Electrical equipment maker Hubbell raised its full-year profit forecast on Tuesday, betting on strong demand for products used by data centers needed for artificial intelligence.
The development of data centers is a crucial step in building key infrastructure required for tackling complex tasks employed by generative AI.
The Connecticut-based company, which makes and sells products including wiring and lighting systems, expects 2025 adjusted profit to be between $17.65 and $18.15 per share, compared with its earlier forecast of $17.35 to $17.85 per share.
Net sales in its electrical solutions segment, which sells wiring devices and other electrical products, rose 4% during the second quarter, "driven by strength in data center markets".
Its utility solutions segment posted net sales increase of 1%. That was aided by 7% growth in the power grid infrastructure end-markets, which offset a decline in sales for grid automation products during the quarter.
The company's total net sales for quarter ended June 30 was $1.48 billion, up 2.2% from a year earlier. Analysts on average estimated $1.51 billion, according to data compiled by LSEG.
It posted an adjusted profit of $4.93 per share, compared with the estimate of $4.41 per share.
