Core Insights - Artisan Mid Cap Value Fund's Investor Class returned 0.97%, Advisor Class returned 0.98%, and Institutional Class returned 0.97% in Q3 2025, underperforming the Russell Midcap Value Index which returned 6.18% [1] - The equity markets rallied in Q3 2025, driven by strong corporate earnings, rising AI capital expenditures, and expectations of economic support from US fiscal policy and lower interest rates [1] Company Highlights - NVent Electric plc (NYSE:NVT) was highlighted as a top contributor in the fund's performance, with a one-month return of -0.27% and a 52-week gain of 49.75% [2] - NVent Electric's stock closed at $106.82 on January 02, 2026, with a market capitalization of $17.24 billion [2] - The company reported strong organic sales growth, particularly in its data center and power utilities businesses, which contributed to its stock performance [3] - NVent Electric has a leading position in liquid cooling solutions, which are increasingly important for energy efficiency and sustainability in AI infrastructure [3] - The company has benefited from multiple secular tailwinds including electrification, clean energy, energy efficiency, digitalization, and onshoring, alongside AI growth [3] - NVent Electric has effectively allocated capital towards product development, M&A, and returning capital to shareholders through dividends and share repurchases [3]

Market Overview - The U.S. market has shown volatility, with returns of 19.2% for the Nasdaq Composite, 15.8% for the S&P 500, and 13.7% for the Dow Jones Industrial Average over the past year [1] - Concerns are rising regarding the moderating pace of the economy, influenced by a cooling labor market and high valuations in the technology sector [1] Federal Reserve Actions - The Federal Reserve cut its key interest rate by a quarter percentage point in December to support the job market and stimulate growth, with inflation trending near the 2% target [2] - The Fed has reduced borrowing costs three times this year, bringing the overnight borrowing rate to a range of 3.50-3.75% [2] Labor Market Conditions - The job market is showing signs of cooling, with softer hiring, rising unemployment at 4.6%, and a narrowing gap in job openings [3] - Nonfarm payrolls increased by 64,000 jobs in November after a decline of 105,000 jobs in October, the largest drop since December 2020 [3] Investment Opportunities - Investors looking to diversify can consider dividend-paying stocks, which indicate a healthy business model and tend to outperform non-dividend-paying stocks in volatile markets [4] - Notable dividend-paying companies include: - **Pentair (PNR)**: Declared a dividend of 27 cents per share with a yield of 1% and a payout ratio of 21% [5][6] - **nVent Electric (NVT)**: Declared a dividend of 21 cents per share with a yield of 0.8% and a payout ratio of 26% [7][8] - **CenterPoint Energy (CNP)**: Declared a dividend of 23 cents per share with a yield of 2.3% and a payout ratio of 51% [10][11][12] - **Marriott Vacations Worldwide (VAC)**: Declared a dividend of 80 cents per share with a yield of 5.5% and a payout ratio of 44% [10][13][14] - **PG&E (PCG)**: Declared a dividend of 5 cents per share with a yield of 0.7% and a payout ratio of 7% [15]

Company Overview - nVent Electric plc (NYSE:NVT) is recognized as one of the top 10 Data Center Cooling Companies to invest in [1] - The company is headquartered in London, United Kingdom, and employs over 11,000 people globally [3] Financial Performance - Barclays raised its price target for nVent from $130 to $140, maintaining an overweight rating [1] - Management expressed confidence in strong, improving margins in the core business segment, indicating resilience against the focus on AI and data centers [3] Strategic Direction - At the 2025 Goldman Sachs Industrials and Materials Conference, management highlighted a strategic pivot towards becoming a data center infrastructure company, anticipating significant growth in this area [2] - The new modular cooling and power portfolio is designed to meet the increasing demand driven by AI technologies [2] Product Innovation - nVent's liquid cooling solutions were showcased at the SC25 event on November 17, emphasizing the company's commitment to innovation for next-generation AI chips [2] - The company is collaborating with chip manufacturers and the broader ecosystem to address unique customer challenges with its new liquid cooling and power solutions [2]

