nVent Electric (NVT) 45th Annual William Blair Growth Stock Conference summary

Portfolio Transformation and Growth Strategy

• Completed sale of thermal management business, focusing on electrical infrastructure with two new segments: systems protection and electrical connections.

• Infrastructure now represents over 40% of revenue, up from 12% at spin, with data solutions and power utilities each at about 20%.

• Eight acquisitions since 2018, including TRACHTE and Avail EPG, have expanded capabilities and backlog, providing strong visibility into 2026 and beyond.

• Over 75 new products are expected to launch in 2025, with product vitality projected above 22%, and a record number of new data solutions products planned for the second half of 2025.

• Focus remains on North American growth, but global expansion is a strategic priority.

Innovation and Competitive Advantages

• Core technology platforms serve multiple verticals, including cable management, control buildings, equipment protection, power connections, and power management.

• Leadership in liquid cooling for data centers, with the largest installed base and expanding applications in battery storage and industrial sectors.

• Collaborations with major chipmakers like NVIDIA and AMD inform product roadmaps and innovation, supporting double-digit growth in data solutions.

• Emphasis on sustainability, digitalization, and electrification trends, with products supporting customers' sustainability goals.

• Manufacturing expertise and supply chain agility enable rapid scaling and high product reliability.

Financial Performance and Capital Allocation

• 2024 net sales reached $3.0B, with adjusted EPS of $2.49 and free cash flow of $427M; return on sales improved by 50bps to 21.7%.

• Strong cash flow conversion and disciplined capital allocation, with a leverage ratio target between 2 and 2.5.

• Margin expansion opportunities in both segments through new product launches, productivity, and acquisition integration.

• Pricing actions and supply chain management offset tariff impacts, with $120 million estimated impact primarily from steel.

• Guidance raised for the year, expecting more price-driven growth and high single-digit revenue growth in the back half.