Core Insights - nVent Electric's shares have increased by 14.5% over the past three months, outperforming the Zacks Electronics - Miscellaneous Components industry's growth of 9% [1][7] - The company is experiencing strong demand from data centers and power utilities, which is driving significant sales growth and a positive outlook for future performance [3][12] Financial Performance - In Q3 2025, nVent Electric reported net sales of $1.05 billion, a 35% year-over-year increase, exceeding the Zacks Consensus Estimate by 4.8% [4] - Adjusted earnings per share (EPS) rose by 44.4% to 91 cents, beating the consensus mark by 3.4% [4] - The company has raised its full-year 2025 revenue growth guidance to 31-33%, up from 29-33%, and adjusted EPS guidance to $3.31-$3.33, up from $3.21-$3.30 [5] Market Demand - Demand from data centers is particularly strong, with organic orders increasing by approximately 65% in Q3, primarily driven by large liquid cooling orders for hyperscaler programs [6] - The backlog for nVent Electric grew double digits sequentially in Q3, indicating a solid base for future revenues [8] - Liquid cooling is a key growth driver, with less than 10% of data centers currently utilizing this technology, suggesting long-term demand potential [9] Strategic Acquisitions - nVent Electric's acquisitions of Trachte and Electrical Products Group (EPG) are performing better than expected, with EPG projected to contribute about 15 percentage points to Q4 sales growth [13] - The company is investing in expanding capacity and improving efficiency in these acquired businesses to meet growing demand from power utilities [14] Valuation and Growth Outlook - nVent Electric is trading at a higher price-to-sales (P/S) multiple of 3.92X compared to the industry average of 2.22X, reflecting high growth expectations [15][17] - The company is well-positioned to benefit from strong long-term demand in AI-related data center projects, supporting its premium valuation [18]