HUBBELL INC

Previous wording

Hubbell is a global manufacturer of quality electrical products and utility solutions for a broad range of customer and end market applications. We provide utility and electrical solutions that enable our customers to operate critical infrastructure reliably and efficiently, and we empower and energize communities through innovative solutions supporting energy infrastructure In Front of the Meter, on The Edge, and Behind the Meter. In Front of the Meter is where utilities transmit and distribute energy to their customers. The Edge connects utilities with owner/ operators and allows energy and data to be distributed back and forth. Behind the Meter is where owners and operators of buildings, and other critical infrastructure consume energy. Products are either sourced complete, manufactured or assembled by subsidiaries in the United States, Canada, Puerto Rico, Mexico, China, the UK, Brazil, Australia, Spain, and the Republic of the Philippines. The Company also participates in joint ventures in Hong Kong and the Republic of the Philippines, and maintains offices in Singapore, Italy, China, India, Mexico, South Korea, Chile, and countries in the Middle East. The Company employed approximately 18,200 individuals worldwide as of March 31, 2026.

Current wording

Hubbell is a global manufacturer of quality electrical products and utility solutions for a broad range of customer and end market applications. We provide utility and electrical solutions that enable our customers to operate critical infrastructure reliably and efficiently, and we empower and energize communities through innovative solutions supporting energy infrastructure In Front of the Meter, on The Edge, and Behind the Meter. In Front of the Meter is where utilities transmit and distribute energy to their customers. The Edge connects utilities with owner/operators and allows energy and data to be distributed back and forth. Behind the Meter is where owners and operators of buildings, and other critical infrastructure consume energy. Products are either sourced complete, manufactured or assembled by subsidiaries in the United States, Canada, Puerto Rico, Mexico, China, the UK, Brazil, Australia, Spain, and the Republic of the Philippines. The Company also participates in joint ventures in Hong Kong and the Republic of the Philippines, and maintains offices in Singapore, Italy, China, India, Mexico, South Korea, Chile, and countries in the Middle East. The Company employed approximately 19,400 individuals worldwide as of June 30, 2026.

Previous wording

Results for the three months ended March 31, 2026 by segment are included under “Segment Results” within this Management’s Discussion and Analysis.

Current wording

Results for the six months ended June 30, 2026 by segment are included under “Segment Results” within this Management’s Discussion and Analysis.

Previous wording

The following is a discussion and analysis of our business, financial condition and results of operations as of and for the three months ended March 31, 2026 and 2025. This discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and notes thereto in Item 1 of this Quarterly Report on Form 10-Q (the“Condensed Financial Statements”), and the audited consolidated financial statements, accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Current wording

The following is a discussion and analysis of our business, financial condition and results of operations as of and for the three and six months ended June 30, 2026 and 2025. This discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and notes thereto in Item 1 of this Quarterly Report on Form 10-Q (the“Condensed Financial Statements”), and the audited consolidated financial statements, accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Previous wording

First quarter 2026 net sales were$1,516.7 million and increased by 11.1%, driven by an 8.2% increase in organic sales due to favorable price realization and higher volume. Acquisitions contributed to a 2.3% increase in sales, driven by the acquisition of DMC and Nicor in the second half of 2025, while the impact of foreign exchange was a 0.6% increase.

Current wording

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. Acquisitions contributed to a 4.8% increase in sales, driven by the acquisitions of NSI Industries in the second quarter of 2026, and the acquisitions of DMC and Nicor in the second half of 2025, while the impact of foreign exchange was a 0.3% increase.

Previous wording

Organic net sales in the Electrical Solutions segment grew by 10.6% in the first quarter of 2026 led by continued strength in the datacenter vertical. In the Utility Solutions segment, organic net sales expanded 6.8% on strength in transmission and distribution markets.

Current wording

Organic net sales in the Electrical Solutions segment grew by 18.3% in the second quarter of 2026 led by continued strength in the data center, light industrial and non-residential markets. In the Utility Solutions segment, organic net sales expanded 5.5% on strength in transmission and distribution markets.

