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nVent Electric (NVT)
NYSE:NVT
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nVent Electric
(NYSE:NVT)
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Rating:76Outperform
Price Target:
$127.00
â–²(11.53% Upside)
nVent Electric's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust growth and a favorable outlook. However, the stock's technical indicators suggest bearish momentum, and its valuation appears high relative to peers, which tempers the overall score.
Positive Factors
Cash Generation
Free cash flow grew 47% YoY, with operating cash flow to net income at 1.08 and FCF/net income at 0.87. This durable cash conversion supports reinvestment in data center capacity, debt reduction, dividends and opportunistic M&A, strengthening long-term flexibility.
Balance Sheet Health
Debt-to-equity fell to 0.44 from 0.70, equity ratio ~53.65% and ROE 17.20%. The improved leverage and solid capital structure reduce refinancing and solvency risk, preserving capacity for capex, facility expansion and strategic M&A through cycles.
Demand & Market Position
Organic orders surged ~65% led by AI data center buildouts, and record quarterly sales topped $1B. Coupled with 66 new products and investments in four facilities, nVent has structural exposure to secular data center and infrastructure tailwinds supporting multi-quarter growth.
Negative Factors
Inflation & Tariff Pressure
Over $45m of cost headwinds, including ~$30m of tariffs, indicate persistent macro pressures that can erode gross and operating margins if not fully passed through. Sustained inflation or tariff exposure forces tougher pricing or margin trade-offs over multiple quarters.
Acquisition Margin Dilution
Management's acquisitions have been margin-dilutive, which can boost scale but depress return on sales and ROIC. If integration or portfolio mix effects persist, they risk undermining the company's ability to sustainably improve EBIT and net margins over the medium term.
Asia Pacific Weakness
Asia Pacific sales slipped low single digits, exposing regional cyclicality and demand risk in key industrial and infrastructure markets. Prolonged weakness in APAC could materially drag consolidated organic growth and reveal geographic concentration vulnerabilities.
nVent Electric (NVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.83B
Dividend Yield0.84%
Average Volume (3M)1.58M
Price to Earnings (P/E)32.1
Beta (1Y)1.73
Revenue Growth5.31%
EPS Growth5.76%
CountryUS
Employees12,100
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.71
Shares Outstanding161,359,540
10 Day Avg. Volume1,870,619
30 Day Avg. Volume1,578,879
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)3.48
Price to Sales (P/S)3.75
P/FCF Ratio19.82
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue5.58
Enterprise Value/Gross Profit14.48
Enterprise Value/Ebitda32.31
Forecast
1Y Price Target
$134.17Price Target Upside17.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
nVent Electric Business Overview & Revenue Model
Company DescriptionnVent 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. Its products also include metallic and non-metallic enclosures, cabinets, sub racks, and backplanes. The Electrical & Fastening Solutions segment offers fastening solutions to connect and protect electrical and mechanical systems, and civil structures. It also provides engineered electrical and fastening products. The Thermal Management segment offers electric thermal solutions that connect and protect buildings, infrastructure, industrial processes, and people. This segment provides thermal management systems comprising heat tracing, floor heating, fire-rated and specialty wiring, sensing, and snow melting and de-icing solutions. The company sells its products under the CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF, and TRACER brands. nVent Electric plc markets its products through electrical distributors, data center contractors, original equipment manufacturers, and maintenance contractors. It serves the energy, industrial, infrastructure, and commercial and residential sectors. The company was founded in 1903 and is based in London, the United Kingdom.
How the Company Makes MoneynVent Electric generates revenue primarily through the sale of its diverse portfolio of electrical connection and protection products. Key revenue streams include sales from its various divisions, such as Enclosures, Electrical and Electronic, and Thermal Management. The company leverages a mix of direct sales and distribution channels to reach customers globally. Significant partnerships with distributors and industry players enhance its market reach and create opportunities for cross-selling and bundled solutions. Additionally, nVent benefits from ongoing demand in sectors such as renewable energy, infrastructure, and industrial automation, which support steady revenue growth.
nVent Electric Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial picture: record sales, EPS, and free cash flow, rapid data center-driven growth (data center revenue ~ $1B), significant backlog expansion, successful product launches, and an improved balance sheet with disciplined capital returns. The company also disclosed notable headwinds—material inflation and tariff impacts, near-term margin pressure from investments and capacity ramps, Asia Pacific softness, and order lumpiness tied to large data center projects. Management provided a constructive 2026 outlook with continued growth guidance and margin expansion expected over the year, but flagged near-term dilution from tariffs and ramp inefficiencies.Q4-2025 Updates
Positive Updates
Record Annual Financial Performance
2025 was a record year: reported sales $3.9B (up ~30% reported, +13% organic), adjusted operating income $786M (up 21%), adjusted EPS up 35%, and record free cash flow $561M (up 31%, 102% conversion of adjusted net income).
