nVent Electric (NVT) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 sales of $1.24 billion, up 53% year-over-year, with organic sales up 34%, driven by strong infrastructure and data center demand and the Electrical Products Group acquisition.

• Adjusted EPS rose 63% to $1.09; net income from continuing operations increased 61.4% to $140.4 million.

• Backlog reached a record $2.6 billion, with organic orders up ~40% year-over-year, led by data centers.

• Portfolio transformation and acquisitions, notably EPG, accelerated growth and increased infrastructure exposure to over 55% of sales.

• Investments in new products, capacity expansion, and innovation, including the opening of the Blaine facility and launch of 11 new products, supported scaling to meet demand.

Financial highlights

• Q1 sales reached $1,242 million, up 53% year-over-year; organic sales grew 34%; adjusted operating income rose 53% to $249 million.

• Free cash flow increased 21% to $54 million; gross profit was $445.6 million, though gross margin declined by 2.9 points due to inflation and mix.

• Adjusted return on sales held at 20.0% year-over-year; reported ROS was 15.8%.

• Acquisitions contributed $138 million to sales (17 points of growth); foreign exchange added two points.

• Adjusted tax rate was ~22%; effective tax rate for Q1 was 20.6%.

Outlook and guidance

• Raised full-year 2026 reported sales growth guidance to 26–28%, with organic growth expected at 21–23%.

• Full-year adjusted EPS guidance increased to $4.45–$4.55; GAAP EPS guidance to $3.68–$3.78.

• Q2 2026 reported sales growth forecasted at 28–30%, with organic growth of 23–25%; adjusted EPS expected between $1.12 and $1.15.

• Free cash flow conversion expected at 90–95%; capex for 2026 projected at ~$130 million.

• Management anticipates ongoing sales growth despite inflationary pressures and supply chain challenges, driven by electrification, sustainability, and digitalization trends.