Previous wording

Operating margin in the first quarter of 2026 expanded by 50 basis points to 17.4% and includes the effect of amortization of acquisition-related intangibles and transaction, integration and separation costs. Adjusted operating margin, which excludes amortization of acquisition-related intangibles and transaction, integration and separation costs, was 19.8% and expanded by 110 basis points. That result includes margin expansion in the quarter, primarily driven by favorable price realization, and benefits from operational productivity and higher unit volume, that was partially offset by margin contraction from material and other cost inflation, including tariff expense. See the further discussion within Segment Results below.

Current wording

Operating margin in the second quarter of 2026 contracted by 230 basis points to 20.4% and includes the effect of amortization of acquisition-related intangibles and transaction, integration and separation costs. 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. 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. See the further discussion within Segment Results below.

Previous wording

On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Power Act ("IEEPA") exceeded presidential authority and were therefore invalid. The IEEPA tariffs were immediately replaced with tariffs under alternative statutory authority, although the scope and duration of future tariffs remain uncertain. We may be entitled to refunds of IEEPA tariffs, though the process and timing for obtaining such refunds remain uncertain. As of March 31, 2026, we have not recorded any impact for potential recovery of IEEPA tariff-related costs as refunds are uncertain.

Current wording

On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Power Act ("IEEPA") exceeded presidential authority and were therefore invalid. The IEEPA tariffs were immediately replaced with tariffs under alternative statutory authority, although the scope and duration of future tariffs remain uncertain.

Previous wording

Transaction costs are primarily professional services and other fees incurred to complete the transactions. Integration and separation costs are the internal and external incremental costs directly relating to these activities for the acquired or divested business.

Current wording

Transaction costs are primarily professional services and other fees incurred to complete the transactions recognized within operating income, as well as $7.2 million of bridge financing costs in connection with the transactions recognized within interest expense. Integration and separation costs are the internal and external incremental costs directly relating to these activities for the acquired or divested business.

Previous wording

The acquisition and integration of DMC Power resulted in significant transaction and integration costs, and the acquisitions and disposition completed by the Company in the fourth quarter of 2023 resulted in a significant increase in transaction, integration and separation costs. As a result, we believe excluding such costs relating to these transactions provides useful and more comparable information for investors to better assess our operating performance from period to period.

Current wording

The acquisition and integration of NSI, DMC Power, and the acquisitions and disposition completed by the Company in the fourth quarter of 2023 resulted in a significant increase in transaction, integration and separation costs. As a result, we believe excluding such costs relating to these transactions provides useful and more comparable information for investors to better assess our operating performance from period to period.

Previous wording

S&A expense in the first quarter of 2026 was $241.5 million and increased by $29.3 million or 13.8% compared to the prior year period. This increase was driven by higher acquisition-related intangible amortization expense, higher transaction and integration costs and the selling and administration expense added by our 2025 acquisitions, as well as higher employee compensation and benefits, in the current year compared to the prior year period. S&A expense as a percentage of Net sales was 15.9% in the first quarter of 2026, compared to 15.5% in the first quarter of 2025.

Current wording

S&A expense in the second quarter of 2026 was $264.4 million and increased by $48.6 million or 22.5% compared to the prior year period. This increase was driven by higher transaction and integration costs, acquisition-related intangible amortization expense, and the selling and administration expense added by our acquisitions, as well as higher employee compensation and benefits, in the current year compared to the prior year period. S&A expense as a percentage of Net sales was 15.4% in the second quarter of 2026, compared to 14.5% in the second quarter of 2025.

Previous wording

Net sales of $1,516.7 million in the first quarter of 2026 increased by $151.5 million compared to the first quarter of 2025. Organic net sales increased by 8.2% driven by a mid single digit percentage increase in price and a mid single digit increase in volumes. Net sales increased 2.3% due to acquisitions, while foreign exchange resulted in a 0.6% increase in net sales. These changes are discussed in more detail in the Segment Results section below.

Current wording

Net sales of $3,228.5 million in the first six months of 2026 increased by $379.0 million compared to the first six months of 2025. Organic net sales increased by 9.2% driven by a mid single digit percentage increase in price and a mid single digit increase in unit volume. Net sales increased 3.6% due to acquisitions, while foreign exchange resulted in a 0.4% increase in net sales. These changes are discussed in more detail in the Segment Results section below.

