Core Insights - nVent Electric plc has introduced new modular liquid cooling solutions aimed at meeting the cooling requirements of next-generation AI chips, showcasing these innovations at SC25 [1][3][12] - The company is collaborating with Siemens to develop a liquid cooling and power reference architecture tailored for hyperscale AI workloads [8] Product Offerings - The new product portfolio includes modular and scalable row-based coolant distribution units (CDUs), next-generation power distribution units (PDUs), and advanced technology cooling system manifolds [3][4] - nVent's CDUs and PDUs feature a common control platform designed to enhance reliability and improve user experience for data center operators [3] Industry Collaboration - nVent is participating in Project Deschutes, exhibiting a new CDU design based on Google's specifications, which aims to accelerate the adoption of liquid cooling in data centers [9] - The company is leveraging its extensive experience and technical expertise to address unique challenges faced by customers in the data center industry [2][7] Educational Initiatives - nVent will host "Tech Talks" at SC25 to provide insights into new products and address critical industry questions, supporting data center managers in deploying the latest AI technology [11] - Industry experts from nVent, NVIDIA, Lenovo, HPE, and AMD will participate in a panel discussion on the evolution of liquid cooling technology [10] Marketing Campaign - nVent is launching a new marketing campaign titled "We Do Cool Stuff" to highlight its leadership and innovation in the data center industry [12][13]

Sales grew 6%, segment margins expanded by 100 basis points, and adjusted EPS increased 17%. Notably, we offset the dilution from the residential and light commercial divestiture in one year, ahead of our original expectations. Free cash flow conversion reached 102%, reflecting our disciplined execution and financial strength. Orders grew 7% for the year, and our backlog expanded 13%, ending at a record $15 billion. This sustained demand highlights the value our customers place in our solutions and the stre ...

Financial Data and Key Metrics Changes - Fiscal 2025 saw a 6% increase in sales, with segment margins expanding by 100 basis points and adjusted EPS rising by 17% [8][24] - Free cash flow conversion reached 102%, reflecting disciplined execution and financial strength [8][24] - The company ended the quarter with approximately $400 million in available cash and net debt declined to 2.4 times compared to the prior year [24] Business Line Data and Key Metrics Changes - Organic revenue grew 4% in Q4, with segment margin expanding by 20 basis points to 18.8% [23] - Orders grew 6% in the quarter, with a notable 9% growth in the Americas, driven by data center strength [24] - EMEA orders increased by 3%, while APAC saw a small decline of 1% due to lower systems volumes [24] Market Data and Key Metrics Changes - The backlog expanded by 13% to a record $15 billion, with system backlog growing by 14% and service backlog by 9% [24] - In the Americas, sales were up 3% organically, while EMEA delivered 9% organic growth [25] - APAC sales declined 3% organically, primarily due to lower volumes in China [25] Company Strategy and Development Direction - The company is updating its long-term growth algorithm to reflect improved mid-single-digit top-line growth and double-digit adjusted EPS growth [8][27] - A proprietary business system is being implemented to enhance operational efficiency and customer-centricity [9][10] - The focus on technology innovation and sustainability is expected to drive future growth, particularly in advanced thermal management for data centers [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate evolving market conditions and achieve long-term growth commitments [30] - The guidance for fiscal 2026 includes expectations for mid-single-digit organic revenue growth and approximately 100% free cash flow conversion [29][30] - The company is focused on leveraging strengths in HVAC controls and digital solutions to capture significant opportunities [21][27] Other Important Information - The company is pursuing selective acquisitions to strengthen its portfolio while maintaining a strong balance sheet [28] - Recent leadership changes aim to enhance operational capabilities and align talent with strategic priorities [11] Q&A Session Summary Question: Can you walk through the 50% operating leverage target for 2026? - Management indicated that EMEA and APAC will be the main drivers of margin improvement, with overall operating leverage expected to be in the 50s or above [33] Question: What are the opportunities for cost and portfolio improvements? - Management highlighted ongoing efforts to reduce G&A costs and improve productivity through the proprietary business system, with a vibrant acquisition pipeline [34][38] Question: Can you provide details on the $250 million benefits related to operating leverage? - Management confirmed that the operating leverage is expected to improve over time, driven by productivity and responsible cost reductions [40][41] Question: What is the outlook for orders in the first quarter? - Management noted that the health of the pipeline continues to improve, with opportunities for growth in orders despite tough comparisons [51] Question: How does the company view the content opportunity in data centers? - Management emphasized that the demand for cooling solutions is increasing due to higher power requirements from newer chips, positioning the company well in the market [66] Question: Can you elaborate on the investments in technology for the aftermarket? - Management stated that technology investments are aimed at both gaining market share and improving margin profiles by lowering service costs [69]

Johnson Controls International (NYSE:JCI) Q4 2025 Earnings Call November 05, 2025 08:30 AM ET Speaker2Everyone, and welcome to the Johnson Controls Q4 2025 earnings conference call. My name is Nadia, and I'll be coordinating the call today. If you would like to ask a question at the end of the presentation, please press star followed by one on your telephone keypad. I will now hand the call over to Jim Lucas, Vice President, Investor Relations, to begin. Jim, please go ahead.Speaker0Good morning, and thank ...

Financial Performance - The company achieved organic sales growth of 6% for the full year 2025[9], and 4% for Q4 2025[22], demonstrating broad-based strength across its operations[9] - Adjusted Segment EBITA margin expanded by 100 basis points to 171% for the full year 2025[9], and 20 basis points to 188% for Q4 2025[22] - Adjusted EPS increased by 17% year-over-year[9] from $321 in FY24 to $376 in FY25[39], successfully offsetting dilution from the R&LC divestiture[9] - Adjusted free cash flow conversion was strong at 102% for the full year 2025[9], validating disciplined capital allocation[9] - Q4 2025 adjusted EPS increased 14% year-over-year, from $111 to $126[24] Orders and Backlog - Orders grew by 7% for the full year 2025, with strong performance in the Americas offsetting softness in China[9] - Backlog grew by 13% to approximately $15 billion, providing visibility into future growth[9] Future Outlook - The company initiated FY26 adjusted EPS guidance of approximately $455, representing over 20% growth[9] - The company expects adjusted free cash flow conversion of approximately 100% for FY26[9] - For Q1 2026, the company anticipates organic revenue to be up approximately 3% and adjusted EPS to be approximately $083[43]