Core Viewpoint - nVent Electric plc reported its fourth quarter and full year performance for 2024, providing insights into its financial results and outlook for 2025, with a focus on the Thermal Management business being reported as discontinued operations starting Q3 2024 [3]. Financial Performance - The company will present details on its fourth quarter and full year performance, emphasizing results on a continuing operations basis for 2023 and 2024 [3]. - The earnings call includes participation from various financial analysts from major investment firms, indicating a strong interest in the company's financial health and future prospects [1][2]. Management Commentary - The call features key executives including the CEO and CFO, who will provide insights into the company's strategic direction and financial outlook [3].

Financial Performance - Fourth quarter 2024 sales were $752 million, up 9% compared to Q4 2023, but down 1% organically[5] - Full-year 2024 sales reached $3.0 billion, representing a 13% increase from 2023, with a 2% organic growth[5] - Fourth quarter 2024 adjusted EPS was $0.59, up 7% from $0.55 in the prior year, while reported EPS was $(0.10), down 108%[5] - Full-year 2024 adjusted EPS was $2.49, up 7% from $2.32, while reported EPS decreased by 48% to $1.43[5] - Net sales for Q4 2024 reached $752.2 million, a 8.9% increase from $690.5 million in Q4 2023[26] - Operating income for the twelve months ended December 31, 2024, was $527.1 million, up from $462.7 million in 2023, reflecting a 13.9% increase[26] - Net income from continuing operations for 2024 was $240.8 million, down from $459.7 million in 2023[31] - The diluted earnings per share from continuing operations for 2024 was $1.43, compared to $1.53 in 2023[46] Cash Flow and Assets - The company generated free cash flow of $150 million in Q4 2024 and $427 million for the full year[7] - Cash and cash equivalents decreased to $131.2 million in 2024 from $179.6 million in 2023[29] - Total assets increased to $6,734.9 million in 2024, compared to $6,161.7 million in 2023[29] - Long-term debt rose to $2,117.5 million in 2024 from $1,748.8 million in 2023, indicating increased leverage[29] - Free cash flow for the full year 2023 was $356.7 million, with $427.5 million reported for the twelve months ended December 31, 2024[56] - Total free cash flow for the full year 2023 was $464.6 million, with $562.0 million reported for the twelve months ended December 31, 2024[56] Product Development and Market Strategy - nVent launched approximately 90 new products in 2024, with the Data Solutions business growing approximately 30%[4] - The company is focused on expanding its product portfolio in the infrastructure vertical, particularly in data centers and power utilities[4] - The company plans to continue focusing on organic sales growth and strategic acquisitions to enhance its market position[40] Future Projections - The company expects 2025 reported sales growth of 8% to 10% and organic sales growth of 4% to 6%[15] - Full-year 2025 EPS guidance is projected to be between $2.45 to $2.55 on a GAAP basis and $2.98 to $3.08 on an adjusted basis[15] - The company forecasts adjusted net income from continuing operations of $503 million for the full year 2025, with a first-quarter forecast of $110 million[50] - Diluted earnings per ordinary share from continuing operations for the full year 2025 is projected to be between $2.45 and $2.55, with a first-quarter estimate of $0.52 to $0.54[50] - The company expects organic net sales growth of 7% to 9% for the full year 2025, with a first-quarter forecast of 0% to 2%[55] Segment Performance - In 2024, nVent Electric plc reported total net sales of $3,006.1 million, a 12.6% increase from $2,668.9 million in 2023[35] - The Enclosures segment generated net sales of $1,823.3 million in 2024, up from $1,605.9 million in 2023, reflecting a growth of 13.5%[35] - The Electrical & Fastening Solutions segment achieved net sales of $1,182.8 million in 2024, up from $1,063.0 million in 2023, marking a growth of 11.2%[35] - The company reported a total reportable segment income of $757.6 million for 2024, compared to $677.2 million in 2023, indicating a 11.9% increase[35] - The return on sales for the Enclosures segment was 22.1% in 2024, compared to 21.6% in 2023[35] Operating Metrics - Fourth quarter 2024 operating income was $117 million, flat compared to Q4 2023, while adjusted operating income increased by 12% to $158 million[6] - Adjusted operating income for 2024 was $652.0 million, compared to $566.6 million in 2023, representing a 15.1% increase[46] - The adjusted return on sales for 2024 was 21.7%, an improvement from 21.2% in 2023[46] - The company achieved an adjusted return on sales of 21.2% for the full year 2023, with quarterly figures of 19.1% in Q1, 22.3% in Q2, 22.7% in Q3, and 20.5% in Q4[47]

Core Insights - nVent Electric (NVT) is expected to report quarterly earnings of $0.59 per share, reflecting a decline of 24.4% year-over-year [1] - Revenue forecasts stand at $770.43 million, indicating a decrease of 10.5% compared to the previous year [1] - Analysts have revised the consensus EPS estimate down by 0.3% over the last 30 days, suggesting a reevaluation of initial estimates [1][2] Revenue Estimates - Analysts project 'Net Sales- Enclosures' to be $490.40 million, representing a year-over-year increase of 21.9% [4] - 'Net Sales- Electrical & Fastening Solutions' is estimated at $293.72 million, indicating a growth of 1.9% from the prior year [4] - 'Net Sales- Thermal Management' is expected to reach $179.87 million, suggesting a year-over-year increase of 5.4% [5] Stock Performance - nVent shares have decreased by 7.9% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.7% [6] - The company holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near term [6]

