Net Debt/EBITDA to about 3.0x.
Hubbell Fair Value Analysis (DCF/Multiple)
Current valuation indicators
| characteristic | Hubbell (HUBB) | note |
|---|---|---|
| The current price | $470 (approx. 708,290 won) | As of May 18, 2026 |
| Market capitalization | $25.1B (approx. 37 trillion 825.7 billion won) | |
| TTM Adjustment P/E | 25.1x | Based on TTM adjusted EPS $18.74 |
| Forward P/E | 24.0x | Based on FY2026E Adjusted EPS $19.575 |
| Historical average P/E | 23.5x (10 years) / 25.7x (5 years) | GuruFocus / FullRatio |
| P/B | ~5.7x | Based on estimated equity of $4.4B |
| P/S | ~4.3x | Based on FY2025 revenue of $5.8B |
| Dividend yield | ~1.21% | Annual Dividend $5.68 (approx. 8,560 KRW) |
The current Forward P/E of 24.0x is slightly lower than the 5-year average (25.7x), making it somewhat discounted from a historical perspective.
However, compared to intrinsic value based on DCF, it is still in a range where a premium is paid.
DCF Analysis (Assumptions Disclosure)
| DCF assumption items | Base | Bull | Bear | reason |
|---|---|---|---|---|
| Discount rate (WACC) | 9.0% | 8.5% | 10.0% | Beta ~1.0, Rf 4.5%, ERP 5.5% |
| End-of-life value growth rate (g) | 3.0% | 3.5% | 2.5% | Long-term GDP + Inflation |
| forecast period | 5 years | 5 years | 5 years | |
| Base FCF (FY2026E) | $940M | $1,175M | $752M | FY2026E FCF × 1.0/1.25/0.80 |
DCF calculation formula: Fair Value = Σ [FCFₜ / (1+WACC)ᵗ] + Terminal Value / (1+WACC)ᴺ
| scenario | Fair price per share (USD) | Converted to Korean Won |
|---|---|---|
| Base | $390~$450 | Approximately 587,730 won ~ 678,150 won |
| Bull | $500~$580 | Approximately 753,500 won ~ 873,860 won |
| Bear | $310~$360 | Approximately 467,170 won ~ 542,520 won |
The DCF-based base fair price of $390~$450 (approx. 587,730~678,150 won) is slightly lower than the current stock price of $470 (approx. 708,290 won).
This suggests that Hubbell is trading in a premium valuation range, but Hubbell's 24x is relatively cheap compared to competitors Eaton (31.9x) and nVent (33.9x).
Valuation Assessment: Fairly Valued ~ Slightly Overvalued
Hubbell vs. Competitor Comparison
| item | Hubbell (HUBB) | ETN | nVent(NVT) | Emerson Electric (EMR) |
|---|---|---|---|---|
| Market capitalization | $25.1B (approx. 37.8 trillion won) | $156.4B (approx. 235.7 trillion won) | ~$14B (approx. 21.1 trillion won) | ~$65B (approx. 97.9 trillion won) |
| TTM Sales | ~$5.96B | ~$24B | ~$4.0B | ~$17B |
| YoY sales growth | ~5.5% | ~10% | ~27.7% | ~5% |
| Adjustment Op Margin | ~22% | ~24% | ~19% | ~26% |
| Forward P/E | 24.0x | 31.9x | 33.9x | ~25x |
| Key differentiators | T&D Specialization + Data Center | Diversified large-scale power management | High growth specialized in data centers | Automation + Software Transformation Focus |
Hubbell is at a Forward P/E of 24.0x ETNIt is trading at a lower valuation compared to (31.9x) and nVent (33.9x).
Hubbellman's core competitive advantage is its specialized portfolio of T&D infrastructure and market dominance in its utility customer base.
Following the completion of the NSI acquisition, competition with nVent in the data center and industrial electrical components market is expected to intensify.
Hubbell Growth Outlook and Key Drivers
| period | sales | YoY growth |
|---|---|---|
| FY2024 | ~$5.6B | ~+4% |
| FY2025 | $5.8B | +4% |
| FY2026E (Guidance) | $6.2~6.3B | +7~9% |
Key growth drivers
1. Grid Modernization: The demand for replacing the aging U.S. power grid is surging between 2025 and 2030.
According to NERC forecasts, U.S. power demand is expected to grow by 2 to 31 TP3T per year until 2030, which leads to increased demand for the replacement and installation of transmission and distribution equipment.
2. AI Data Center Power Infrastructure: NVIDIA (NVDA) Hyperscaler's large-scale CapEx investment in AI data centers due to the surge in GPU demand is continuing into 2026.
The scale of power distribution infrastructure required to construct one data center building has increased several times compared to the past, and, Vertiv (VRT) Demand for Hubbell's high-reliability electrical equipment is expanding alongside cooling and power solution companies.
