NVent Electric : Q1 2026 Earnings Presentation

Published: 2026-05-01 06:33:06 ET NVT

Published on 05/01/2026 at 06:33 am EDT

Earnings Presentation

May 1, 2026

Delivered record quarterly sales of $1.2B, up 53%, and adjusted EPS of $1.09, up 63%; well ahead of guidance

Organic orders growth of ~40%; record backlog of $2.6B

Broad based data center growth, led by liquid cooling

Strong balance sheet and disciplined capital allocation

Outstanding start to the year and well-positioned for continued value creation

Raising full-year sales and EPS guidance

Q1 2026

Record quarterly sales of $1.2 billion, up 53% and 34% organically

Adjusted operating income of $249 million, up 53%; ROS of 20.0%

Adjusted EPS of $1.09, up 63%

Free cash flow generation of $54 million, up 21%

Highlights

Organic growth in all verticals, led by Infrastructure, including data centers and power utilities

~40% organic order growth year-over-year; $2.6 billion in backlog, low double-digit sequential growth

New products contributed >20 points to sales growth

EPG acquisition performed ahead of expectations

2026

Trends

Electrification, sustainability and digitalization secular trends expected to drive demand

Infrastructure vertical expected to lead with strong growth in data centers and power utilities

On track for another record year

More focused, higher growth electrical company driven by high-growth verticals and new products

Strong, consistent track record of M&A and value creation

Electrical

Products Group

Renewables

Industrial

Data Centers

Commercial & Infrastructure

Power Utilities, Data Centers, Renewables

Thermal Power Utilities,

Management Data Centers,

Divestiture Renewables

Data Centers Industrial

2025

2024

2023

2021

2020

2019

26%

Commercial/Resi

12%

Infrastructure

16%

Energy

46%

Industrial

At-Spin Sales

2025 Sales

Q1 2026 Vertical Mix

32%

Industrial

23%

Commercial/Resi

45%

Infrastructure

Infrastructure: 56%

Industrial: 25%

Comm/Resi: 19%

Q1 '26 Earnings

2025 Industrial includes 2 percentage points from Energy vertical Opportunity analysis is based on nVent internal estimates

Total opportunity expanded from ~$60B to ~$130B

Sales ($M) Adjusted Operating Income ($M) Adjusted EPS

$1,242

$809

+34%

Organic

$249

$162

$1.09

$0.67

Q1 2025 Q1 2026

Financial Highlights (YoY)

Sales up 53%, organically up 34%

Acquisitions 17 points; FX 2 points

Adjusted operating income up 53%

ROS of 20.0%, flat YoY

Price and productivity offset inflation, including tariffs

Strong financial performance with broad-based growth

Continued investments for growth

Free cash flow of $54M, up 21%

Other items

Adjusted tax rate of ~22%

Net interest expense of ~$17M

Shares of ~164M

($M)

Sales Segment Income Commentary

Systems Protection

$895

Up 76%

Up 50% organic

Electrical Connections

$347

Up 15%

Up 8% organic

$203

Up 95%

ROS 22.7% (+220 bps)

$85

Flat

ROS 24.4% (-390 bps)

+ Organic sales growth across all verticals; led by Infrastructure

+ Strong growth in data center sales, orders and backlog

+ Strong organic sales growth in Americas

+ ROS expansion from strong execution

+ Organic sales growth across all verticals; led by Infrastructure

+ Strong sales growth in data centers and power utilities

+ Organic sales growth in all geographies

Infrastructure leading growth across both segments

- ROS impacted by inflation

Q1 2026

Net Income $ 140

Cash Flow ($M)

Subtotal $ 181

Amortization Depreciation

Free Cash Flow $ 54

Capital Expenditures Working Capital Other

(36)

(128)

Debt Summary ($M)

$1,565

Maturity

$1,300

83% Fixed

$500 @ 2028

$300 @ 2031

$500 @ 2033

$265

17% Variable

2030

Q1 '26

Weighted Average Rate ~5%

Note: Does not include $190 of cash on hand at quarter-end and $8 of unamortized debt issuance costs

Debt Rollforward ($M)

Q1 2026

Beginning Debt

$ 1,568

Used (Generated) Cash

(54)

Share Repurchases

Dividends

Debt Borrowings (Repayments)

(3)

Change in Cash / Other

(30)

