Core Insights - nVent Electric Plc reported strong Q2 2025 earnings, with adjusted EPS of $0.86, a 28% increase year-over-year, and revenue of $963 million, up 30% year-over-year, driven by acquisitions and product launches [1][2][6] Financial Performance - Adjusted EPS reached $0.86, exceeding the consensus estimate of $0.79 and up from $0.67 in Q2 2024 [2][6] - Revenue for Q2 2025 was $963 million, surpassing the estimate of $908.38 million and increasing from $740 million in Q2 2024 [2][5] - Free cash flow declined to $74 million from $101 million in Q2 2024, a decrease of 26.7% [2][8] - Adjusted operating income rose to $200 million, an 18.3% increase year-over-year [2][6] - Adjusted return on sales fell to 20.8%, down from 22.9% in the previous year [2][7] Growth Drivers - The company achieved organic sales growth of 9%, with acquisitions contributing 20.7 percentage points to the overall revenue growth [5][6] - Power utilities and data centers now account for approximately 40% of total sales, reflecting a strategic shift towards high-growth infrastructure sectors [5][9] - nVent launched 35 new products in Q1, supporting growth in electrification and sustainability markets [6][9] Strategic Acquisitions - Recent acquisitions, including ECM Industries and Trachte, have enhanced nVent's capabilities in key sectors [4][9] - The integration of Trachte and Avail EPG has exceeded expectations, contributing positively to growth synergies [9] Operational Efficiency - The company emphasizes lean manufacturing practices, which have led to increased output and operational improvements [11] - Management anticipates that tariff-related costs will be offset over time through pricing and productivity enhancements [11][13] Future Outlook - nVent raised its full-year 2025 guidance, expecting reported sales growth of 24–26% and adjusted EPS in the range of $3.22–$3.30 [12] - For Q3, projected reported sales growth is 27–29%, with adjusted EPS between $0.86 and $0.88 [12] - The company is focused on margin recovery and capturing synergies from recent acquisitions [13]