Previous wording

As a percentage of Net sales, cost of goods sold decreased by 90 basis points to 66.7% in the first quarter of 2026, resulting in gross profit margin expanding to 33.3%. Approximately seven percentage points of gross profit margin expansion were driven by favorable price realization, improved operational productivity and higher volume, partially offset by six percentage points of gross profit margin contraction due to material and other cost inflation, including tariff expense and higher intangible amortization expense.

Current wording

As a percentage of Net sales, cost of goods sold increased by 30 basis points to 65.4% in the first six months of 2026, resulting in gross profit margin contracting to 34.6%. Approximately six percentage points of gross profit margin expansion were driven by favorable price realization, improved operational productivity, higher volume, and the impact of acquisitions, partially offset by six percentage points of gross profit margin contraction due to material and other cost inflation, including tariff expense and higher intangible amortization expense.

Previous wording

Total other expense increased by $8.3 million in the first quarter of 2026 to $27.4 million, primarily due to higher net interest expense of $8.2 million, due to higher average outstanding debt in the first quarter of 2026, primarily driven by Term Loan borrowing of $600 million in the fourth quarter of 2025 to fund a portion of the DMC acquisition.

Current wording

Total other expense increased by $32.1 million in the first six months of 2026 to $72.3 million, primarily due to higher net interest expense of $32.8 million, due to higher average outstanding debt in the second quarter of 2026, primarily driven by additional debt issued to fund the NSI Industries acquisition. Net interest expense in the second quarter of 2026 also includes $7.2 million of bridge financing cost relating to the NSI Industries acquisition.

Previous wording

Net income attributable to Hubbell Incorporated was $181.8 million in the first quarter of 2026 and increased 11.4% as compared to the same period of the prior year, reflecting the factors described above. As a result, earnings per diluted share in the first quarter of 2026 increased 12.5% as compared to the first quarter of 2025. Adjusted net income attributable to Hubbell Incorporated, which excludes amortization of acquisition-related intangible assets and transaction, integration & separation costs for both periods, was $209.9 million in the first quarter of 2026 and increased by 15.1% as compared to the first quarter of 2025.

Current wording

Net income attributable to Hubbell Incorporated was $422.2 million in the first six months of 2026 and increased 3.6% as compared to the same period of the prior year, reflecting the factors described above. As a result, earnings per diluted share in the first six months of 2026 increased 4.6% as compared to the first six months of 2025. Adjusted net income attributable to Hubbell Incorporated, which excludes amortization of acquisition-related intangible assets and transaction, integration & separation costs for both periods and a loss on the disposition of a business in 2025, was $503.6 million in the first six months of 2026 and increased by 12.7% as compared to the first six months of 2025.

Previous wording

Net sales in the Utility Solutions segment in the first quarter of 2026 were $948.9 million, and increased by $91.8 million, or 10.7%, as compared to the first quarter of 2025. That increase was driven by a 6.8% increase in organic net sales, a 3.5% increase due to acquisitions and a 0.4% increase due to foreign exchange. The increase in organic net sales was driven by a mid single digit percentage increase in price realization and a low single digit increase in unit volume. Strong substation, transmission and distribution markets drove volume growth in the quarter, which was partially offset by a decrease in volume within Grid Automation products from weak advanced metering infrastructure and meter project activity compared to the prior year.

Current wording

Net sales in the Utility Solutions segment in the first six months of 2026 were $1,974.7 million, and increased by $182.1 million, or 10.2%, as compared to the first six months of 2025. That increase was driven by a 6.1% increase in organic net sales, a 3.7% increase due to acquisitions and a 0.4% increase due to foreign exchange. The increase in organic net sales was driven by a low single digit percentage increase in price realization and a low single digit increase in unit volume. Strong substation, and distribution markets drove volume growth in the first half of 2026, which was partially offset by a decrease in volume within Grid Automation products from weak advanced metering infrastructure and meter project activity compared to the prior year.