Ending Debt

$ 1,565

Cash balance of $190M

Q1 2026 D&A of $58M

Healthy balance sheet and liquidity position

$600M available on revolver

Full-year capex of ~$130 million, up ~40%

Investing for growth and supply chain resiliency

Launched 11 new products this quarter

Acquisitions a top priority

Target ROIC > WACC in 3 years

EPG acquisition exceeding expectations

Returned $84 million in cash to shareholders in Q1

Repurchased $50 million of shares in Q1

Disciplined capital allocation focused on growth and returning cash to shareholders

Recently increased quarterly dividend by 5%

Net debt to adjusted EBITDA ratio at 1.5X

Target of 2.0X to 2.5X

Maintain investment grade metrics

Strong liquidity position

Previous Guidance

Sales

Up 15% to 18% reported

Up 10% to 13% organic

Adjusted EPS

$4.00 to $4.15 Up 20% to 24%

Cash

90-95% of adj. net income

Raising full-year guidance, expecting another record year

Other Items

Net interest expense: ~$70M Tax rate: ~22% Shares: ~164M

Updated Guidance

Up 26% to 28% reported

Up 21% to 23% organic

$4.45 to $4.55 Up 33% to 36%

No change

Net interest expense: ~$65M Tax rate: ~22% Shares: ~164M

Secular tailwinds in electrification, sustainability and digitalization

Price and productivity offsetting inflation, including tariffs

Strong backlogs in data centers and power utilities

Investments in new products, capacity and digital

Acquisitions add ~5% to sales growth; FX flat

Corporate costs ~$135M versus ~$130M previously

Incremental tariff impact ~$80M

Capex ~$130M

Depreciation and amortization ~$230M

Reported sales

Up 28% to 30%

$963M

Organic sales

Up 23% to 25%

EPS (reported)

$0.93 to $0.96

$0.65

EPS (adjusted)

$1.12 to $1.15

$0.86

Corporate Cost

~$32M

Tax Rate

~22%

Net interest expense

~$17M

~164M

Acquisitions to add ~5 points to sales; FX flat

Price and productivity offsetting inflation, including tariffs

Expecting a very strong Q2

Continued investments in data centers and power utilities for growth

Achieved 76 employee satisfaction + recommend score from our 2025 Employee Engagement Survey, three points higher than global benchmark

Launched 100% of new products in 2025 without single-use plastic packaging

Reduced normalized CO2e emissions by 24% compared to 2024 through operational efficiency and renewable energy investments

Reached our goal to train 100% of all employees on our Code of Business Conduct and Ethics*

Making continued progress on our sustainability goals

Visit nVent.com/about/sustainability for more information on our 2025 sustainability progress

Q1 '26 Earnings

*As of September 2025, including full- and part-time employees, and excluding contingent workers 12

and temporary employees, employees on leave of absence, and our 2025 acquisition

Record sales, orders, backlog and adjusted EPS in Q1

Portfolio transformation and data centers accelerating growth

Expect strong sales and EPS growth in 2026

Well-positioned with electrification, sustainability and digitalization trends

Q1 '26 Earnings Presentation

Appendix and GAAP to Non-GAAP

Measurements & Reconciliations

nVent Electric plc

Reconciliation of GAAP to non-GAAP financial measures for continuing operations for the year ending December 31, 2026 excluding the effect of adjustments (Unaudited)

Actual

Forecast (1)

In millions, except per-share data

First Quarter

Second Quarter

Full Year

Net sales

$ 1,242.0

Net income from continuing operations

140.4

Provision for income taxes

36.5

Income before income taxes

176.9

Other expense

1.3

Net interest expense

17.5

Operating income

$ 195.7

% of net sales

15.8%

Adjustments:

Restructuring and other

$ 8.9

Acquisition transaction and integration costs

2.8

Intangible amortization

41.1

Adjusted operating income (non-GAAP measure)

$ 248.5

Adjusted return on sales (non-GAAP measure)

20.0%

Adjusted operating income (non-GAAP measure)

$ 248.5

Depreciation

16.8

Adjusted EBITDA (non-GAAP measure)

$ 265.3

Net income from continuing operations

$ 140.4

$ 155

$ 613

Adjustments to operating income

52.8

166

Income tax adjustments

(14.0)

(9)

(39)

Adjusted net income from continuing operations (non-GAAP measure)

