nVent(US:NVT)2025-10-31 20:39Financial Performance - Net sales for Q3 2025 reached $1,054.0 million, a 34.8% increase from $782.0 million in Q3 2024[100] - Gross profit for Q3 2025 was $394.7 million, with a gross margin of 37.4%, down from 39.8% in Q3 2024[100] - Operating income for Q3 2025 was $166.3 million, representing 15.8% of net sales, a decrease of 1.2 percentage points from the previous year[100] - For the nine months ended September 30, 2025, net sales increased by 25.4% to $2,826.4 million compared to $2,253.9 million in the same period of 2024[102] - Net sales for the Systems Protection segment increased by 50.0% to $715.6 million in Q3 2025, and by 36.7% to $1,855.8 million for the first nine months of 2025 compared to 2024[111] - Electrical Connections segment net sales rose by 11.0% to $338.4 million in Q3 2025, and by 8.3% to $970.6 million for the first nine months of 2025 compared to 2024[115] Segment Performance - Segment income for Systems Protection was $146.2 million in Q3 2025, a 40.0% increase from $104.4 million in Q3 2024, and $387.5 million for the first nine months of 2025, up 27.9% from $303.0 million in the same period of 2024[111] - Segment income for Electrical Connections increased by 9.7% to $101.6 million in Q3 2025, and by 4.2% to $281.6 million for the first nine months of 2025 compared to the same periods in 2024[115] - Organic sales growth contributed approximately 23.2% in Q3 2025 and 11.4% in the first nine months of 2025 for Systems Protection, while Electrical Connections saw organic growth of 4.7% in Q3 2025 and 5.1% in the first nine months of 2025[112][116] Cash Flow and Investments - The company reported a net cash provided by operating activities of $426.6 million in the first nine months of 2025, compared to $324.1 million in the same period of 2024[123][124] - Net cash used for investing activities from continuing operations was $1,029.8 million in the first nine months of 2025, primarily for the Electrical Products Group acquisition[125] - Free cash flow for the nine months ended September 30, 2025, was $371.7 million, up from $277.1 million in the same period of 2024[148] Tax and Income - The effective tax rate decreased to 20.6% in the nine months ended September 30, 2025, down from 22.1% in the prior year[102] - The effective tax rate decreased by 4.8 percentage points in Q3 2025 and 1.5 percentage points in the first nine months of 2025 compared to 2024, mainly due to a $3.2 million non-cash benefit from the release of a valuation allowance[107] - Income from discontinued operations, net of tax, was $278.7 million in the first nine months of 2025, primarily from the gain on the sale of the Thermal Management business[108] Acquisitions and Financing - The company completed the acquisition of Trachte, LLC for approximately $687.5 million on July 16, 2024, enhancing its Systems Protection segment[95] - nVent entered into a five-year $275.0 million senior unsecured term loan facility and a $600.0 million senior unsecured revolving credit facility in June 2025[136] - As of September 30, 2025, the borrowing capacity under the Revolving Credit Facility was $569.6 million[137] Shareholder Returns - During the nine months ended September 30, 2025, nVent repurchased 4.8 million ordinary shares for $253.1 million under the 2024 Authorization[144] - Dividends paid during the nine months ended September 30, 2025, totaled $98.0 million, or $0.60 per ordinary share, compared to $95.3 million, or $0.57 per ordinary share in the same period of 2024[145] - The Board of Directors declared a quarterly cash dividend of $0.20 per ordinary share on September 22, 2025, payable on November 7, 2025[146] - nVent's 2021 share repurchase authorization of $300.0 million expired on July 22, 2024, and a new authorization of $500.0 million began on July 23, 2024[143] Market Conditions - The company expects continued inflationary cost increases and supply chain challenges throughout 2025 and beyond[99] - There have been no material changes in market risk during the quarter ended September 30, 2025[151] - The company has no significant restrictions on obtaining funds from its subsidiaries by dividend or loan[134]