Core Insights - Hubbell Incorporated (HUBB) is a leading manufacturer in the electrical and utility infrastructure products sector, with a market capitalization of $23.3 billion [1][2] - The company plays a vital role in power transmission, grid modernization, and large-scale infrastructure development across North America and internationally [2] Financial Performance - In Q3, HUBB reported net sales of $1.5 billion, a 4.1% year-over-year increase, although it missed analyst estimates by 2% [5] - Adjusted EPS for the quarter rose 12.1% to $5.17, exceeding consensus estimates of $4.99 [5] - HUBB raised its fiscal 2025 adjusted EPS guidance to a range of $18.10 to $18.30, which has positively influenced investor sentiment [5] Stock Performance - HUBB's shares have declined 9.4% from their 52-week high of $484.26, reached on October 30 [3] - Year-to-date, HUBB's shares are up 4.7%, significantly trailing the State Street Industrial Select Sector SPDR ETF's (XLI) 16.8% return [4] - Over the past 52 weeks, HUBB's stock has decreased by 2.2%, while XLI has increased by 10.8% [4] - Despite recent challenges, HUBB has been trading above its 200-day moving average since late June and above its 50-day moving average since early December [4] Competitive Landscape - HUBB has underperformed compared to its competitor nVent Electric plc (NVT), which has seen a 45.1% increase over the past 52 weeks and a 58.4% rise year-to-date [6]

Core Viewpoint - nVent Electric plc is highlighted as a strong investment opportunity, particularly due to its growth prospects in the data center and power infrastructure segments, which are expected to drive significant sales growth [1][2]. Group 1: Company Performance and Outlook - UBS initiated coverage of nVent Electric with a Buy rating and a price target of $128, citing optimism about the company's future driven by improving demand in key segments [1]. - The company is projected to achieve annual organic sales growth exceeding 10% through 2027, with sales and earnings per share expected to surpass consensus estimates by approximately 300 basis points [2]. Group 2: Product Development and Innovation - nVent is addressing the growing demand for data centers by launching a new liquid-cooling solution specifically designed for AI data centers, which includes upgraded hardware such as coolant distribution units and next-gen power distribution units [3][4]. - The company is collaborating with Siemens on a reference architecture for hyperscale AI cooling and contributing to Project Deschutes with a Google-aligned CDU design, indicating a strong focus on innovation in cooling solutions [4]. Group 3: Company Overview - nVent Electric designs, manufactures, markets, installs, and services high-performance electrical connection and protection solutions, with applications across data centers, industrial facilities, and buildings [5].

Summary of Global Data Centre Equipment Market Conference Call Industry Overview - The report focuses on the **Global Data Centre Equipment** market, providing an updated outlook and analysis of key players across the value chain [2][3]. Market Growth Forecast - The **Data Centre equipment market** (including grey, white, and cooling segments) is projected to grow by **20-25% in 2026**, **15-20% in 2027**, and **10-15% annually from 2028 to 2030**. The estimated growth for 2025 is around **25-30%** [3][39]. - The **Cooling segment** is expected to grow at a **CAGR of approximately 20%** until 2030, with **Liquid Cooling** projected to grow by **45%** [3][39]. Pricing Dynamics - A **20% increase** in market **$/MW** is anticipated due to higher power density rack architectures, primarily driven by cooling and grey space [4][28]. - The **IT equipment $/MW** is expected to rise by **3-4 times**, which explains the rapid capital expenditure (capex) ramp by hyperscalers and reduces price sensitivity towards facility costs [4][28]. AI Adoption and Monetization - There is evidence of rapid adoption of **Generative AI (GenAI)**, with an annual recurring revenue (ARR) of **$17 billion**, representing **6-7%** of the current total SaaS market [5][26]. - Hyperscalers' **Capex/Sales** ratio is projected to more than double compared to 2023, reaching **25-30%**, raising questions about sustainability. However, even with 2026 estimates, capex is expected to represent **75%** of the industry's operating cash flow [5][26]. Key Players and Stock Recommendations - In **Europe**, preferred companies include **Schneider**, **Halma**, **Siemens**, **Prysmian**, and **Wartsila**. - In the **US**, favored companies are **Vertiv**, **Eaton**, **nVent**, **GE Vernova**, and **Comfort Systems**. - In **Asia**, **Delta Electronics** and **Envicool** are highlighted as key players [6][39]. Capacity and Demand Insights - The **Global Data Centre Capacity** is expected to grow significantly, with **24% year-over-year growth** in 2026 and a **21% CAGR from 2025 to 2029** [50][56]. - The **Tech 6** companies (Amazon, Microsoft, Google, Meta, Oracle, and Apple) are projected to account for **10%** of total US electricity demand by 2030, with their incremental demand surpassing the entire US utility-scale solar industry by 2028 [56][58]. Challenges and Risks - Potential risks include project delays, cancellations, and the need for stable grid connections, particularly in Europe where connections are quoted into the 2030s [57][58]. - The industry has faced equipment shortages, particularly in electrical equipment, but this has returned to normal as manufacturers ramped up capacity [57]. Conclusion - The **Global Data Centre Equipment** market is poised for significant growth driven by AI adoption, increased demand for cooling solutions, and substantial capital investments from hyperscalers. However, challenges related to infrastructure and supply chain must be monitored closely to ensure sustainable growth [5][56][57].

