nVent Electric (NVT)
NYSE:NVT
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nVent Electric
(NYSE:NVT)
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Rating:77Outperform
Price Target:
$146.00
â–²(11.83% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by strong financial performance (especially cash generation) and a bullish 2026 outlook from the earnings call with robust backlog/data-center demand. These positives are tempered by a premium valuation, some profitability/margin volatility (including tariff and ramp-related pressure), and only moderately positive technical momentum.
Positive Factors
Strong cash generation and FCF conversion
Consistent high operating cash flow ($649M) and strong free cash flow ($556M in 2025) indicate durable internal funding for capex, debt reduction, and shareholder returns. High FCF conversion reduces reliance on external financing and supports reinvestment into data‑center capacity and product R&D over the next 2–6 months.
Negative Factors
Material tariff and inflation exposure
Significant tariff and inflation impacts (>$160M in 2025, ~$80M incremental in 2026) create persistent margin pressure unless fully offset by pricing or productivity. Over a 2–6 month horizon, sustained tariff exposure can erode operating margins and force pricing actions that may affect competitive positioning and order demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF conversion
Consistent high operating cash flow ($649M) and strong free cash flow ($556M in 2025) indicate durable internal funding for capex, debt reduction, and shareholder returns. High FCF conversion reduces reliance on external financing and supports reinvestment into data‑center capacity and product R&D over the next 2–6 months.
Read all positive factors
nVent Electric (NVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.80B
Dividend Yield0.84%
Average Volume (3M)2.33M
Price to Earnings (P/E)23.3
Beta (1Y)1.67
Revenue Growth5.31%
EPS Growth5.76%
CountryUS
Employees12,100
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.90
Shares Outstanding161,729,480
10 Day Avg. Volume1,775,084
30 Day Avg. Volume2,334,734
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)4.44
Price to Sales (P/S)4.25
P/FCF Ratio44.53
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue5.76
Enterprise Value/Gross Profit15.27
Enterprise Value/Ebitda26.94
Forecast
1Y Price Target
$144.67Price Target Upside10.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)4.19
Revenue Forecast (FY)$4.59B
nVent Electric Business Overview & Revenue Model
Company Description
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. T...
How the Company Makes Money
nVent primarily makes money by selling engineered electrical products and systems (and related services) used to protect, connect, and manage electrical infrastructure. Revenue is generated mainly from: (1) Product sales across its portfolio, incl...
nVent Electric Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
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.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).
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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).
Read all positive updates
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
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.89B | 3.01B | 2.67B | 2.30B | 2.46B |
| Gross Profit | 1.47B | 1.21B | 1.08B | 822.90M | 941.90M |
| EBITDA | 832.80M | 681.20M | 567.90M | 453.90M | 461.40M |
| Net Income | 710.20M | 331.80M | 567.10M | 399.80M | 272.90M |
Balance Sheet | |||||
| Total Assets | 6.85B | 6.73B | 6.16B | 4.90B | 4.67B |
| Cash, Cash Equivalents and Short-Term Investments | 237.50M | 131.20M | 185.10M | 297.50M | 49.50M |
| Total Debt | 1.56B | 2.27B | 1.89B | 1.16B | 1.08B |
| Total Liabilities | 3.12B | 3.50B | 3.02B | 2.17B | 2.18B |
| Stockholders Equity | 3.73B | 3.24B | 3.14B | 2.73B | 2.50B |
Cash Flow | |||||
| Free Cash Flow | 371.90M | 569.10M | 462.50M | 348.70M | 333.80M |
| Operating Cash Flow | 465.20M | 643.10M | 528.10M | 394.60M | 373.30M |
| Investing Cash Flow | 520.80M | -758.40M | -1.16B | -52.50M | -274.00M |
| Financing Cash Flow | -968.40M | 146.20M | 516.70M | -82.10M | -166.80M |
nVent Electric Technical Analysis
Positive
130.56
Price Trends
116.58
Positive
111.13
Positive
101.20
Positive
Market Momentum
3.00
Negative
63.35
Neutral
92.24
Negative
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 130.56 is above the 20-day moving average (MA) of 120.00, above the 50-day MA of 116.58, and above the 200-day MA of 101.20, indicating a bullish trend. The MACD of 3.00 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 92.24 is Negative, 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 37 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 | $28.42B | 26.65 | 25.00% | 1.18% | 0.82% | 16.05% | |
78 Outperform | $7.04B | 15.10 | 16.61% | 0.67% | 6.17% | 20.86% | |
77 Outperform | $20.80B | 23.32 | 19.60% | 0.84% | 5.31% | 5.76% | |
74 Outperform | $8.39B | 23.86 | 15.71% | 0.18% | 13.14% | -6.09% | |
74 Outperform | $14.33B | 53.05 | 11.51% | 0.18% | 17.18% | 235.76% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $2.29B | 36.07 | -3.28% | 2.02% | -10.98% | -103.99% |
* Industrials Sector Average
NVT
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130.56
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164.52%
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nVent Electric Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
nVent Electric Enhances Credit Facilities and Note Guarantees
Positive
Feb 17, 2026
On February 16, 2026, nVent Electric plc and subsidiaries nVent Finance S.à r.l. and Hoffman Schroff Holdings, Inc. amended their existing $875 million credit agreement to allow Hoffman to become a primary borrower alongside nVent Finance. Un...
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.