nVent Electric Shares Rise on Q4 Earnings and Revenue Beat

Core Insights - nVent Electric (NVT) shares increased by 2% following the release of its fourth-quarter 2025 earnings, attributed to strong data center demand, infrastructure growth, backlog strength, and cooling adoption [1][8] Financial Performance - The company reported adjusted earnings of 90 cents per share for Q4 2025, exceeding the Zacks Consensus Estimate by 1.8% and reflecting a year-over-year increase of 52.5% [1][8] - Net sales rose by 35% year over year to $1.1 billion, surpassing the Zacks Consensus Estimate by 6.32%, with organic revenue growth of 24% [2][8] Segment Performance - Systems Protection net sales reached $737 million, a 58% increase year over year, driven by 34% organic growth [3] - Electrical Connections' net sales were $330 million, up 15% year over year, with organic sales increasing by 8% [4] Operating Metrics - Adjusted operating income for Q4 was $210.3 million, a 33% increase from $158.3 million in the previous year, with an adjusted operating margin of 19.7% [6] - GAAP gross margin declined by 330 basis points year over year to 36.5% [5] Balance Sheet - As of December 31, 2025, nVent had cash and cash equivalents of $237.5 million, up from $126.9 million as of September 30, 2025 [7] - Free cash flow generated in Q4 was $189 million [7] Guidance - For Q1 2026, nVent expects net sales growth between 34% and 36%, with organic growth projected at 17-19% [9] - The company anticipates adjusted earnings for Q1 2026 to be between 90 cents and 93 cents, indicating year-over-year growth of 40.3% [10] - For the full year 2026, adjusted EPS is projected to be in the range of $4-$4.15, reflecting a year-over-year growth of 21.8% [11]