$ 179.2

$ 187

$ 740

Diluted earnings per ordinary share

$ 0.86

$0.93 - $0.96

$3.68 - $3.78

Adjustments

0.23

0.19

0.77

Adjusted diluted earnings per ordinary share from continuing

operations (non-GAAP measure)

$ 1.09

$1.12 - $1.15

$4.45 - $4.55

(1) Forecast information represents an approximation

nVent Electric plc

Reconciliation of GAAP to non-GAAP financial measures for continuing operations for the year ended December 31, 2025 excluding the effect of adjustments (Unaudited)

Second

In millions, except per-share data

First Quarter

Quarter

Third Quarter

Fourth Quarter

Full Year

Net sales

$ 809.3

$ 963.1

$ 1,054.0

$ 1,066.7

$ 3,893.1

Net income from continuing operations

87.0

106.7

119.0

115.8

428.5

Provision for income taxes

24.5

31.3

25.2

40.5

121.5

Income before income taxes

111.5

138.0

144.2

156.3

550.0

Other expense

1.1

1.2

(11.6)

(8.2)

Net interest expense

17.4

17.6

20.9

19.1

75.0

Operating income

130.0

156.7

166.3

163.8

616.8

% of net sales

16.1%

16.3%

15.8%

15.4%

15.8%

Adjustments:

Restructuring and other

$ 0.9

$ 3.1

$ 2.7

$ 0.8

$ 7.5

Acquisition transaction and integration costs

3.1

4.3

2.4

4.6

14.4

Intangible amortization

28.2

35.9

41.9

41.1

147.1

Adjusted operating income (non-GAAP measure)

$ 162.2

$ 200.0

$ 213.3

$ 210.3

$ 785.8

Adjusted return on sales (non-GAAP measure)

20.0%

20.8%

20.2%

19.7%

20.2%

Adjusted operating income (non-GAAP measure)

$ 162.2

$ 200.0

$ 213.3

$ 210.3

$ 785.8

Depreciation

13.8

14.4

16.8

15.7

60.7

Adjusted EBITDA (non-GAAP measure)

$ 176.0

$ 214.4

$ 230.1

$ 226.0

$ 846.5

Net income from continuing operations

$ 87.0

$ 106.7

$ 119.0

$ 115.8

$ 428.5

Adjustments to operating income

32.2

43.3

47.0

46.5

169.0

Pension and other post-retirement mark-to-market gain

(12.9)

Income tax adjustments

(7.1)

(9.4)

(16.8)

(1.3)

(33.8)

Adjusted net income from continuing operations (non-GAAP measure)

$ 112.1

$ 140.6

$ 149.2

$ 148.1

$ 550.8

Diluted earnings per ordinary share

$ 0.52

$ 0.65

$ 0.73

$ 0.71

$ 2.60

Adjustments

0.15

0.21

0.18

0.19

0.75

Adjusted diluted earnings per ordinary share from continuing

operations (non-GAAP measure)

$ 0.67

$ 0.86

$ 0.91

$ 0.90

$ 3.35

nVent Electric plc

Reconciliation of Net Sales Growth (GAAP measure) to Organic Net Sales Growth (non-GAAP measure) by Segment for the quarter ended March 31, 2026 (Unaudited)

Organic Currency Acq./Div. Total

Reconciliation of Net Sales Growth (GAAP measure) to Organic Net Sales Growth (non-GAAP measure)

for the quarter ending June 30, 2026 and year ending December 31, 2026 (Unaudited)

Forecast (1)

Q2 Net Sales Growth Full Year Net Sales Growth

Reconciliation of cash from operating activities to free cash flow (Unaudited)

Three months ended

In millions

March 31, 2026

March 31, 2025

Capital expenditures

(36.1)

(21.1)

Proceeds from sale of property and equipment - 1.6

Net cash provided by (used for) operating activities of continuing operations $ 89.9 $ 63.9

Q1 Net Sales Growth

nVent

34.4%

2.1%

17.0%

53.5%

Systems Protection

50.1%

2.2%

23.8%

76.1%

Electrical Connections

7.9%

1.8%

5.6%

15.3%

Organic

Currency

Acq./Div.

Total

Organic

Currency

Acq./Div.

Total

nVent

23 - 25%

28 - 30%

21 - 23%

26 - 28%

(1) Forecast information represents an approximation

Free cash flow (non-GAAP measure)

$ 53.8 $

44.4

Disclaimer

nVent Electric plc published this content on May 01, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2026 at 10:32 UTC.