nVent Electric (NVT) Q4 2024 earnings summary

Executive summary

• Achieved 9% Q4 2024 sales growth to $752M and 13% full-year sales growth to $3.0B, with 7% adjusted EPS growth and strong free cash flow; portfolio transformation advanced with the divestiture of Thermal Management and the Trachte acquisition.

• Infrastructure and energy verticals led growth, while commercial/residential declined and industrial was flat; Data Solutions business grew ~30% in 2024.

• Launched 90 new products in 2024, with innovation driving over 2 points of sales growth.

• Nearly $2B in deployable capital for 2025 following the Thermal Management sale.

Financial highlights

• Q4 adjusted operating income: $158M, up 12%; Q4 adjusted EPS: $0.59, up 7%; Q4 free cash flow: $150M.

• Full-year adjusted operating income: $652M, up 15%; adjusted EPS: $2.49, up 7%; free cash flow: $427M, up 20% with 102% conversion.

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

• Dividend increased to $0.20 per share for Q1 2025.

Outlook and guidance

• 2025 guidance: 8%-10% reported sales growth, 4%-6% organic; adjusted EPS $2.98-$3.08, up 20%-24%.

• Q1 2025: organic sales growth flat to 2%, adjusted EPS $0.65-$0.67.

• Free cash flow conversion expected at 95%-100%.

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