nVent Electric (NVT) investor relations material

Executive summary

• Achieved record Q3 sales exceeding $1.05 billion, with adjusted EPS up 44% to $0.91, both above guidance, driven by strong demand in data centers, infrastructure, and power utilities.

• Organic orders grew 65% year-over-year, and backlog reached all-time highs, supported by large AI data center projects and portfolio transformation.

• Major acquisitions, including Trachte and Electrical Products Group, contributed significantly to growth and portfolio expansion.

• Sale of the Thermal Management business completed in January 2025, resulting in a $435.3 million pre-tax gain and $1.59 billion net cash proceeds.

• Strong cash flow and a healthy balance sheet support ongoing investments in growth, capacity expansion, and new product launches.

Financial highlights

• Q3 2025 net sales reached $1.054 billion, up 35% year-over-year; organic sales up 16%; adjusted operating income grew 27% to $213 million.

• Adjusted EPS was $0.91, up 44%; reported EPS from continuing operations was $0.73, up 55% year-over-year.

• Free cash flow for Q3 was $253 million, up 77% year-over-year; gross margin was 37.4%, down from 39.8% in Q3 2024.

• Acquisitions contributed $139 million to sales (18 points of growth); FX was a 1-point tailwind.

• Net income from continuing operations for Q3 2025 was $119 million, a 50.8% increase year-over-year.

Outlook and guidance

• Raised full-year 2025 sales growth guidance to 27–28%, with organic growth of 10–11%; adjusted EPS guidance increased to $3.31–$3.33.

• Q4 2025 reported sales expected to grow 31–33%, with organic growth of 15–17%; adjusted EPS forecasted at $0.87–$0.89.

• Free cash flow conversion expected at 90–95%; capex for 2025 expected at ~$110 million.

• Tax rate expected at ~22%; net interest expense ~$75 million for the year.

• Management expects continued sales growth driven by electrification, sustainability, and digitalization trends.