Strong Q4 Financial Performance
Net sales of $1.493 billion in Q4, up 12% year-over-year (9% organic, 3% acquisitions); adjusted operating profit of $349 million, up 19% YoY; adjusted operating margin expanded by 140 basis points; adjusted diluted EPS of $4.73, up 15% YoY; Q4 free cash flow of $389 million.
Robust Full-Year Cash Generation and Returns
Full-year 2025 free cash flow of $875 million representing ~90% conversion of adjusted net income; 2025 free cash flow margin of 15%; return on invested capital of 19%; net debt to EBITDA of 1.3x exiting the year, supporting reinvestment and shareholder returns.
Utility Solutions Delivered Double-Digit Infrastructure Growth
Utility Solutions Q4 net sales of $936 million, up 10% YoY (7% organic, 4% acquisitions); grid infrastructure organic growth of ~12% in Q4; HUS adjusted operating profit of $235 million, up 20% YoY, and adjusted operating margin expansion of 200 basis points; management expects 5%–7% organic growth for Utility Solutions in 2026.
Electrical Solutions Outperformed, Led by Data Center Demand
Electrical Solutions Q4 net sales of $557 million with 13% organic growth; data center end market growth exceeded 60% in Q4 and was ~40% for the full year; full-year HES organic growth ~7% and adjusted operating profit growth ~14%; HES full-year adjusted operating margins reached 20% for the first time; management expects Electrical Solutions organic growth of 4%–6% in 2026 with data center expanding mid-teens.
Strategic M&A and Capacity Investments
Closed high-growth, margin-accretive DMC Power acquisition (management expects ~ $130 million revenue with ~40% operating margins in 2026 net of integration costs); invested in automation (e.g., Burndy) and capacity expansions that reduced processing times and increased output for high-growth SKUs.
2026 Company Outlook — Growth and Cash Conversion
2026 guidance: 7%–9% total sales growth, adjusted EPS $19.15–$19.85, and ~90% free cash flow conversion on adjusted net income; midpoint contemplates ~10% year-over-year adjusted operating profit growth and further margin expansion through price and productivity.
Effective Price/Cost/Productivity Execution
Company reported positive price-cost productivity in Q4, successfully realizing incremental price actions (about three points of price for the year) and offsetting mid-single-digit inflation pressures through pricing, productivity and restructuring initiatives.