Previous wording

Operating income in the Utility Solutions segment for the first quarter of 2026 was $175.1 million, an increase of 16.1% compared to the first quarter of 2025. Operating margin increased by 90 basis points to 18.5% in the first quarter of 2026. Excluding amortization of acquisition-related intangible assets and transaction, integration & separation costs, the adjusted operating margin increased by 190 basis points to 21.8%. That increase includes approximately six percentage points of margin expansion due to favorable price realization, improved operational productivity, higher unit volumes and the impact of acquisitions. Those increases were partially offset by four percentage points of margin contraction due to material and other cost inflation, including tariff expense.

Current wording

Operating income in the Utility Solutions segment for the first six months of 2026 was $409.0 million, an increase of 10.8% compared to the first six months of 2025. Operating margin increased by 10 basis points to 20.7% in the first six months of 2026. Excluding amortization of acquisition-related intangible assets and transaction, integration & separation costs, the adjusted operating margin increased by 100 basis points to 23.8%. That increase includes approximately five percentage points of margin expansion due to favorable price realization, improved operational productivity, higher unit volume and the impact of acquisitions. Those increases were partially offset by four percentage points of margin contraction due to material and other cost inflation, including tariff expense.

Previous wording

Net sales in the Electrical Solutions segment in the first quarter of 2026 were $567.8 million and increased by $59.7 million, or 11.8%, as compared to the first quarter of 2025. That increase includes 10.6% growth in organic net sales, a 0.9% increase due to foreign exchange and a 0.3% increase due to acquisitions. The increase in organic net sales was driven by a high single digit percentage increase due to price realization and a mid single digit percentage increase in unit volume. Volume growth in the first quarter of 2026 was driven primarily by strength in the datacenter and light industrial markets, partially offset by softness in the heavy industrial markets.

Current wording

Net sales in the Electrical Solutions segment in the first six months of 2026 were$1,253.8 million and increased by$196.9 million, or 18.7%, as compared to the first six months of 2025. That increase includes 14.6% growth in organic net sales, a 3.5% increase due to acquisitions, and a 0.6% increase due to foreign exchange. The increase in organic net sales was driven by a high single digit percentage increase due to unit volume and a mid single digit percentage increase in price realization. Volume growth in the first half of 2026 was driven primarily by strength in the datacenter and light industrial markets, partially offset by softness in the heavy industrial markets.

Previous wording

Operating income in the Electrical Solutions segment for the first quarter of 2026 was $88.7 million and increased by 11.4% compared to the first quarter of 2025, while operating margin in the first quarter of 2026 contracted by 10 basis points to 15.6%. Excluding amortization of acquisition-related intangibles and transaction, integration and separation costs, the adjusted operating margin contracted by 30 basis points to 16.4%. The decrease in operating margin was primarily due to approximately ten percentage points of margin contraction driven by higher material and other cost inflation, including tariff expense and higher restructuring investment. Those factors were partially offset by approximately ten percentage points of margin expansion due to higher price, improved operational productivity and favorable price realization.

Current wording

Operating income in the Electrical Solutions segment for the first six months of 2026 was $203.4 million and increased by 2.9% compared to the first six months of 2025, while operating margin in the second quarter of 2026 contracted by 250 basis points to 16.2%. Excluding amortization of acquisition-related intangibles and transaction, integration and separation costs, the adjusted operating margin contracted by 60 basis points to 19.1%. The decrease in operating margin was primarily due to approximately ten percentage points of margin contraction driven by higher material and other cost inflation, including tariff expense and higher restructuring investment. Those factors were partially offset by approximately nine percentage points of margin expansion due to favorable price realization, improved operational productivity, higher unit volume and the impact of acquisitions.

Previous wording

Cash provided by operating activities for the three months ended March 31, 2026 was$86.6 million compared to cash provided by operating activities of $37.4 million for the same period in 2025. The increase in cash provided by operations is driven by higher net income on the increase in quarter over quarter operating results, higher non-cash depreciation and amortization expense in the first three months of 2026, and an increase of $20 million due to the timing of annual pension plan contributions.

