nVent Electric (NVT) AI Stock Analysis

• Market Cap: $19.12B
• Dividend Yield: 0.84%
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 45.4
• Beta (1Y): 1.73
• Revenue Growth: 5.31%
• EPS Growth: 5.76%
• Country: US
• Employees: 12,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.90
• Shares Outstanding: 161,729,480
• 10 Day Avg. Volume: 2,042,368
• 30 Day Avg. Volume: 2,231,039
• PEG Ratio: 0.20
• Price to Book (P/B): 4.44
• Price to Sales (P/S): 4.25
• P/FCF Ratio: 44.53
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 5.40
• Enterprise Value/Gross Profit: 14.31
• Enterprise Value/Ebitda: 25.24
• 1Y Price Target: $138.67
• Price Target Upside: 13.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4.14
• Revenue Forecast (FY): $4.56B

• Rating: 77 Outperform
• Price Target: $129.00 ▲(5.91% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 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.

Large backlog and durable data-center demand

A $2.3B backlog (≈3x prior year) and accelerating data‑center sales (~$1B in 2025) give multi‑quarter revenue visibility and support sustained organic growth. Backlog reduces short‑term execution risk and underpins management's 2026 organic growth targets, making near-term revenue more predictable despite project timing.

Product innovation and acquisitive growth lift organic momentum

A strong product pipeline (86 launches) and high new‑product vitality (27%) materially contributed to organic growth, while acquisitions also added meaningful sales. This combination strengthens competitive positioning in data‑center and infrastructure markets and supports sustainable revenue/margin expansion over coming quarters.

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.

Margin volatility from capacity ramps and higher operating costs

Rapid capacity expansion (new liquid‑cooling facility, higher CapEx and D&A) and ramp inefficiencies have compressed ROS and create quarters of lower productivity. These structural scale‑up costs and elevated corporate expenses could keep margins uneven through near‑term production scaling and training periods.

Increased concentration and order lumpiness in infrastructure/data centers

Infrastructure now comprises a rising share of sales and data‑center projects are large but uneven, increasing revenue volatility and exposure to cyclical capex timing. Even with a large backlog, concentrated exposure raises execution and timing risk that can produce pronounced quarter‑to‑quarter swings in reported results.

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. 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 Money

nVent 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 Financial Statement Overview

Summary

Strong multi-year revenue growth and excellent cash generation (operating cash flow $649M and free cash flow $556M in 2025). Balance sheet improved with a meaningful 2025 debt reduction, but profitability has been somewhat volatile and some 2025 balance-sheet ratio fields are missing, limiting visibility.

Income Statement

Revenue has expanded steadily from $2.00B (2020) to $3.89B (2025), with a solid rebound after the 2022 dip. Profitability has materially improved versus 2020’s loss, and recent net margins are healthy (about 18% in 2025). That said, margins have been volatile year-to-year (notably the step-down in net margin from 2023 to 2024 before re-accelerating in 2025), and 2025 EBITDA margin appears lower than prior years, suggesting some cost pressure or mix headwinds despite stronger earnings.

Balance Sheet

Leverage has improved meaningfully in 2025 as total debt declined to about $1.56B from $2.27B in 2024, while equity rose to about $3.73B, supporting balance-sheet resilience. Total assets have grown over time, indicating a larger operating base. The main weakness is that several leverage/return fields are not provided for 2025 (shown as 0.0), limiting visibility into the most recent year’s capital efficiency metrics; additionally, debt increased notably from 2020 through 2024 before the 2025 paydown.

Cash Flow

Cash generation is a clear strength: operating cash flow rose to $649M in 2025, and free cash flow reached $556M, up strongly versus prior years (with a large 2025 free-cash-flow growth figure). Free cash flow has been consistently high relative to net income (roughly mid-80%+ across years), indicating earnings are generally converting well into cash. A watch item is that free cash flow in 2025 is slightly below 2024 despite higher operating cash flow, implying higher reinvestment or working-capital/capex needs.

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

• Technical Analysis Sentiment: Positive
• Last Price: 121.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 121.8 is above the 20-day moving average (MA) of 115.23, above the 50-day MA of 109.37, and above the 200-day MA of 93.39, indicating a bullish trend. The MACD of 2.26 indicates Negative momentum. The RSI at 65.64 is Neutral, neither overbought nor oversold. The STOCH value of 75.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVT.

nVent Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUBB	79 Outperform	$28.00B	31.82	25.07%	1.18%	0.82%	16.05%
NVT	77 Outperform	$19.12B	45.41	12.30%	0.84%	5.31%	5.76%
ENS	77 Outperform	$6.36B	21.37	16.74%	0.67%	6.17%	20.86%
AEIS	74 Outperform	$12.67B	87.33	11.64%	0.18%	17.18%	235.76%
AYI	70 Outperform	$9.30B	23.34	15.61%	0.18%	13.14%	-6.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ATKR	55 Neutral	$2.23B	-46.74	-3.23%	2.02%	-10.98%	-103.99%

nVent Electric Corporate Events

nVent Electric Enhances Credit Facilities and Note Guarantees

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. Under the revised structure, nVent Finance and Hoffman will cross-guarantee each other’s obligations, while the parent company continues to guarantee both borrowers, potentially improving financing flexibility and balance sheet support.

Also on February 16, 2026, the parties executed a Sixth Supplemental Indenture to the governing indenture for nVent Finance’s senior notes due 2028, 2031 and 2033. The change adds Hoffman as a full, unconditional and joint-and-several guarantor of these notes, which may strengthen creditor protections and reinforce the company’s consolidated credit profile in the eyes of existing and prospective debt investors.

The most recent analyst rating on (NVT) stock is a Buy with a $133.00 price target. To see the full list of analyst forecasts on nVent Electric stock, see the NVT Stock Forecast page.