Yahoo Finance

• Sales: $809 million, up 11% year-over-year; 2% organic growth.

• Acquisitions Contribution: Added $71 million to sales, contributing 10 points to growth.

• Adjusted Operating Income: $162 million, up 4% year-over-year.

• Return on Sales: 20%.

• Adjusted EPS: $0.67, up 10%.

• Free Cash Flow: $44 million, up 32% year-over-year.

• Infrastructure Vertical Sales: Up mid-teens.

• Commercial Resi Sales: Declined low single digits.

• Industrial and Energy Sales: Each down mid-single digits.

• Organic Orders: Up mid-teens.

• Systems Protection Sales: $508 million, up 16%.

• Electrical Connections Sales: $301 million, up 3%.

• Cash on Hand: Over $1.3 billion.

• Debt Repayment: $390 million of term loans repaid.

• Share Repurchases: Approximately $250 million year-to-date.

• Dividend Increase: 5%.

• Full Year Sales Growth Guidance: 19% to 21%.

• Full Year Adjusted EPS Guidance: $3.03 to $3.13, up 22% to 26%.

• Second Quarter Sales Growth Forecast: 22% to 24%.

• Second Quarter Adjusted EPS Forecast: $0.77 to $0.79.

• Warning! GuruFocus has detected 6 Warning Sign with NVT.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• nVent Electric PLC (NYSE:NVT) reported strong first quarter results with double-digit growth in orders, sales, adjusted EPS, and free cash flow.

• The company raised its full-year sales and adjusted EPS guidance, reflecting strong performance and recent acquisitions.

• The acquisition of Avail Electrical Products Group and Trachte has strengthened nVent's portfolio, particularly in the high-growth electrical infrastructure vertical.

• nVent's data solutions business is experiencing strong growth, with expectations for continued double-digit expansion.

• The company's balance sheet remains strong, with over $1.3 billion in cash and a disciplined capital allocation strategy focused on growth and shareholder returns.

Negative Points

• The company faces significant tariff impacts, estimated at approximately $120 million, which it plans to offset through pricing, productivity, and supply chain actions.

• Operating margins are expected to be impacted by tariffs and investments, with a modest improvement anticipated in the second half of the year.

• Commercial residential sales are expected to be flat for the year, reflecting uncertainty in the market.

• The Avail acquisition, while contributing to growth, is expected to be margin dilutive in the short term.

• Inflationary pressures have impacted segment income, with return on sales decreasing year over year.

Q & A Highlights

Q: Can you provide more details on the data solutions business and its growth prospects? A: Sara Zawoyski, Chief Financial Officer, explained that the data solutions business exited 2024 with approximately $600 million in sales and is expected to grow strong double digits this year, with a strengthening in the second half. The growth is broad-based, including liquid cooling solutions, power distribution units, and cable management. The business is seeing increased demand from customers and is expanding beyond hyper scalars into multi-tenants and enterprise spaces, as well as internationally.