Core Points - Northern Venture Trust PLC, along with Northern 2 VCT PLC and Northern 3 VCT PLC, has published a prospectus for new ordinary shares subscription in the 2024/25 tax year, aiming to raise a total of £36 million [1] - The subscription offers will open on 14 January 2025 and will be available on a first-come, first-served basis, with existing shareholders receiving a 0.5% reduction in offer costs [2] - Mercia Fund Management Limited will receive a fee of 2.5% of gross proceeds for subscriptions received directly or through a financial adviser, and 5% for those through execution-only platforms, with discounts for existing shareholders [3] Offer Details - The total amount targeted for the Offers is £36 million, with £15 million for Northern Venture Trust PLC and Northern 2 VCT PLC each, and £6 million for Northern 3 VCT PLC [1] - The Offers will remain open until 31 March 2025, unless fully subscribed earlier, and the Directors reserve the right to close the Offers at any time [2] - A downloadable version of the Prospectus is available on Mercia's website and at the Company's registered office [4] Related Party Transactions - The fee structure for Mercia includes a 2.5% fee for direct subscriptions and a 5% fee for execution-only platform subscriptions, with a 0.5% discount for existing shareholders [3] - The arrangements with Mercia constitute a relevant related party transaction under UK Listing Rules, and the board believes the transaction is fair and reasonable for shareholders [3]

Financial Performance - Net sales for the three months ended September 30, 2024, were $782.0 million, a 9.4% increase from $715.0 million in the same period of 2023[127]. - Gross profit for the same period was $311.1 million, representing a 7.6% increase from $289.1 million year-over-year[127]. - Operating income for the three months ended September 30, 2024, was $133.2 million, a 5.5% increase from $126.2 million in the prior year[127]. - Net sales for the nine months ended September 30, 2024, increased by 13.9% to $2,253.9 million compared to $1,978.4 million in the same period of 2023[129]. - Gross profit for the nine months ended September 30, 2024, was $909.6 million, reflecting a 13.9% increase from $798.7 million in 2023, with a gross profit margin of 40.4%[129]. - Operating income rose by 18.8% to $410.0 million for the nine months ended September 30, 2024, compared to $345.2 million in 2023, representing 18.2% of net sales[129]. - Net income from continuing operations for the nine months ended September 30, 2024, was $257.3 million, a 4.0% increase from $247.3 million in 2023[129]. Segment Performance - For the first nine months of 2024, the Enclosures segment represented approximately 60% of total revenues, while the Electrical & Fastening Solutions segment accounted for about 40%[117]. - The Electrical & Fastening Solutions segment reported a 15.7% increase in net sales for the nine months ended September 30, 2024, reaching $896.1 million, up from $774.7 million in 2023[143]. - The Enclosures segment achieved net sales of $1,357.8 million for the nine months ended September 30, 2024, a 12.8% increase from $1,203.7 million in 2023[139]. - Electrical & Fastening Solutions net sales increased by 15.7% to $136.3 million due to the ECM Industries acquisition, despite organic sales declines of approximately 2.0% in the commercial & residential business[144][146]. - Segment income for Electrical & Fastening Solutions decreased by 1.9 percentage points in Q3 2024 and 1.5 percentage points in the first nine months of 2024 compared to 2023, primarily due to unfavorable product mix and inflationary increases[146]. Acquisitions and Divestitures - The company completed the acquisition of ECM Industries for approximately $1.1 billion in cash on May 18, 2023[118]. - On July 16, 2024, the company acquired Trachte, LLC for approximately $691.3 million in cash[121]. - The company entered into an agreement to sell its Thermal Management business for a purchase price of $1.7 billion in cash, expected to close by early 2025[122]. - The company experienced a 10.5% contribution to net sales from acquisitions for the nine months ended September 30, 2024[131]. Cash Flow and Financing - Net cash provided by operating activities from continuing operations was $324.1 million in the first nine months of 2024, up from $232.5 million in the same period of 2023[149][150]. - Net cash used for investing activities was $724.7 million in the first nine months of 2024, primarily for the Trachte acquisition of $677.7 million[151]. - Net cash provided by financing activities was $278.1 million in the first nine months of 2024, mainly from long-term debt receipts of $500.0 million[153]. - Free cash flow from continuing operations was $277.1 million for the first nine months of 2024, compared to $187.7 million in the same period of 2023[174]. - Dividends paid during the first nine months of 2024 totaled $95.3 million, or $0.57 per ordinary share, an increase from $87.6 million, or $0.525 per share, in 2023[170]. - As of September 30, 2024, the company had $137.1 million in cash, with $34.7 million held in countries with limited repatriation ability[147]. - The company repurchased 1.5 million ordinary shares for $100.0 million under the 2024 Authorization during the first nine months of 2024[169]. - The company maintained compliance with all financial covenants in its debt agreements as of September 30, 2024[166]. Tax and Inflation - The effective tax rate increased to 22.3% in 2024 from 17.6% in 2023, reflecting changes in tax law[127]. - The effective tax rate increased by 5.4 percentage points to 22.1% for the nine months ended September 30, 2024, primarily due to the enactment of the Pillar II global minimum tax framework[135]. - The company expects continued inflationary cost increases to impact results in the remainder of 2024[123]. Research and Development - Research and development expenses increased by 21.6% to $48.9 million for the nine months ended September 30, 2024, compared to $40.2 million in 2023[129]. Accounting and Market Risk - There have been no material changes to critical accounting policies and estimates from the 2023 Annual Report[176]. - No material changes in market risk during the quarter ended September 30, 2024[177].