Current wording

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. 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.

Previous wording

Cash used by investing activities was $41.3 million in the three months ended March 31, 2026 compared to cash used of $99.3 million during the comparable period in 2025. This change was driven by approximately $73 million of cash used in the first quarter of 2025 to acquire Ventev, partially offset by a $14.6 million increase in capital expenditures in the first quarter of 2026 compared to 2025.

Current wording

Cash used by investing activities was $3,086.6 million in the six months ended June 30, 2026 compared to cash used of $140.6 million during the comparable period in 2025. This change was driven by approximately $3.0 billion of cash used in the second quarter of 2026 to acquire NSI Industries, and a$11.7 million increase in capital expenditures in the first six months of 2026 compared to 2025.

Previous wording

Cash used by financing activities was $23.4 million in the three months ended March 31, 2026 as compared to cash provided of $75.0 million in the comparable period of 2025. The increase in cash used by financing activities primarily reflects lower proceeds from net borrowings and a $42.5 million increase in share repurchases in the first three months of 2026 compared to the same prior year period.

Current wording

Cash provided by financing activities was $2,651.7 million in the six months ended June 30, 2026 as compared to cash used of $117.5 million in the comparable period of 2025. The increase in cash used by financing activities primarily reflects an increase in borrowings in 2026, including an approximately $2,787.5 million increase in long-term debt borrowings in June 2026 to fund a portion of the NSI Industries purchase price in the second quarter of 2026.

Previous wording

The unfavorable impact of foreign currency exchange rates on cash was $2.7 million for the three months ended March 31, 2026 and the change compared to prior year is primarily related to the U.S. Dollar strengthening against the British Pound and Canadian Dollar.

Current wording

The unfavorable impact of foreign currency exchange rates on cash was $1.2 million for the six months ended June 30, 2026 and the change compared to the same prior year period is primarily related to the U.S. Dollar strengthening against the Canadian Dollar, India Rupee, and British Pound.

Previous wording

During the first quarter of 2026, we invested $40.6 million in capital expenditures on capacity expansion, automation, productivity initiatives and maintenance, and we also continue to invest in restructuring and related programs to maintain a competitive cost structure, to drive operational efficiencies and to mitigate the impact of rising material costs and administrative cost inflation. We expect investments in restructuring and related activities to continue in 2026 as we continue to invest in previously initiated actions and initiatives, further footprint consolidation, and other cost reduction initiatives.

Current wording

In the first six months of 2026, we invested $77.6 million in capital expenditures on capacity expansion, automation, productivity initiatives and maintenance, and we also continue to invest in restructuring and related programs to maintain a competitive cost structure, to drive operational efficiencies and to mitigate the impact of rising material costs and administrative cost inflation. We expect investments in restructuring and related activities to continue in 2026 as we continue to invest in previously initiated actions and initiatives, further footprint consolidation, and other cost reduction initiatives.

Previous wording

The table below presents the restructuring and related costs incurred in the first three months of 2026, additional expected costs, and the expected completion date of restructuring actions that have been initiated as of March 31, 2026 and in prior years (in millions):

Current wording

The table below presents the restructuring and related costs incurred in the first six months of 2026, additional expected costs, and the expected completion date of restructuring actions that have been initiated as of June 30, 2026 and in prior years (in millions):

Previous wording

On February 12, 2025, the Board of Directors approved a stock repurchase program (the “2025 Program”) that authorizes the repurchase of up to $500.0 million of common stock and expires in February 2028. In the first quarter of 2026 the Company repurchased $172.5 million of shares, for which $167.5 million of those repurchases had cash-settled by quarter end. At March 31, 2026, our remaining share repurchase authorization was $327.5 million. Subject to numerous factors, including market conditions and alternative uses of cash, we may conduct discretionary repurchases through open market or privately negotiated transactions, which may include repurchases under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.

Current wording

On February 12, 2025, the Board of Directors approved a stock repurchase program (the “2025 Program”) that authorizes the repurchase of up to $500.0 million of common stock and expires in February 2028. In the second quarter of 2026 the Company repurchased $29.3 million of common stock. At June 30, 2026, our remaining share repurchase authorization was $298.2 million. Subject to numerous factors, including market conditions and alternative uses of cash, we may conduct discretionary repurchases through open market or privately negotiated transactions, which may include repurchases under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.

