nVent Electric Plc Q1 FY2025 earnings call

• Beth highlighted strong Q1 results, double-digit growth in orders, sales, adjusted EPS, and free cash flow. Mentioned portfolio transformation with divestiture of Thermal Management and acquisitions of Trachte and Avail Electrical Products Group. - Sara detailed Q1 performance: sales $809M up 11%, adjusted EPS $0.67 up 10%, free cash flow $44M up 32%. Discussed Systems Protection and Electrical Connections segments. - Gary spoke about balance sheet strength, capital allocation priorities, raised full-year sales and adjusted EPS guidance, Q2 outlook. - Portfolio transformation reshaped the company into a focused electrical infrastructure company, with infrastructure vertical expected to be over 40% of sales by year-end.

Systems Protection: Sales of $508 million increased 16%, driven by the Trachte acquisition. Organically, sales were flat on top of 11% growth a year ago. Return on sales of 20.5% decreased 110 basis points year-over-year. Electrical Connections: Sales of $301 million increased 3%. Organic sales were up 4%, impacted by inflation. Segment income was $85 million, flat year-over-year. Return on sales was 28.3% down 90 basis points.

• Raised full-year sales guidance to 19%-21% and adjusted EPS to $3.03-$3.13. - Q2 sales expected to grow 22%-24%, adjusted EPS $0.77-$0.79. - Avail acquisition contributes $0.05 to EPS, includes tariff impacts and CapEx increase to ~$100 million for data solutions capacity and supply chain resiliency.

• Uncertainty around macroeconomic conditions, including impact on industrial and commercial resi segments. - Tariffs and their impact on margins and growth, requiring ongoing management through pricing, productivity, and supply chain actions.

Q: Good morning, everyone. Happy Friday. Deane Dray with RBC Capital Markets asked about Data Solutions business, pace of orders, pushouts, and contribution of Avail and Trachte deals with synergies.

A: Sara Zawoyski responded on Data Solutions growth, broad-based demand, and early deals of Avail and Trachte, mentioning cost synergies and growth potential.

Q: Julian Mitchell with Barclays asked about organic sales outlook and operating margins.

A: Beth Wozniak and Gary Corona discussed organic sales acceleration in second half due to backlog and infrastructure growth, and margins impacted by tariffs and investments, with improvement expected in second half.

Q: Brian Drab with William Blair asked about tariff reversal impact and Avail contribution.

A: Beth Wozniak and Gary Corona talked about uncertainty in tariff impact, Avail's $0.05 EPS contribution, and margin dilution with path to improvement.

Q: Joseph Ritchie with Goldman Sachs asked about operating margins and pricing.

A: Gary Corona and Beth Wozniak discussed margin management with tariffs, pricing through distribution and project-based methods, and active price management.

Q: Jeffrey Sprague with Vertical Research asked about commercial resi, tariffs origination, and Power Utilities.

A: Beth Wozniak and Gary Corona discussed commercial resi softness, tariff origination from steel, aluminum, and China, and Power Utilities growth with Avail and Trachte acquisitions.

Q: Nicole DeBlase with Deutsche Bank asked about margin impact across businesses and pricing implementation.

A: Gary Corona and Beth Wozniak explained margin management across segments with playbook deployment and ongoing pricing adjustments.

Q: Nigel Coe with Wolfe Research asked about organic uplift, Avail acquisition margin, and Data Solutions growth.

A: Beth Wozniak and Gary Corona discussed organic guidance driven by orders and backlog, Avail margin plan, and Data Solutions strong growth.

Q: Vlad Bystricky with Citigroup asked about CapEx increase and segment divergence.

A: Gary Corona and Beth Wozniak explained CapEx allocation for growth and segment performance divergence due to prior-year comps.

Q: Scott Graham with Seaport Research asked about margins and M&A pipeline.

A: Gary Corona and Beth Wozniak discussed margin improvement plan and M&A pipeline in the fragmented $100 billion connect and protect market, with disciplined deal execution.