Hubbell to acquire DMC Power for $825 million

SHELTON, CT - Hubbell Incorporated (NYSE:HUBB), a $22.2 billion market cap company with $5.6 billion in annual revenue, announced Tuesday it has entered into a definitive agreement to acquire DMC Power, LLC for $825 million in cash, subject to customary adjustments. According to InvestingPro data, Hubbell maintains a strong financial health score of GOOD, operating with moderate debt levels. DMC Power, currently owned by Golden Gate Capital, manufactures connector technology systems for utility substation and transmission markets.

The acquisition will expand Hubbell’s offerings in the utility infrastructure sector, particularly as demand grows for substation and transmission equipment driven by load growth, datacenter buildouts, and aging infrastructure replacement. With an EBITDA of $1.34 billion in the last twelve months, Hubbell demonstrates strong operational efficiency. InvestingPro analysis reveals 12 additional key insights about Hubbell’s market position and growth potential, available to subscribers.

DMC Power operates manufacturing facilities in Carson, California and Olive Branch, Mississippi, with distribution centers across North America. The company employs over 350 people and is projected to generate approximately $130 million in revenue and $60 million in EBITDA in 2026.

"DMC Power’s swage connection system offers a strong complement to our existing substation and transmission connector solutions," said Greg Gumbs, President of Hubbell Utility Solutions, in the press release.

Tony Ward, Chief Executive Officer at DMC Power, noted that joining Hubbell would help accelerate industry adoption of the company’s swage technology.

Hubbell plans to finance the transaction through a combination of cash on hand and debt. The company expects the acquisition to be accretive to adjusted earnings per share in 2026.

The transaction is anticipated to close by the end of 2025, pending regulatory approvals and other customary closing conditions.

Stephens Inc. is serving as financial advisor to Hubbell, while Harris Williams and Lincoln International are advising Golden Gate Capital on the transaction.

Hubbell Incorporated, headquartered in Shelton, Connecticut, reported revenues of $5.6 billion in 2024 and manufactures utility and electrical solutions for critical infrastructure. The company has maintained dividend payments for 55 consecutive years, with a current dividend yield of 1.26%. A comprehensive analysis of Hubbell’s financial metrics and future prospects is available in the InvestingPro Research Report, part of the platform’s coverage of over 1,400 US stocks.

In other recent news, Hubbell Inc. reported its second-quarter 2025 earnings, revealing significant growth in earnings per share (EPS) but a slight miss on revenue forecasts. The company achieved an adjusted EPS of $4.93, surpassing the forecast of $4.43, marking an 11.29% surprise. However, revenue came in at $1.48 billion, slightly below the expected $1.51 billion, leading to a 1.99% shortfall. Following these developments, Bernstein raised its price target on Hubbell to $511 from $446, maintaining an Outperform rating due to the strong earnings performance. Mizuho also increased its price target to $475 from $450, citing improved outlooks in the original equipment manufacturer sector and increased grid infrastructure orders. These analysts’ adjustments reflect optimism about Hubbell’s future performance despite the revenue miss. Additionally, Mizuho highlighted that the Telecom segment appears to have stabilized, further supporting a positive outlook. These recent developments underscore the mixed but generally positive sentiment surrounding Hubbell’s financial health.

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