Previous wording

At March 31, 2026 and December 31, 2025, the Company had $2,037.0 million and $2,036.3 million, respectively, of long-term debt outstanding, net of the unamortized balance of capitalized debt issuance costs. At March 31, 2026, the Company had no long-term debt with maturities due within the next 12 months.

Current wording

At June 30, 2026 and December 31, 2025, the Company had $4,803.9 million and $2,036.3 million, respectively, of long-term debt outstanding, net of the unamortized balance of capitalized debt issuance costs. At June 30, 2026, the Company had no long-term debt with maturities due within the next 12 months.

Previous wording

On September 29, 2025, the Company entered into a Term Loan Agreement (the "2025 Term Loan Agreement") with a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent. On October 1, 2025, the Company borrowed $600 million under the 2025 Term Loan Agreement (the "2025 Term Loan") on an unsecured basis to finance the majority of the purchase price of the DMC Power acquisition. The 2025 Term Loan was made in a single borrowing and will be due and payable on September 29, 2028. The 2025 Term Loan bears interest based on the Term SOFR Rate (as defined in the 2025 Term Loan Agreement), plus an applicable interest addition based on Hubbell's credit ratings. The interest rate on the 2025 Term Loan as of March 31, 2026 was 4.66%. Hubbell also paid to the lenders certain customary fees in connection with the 2025 Term Loan Agreement.

Current wording

On September 29, 2025, the Company entered into a Term Loan Agreement (the "2025 Term Loan Agreement") with a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent. On October 1, 2025, the Company borrowed $600 million under the 2025 Term Loan Agreement (the "2025 Term Loan") on an unsecured basis to finance the majority of the purchase price of the DMC Power acquisition. The 2025 Term Loan was made in a single borrowing and will be due and payable on September 29, 2028. The 2025 Term Loan bears interest based on the Term SOFR Rate (as defined in the 2025 Term Loan Agreement), plus an applicable interest addition based on Hubbell's credit ratings. The interest rate on the 2025 Term Loan as of June 30, 2026 was 4.68%. Hubbell also paid to the lenders certain customary fees in connection with the 2025 Term Loan Agreement.

Previous wording

At both March 31, 2026 and December 31, 2025, the Company had outstanding unsecured, senior notes (the “Notes”) in principal amounts of $300 million due in 2027, $450 million due in 2028, $300 million due in 2031, and $400 million due in 2035.

Current wording

At June 30, 2026, the Company had outstanding unsecured, senior notes (the “Notes”) in principal amounts of $300 million due in 2027, $450 million due in 2028, $300 million due in 2031, $500 million due in 2031, $700 million due in 2033, $400 million due in 2035 and $700 million due in 2036. At December 31, 2025, the Company had outstanding unsecured, senior notes in principal amounts of $300 million due in 2027, $450 million due in 2028, $300 million due in 2031, and $400 million due in 2035.

Previous wording

The carrying value of the Notes, net of unamortized discount and the unamortized balance of capitalized debt issuance costs, was $1,438.0 million and $1,437.4 million at March 31, 2026 and December 31, 2025, respectively.

Current wording

The carrying value of the Notes, net of unamortized discount and the unamortized balance of capitalized debt issuance costs, was $3,307.7 million and $1,437.4 million at June 30, 2026 and December 31, 2025, respectively.

Previous wording

The Company had $536.0 million and $289.1 million of short-term debt at March 31, 2026 and December 31, 2025, respectively, composed of the following:

Current wording

The Company had $568.7 million and $289.1 million of short-term debt at June 30, 2026 and December 31, 2025, respectively, composed of the following:

Previous wording

•$534.0 million of commercial paper borrowings outstanding at March 31, 2026, and $287.0 million of commercial paper borrowings outstanding at December 31, 2025.

Current wording

•$567.0 million of commercial paper borrowings outstanding at June 30, 2026, and $287.0 million of commercial paper borrowings outstanding at December 31, 2025.

