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 delivered a robust third quarter, with record sales of $1,054 million, up 35% year-over-year, driven by 16% organic growth and 18 points from acquisitions. The company's adjusted EPS was $0.91, beating estimates of $0.88, and representing a 44% increase relative to last year. Segment income was $213 million, up 27%, with a return on sales of 20.2%. The strong cash flow generation was also notable, with $253 million in free cash flow, up 77% year-over-year.
Publication Date: Nov -15
The company's infrastructure vertical led the way, with organic sales up over 40%, driven by data center and power utility strength. The backlog grew strong double digits sequentially, driven by large orders for AI data center buildout. Organic orders were up approximately 65%, primarily driven by large orders for data centers. Excluding data centers, organic orders grew high single digits.
nVent raised its full-year sales and adjusted EPS guidance, reflecting its strong Q3 results and improved outlook. The company now forecasts reported sales growth of 27% to 28%, with acquisitions contributing approximately 16 points to growth. For organic sales growth, nVent expects to grow between 10% and 11%. The company also provided guidance for Q4, expecting reported sales growth of 31% to 33%, with adjusted EPS between $0.87 and $0.89.
With a P/E Ratio of 28.79 and an expected revenue growth rate of 14.3% next year, nVent's valuation appears to be pricing in significant growth. The company's ROE of 17.2% and ROIC of 5.87% indicate a strong ability to generate returns. The Net Debt / EBITDA ratio of 2.58 suggests a manageable debt burden. As nVent continues to expand its presence in high-growth areas like data centers and infrastructure, its growth prospects appear promising.
nVent's strategy to offer a wide range of products and be flexible to integrate with different cooling technologies and fluids is driving growth in its liquid cooling business. The company is seeing significant demand for its data center solutions, with data centers expected to be roughly 20% of revenues in 2025. The growth in data centers is expected to continue, driven by the need for power and energy efficiency.
nVent Electric plc (NVT) Presents at Goldman Sachs Industrials and Materials Conference 2025 Transcript
Dec -03
NVT Rises 14% in 3 Months: Should You Buy the Stock Right Now?
Dec -03
American Century Value Fund Q3 2025 Contributors/Detractors And Notable Trades
Dec -01
nVent Electric Sees Unusually Large Options Volume (NYSE:NVT)
Nov -29
Artisan Value Income Fund Q3 2025 Contributors And Detractors
Nov -24
nVent Electric PLC $NVT Shares Acquired by Creative Planning
Nov -24
nVent Electric plc to Participate in the Goldman Sachs Industrials and Materials Conference
Nov -21
Artisan Partners Limited Partnership Reduces Stock Position in nVent Electric PLC $NVT
Nov -21
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: 8.5
Growth: 3.4
Quality: 5.5
Yield: 9.4
Momentum: 4.0
Volatility: 4.3
1-Year Total Return ->
Value: 6.8
Growth: 6.8
Quality: 5.0
Yield: 3.1
Momentum: 4.0
Volatility: 3.0
1-Year Total Return ->
Value: 2.8
Growth: 7.3
Quality: 4.0
Yield: 2.5
Momentum: 8.0
Volatility: 4.0
1-Year Total Return ->
Value: 5.5
Growth: 7.4
Quality: 5.3
Yield: 0.0
Momentum: 4.0
Volatility: 4.0
1-Year Total Return ->
Value: 1.4
Growth: 5.4
Quality: 6.6
Yield: 2.5
Momentum: 7.5
Volatility: 2.7
1-Year Total Return ->
Value: 6.5
Growth: 0.4
Quality: 3.7
Yield: 5.6
Momentum: 2.5
Volatility: 4.7
1-Year Total Return ->