Strong Fourth Quarter Results
Q4 sales $1.067B (up 42% reported, +24% organic), adjusted operating income $210M (up 33%), adjusted EPS $0.90 (up 53%), and free cash flow $189M (up 26%).
Data Center Acceleration
Data center revenue reached approximately $1.0B in 2025 (from ~$600M in 2024), driving infrastructure growth; infrastructure vertical now ~45% of sales and expected to be >50% in 2026.
Orders and Backlog Momentum
Organic orders up ~30% in Q4 (driven by large AI data center orders); company ended year with $2.3B backlog, ~3x the prior year, providing significant near-term visibility.
Acquisitions Contributing to Growth
Acquisitions contributed meaningfully: Q4 added $126M to sales (~17 points), acquisitions contributed ~16 points to full-year growth; EPG and other deals performing ahead of expectations.
Product Innovation and New Product Impact
Launched 86 new products in 2025, contributing ~10 percentage points to sales growth; new product vitality at 27%, supporting organic growth and data center offerings (modular liquid cooling platforms).
Segment-Level Strength
Systems Protection: Q4 sales $737M (up 58%, organic +34%); segment income up 49% with ROS ~20.3%. Electrical Connections: Q4 sales $330M (up 15%, organic +8%) with ROS ~27.6%.
Improved Balance Sheet and Capital Returns
Debt reduced to $1.6B (down ~$600M YoY); cash $237M and $600M revolver available; net debt/adjusted EBITDA ~1.6x (below target range); returned $383M to shareholders incl. $253M buybacks and +5% dividend increase.
2026 Financial Outlook
Guidance for 2026: reported sales growth 15–18% (organic 10–13%), adjusted EPS $4.00–$4.15 (growth 20–24%), free cash flow conversion 90–95%; Q1 guide: reported sales +34–36%, organic +17–19%, Q1 EPS $0.90–$0.93.
Operational Investments to Scale Capacity
Opened new liquid cooling facility in Blaine, MN and ramped production quickly; 2025 CapEx $93M (up 26%) targeted at capacity and growth in data centers and power utilities.
Negative Updates
Inflation and Tariff Pressure
Inflation headwinds were material: ~ $55M in Q4 inflation (including >$40M tariffs) and >$160M for full-year 2025 (including ~$90M tariff impact). Company forecasts incremental tariffs of ~$80M in 2026, largely in H1.
Margin Compression from Investments and Mix
Return on sales impacted by higher investments, incentive comp, and mix: Q4 ROS 19.7% (systems protection ROS down 120 bps; electrical connections ROS down 180 bps). Company expects some short-term margin dilution while ramping capacity.
Asia Pacific Weakness
Asia Pacific sales declined in the quarter, contrasting with strong Americas and Europe performance, indicating regional sensitivity and concentration risk.
Lumpiness and Concentration of Data Center Orders
Data center orders can be lumpy (large, uneven projects), creating variability quarter-to-quarter despite robust backlog; reliance on AI data center buildout increases exposure to that vertical's timing risk.
Near-Term Efficiency Drag from Capacity Ramps
Rapid ramp of new liquid cooling capacity required training and caused inefficiencies; company acknowledged lower near-term productivity as new lines scale, pressuring early margins.
Q1 Margin & Compensation Timing Impact
Q1 2026 expected to include accelerated share-based compensation and tariff carryover effects, leading to sequential margin headwinds and a mid-Q1 de‑rate versus 2025 levels.
Higher Operating Costs Assumed in Guide
2026 outlook assumes continued elevated corporate costs (~$130M), higher depreciation & amortization (~$230M) and CapEx (~$130M), which could constrain near-term free cash flow if trends deviate.
Increased Dependence on Infrastructure Vertical
Infrastructure now ~45% of sales and rising; while higher growth, this increases company exposure to a narrower set of end markets (data centers, power utilities) and associated cyclicality.
