nVent Electric Q2 Earnings Call Highlights

nVent Electric NYSE: NVT reported record second-quarter sales and earnings, driven by continued demand from AI data centers, power utilities and improving short-cycle businesses. The company raised its full-year sales and adjusted earnings outlook and announced plans for a third Minnesota facility to expand liquid-cooling capacity. Chair and Chief Executive Officer Beth Wozniak said second-quarter sales exceeded guidance as infrastructure demand, led by data centers, remained strong. The company also saw stronger demand in short-cycle businesses through distribution partners. “We had another tremendous quarter with record sales and earnings well ahead of our guidance,” Wozniak said. “The better-than-expected sales were primarily driven by the infrastructure vertical led by data centers, along with stronger demand in our short-cycle business.” nVent reported second-quarter sales of $1.47 billion, up 53% from the prior year, including 47% organic growth. Acquisitions added 5 percentage points of growth, while foreign exchange provided nearly a one-point benefit. Adjusted operating income increased 61% to $323 million, and adjusted operating margin rose 110 basis points year over year to 21.9%. Adjusted earnings per share increased 69% to $1.45. Free cash flow was $167 million, up 125% from a year earlier. Chief Financial Officer Gary Corona said price and productivity actions offset more than $50 million of inflation, including more than $30 million related to tariffs. The company continued to invest in data center and power utility growth initiatives during the quarter. Infrastructure organic sales more than doubled, supported by data center demand and double-digit growth in power utilities. Commercial residential sales increased by high single digits. Industrial sales rose by low single digits. The Americas posted very strong double-digit growth, while Europe grew mid-single digits and Asia-Pacific grew double digits. New products contributed more than 30 percentage points to sales growth, according to Wozniak, and nVent introduced 14 new products during the quarter. The EPG acquisition continued to grow sales at a strong double-digit rate year over year. Systems Protection sales reached $1.07 billion, increasing 70% year over year and marking the segment’s first quarter with more than $1 billion in revenue. Organic sales in the segment rose 62%, led by infrastructure growth of more than 100% as data center demand continued. Systems Protection segment income rose 81% to $248 million, while return on sales increased 150 basis points to 23.2%, benefiting from volume growth and productivity. Electrical Connections sales increased 21% to $399 million, including 18% organic growth. Growth was broad-based across end markets and geographies, with infrastructure and industrial each increasing by strong double digits and commercial.