nVent Electric (NVT) Q4 2024 earnings summary

Executive summary

• Achieved 13% full-year sales growth to $3.0B and 7% adjusted EPS growth in 2024, with continued margin expansion and strong free cash flow.

• Completed the sale of the Thermal Management business and acquired Trachte, focusing the portfolio on core electrical solutions and infrastructure.

• Rebranded business segments to Systems Protection and Electrical Connections, reflecting expanded offerings.

• Data Solutions business grew ~30% in 2024, now ~20% of sales; power utilities now ~10% of sales.

• Positioned for strong 2025 growth with nearly $2B available for capital deployment.

Financial highlights

• Q4 2024 sales reached $752M, up 9% year-over-year; organic sales down 1% due to inventory adjustments.

• Q4 adjusted operating income rose 12% to $158M; return on sales improved by 50 bps to 21%.

• Full-year adjusted operating income grew 15% to $652M; adjusted return on sales 21.7%, up 50 bps.

• Adjusted EPS for 2024 was $2.49, up 7%; free cash flow was $427M, up 20% with 102% conversion of adjusted net income.

• Gross margin for 2024 at 40.2%, nearly flat year-over-year.

Outlook and guidance

• 2025 guidance: 8–10% reported sales growth (4–6% organic), adjusted EPS $2.98–$3.08 (up 20–24%), and free cash flow conversion of 95–100%.

• Q1 2025 organic sales growth expected flat to 2%; adjusted EPS $0.65–$0.67, up 7–10% year-over-year.

• Acquisitions to add ~5% to 2025 sales growth; FX expected to be a 1-point headwind.

• Secular trends in electrification, sustainability, and digitalization expected to drive demand.