3. Revenue contribution from the acquisition of NSI Industries: The acquisition of NSI, scheduled for completion in mid-2026, is expected to add $570M (approx. 859 billion KRW) in annual revenue (partially contributing in the second half of 2026).
4. Sustained effect of price increase: Q1 2026 revenue growth of 11.1% is partly due to strategic price increases, and the increase in costs is being continuously passed on.
| Growth rate components | 값 | source |
|---|---|---|
| Past CAGR (3 years) | 4.5% | Estimate based on SEC annual reports |
| Analyst consensus | 8.5% | Median of company guidance 7–91 TP3T |
| industrial growth rate | 10% | T&D + Data Center Infrastructure Market |
| Weighted growth rate | 7.2% | Past × 0.4 + Consensus × 0.4 + Industry × 0.2 |
Hubbell 12-Month Target Price Scenario
| scenario | home | Target Price (USD) | Converted to Korean Won | Expected rate of return |
|---|---|---|---|---|
| Base | P/E 25.5x × $19.575 | $500 | Approximately 753,500 won | +6.4% |
| Bull | P/E 29x × $19.575 | $570 | Approximately 858,990 won | +21.3% |
| Bear | P/E 20x × $19.575 | $380 | Approximately 572,660 won | -19.1% |
Scenario Weights and Rationale
Hubbell's probability by scenario Basic 45% / Bullish 25% / Bearish 30%Set it to.
While strong structural growth drivers such as power grid modernization and power demand for AI data centers are clear, integration risks persist as the $3.0B (approx. 4.521 trillion KRW) acquisition of NSI raises debt to a Net Debt/EBITDA ratio of approximately 3.0x.
In addition, as the current stock price is in a premium range that already exceeds the upper limit of the DCF fair value, the bearish weighting was raised from the standard 251 TP3T to 301 TP3T to more faithfully reflect the risk of increased financial leverage.
Calculation of expected rate of return
Expected Rate of Return = 0.45 × 6.4% + 0.25 × 21.3% + 0.30 × (-19.1%) = 2.88% + 5.33% – 5.73% = 2.48% + Dividend Yield 1.21% ≈ 3.7% (Total Expected Return)
The total expected return of 3.71 TP3T is within the Hold (0~151 TP3T) range.
Hubbell's Recent Major Issues
Q1 2026 Earnings Surprise (April 30, 2026)
Hubbell announced Q1 2026 adjusted EPS 3.93 (exceeding estimate 3.87) and revenue 1,520M (approx. 2.2906 trillion KRW, exceeding estimate 1,500M).
Accordingly, the FY2026 adjusted EPS guidance was raised to 19.30–19.85.
The stock price fell in the short term immediately after the earnings announcement, but this is interpreted as reflecting concerns about the financial burden resulting from the acquisition of NSI.
NSI Industries Announces Acquisition of $3.0B (May 4, 2026)
Hubbell Signed an agreement to acquire NSI Industries for 1.0 billion KRW (approximately 4.521 trillion won).did.
NSI is a leading company in electrical fittings, connectors, components, and wiring management products, significantly strengthening Hubbell’s Electrical Solutions portfolio in the data center, network infrastructure, and industrial markets.
The acquisition price is approximately 15.5 times 2026E EBITDA, and is scheduled for completion in mid-2026.
Power grid demand to remain strong in 2026
Investment in the U.S. power grid is continuously expanding along with the increase in power demand from data centers.
UBS maintains a neutral opinion on Hubbell, forecasting organic revenue growth of 61 TP3T in 2026 (slightly conservative compared to the consensus of 71 TP3T).
Key Risks When Investing in Hubbell
1. NSI Acquisition Integration Risk
Risk: $3.0B (approx. 4.521 trillion KRW) Debt surges due to large-scale cash acquisition, uncertainty regarding post-acquisition synergy realization.
Mechanism of influence: Delayed integration or failure to meet expected synergies will result in EPS dilution and a 3.0x increase in Net Debt/EBITDA, creating downward pressure on the credit rating.
Monitoring Indicators: Quarterly Adjusted EBITDA Improvement Rate, Consolidation Cost Trends, S&P/Moody's Credit Rating Changes.
2. Risk of economic recession and reduced capital expenditure
Risk: Cuts in CapEx for Utility and Industrial Customers During U.S. Economic Slowdown.
Mechanism of influence: Short-term earnings shock caused by simultaneous slowdown in orders in both Utility Solutions and Electrical Solutions segments and inventory adjustments.
Monitoring Indicators: US ISM Manufacturing PMI, Utility CapEx Budget Disclosures, Backlog Change Rate Compared to Previous Quarter.
3. Valuation Risk
Risk: The Forward P/E of 24x is a premium level that already exceeds the upper end of the DCF fair price ($450, approximately 678,150 won).
