Hubbell Incorporated: A Secular Compounder with a Robust Regulatory Moat

Hubbell Incorporated is a critical player in the US electrical grid, positioned to benefit from the need to modernize aging infrastructure. The company operates in duopoly-like niches, providing transformers, connectors, and substation equipment essential for keeping the grid operational under stress from hyperscale data centers and AI-driven power demand. With 90% free cash flow conversion and a robust regulatory moat, Hubbell consistently generates high-quality earnings and demonstrates disciplined vertical integration. The investment case rests on a binary outcome: either the grid fails or it is rebuilt, and Hubbell sits at the heart of that rebuild, offering investors a combination of high-quality cash flow, secular growth, and near-insurmountable competitive advantages.