nVent Electric (NVT) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached $809 million, up 11% year-over-year, with double-digit order growth and sequential backlog increase, driven by strong performance in infrastructure, data solutions, and power utilities.

• Adjusted EPS from continuing operations rose 10% to $0.67; free cash flow increased 32% to $44 million.

• Completed the divestiture of the Thermal Management business and closed the Avail Electrical Products Group acquisition, advancing portfolio transformation toward higher-growth electrical infrastructure.

• Net income rose to $360.7 million, including a $273.7 million gain from discontinued operations related to the Thermal Management sale.

• Balance sheet remains strong, supporting disciplined capital allocation and increased guidance for full-year sales and EPS.

Financial highlights

• Q1 sales reached $809 million, up 11% year-over-year; organic sales grew 2%.

• Adjusted operating income increased 4% year-over-year to $162 million; return on sales was 20%.

• Gross margin was 38.8%, down from 39.7% in Q1 2024 due to inflation and capacity investments.

• Diluted EPS from continuing operations was $0.52; total diluted EPS including discontinued operations was $2.16.

• Acquisitions contributed $71 million to sales, or 10 points of growth.

Outlook and guidance

• Full-year 2025 reported sales growth forecast raised to 19%-21%; organic sales growth expected at 5%-7%.

• Adjusted EPS guidance increased to $3.03-$3.13, up 22%-26% year-over-year; GAAP EPS guidance raised to $2.48-$2.58.

• Q2 2025 reported sales expected to grow 22%-24%, with adjusted EPS of $0.77-$0.79.

• Tariff impacts estimated at $120 million for the year, with mitigating actions planned.

• Guidance reflects Avail acquisition, strength in data centers and utilities, and ongoing pricing and productivity actions.