Previous wording

•$2.0 million and $2.1 million of other short term debt outstanding at March 31, 2026 and December 31, 2025, respectively, which consisted of amounts outstanding under our commercial card program.

Current wording

•$1.7 million and $2.1 million of other short term debt outstanding at June 30, 2026 and December 31, 2025, respectively, which consisted of amounts outstanding under our commercial card program.

Previous wording

We measure liquidity on the basis of our ability to meet short-term and long-term operational funding needs, to fund additional investments in our business, including acquisitions, and to make dividend payments to shareholders. Significant factors affecting the management of liquidity are cash flows from operating activities, capital expenditures, cash dividend payments, stock repurchases, access to bank lines of credit and our ability to attract long-term capital with satisfactory terms. In the first three months of 2026, we returned capital to our shareholders by paying $75.4 million of dividends on our common stock and using $167.5 million of cash for share repurchases.

Current wording

We measure liquidity on the basis of our ability to meet short-term and long-term operational funding needs, to fund additional investments in our business, including acquisitions, and to make dividend payments to shareholders. Significant factors affecting the management of liquidity are cash flows from operating activities, capital expenditures, cash dividend payments, stock repurchases, access to bank lines of credit and our ability to attract long-term capital with satisfactory terms. 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.

Previous wording

◦Cash flows from operating activities and existing cash resources: In addition to cash flows from operating activities, we also had $501.6 million of cash and cash equivalents at March 31, 2026, of which approximately 16% was held inside the United States and the remainder held internationally.

Current wording

◦Cash flows from operating activities and existing cash resources: In addition to cash flows from operating activities, we also had $378.6 million of cash and cash equivalents at June 30, 2026, of which approximately 35% was held inside the United States and the remainder held internationally.

Previous wording

A summary of our critical accounting estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2025. We are required to make estimates and judgments in the preparation of our financial statements that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures. We continually review these estimates and their underlying assumptions to ensure they are appropriate for the circumstances. Changes in the estimates and assumptions we use could have a material impact on our financial results. During the three months ended March 31, 2026, there were no material changes in our estimates and critical accounting policies.

Current wording

A summary of our critical accounting estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2025. We are required to make estimates and judgments in the preparation of our financial statements that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures. We continually review these estimates and their underlying assumptions to ensure they are appropriate for the circumstances. Changes in the estimates and assumptions we use could have a material impact on our financial results. During the six months ended June 30, 2026, there were no material changes in our estimates and critical accounting policies.

Previous wording

•Impact of and substantial uncertainty regarding the duration of existing and newly announced trade tariffs, import quotas or other trade actions, restrictions or measures taken by the United States, China, Mexico, the United Kingdom, member states of the European Union, and other countries, including the recent and ongoing potential changes in U.S. trade policies, that may be made by the current or a future presidential administration and changes in trade policies in other countries made in response to changes in the U.S. trade policies.

Current wording

•Impact of and substantial uncertainty regarding the duration of existing and newly announced trade tariffs, import quotas or other trade actions, restrictions or measures taken by the United States, China, Mexico, the United Kingdom, member states of the European Union, and other countries, including the recent and ongoing potential changes in U.S. trade policies, that may be made by the current or a future presidential administration and changes in trade policies in other countries made in response to changes in the U.S. trade policies, as well as eligibility for and the timing of anticipated IEEPA tariff refunds.

Previous wording

•Ability to effectively develop and introduce new products.

Current wording

•The ability to effectively develop and introduce new products.

Previous wording

•Continued softness in the grid automation market of Utility Solutions and residential market of Electrical Solutions.

Current wording

•Continued softness in the heavy industrial and residential markets of Electrical Solutions.

Previous wording

•Inability to access capital markets or failure to maintain our credit ratings.

Current wording

•The inability to access capital markets or failure to maintain our credit ratings.

Previous wording

•Ability to carry out future acquisitions and strategic investments in our core businesses as well as the acquisition-related costs.

Current wording

•The ability to carry out future acquisitions and strategic investments in our core businesses as well as the acquisition-related costs.