Investment Rating - The report indicates a positive outlook for the data center infrastructure industry, suggesting that it is too early to fade the current infrastructure cycle, which has accelerated significantly recently [1][2]. Core Insights - The data center infrastructure build-out is progressing beyond expectations, with a large pipeline indicating demand far exceeding supply, and a projected annual run rate of over 12 GW pre-leased by 2025 [2][3]. - The industry is consolidating on cooling technologies, with major players enhancing their offerings in liquid cooling systems, which are becoming foundational for future data center operations [3][7]. - The report highlights that two-thirds of new capacity is driven by AI build-outs, emphasizing the critical role of AI in fueling incremental demand for data center infrastructure [7][8]. Summary by Sections Industry Overview - The current cycle is described as year 2 of a 7-year cycle, with expectations of over 6 GW being turned on this year, and significant future demand indicated by pre-leasing activity [2][4]. - The report notes that construction lead times will prevent a rapid overbuilding scenario, as physical constraints in construction remain significant [2][3]. Technology Trends - The industry is witnessing a shift towards higher voltage and DC architectures, which could disrupt traditional components and enhance efficiency [3][7]. - Liquid cooling is projected to grow from 10% to 20-30% of the value in thermal management systems, indicating a significant market opportunity for advanced cooling solutions [13][15]. Company Positioning - VRT is identified as a well-positioned industry leader, with strong pipelines and customer demand, while ETN is expected to gain market share following strategic acquisitions [4][7]. - JCI is focusing on technical differentiation and manufacturing capacity, with a robust backlog and pipeline indicating strong demand for their solutions [12][15]. Market Dynamics - The report emphasizes the importance of power availability as a natural constraint against overbuilding, with local government support playing a role in mitigating resistance to new data center projects [7][8]. - The competitive landscape is evolving, with new entrants and increased commoditization driven by standardization efforts, particularly from major players like NVIDIA [7][8].

Summary of Key Points from the Conference Call Industry Overview - The conference focused on the U.S. Multi-Industry sector, particularly datacenters and related technologies, highlighting the rapid technological changes and capacity additions by manufacturers [1][2][6] Core Insights - **Investor Interest**: Approximately 70% of investor interest in the sector year-to-date is related to datacenters, indicating a strong market focus [2] - **Technological Advancements**: Significant shifts are occurring in datacenter technology, including the adoption of 800-volt DC architecture and two-phase liquid cooling systems, expected to impact suppliers positively and negatively by 2027-2028 [6] - **New Product Launches**: Modine's TurboChill chiller was highlighted as a standout product that eliminates the need for in-row CDUs, potentially disrupting the CDU market [6][22][24] - **Capacity Expansion**: Manufacturers are rapidly increasing their production capacity to meet booming demand, with little discussion on when this demand might plateau [6][8] Company-Specific Highlights Dover Corporation (DOV) - DOV's datacenter-related revenue exceeds $100 million annually, growing at a double-digit percentage rate [7] - The company is focused on quick-disconnect couplings and has noted long lead times in gas turbines, which could benefit GEV [8] Eaton Corporation (ETN) - ETN is developing an 800V sidecar offering, expected to start taking orders in 2026, which could disrupt the current AC-dominated market [11] - The company anticipates a 70% annual sales growth from the Boyd Thermal acquisition, with a total addressable market (TAM) of $3.4 million per MW once integrated [11][12] Gates Industrial Corp. (GTES) - GTES aims to increase its datacenter sales from a few million to $100-200 million, with a TAM exceeding $2 billion [14] - The company is innovating in hose and pump technology to meet increased cooling demands [17] Mitsubishi Power - Mitsubishi Power plans to double its gas turbine capacity due to rising utility and datacenter demand, with long lead times creating favorable pricing conditions [21] Modine (MOD) - MOD's new TurboChill chiller is expected to significantly reduce space and cost for datacenters, with a manufacturing capacity expansion aimed at increasing sales from $40 million to $2 billion by 2028 [22][24] nVent Electric plc (NVT) - NVT is focusing on intelligent fluid monitoring systems and has a large service business with over 800 field technicians [23] - The company is not looking to enter the cold plate market, citing a lack of synergies [25] Parker-Hannifin Corp (PH) - PH is developing two-phase liquid cooling products, with mass production expected to begin in 2027-2028 [29] - The company has seen significant growth in datacenter sales, although it does not sell directly to hyperscalers [29] Vertiv Holdings Co. (VRT) - VRT emphasizes its complete power and cooling portfolio, with innovations in liquid cooling and energy storage systems [28][33] - The company is leveraging AI for predictive maintenance and has a strong service network with over 4,400 technicians [33] Additional Insights - **Market Dynamics**: There is a noted downward pricing pressure in some product categories due to increased capacity, despite strong volume growth [6][9] - **Cleanliness in Cooling Loops**: A significant issue in the datacenter market is maintaining cleanliness in cooling loops, which DOV claims to manage effectively [9] - **Modularization Trend**: The trend towards prefabricated, modular infrastructure is gaining traction, particularly for large-scale datacenter campuses [8] Conclusion The U.S. Multi-Industry sector, particularly in datacenters, is experiencing rapid technological advancements and capacity expansions, with various companies positioning themselves to capitalize on these trends. The competitive landscape is evolving, with new products and innovations expected to reshape market dynamics in the coming years.

