GICS Sector : Industrials
nVent Electric plc designs, manufactures, markets, installs, and services electrical connection and protection products worldwide.The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management.The Enclosures segment provides solutions to connect and protect critical electronics, communication, control, and power equipment; physical infrastructure solutions to host, connect, and protect server and network equipment; and indoor and outdoor protection for test and measurement and aerospace and defense applications in industrial, infrastructure, commercial, and energy verticals.
nVent Electric reported a record year in 2025, with sales, EPS, and free cash flow growing at or above 30%. The company's fourth quarter sales were $1.067 billion, up 42% year-over-year, with organic sales growth of 24%. Adjusted EPS was $0.90, up 53% from the prior year. The company generated $189 million in free cash flow in the quarter and $561 million for the full year. The current P/E Ratio of 25.77 suggests that the market has high expectations for the company's continued growth.
Publication Date: Feb -16
The company's infrastructure vertical now makes up 45% of annual sales, with data center sales representing approximately $1 billion in 2025. For 2026, the company expects reported sales growth of 15% to 18% and adjusted EPS growth of 20% to 24%. The company's data center revenue reached over $1 billion in 2025, driven by liquid cooling and power growth, with cable management also growing nicely. The industrial business is expected to grow mid-single digits in 2026, driven by investments in CapEx, automation, and reshoring.
The company is investing in growth, including $93 million in CapEx in 2025, and returned $383 million to shareholders. The operating margin guidance implies a 70 basis point decline year-over-year in Q1, followed by expansion in 2026, driven by price and productivity offsetting inflation. The implied incremental margins in the 2026 guide are around 25%, expected to progress throughout the year, with the second half being better than the first half as headwinds abate.
In terms of data center growth, CapEx is accelerating, but the company's organic growth guidance for this year shows a deceleration in the second half. This is partly due to tough comparisons, but also reflects the timing difference between hyperscaler CapEx and the company's orders or sales. Liquid cooling currently penetrates less than 30% of data centers but is expected to grow significantly, presenting a significant opportunity for nVent Electric.
With a P/S Ratio of 4.69 and an EV/EBITDA of 23.53, the market appears to be pricing in significant growth expectations. The company's ROIC of 8.2% and ROE of 19.6% indicate a strong return on invested capital and equity. The Net Debt / EBITDA ratio of 1.59 suggests a manageable debt burden, providing flexibility for future investments or returns to shareholders.
nVent Postpones Investor Day due to Weather-related State of Emergency Declared in New York City Metropolitan Area
Feb -22
nVent Adds Mellinda Devese as Chief Supply Chain Officer
Feb -20
nVent Announces Quarterly Cash Dividend
Feb -16
REPUBLIC POWER GROUP LIMITED ANNOUNCES STRATEGIC PARTNERSHIP WITH NVT TO ADVANCE BLOCKCHAIN-ENABLED ASSET TOKENIZATION AND CAPITAL MARKETS SOLUTIONS
Feb -11
nVent Electric Shares Rise on Q4 Earnings and Revenue Beat
Feb -10
These Analysts Increase Their Forecasts On nVent Electric Following Q4 Results
Feb -09
nVent Electric plc (NVT) Q4 2025 Earnings Call Transcript
Feb -06
Here's What Key Metrics Tell Us About nVent (NVT) Q4 Earnings
Feb -06
nVent Electric plc's 9% growth in Enclosures is driven by increasing demand for industrial automation, electrification of transportation, and growth in data center infrastructure. Additionally, the company's focus on innovation, expansion into new markets, and strategic acquisitions have contributed to its growth momentum.
nVent Electric plc's Electrical & Fastening Solutions segment growth is driven by increasing demand for electrification in industrial and commercial markets, adoption of electric vehicles, and rising need for energy efficiency. Additionally, growth in data center construction, 5G network deployments, and renewable energy installations also contribute to the segment's 11% growth.
nVent Electric plc's Thermal Management segment growth is driven by increasing demand for electric vehicles, renewable energy, and data centers, which require efficient thermal management solutions. Additionally, growing adoption of 5G technology and rising need for energy efficiency in industrial processes also contribute to the segment's 8% growth.
nVent Electric plc offers a wide range of electrical enclosures that provide protection for electrical components and equipment in various industries.
nVent Electric plc provides thermal management solutions that help to dissipate heat and maintain optimal operating temperatures in electrical systems.
nVent Electric plc offers electrical heat tracing solutions that provide freeze protection and temperature maintenance for pipes and equipment in various industries.
nVent Electric plc provides cable management systems that organize and protect cables in industrial and commercial applications.
nVent Electric plc offers electrical dehydration systems that remove moisture from electrical equipment and prevent corrosion.
The threat of substitutes for nVent Electric plc is medium due to the availability of alternative products and services in the electrical equipment industry.
The bargaining power of customers for nVent Electric plc is low due to the company's strong brand reputation and diversified customer base.
The bargaining power of suppliers for nVent Electric plc is medium due to the presence of multiple suppliers in the industry, but the company's large scale of operations gives it some bargaining power.
The threat of new entrants for nVent Electric plc is low due to the high barriers to entry in the electrical equipment industry, including significant capital requirements and regulatory hurdles.
The intensity of rivalry for nVent Electric plc is high due to the presence of several established players in the industry, leading to intense competition for market share.
| Value | |
|---|---|
| Debt Weight | 36.50% |
| Debt Cost | 3.95% |
| Equity Weight | 63.50% |
| Equity Cost | 10.61% |
| WACC | 8.18% |
| Leverage | 57.49% |
Value: 8.7
Growth: 3.4
Quality: 5.5
Yield: 9.4
Momentum: 3.0
Volatility: 5.0
1-Year Total Return ->
Value: 7.8
Growth: 7.4
Quality: 4.6
Yield: 0.0
Momentum: 9.0
Volatility: 3.3
1-Year Total Return ->
Value: 6.6
Growth: 6.8
Quality: 5.3
Yield: 3.1
Momentum: 7.0
Volatility: 3.0
1-Year Total Return ->
Value: 3.9
Growth: 7.3
Quality: 5.2
Yield: 2.5
Momentum: 8.5
Volatility: 4.0
1-Year Total Return ->
Value: 1.5
Growth: 5.8
Quality: 6.7
Yield: 2.5
Momentum: 8.0
Volatility: 2.3
1-Year Total Return ->
Value: 6.7
Growth: 0.4
Quality: 2.5
Yield: 5.0
Momentum: 2.0
Volatility: 4.7
1-Year Total Return ->