For the quarter ended September 2024, nVent Electric (NVT) reported revenue of $782 million, down 8.9% over the same period last year. EPS came in at $0.84, compared to $0.84 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $935.89 million, representing a surprise of -16.44%. The company delivered an EPS surprise of +3.70%, with the consensus EPS estimate being $0.81.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...

Core Insights - NVent Electric (NVT) reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.81 per share, and matching the earnings from the previous year [1] - The company experienced an earnings surprise of 3.70%, having previously reported earnings of $0.82 per share against an expectation of $0.83 per share, resulting in a surprise of -1.20% [2] - NVent's revenues for the quarter were $782 million, falling short of the Zacks Consensus Estimate by 16.44%, and down from $858.8 million year-over-year [3] Financial Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - NVent shares have increased approximately 26.2% year-to-date, outperforming the S&P 500's gain of 19.6% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.85 on revenues of $965.89 million, and for the current fiscal year, it is $3.26 on revenues of $3.66 billion [8] - The estimate revisions trend for NVent is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Electronics - Miscellaneous Components industry, to which NVent belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9] - Another company in the same industry, Fabrinet (FN), is expected to report quarterly earnings of $2.39 per share, reflecting a year-over-year increase of 19.5%, with revenues anticipated to be $770.28 million, up 12.4% from the previous year [10][11]

[Executive Summary](index=1&type=section&id=Executive%20Summary) nVent achieved record sales and strong cash flow in Q3 2024, with significant growth in continuing operations, while divesting its Thermal Management business to focus on core electrical solutions [Key Highlights](index=1&type=section&id=Key%20Highlights) The company reported record sales and strong cash flow from continuing operations in Q3 2024, reclassifying the Thermal Management business as discontinued operations - The Thermal Management business is reported as discontinued operations for the current and all prior periods[1](index=1&type=chunk)[2](index=2&type=chunk) - The company is updating its full-year 2024 guidance to reflect continuing operations[1](index=1&type=chunk) Q3 2024 Key Financial Metrics (Continuing Operations) | Metric | Amount/Growth Rate | | :-------------------------------- | :---------- | | Reported Sales | $782 Million USD, 9% growth | | Organic Sales | 1% growth | | Reported EPS | $0.47 | | Adjusted EPS | $0.63 | | Cash Flow from Continuing Operations | $158 Million USD, 29% growth | | Free Cash Flow from Continuing Operations | $143 Million USD, 33% growth | Q3 2024 Key Financial Metrics (Total) | Metric | Amount/Growth Rate | | :-------------------------------- | :---------- | | Total Sales | $939 Million USD, 9% growth | | Total EPS | $0.62 | | Total Adjusted EPS | $0.84 | | Sales from Continuing Operations | $782 Million USD | | Sales from Discontinued Operations | $157 Million USD | [Q3 2024 Financial Performance](index=1&type=section&id=Q3%202024%20Financial%20Performance) nVent delivered strong Q3 2024 financial results, exceeding expectations in continuing operations, driven by new products, high-growth verticals, and strategic acquisitions [Overall Performance](index=1&type=section&id=Overall%20Performance) nVent achieved strong Q3 2024 financial results, with continuing operations exceeding expectations, driven by new products, high-growth verticals, and strategic acquisitions - CEO Beth Wozniak stated that Q3 earnings and cash flow exceeded expectations, with new products, high-growth vertical markets, and acquisitions like Trachte being key contributors[3](index=3&type=chunk) - The sale of the Thermal Management business is expected to close in early 2025, positioning nVent as a more focused, higher-growth leader in electrical connection and protection, aligned with electrification, sustainability, and digitalization megatrends[4](index=4&type=chunk) Q3 2024 Financial Performance (Continuing Operations) | Metric | Q3 2024 | Q3 2023 | Change Rate | | :--------------------- | :------------- | :------------- | :----- | | Reported