Mechanism of influence: Stock price could plummet due to multiple compression if earnings guidance is lowered or market risk appetite decreases.
Monitoring Indicators: Change in S&P 500 sector average P/E, whether Hubbell guidance is raised or lowered, and interest rate direction.
4. Raw Material and Supply Chain Risks
Risk: Soaring prices of key raw materials such as copper and aluminum, and supply chain disruptions.
Mechanism of influence: Margin pressure due to rising costs and short-term decline in gross margin when price pass-through occurs.
Monitoring Indicators: LME copper futures prices, ASP changes by product, quarterly gross margin trends.
5. AI Data Center CapEx Cycle Risk
Risk: AI Data Center Investment Bubble Collapse or Speeding Up.
Mechanism of influence: Sharp decline in Electrical Solutions data center demand due to Hyperscaler's CapEx cuts undermines synergies from NSI acquisition.
Monitoring Indicators: AWS/Azure/GCP Quarterly CapEx Disclosures, Data Center Construction Starts, New Electrical Equipment Orders.
Hubbell Investment Opinion Conclusion
| item | detail |
|---|---|
| Investment opinion | Hold (Neutral) |
| Confidence | Medium |
| Basic target price | $500 (approx. 753,500 won) |
| Bullish target price | $570 (approx. 858,990 won) |
| Weak target price | $380 (approx. 572,660 won) |
| Total expected rate of return | ~3.71 TP3T (Capital Gains 2.481 TP3T + Dividends 1.211 TP3T) |
| Time horizon | 12 months |
| Position Offer | Maintain existing holdings / Consider new purchases if the price corrects below $440 (approx. 663,080 KRW). |
Hubbell is a long-term beneficiary of demand for power grid and data center infrastructure and has excellent FCF generation capabilities.
However, increased leverage due to the acquisition of NSI and a premium valuation relative to the DCF fair value limit aggressive buying at this point.
A reassessment is appropriate after verifying the progress of NSI integration and the pace of debt reduction.
※ This report is for investment reference purposes only, and investment decisions and the resulting profits or losses are the sole responsibility of the investor. Consulting with a professional before investing is recommended.
5 Frequently Asked Questions about Hubbell
Q1. What is Hubbell's (HUBB) 12-month target price?
The target price under the base scenario is $500 (approx. 753,500 KRW). Under the bullish scenario, it is $570 (approx. 858,990 KRW), and under the bearish scenario, it is $380 (approx. 572,660 KRW). The weighted expected return is approximately 3.7%, and the investment rating is Hold (Neutral).
Q2. Why is Hubbell classified as a beneficiary of the power grid and AI data center sectors?
Hubbell’s Utility Solutions (revenue ~641 TP3 T) is a key supplier of transmission and distribution equipment for U.S. power grid modernization investments, while Electrical Solutions supplies distribution equipment for AI Hyperscaler data centers. Following the completion of the NSI acquisition, the proportion of data center and network infrastructure is expected to expand further.
Q3. Is Hubbell's current stock price overvalued or undervalued?
Based on DCF analysis, the current price of $470 (approx. 708,290 KRW) is slightly overvalued compared to the base fair price of $390–$450 (approx. 587,730–678,150 KRW). However, the Forward P/E of 24.0x is relatively cheap compared to Eaton (31.9x) and nVent (33.9x), so overall, the valuation is at a fair to slightly overvalued level.
Q4. Which is more attractive as an investment, Hubbell or Eaton (ETN)?
While Eaton (~101 TP3T) has a higher revenue growth rate than Hubbell (~7.21 TP3T), Hubbell (24x) is cheaper than Eaton (31.9x). Hubbell is more suitable if you prefer a pure play on T&D infrastructure and value valuation discounts, whereas Eaton is more suitable if you want a diversified large-cap power management stock.
Q5. What is the biggest risk when investing in Hubbell?
The biggest risks are the integration risk and valuation risk associated with the acquisition of NSI $3.0B (approx. 4.521 trillion KRW). The acquisition of NSI will cause net debt to surge to approximately $4.84B (approx. 7.2936 trillion KRW), and a failure of the integration will result in EPS dilution and pressure for a credit rating downgrade. Monitoring indicators include the quarterly Net Debt/EBITDA ratio and the speed of integration synergy realization.
Sources
- Hubbell Q1 2026 10-Q (SEC EDGAR)
- Hubbell Q1 2026 Earnings Announcement (SEC 8-K)
- Hubbell Announces Acquisition of NSI Industries (GlobeNewswire)
- Alphastreet – HUBB Q1 2026 Deep Dive
- StockAnalysis – HUBB Overview
※ This article was written based on publicly available data with the assistance of AI research tools, and the content was reviewed by the author prior to publication. It is for informational purposes only and does not constitute an investment recommendation.