nVent Electric plc Q4 FY2025 earnings call

• 2025 was a record year for sales, EPS, and free cash flow, each growing at or above 30%.
• Transformed portfolio with divestiture of thermal management business and acquisition of EPG, increasing exposure to high-growth infrastructure vertical (45% of annual sales, data centers ~$1B in 2025).
• Fourth quarter was second consecutive quarter with sales over $1B; sales and EPS exceeded guidance; strong orders and backlog (organic orders up ~30%, backlog $2.3B, triple of previous year).
• Launched 86 new products in 2025, contributing ~10 points to sales growth, new product vitality 27%.
• In 2026, expected record performance with reported sales growth 15%-18% and adjusted EPS growth 20%-24%; opened new facility in Blaine, Minnesota for liquid cooling capacity.

Systems Protection: Sales were $737 million, up 58%. Acquisitions contributed 23 points to sales. Organically, sales grew 34% with all verticals growing. Infrastructure grew ~70% due to data centers, industrial up high single digits, commercial resi low single digits. Geographically, Americas and Europe were strong, Asia Pacific down. Segment income was $149 million, up 49%, return on sales 20.3%. Electrical Connections: Sales were $330 million, up 15%. Organic sales grew 8%, EPG acquisition contributed 6 points. Infrastructure led at ~25%, industrial mid-single digits, commercial resi low single digits. Geographically, all regions grew. Segment income was $91 million, up 8%, return on sales 27.6%.

• 2026 reported sales growth expected 15%-18%, adjusted EPS growth 20%-24%.
• Q1 2026 forecasted reported sales growth 34%-36%, adjusted EPS $0.90-$0.93.
• Backlog at $2.3B, triple of previous year, providing confidence in 2026 guidance.

Q: Get color on inflation and growth investments in 2026 guide.

A: Gary Corona says inflation will be offset by price and productivity; Beth mentions inefficiencies from ramping and training new people.

Q: Color on order trends in data center.

A: Beth says data center orders can be lumpy.

Q: Liquid cooling TAM and competition.

A: Beth talks about liquid cooling underpenetrated, new products launched, and scalability.

Q: Color on orders in power and utility.

A: Beth says power utility orders are low double digits but growing synergistically with portfolio.

Q: M&A pipeline.

A: Beth says balance sheet is strong, pipeline is robust and disciplined.