Sales | $782 Million USD | $715 Million USD | 9% growth | | Organic Sales Growth | 1% | - | - | | Reported EPS | $0.47 | $0.49 | 4% decrease | | Adjusted EPS | $0.63 | $0.65 | 3% decrease | | Operating Income | $133 Million USD | $126 Million USD | 6% growth | | Adjusted Operating Income | $168 Million USD | $162 Million USD | 4% growth | | Cash Flow from Continuing Operations | $158 Million USD | $123 Million USD | 29% growth | | Free Cash Flow | $143 Million USD | $107 Million USD | 33% growth | [Segment Performance](index=2&type=section&id=Segment%20Performance) In continuing operations, the Enclosures segment achieved significant sales growth in Q3 2024, while Electrical & Fastening Solutions maintained stable growth, with both segments showing strong Adjusted ROS Q3 2024 Segment Net Sales and Adjusted Return on Sales | Segment | Q3 2024 Net Sales (Million USD) | Q3 2023 Net Sales (Million USD) | Sales Change Rate | Organic Sales Change Rate | Q3 2024 Adjusted ROS | Q3 2023 Adjusted ROS | ROS Change | | :------------------------- | :--------------------- | :--------------------- | :----------- | :--------------- | :------------------------ | :------------------------ | :------ | | Enclosures | $477 Million | $413 Million | 16% | 1% | 21.9% | 21.7% | 20 bps | | Electrical & Fastening Solutions | $305 Million | $302 Million | 1% | 1% | 30.4% | 32.3% | -190 bps | [Financial Outlook & Guidance](index=2&type=section&id=Financial%20Outlook%20%26%20Guidance) nVent updated its full-year 2024 guidance for continuing operations, projecting growth in reported and organic sales, along with expected GAAP and Adjusted EPS ranges [Full-Year 2024 Guidance](index=2&type=section&id=Full-Year%202024%20Guidance) nVent updated its full-year 2024 guidance for continuing operations, projecting growth in reported and organic sales, along with expected GAAP and Adjusted EPS ranges - nVent is updating its guidance based on continuing operations, excluding the Thermal Management business held for sale[12](index=12&type=chunk) Full-Year 2024 Guidance (Continuing Operations) | Metric | Expected Range | | :--------------------- | :---------------- | | Reported Sales Growth | Approximately 13% | | Organic Sales Growth | Approximately 3% | | GAAP EPS | $1.99 to $2.01 | | Adjusted EPS | $2.49 to $2.51 | [Fourth Quarter 2024 Guidance](index=3&type=section&id=Fourth%20Quarter%202024%20Guidance) The company anticipates continued sales growth for continuing operations in Q4 2024, providing GAAP and Adjusted EPS expectations Q4 2024 Guidance (Continuing Operations) | Metric | Expected Range | | :--------------------- | :---------------- | | Reported Sales Growth | 11% to 13% | | Organic Sales Growth | 1% to 3% | | GAAP EPS | $0.45 to $0.47 | | Adjusted EPS | $0.58 to $0.60 | [Corporate Actions & Information](index=3&type=section&id=Corporate%20Actions%20%26%20Information) nVent announced a regular cash dividend, provided details for its Q3 earnings conference call, and reiterated its position as a global leader in electrical connection and protection solutions [Dividends](index=3&type=section&id=Dividends) nVent's Board of Directors approved a regular cash dividend - nVent's Board of Directors approved a regular cash dividend of **$0.19 per share** on September 24, 2024, payable in Q4 2024 (November 1)[14](index=14&type=chunk) [Earnings Conference Call Details](index=3&type=section&id=Earnings%20Conference%20Call%20Details) Company management will host a conference call to discuss Q3 results, with webcast and replay information provided - nVent's management team will discuss the company's Q3 results with analysts and investors at 9:00 AM ET[14](index=14&type=chunk) - A live audio webcast and materials for the conference call are available on the company's "Investor Relations" section at http://investors.nvent.com[14](index=14&type=chunk) - A replay of the conference call will be available until November 15, 2024[14](index=14&type=chunk) [About nVent](index=3&type=section&id=About%20nVent) nVent is a global leader in electrical connection and protection solutions, dedicated to ensuring safer systems and a more reliable world through innovative products and industry-leading brands - nVent is a global leader in electrical connection and protection solutions, designing, manufacturing, marketing, installing, and servicing high-performance products and solutions[15](index=15&type=chunk) - The