Company Guidance
Management guided 2026 to reported sales growth of 15–18% (organic 10–13%), with roughly 4 points from acquisitions and a ~1-point FX tailwind, and adjusted EPS of $4.00–$4.15 (up ~20–24%); they expect net interest of about $70M, an adjusted tax rate near 22%, ~164M shares outstanding, free cash flow conversion of 90–95% of adjusted net income, CapEx of ~$130M, D&A of ~$230M, corporate costs of ~$130M, and incremental tariffs of roughly $80M (largely in H1), with price plus productivity expected to offset inflation—for Q1 they forecast reported sales up 34–36% (organic 17–19%, ~15 points from acquisitions, ~2-point FX tailwind) and adjusted EPS of $0.90–$0.93 (midpoint >35% YoY).nVent Electric Financial Statement Overview
Summary
nVent Electric demonstrates strong financial performance with robust revenue growth, solid profitability, and effective cash flow management. The company has improved its leverage position, enhancing financial stability. While cost pressures are evident, the overall outlook remains positive, supported by efficient operations and a strong capital structure.Income Statement
nVent Electric shows strong revenue growth with an 8.23% increase in TTM, supported by a solid net profit margin of 16.83%. The company maintains a healthy gross profit margin of 38.55% and a robust EBIT margin of 11.54%. However, the slight decline in gross profit margin from previous years indicates potential cost pressures.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.44, improved from 0.70 in the previous year. Return on equity is strong at 17.20%, indicating efficient use of equity. The equity ratio stands at 53.65%, suggesting a solid capital structure. However, the company should monitor its debt levels to maintain financial flexibility.78
Positive
Cash Flow
The cash flow statement highlights a significant 47.41% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.08, and the free cash flow to net income ratio is 0.87, reflecting efficient cash conversion. Continued focus on cash flow management will be crucial for sustaining growth.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.58B | 3.01B | 2.67B | 2.30B | 2.46B | 2.00B |
| Gross Profit | 1.38B | 1.21B | 1.08B | 822.90M | 941.90M | 749.40M |
| EBITDA | 618.40M | 681.20M | 567.90M | 453.90M | 461.40M | 129.50M |
| Net Income | 602.10M | 331.80M | 567.10M | 399.80M | 272.90M | -47.20M |
Balance Sheet | ||||||
| Total Assets | 6.77B | 6.73B | 6.16B | 4.90B | 4.67B | 4.37B |
| Cash, Cash Equivalents and Short-Term Investments | 126.90M | 131.20M | 185.10M | 297.50M | 49.50M | 122.50M |
| Total Debt | 1.73B | 2.27B | 1.89B | 1.16B | 1.08B | 997.90M |
| Total Liabilities | 3.14B | 3.50B | 3.02B | 2.17B | 2.18B | 1.96B |
| Stockholders Equity | 3.63B | 3.24B | 3.14B | 2.73B | 2.50B | 2.41B |
Cash Flow | ||||||
| Free Cash Flow | 404.30M | 569.10M | 462.50M | 348.70M | 333.80M | 304.00M |
| Operating Cash Flow | 487.40M | 643.10M | 528.10M | 394.60M | 373.30M | 344.00M |
| Investing Cash Flow | 526.60M | -758.40M | -1.16B | -52.50M | -274.00M | -65.00M |
| Financing Cash Flow | -1.04B | 146.20M | 516.70M | -82.10M | -166.80M | -272.50M |
nVent Electric Technical Analysis
Positive
113.87
Price Trends
107.12
Positive
104.47
Positive
89.55
Positive
Market Momentum
2.82
Negative
55.18
Neutral
64.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVT, the sentiment is Positive. The current price of 113.87 is above the 20-day moving average (MA) of 111.00, above the 50-day MA of 107.12, and above the 200-day MA of 89.55, indicating a bullish trend. The MACD of 2.82 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 64.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVT.
nVent Electric Risk Analysis
nVent Electric disclosed 35 risk factors in its most recent earnings report. nVent Electric reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
nVent Electric Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $25.89B | 29.45 | 25.07% | 1.18% | 0.82% | 16.05% | |
77 Outperform | $6.83B | 22.90 | 18.22% | 0.67% | 6.17% | 20.86% | |
76 Outperform | $18.83B | 32.15 | 8.57% | 0.84% | 5.31% | 5.76% | |
73 Outperform | $9.61B | 66.96 | 11.80% | 0.18% | 17.18% | 235.76% | |
70 Outperform | $9.77B | 24.53 | 15.61% | 0.18% | 13.14% | -6.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $2.33B | -47.30 | -3.23% | 2.02% | -10.98% | -103.99% |
* Industrials Sector Average
NVT
nVent Electric
113.87
48.72
74.79%
AYI
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315.96
-11.96
-3.65%
AEIS
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257.64
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128.44%
ENS
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159.32
63.77
66.74%
HUBB
Hubbell B
487.40
97.59
25.04%
ATKR
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65.80
1.53
2.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.