nVent Electric (NVT) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached $809 million, up 11% year-over-year, with organic growth of 2% and double-digit order and backlog growth, driven by infrastructure, data solutions, and power utilities.

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

• Portfolio transformation advanced with the divestiture of the Thermal Management business and acquisitions of Trachte and Avail Electrical Products Group, expanding infrastructure offerings.

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

• Adjusted operating income increased 4% to $162 million; adjusted EPS rose 10% to $0.67.

• Free cash flow was $44 million, up 32% year-over-year.

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

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

Outlook and guidance

• Full-year 2025 reported sales growth expected at 19–21%, organic growth 5–7%; adjusted EPS guidance raised to $3.03–$3.13.

• Q2 2025 reported sales growth expected at 22–24%, organic growth 4–6%; adjusted EPS forecasted at $0.77–$0.79.

• Tariff impacts estimated at $120 million for the year, with mitigation through pricing, productivity, and supply chain actions.

• CapEx for 2025 set at ~$100 million; net interest expense for the year expected at ~$75 million.

• Guidance reflects Avail acquisition, strength in data centers and utilities, and ongoing inflationary pressures.