company offers comprehensive enclosure, electrical connection, fastening, and thermal management solutions under brands including nVent CADDY, ERICO, HOFFMAN, ILSCO, and SCHROFF[15](index=15&type=chunk) - nVent's principal executive offices are in London, with management offices in Minneapolis, USA[15](index=15&type=chunk) [Caution Concerning Forward-Looking Statements](index=3&type=section&id=Caution%20Concerning%20Forward-Looking%20Statements) This press release contains forward-looking statements subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations - This press release contains forward-looking statements, subject to risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from expectations[18](index=18&type=chunk) - Risk factors include, but are not limited to: the completion of the Thermal Management business sale, global economic and business conditions, acquisition integration capabilities, market competition, currency fluctuations, supply chain risks, and changes in laws and regulations[18](index=18&type=chunk) - The company undertakes no obligation to update the information in this press release[18](index=18&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents nVent's condensed consolidated financial statements, including income statements, balance sheets, and cash flow statements, for both continuing and discontinued operations [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) nVent's condensed consolidated statements of income show increased net sales and operating income for continuing operations in Q3 2024, despite a slight decrease in net income, with discontinued operations also contributing to total net income Condensed Consolidated Statements of Income (Continuing Operations) | Metric (Million USD) | Q3 2024 | Q3 2023 | First Nine Months 2024 | First Nine Months 2023 | | :--------------------- | :------------- | :------------- | :------------- | :------------- | | Net Sales | 782.0 | 715.0 | 2,253.9 | 1,978.4 | | Cost of Sales | 470.9 | 425.9 | 1,344.3 | 1,179.7 | | Gross Profit | 311.1 | 289.1 | 909.6 | 798.7 | | Gross Margin | 39.8% | 40.4% | 40.4% | 40.4% | | Operating Income | 133.2 | 126.2 | 410.0 | 345.2 | | Operating Income % | 17.0% | 17.7% | 18.2% | 17.4% | | Net Income from Continuing Operations | 78.9 | 81.9 | 257.3 | 247.3 | | Net Income from Discontinued Operations | 26.1 | 23.6 | 63.8 | 64.9 | | Total Net Income | 105.0 | 105.5 | 321.1 | 312.2 | | Diluted EPS from Continuing Operations | 0.47 | 0.49 | 1.53 | 1.47 | | Diluted EPS from Discontinued Operations | 0.15 | 0.14 | 0.38 | 0.39 | | Total Diluted EPS | 0.62 | 0.63 | 1.91 | 1.86 | | Cash Dividends Per Share | 0.19 | 0.175 | 0.57 | 0.525 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, nVent's balance sheet shows increases in total assets and liabilities, with significant growth in long-term debt, substantial goodwill and intangible assets, and certain assets and liabilities classified as held for sale Condensed Consolidated Balance Sheets (Million USD) | Metric | September 30, 2024 | December 31, 2023 | | :------------------------- | :------------- | :------------- | | **Assets** | | | | Cash and Cash Equivalents | 137.1 | 179.6 | | Inventories | 366.2 | 360.2 | | Current Assets Held for Sale | 256.5 | 253.6 | | Total Current Assets | 1,418.7 | 1,336.1 | | Goodwill | 2,232.0 | 1,858.1 | | Intangible Assets, Net | 1,618.3 | 1,350.5 | | Non-Current Assets Held for Sale | 983.3 | 994.5 | | Total Assets | 6,918.0 | 6,161.7 | | **Liabilities and Equity** | | | | Current Liabilities Held for Sale | 126.5 | 114.7 | | Total Current Liabilities | 776.2 | 733.6 | | Long-Term Debt | 2,220.7 | 1,748.8 | | Non-Current Liabilities Held for Sale | 48.0 | 47.7 | | Total Liabilities | 3,634.3 | 3,019.6 | | Equity | 3,283.7 | 3,142.1 | | Total Liabilities and Equity | 6,918.0 | 6,161.7 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) nVent's cash flow from continuing operations significantly increased in the first nine months of 2024, despite substantial cash outflows from investing activities primarily due to acquisitions, with positive financing cash flow driven by long-term debt issuance Condensed Consolidated Statements of Cash Flows (Million USD) | Metric | First Nine Months 2024 | First Nine Months 2023 | | :------------------------------------- | :------------- | :------------- | | Net Cash Provided by Operating Activities - Continuing Operations | 324.1 | 232.5 | | Net Cash Provided by Operating Activities - Discontinued Operations | 94.4 | 59.1 | | Total Net Cash Provided by Operating Activities | 418.5 | 291.6 | | Net Cash Used in Investing Activities - Continuing Operations | (724.7) | (1,147.3) | | Net Cash Used in Investing Activities - Discontinued Operations | (5.6) | 3.2 | | Total Net Cash Used in Investing Activities | (730.3) | (1,144.1) | | Net Cash Provided by Financing Activities | 278.1 | 672.1 | | Cash and Cash Equivalents, End of Period | 137.1 | 107.9 | [Segment Financial Information](index=8&type=section&id=Segment%20Financial%20Information) This section provides supplemental financial information by reportable segment, detailing net sales and adjusted return on sales for nVent's continuing operations [Supplemental Financial Information by Reportable Segment](index=8&type=section&id=Supplemental%20Financial%20Information%20by%20Reportable%20Segment) nVent's Enclosures and Electrical & Fastening Solutions segments, both continuing operations, achieved sales growth and maintained healthy Adjusted Return on Sales in the first three quarters of 2024, with the latter showing higher profitability 2024 Net Sales and Adjusted Return on Sales by Reportable Segment (Million USD) | Metric | Q1 | Q2 | Q3 | First Nine Months | | :------------------------- | :------- | :------- | :------- | :------- | | **Net Sales** | | | | | | Enclosures | 439.9 | 440.8 | 477.1 | 1,357.8 | | Electrical & Fastening Solutions | 292.2 | 299.0 | 304.9 | 896.1 | | Total | 732.1 | 739.8 | 782.0 | 2,253.9 | | **Adjusted Operating Income** | | | | | | Enclosures | 94.8 | 103.8 | 104.4 | 303.0 | | Electrical & Fastening Solutions | 85.2 | 92.5 | 92.6 | 270.3 | | **Adjusted Return on Sales** | | | | | | Enclosures | 21.6% | 23.5% | 21.9% | 22.3% | | Electrical & Fastening Solutions | 29.2% | 30.9% | 30.4% | 30.2% | 2023 Net Sales and Adjusted Return on Sales by Reportable Segment (Million USD) | Metric | Q1 | Q2 | Q3 | First Nine Months | | :------------------------- | :------- | :------- | :------- | :------- | | **Net Sales** | | | | | | Enclosures | 391.0 | 400.0 | 412.7 | 1,203.7 | | Electrical & Fastening Solutions | 205.7 | 266.7 | 302.3 | 774.7 | | Total | 596.7 | 666.7 | 715.0 | 1,978.4 | | **Adjusted Operating Income** | | | | | | Enclosures | 82.5 | 90.0 | 89.4 | 261.9 | | Electrical & Fastening Solutions | 61.3 | 86.5 | 97.6 | 245.4 | | **Adjusted Return on Sales** | | | | | | Enclosures | 21.1% | 22.5% | 21.7% | 21.8% | | Electrical & Fastening Solutions | 29.8% | 32.4% | 32.3% | 31.7% | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) This section explains nVent's use of non-GAAP financial measures and provides detailed reconciliations to their most directly comparable GAAP counterparts for both continuing and discontinued operations [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) nVent utilizes various non-GAAP financial measures, such as organic sales, adjusted operating income, adjusted EPS, and free cash flow, to assess core business performance and reconcile them with GAAP metrics - This press release refers to non-GAAP financial measures including organic sales, adjusted operating income, adjusted return on sales, adjusted net income, adjusted diluted EPS, and free cash flow[30](index=30&type=chunk) - Due to the sale of the Thermal Management business, the company reported its results as discontinued operations and reclassified all prior periods[31](index=31&type=chunk) - Adjustments include restructuring charges, acquisition and integration costs, amortization of all acquisition-related intangible assets, gains on investment sales, mark-to-market pension and other post-retirement benefit gains/losses, bridge financing debt issuance cost amortization, and the income tax impact of these adjustments[32](index=32&type=chunk) - Management uses these adjusted financial measures to evaluate the operating health of continuing operations and as criteria for measuring and paying long-term and annual incentive compensation[33](index=33&type=chunk)[34](index=34&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures (Continuing Operations)](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures%20%28Continuing%20Operations%29) This section provides reconciliation tables for GAAP to non-GAAP financial measures for continuing operations in 2024 and 2023, detailing