Key Takeaways from the Conference Call Industry Overview - The conference focused on the industrial and materials sector, particularly in relation to data center cooling technologies and solutions. Key companies discussed include nVent Electric, Vertiv, Eaton Corp, Jabil, Motivair, Modine, and Dover. Core Insights 1. **Strong Demand** Companies reported robust backlog coverage and bookings extending into 2027 and 2028, indicating a strong demand for their products and services [1][2][3] 2. **Shift to Pre-fabricated Solutions** There is a notable shift towards pre-fabricated solutions that can significantly reduce installation times from weeks to as little as one day, addressing labor shortages and coordination challenges on-site [2][3] 3. **Importance of Services** Services, particularly in liquid cooling, are critical. Companies are leveraging AI and digital capabilities to enhance service delivery through data-driven approaches rather than traditional time-based schedules [3][4] 4. **Emergence of 800V Technology** Several companies showcased 800V technology, aligning with future silicon roadmaps, which is expected to support advanced applications like AI [3][4] 5. **Future Cooling Technologies** - Mixed opinions on two-phase cooling technology, with some seeing it as a long-term opportunity (3-7 years out) while others cite challenges [4] - Modine introduced a stainless steel chiller aimed at improving reliability and efficiency in cooling systems [4] - Immersion cooling is viewed as a niche market for the next few years [4] Company-Specific Insights nVent Electric - **Liquid Cooling Inflection Point** The company is capitalizing on the shift from air cooling to liquid cooling, with a portfolio of 10 new products and enhancements to existing solutions [9][10] - **Alignment with Hyperscalers** nVent is closely working with NVIDIA and AMD to ensure its cooling solutions align with new chip releases through 2030 [11] - **Integrated Solutions** The company is moving from selling components to providing full solutions, exemplified by their Technology Cooling System (TCS) [13] Vertiv - **Technological Innovations** Vertiv is focusing on 800V technology and has developed pre-fabricated solutions that significantly reduce installation complexity and time [17][18] - **Service Capabilities** The company has a large service team and is utilizing AI for maintenance and service scheduling, enhancing its service offerings [19] Eaton Corp - **Next-Generation DC Architecture** Eaton is developing a new DC architecture aligned with NVIDIA's 800V systems, targeting high-density power solutions [23][24] - **Scalability and Efficiency** The company emphasizes the scalability of its DC systems and aims to improve efficiency through reduced power conversion [25] Jabil - **Cold Plate Technology** Jabil's cold plate technology supports liquid cooling effectively, with expectations for continued industry relevance [30] Motivair - **Capacity Expansion** Motivair is aggressively expanding its manufacturing capabilities to meet demand, with a focus on prefabricated modular cooling solutions [34][37] Modine - **Innovative Chillers** Modine's new stainless steel chiller enhances system reliability and is designed to support liquid cooling without the need for in-row CDUs [39] Dover - **Strategic Focus** Dover's CPC division is expanding capacity and expects revenues from data centers to exceed $100 million in 2025, driven by a focus on high-reliability connectors [41][42] Risks and Valuation - **Valuation Ratings** - nVent Electric: Buy, price target of $140 [14] - Vertiv: Buy, price target of $182 [20] - Jabil: Buy, price target of $252 [32] - Dover: Buy, price target of $218 [45] - **Key Risks** Risks include potential deceleration in growth, pricing pressures, and challenges in maintaining margins due to competitive pressures and market dynamics [14][21][32][45]

Group 1 - The article discusses the performance and insights from the Carillon Chartwell Mid Cap Value Fund for Q3 2025, highlighting key securities and market trends [3][4] - nVent (NVT) is identified as a top security, providing electrical connection and protection solutions that are essential for critical infrastructure across various sectors including industrial and commercial [4]