the impact of adjustments on operating income, net income, and EPS 2024 Reconciliation of GAAP to Non-GAAP Financial Measures (Continuing Operations) (Million USD, except per share data) | Metric | Q1 | Q2 | Q3 | Q4 Forecast | Full-Year | | :------------------------------------- | :------- | :------- | :------- | :----------- | :----- | | Net Sales | 732.1 | 739.8 | 782.0 | - | - | | Operating Income | 131.9 | 144.9 | 133.2 | - | - | | Total Adjustments (Operating Income) | 24.0 | 24.5 | 35.2 | 28 | 112 | | Adjusted Operating Income | 155.9 | 169.4 | 168.4 | - | - | | Net Income from Continuing Operations | 85.2 | 93.2 | 78.9 | 77 | 334 | | Adjusted Net Income from Continuing Operations | 102.0 | 113.0 | 105.3 | 99 | 419 | | Diluted EPS from Continuing Operations | 0.51 | 0.55 | 0.47 | 0.45 - 0.47 | 1.99 - 2.01 | | Adjusted Diluted EPS from Continuing Operations | 0.61 | 0.67 | 0.63 | 0.58 - 0.60 | 2.49 - 2.51 | 2023 Reconciliation of GAAP to Non-GAAP Financial Measures (Continuing Operations) (Million USD, except per share data) | Metric | Q1 | Q2 | Q3 | Q4 | Full-Year | | :------------------------------------- | :------- | :------- | :------- | :------- | :----- | | Net Sales | 596.7 | 666.7 | 715.0 | 690.5 | 2,668.9 | | Operating Income | 97.7 | 121.3 | 126.2 | 117.5 | 462.7 | | Total Adjustments (Operating Income) | 16.0 | 27.6 | 36.1 | 24.2 | 103.9 | | Adjusted Operating Income | 113.7 | 148.9 | 162.3 | 141.7 | 566.6 | | Net Income from Continuing Operations | 73.2 | 92.2 | 81.9 | 212.4 | 459.7 | | Adjusted Net Income from Continuing Operations | 85.3 | 103.1 | 109.1 | 93.4 | 390.9 | | Diluted EPS from Continuing Operations | 0.44 | 0.55 | 0.49 | 1.26 | 2.73 | | Adjusted Diluted EPS from Continuing Operations | 0.51 | 0.61 | 0.65 | 0.55 | 2.32 | [Reconciliation of GAAP to Non-GAAP Measures (Discontinued Operations)](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures%20%28Discontinued%20Operations%29) This section presents reconciliation tables for GAAP to non-GAAP financial measures for discontinued operations in 2024 and 2023, illustrating the impact of adjustments on operating income, net income, and EPS for this business 2024 Reconciliation of GAAP to Non-GAAP Financial Measures (Discontinued Operations) (Million USD, except per share data) | Metric | Q1 | Q2 | Q3 | | :------------------------------------- | :------- | :------- | :------- | | Net Sales | 142.5 | 140.5 | 157.1 | | Operating Income | 27.3 | 22.9 | 31.2 | | Total Adjustments (Operating Income) | 9.1 | 10.1 | 14.4 | | Adjusted Operating Income | 36.4 | 33.0 | 45.6 | | Net Income from Discontinued Operations | 19.9 | 17.8 | 26.1 | | Adjusted Net Income from Discontinued Operations | 28.1 | 25.8 | 35.2 | | Diluted EPS from Discontinued Operations | 0.11 | 0.11 | 0.15 | | Adjusted Diluted EPS from Discontinued Operations | 0.16 | 0.15 | 0.21 | 2023 Reconciliation of GAAP to Non-GAAP Financial Measures (Discontinued Operations) (Million USD, except per share data) | Metric | Q1 | Q2 | Q3 | Q4 | Full-Year | | :------------------------------------- | :------- | :------- | :------- | :------- | :----- | | Net Sales | 143.9 | 136.3 | 143.8 | 170.7 | 594.7 | | Operating Income | 26.4 | 25.4 | 30.0 | 42.9 | 124.7 | | Total Adjustments (Operating Income) | 7.9 | 7.0 | 9.7 | 4.7 | 29.3 | | Adjusted Operating Income | 34.3 | 32.4 | 39.7 | 47.6 | 154.0 | | Net Income from Discontinued Operations | 20.6 | 20.7 | 23.6 | 42.5 | 107.4 | | Adjusted Net Income from Discontinued Operations | 28.0 | 25.8 | 31.9 | 38.4 | 124.0 | | Diluted EPS from Discontinued Operations | 0.12 | 0.12 | 0.14 | 0.25 | 0.64 | | Adjusted Diluted EPS from Discontinued Operations | 0.16 | 0.16 | 0.19 | 0.23 | 0.74 | [Reconciliation of Total Net Sales and Adjusted EPS](index=11&type=section&id=Reconciliation%20of%20Total%20Net%20Sales%20and%20Adjusted%20EPS) This section provides reconciliations for total net sales and total adjusted diluted EPS for 2024 and 2023, combining data from both continuing and discontinued operations 2024 Reconciliation of Total Net Sales (Million USD) | Metric | Q1 | Q2 | Q3 | | :--------------------- | :------- | :------- | :------- | | Net Sales from Continuing Operations | 732.1 | 739.8 | 782.0 | | Net Sales from Discontinued Operations | 142.5 | 140.5 | 157.1 | | Total Net Sales (Non-GAAP) | 874.6 | 880.3 | 939.1 | 2024 Reconciliation of Total Adjusted Diluted EPS | Metric | Q1 | Q2 | Q3 | | :------------------------------------- | :------- | :------- | :------- | | Adjusted Diluted EPS from Continuing Operations | 0.61 | 0.67 | 0.63 | | Adjusted Diluted EPS from Discontinued Operations | 0.16 | 0.15 | 0.21 | | Total Adjusted Diluted EPS (Non-GAAP) | 0.77 | 0.82 | 0.84 | 2023 Reconciliation of Total Net Sales (Million USD) | Metric | Q1 | Q2 | Q3 | Q4 | Full-Year | | :--------------------- | :------- | :------- | :------- | :------- | :----- | | Net Sales from Continuing Operations | 596.7 | 666.7 | 715.0 | 690.5 | 2,668.9 | | Net Sales from Discontinued Operations | 143.9 | 136.3 | 143.8 | 170.7 | 594.7 | | Total Net Sales (Non-GAAP) | 740.6 | 803.0 | 858.8 | 861.2 | 3,263.6 | 2023 Reconciliation of Total Adjusted Diluted EPS | Metric | Q1 | Q2 | Q3 | Q4 | Full-Year | | :------------------------------------- | :------- | :------- | :------- | :------- | :----- | | Adjusted Diluted EPS from Continuing Operations | 0.51 | 0.61 | 0.65 | 0.55 | 2.32 | | Adjusted Diluted EPS from Discontinued Operations | 0.16 | 0.16 | 0.19 | 0.23 | 0.74 | | Total Adjusted Diluted EPS (Non-GAAP) | 0.67 | 0.77 | 0.84 | 0.78 | 3.06 | [Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment](index=14&type=section&id=Reconciliation%20of%20Net%20Sales%20Growth%20to%20Organic%20Net%20Sales%20Growth%20by%20Segment) This section provides a reconciliation of net sales growth to organic net sales growth by segment for Q3 2024, including Q4 and full-year 2024 forecasts, highlighting the impact of currency and acquisitions/divestitures on sales growth Q3 2024 Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment | Segment | Organic Growth | Currency Impact | Acquisition/Divestiture Impact | Total Growth | | :------------------------------------- | :------- | :------- | :------------ | :----- | | Enclosures | 1.2% | 0.2% | 14.2% | 15.6% | | Electrical & Fastening Solutions | 0.9% | —% | —% | 0.9% | | nVent Continuing Operations | 1.0% | 0.2% | 8.2% | 9.4% | | Thermal Management (Discontinued Operations) | 8.9% | 0.3% | —% | 9.2% | | nVent Total (Non-GAAP) | 2.4% | 0.2% | 6.8% | 9.4% | Q4 and Full-Year 2024 Net Sales Growth to Organic Net Sales Growth Forecast (Continuing Operations) | Metric | Q4 Organic Growth | Q4 Currency Impact | Q4 Acquisition/Divestiture Impact | Q4 Total Growth | Full-Year Organic Growth | Full-Year Currency Impact | Full-Year Acquisition/Divestiture Impact | Full-Year Total Growth | | :---- | :--------------- | :--------------- | :-------------------- | :------------- | :----------- | :----------- | :------------------ | :--------- | | nVent | 1% - 3% | 1% | 9% | 11% - 13% | 3% | —% | 10% | 13% | [Reconciliation of Cash from Operating Activities to Free Cash Flow](index=14&type=section&id=Reconciliation%20of%20Cash%20from%20Operating%20Activities%20to%20Free%20Cash%20Flow) This section provides a reconciliation of cash from operating activities to free cash flow for Q3 and the first nine months of 2024 and 2023, including data for both continuing and discontinued operations Reconciliation of Cash from Operating Activities to Free Cash Flow (Million USD) | Metric | Q3 2024 | Q3 2023 | First Nine Months 2024 | First Nine Months 2023 | | :------------------------------------- | :------------- | :------------- | :------------- | :------------- | | Net Cash Provided by Operating Activities - Continuing Operations | 158.4 | 123.0 | 324.1 | 232.5 | | Capital Expenditures | (15.7) | (15.6) | (47.5) | (44.8) | | Free Cash Flow (Non-GAAP) | 142.9 | 107.4 | 277.1 | 187.7 | | Net Cash Provided by Operating Activities - Discontinued Operations | 39.3 | 22.0 | 94.4 | 59.1 | | Capital Expenditures - Discontinued Operations | (2.8) | (1.0) | (5.6) | (4.1) | | Total Free Cash Flow (Non-GAAP) | 179.4 | 135.5 | 365.9 | 250.0 |

The market expects nVent Electric (NVT) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they ...

First, ChatGPT launched the AI evolution. Then, the hyperscalers scrambled to build AI models and acquired US$ billion in Nvidia ( NVDA ) chips. This led to a data center infrastructure buildout that drove equipment Experience is difficult to learn. After 30 plus years of critically analyzing the nuts and bolts of businesses as diverse as airlines, oil, retail, mining to fintech and ecommerce plus the macro, monetary and political drivers. I continue to immensely enjoy learning and applying my experience to ...