Note: This is an earnings call transcript. Content may contain errors.

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Date

Friday, Oct. 31, 2025 at 9 a.m. ET

Call participants

• Chair and Chief Executive Officer — Beth A. Wozniak
• Chief Financial Officer — Gary Corona

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Takeaways

• Sales – representing a 35% reported and 16% organic increase, with acquisitions contributing $139 million, or 18 percentage points, to sales growth.
• Adjusted EPS – $0.91 adjusted EPS in Q3 2025, Adjusted EPS grew 44%, a record level and above prior guidance.
• Free cash flow – $253 million in free cash flow in Q3 2025, supporting a healthy balance sheet and $127 million in cash on hand.
• Organic orders – Up approximately 65% organically, predominantly from large AI data center projects, with non–data center orders growing high single digits.
• Backlog – Increased by strong double digits sequentially, reaching its highest level to date; some orders extend into 2027.
• Segment performance (Systems Protection) – $716 million in sales in Q3 2025, up 50% (26 points acquisition-driven, 23% organic); segment income rose 40% to $146 million.
• Segment performance (Electrical Connections) – $338 million in sales in Q3 2025, up 11% (6 points acquisition-driven, 5% organic); segment income increased 10% to $102 million.
• Return on sales – Electrical Connections return on sales was 30% (down 40 basis points year over year).
• Inflation and tariff impact – Over $45 million in inflation, including nearly $30 million in tariffs; price and productivity offset inflation but not added investments and compensation.
• Capital allocation – and the company ended the quarter just below its target leverage range, with $570 million undrawn on its revolver.
• Guidance raised – Full-year reported sales growth now projected at 27%-28%.
• Adjusted EPS guidance – The full-year adjusted EPS range is $3.31-$3.33 (up 33%-34%); Q4 2025 adjusted EPS guidance is $0.87-$0.89, with the midpoint up nearly 50% year over year.
• AI data center and liquid cooling – Named to NVIDIA partner network; the new Minnesota facility is expected to begin production early next year and effectively double the liquid cooling manufacturing footprint.
• Acquisitions – EPG (Avail) and recent acquisitions performed ahead of expectations in Q2 and Q3, increasing the adjusted EPS outlook by ~$0.10.

Summary

nVent Electric (NVT +9.57%) reported record sales, adjusted EPS, orders, and backlog in Q3 2025, driven by AI data center demand and strength in infrastructure verticals. Management highlighted new product launches, an expanded customer base, and investments in additional manufacturing capacity to meet surging orders through 2027, as discussed on the earnings call. Strategic clarity was underlined by a further guidance raise for both organic and total growth, as price and productivity gains continue to offset persistent inflation and tariff expenses, with recent M&A delivering synergies and performance above initial expectations.

• Chair Wozniak confirmed, “Our data center orders are accelerating. And as we look at that, some of those orders are through 2026, but we do have some view into 2027.”
• nVent anticipates modular product strategies in liquid cooling will support both greater manufacturing scale and margin expansion through distribution over time.
• The company highlighted that less than 10% of data centers currently use liquid cooling, indicating significant market penetration potential supported by rising chip- and energy-efficiency needs.
• Integration efforts at EPG and other acquired businesses are yielding capacity and supply chain benefits, with facility expansions planned to support utility and data center growth.

Industry glossary

• Liquid cooling: Advanced system using liquids (rather than air) to dissipate heat from data center electronic equipment for higher performance and energy efficiency.
• AI data center: Facilities optimized to support artificial intelligence workloads, often requiring specialized power and thermal management systems.
• CDU (Cooling Distribution Unit): Equipment that manages and distributes coolant to various components in a liquid cooling system, ensuring temperature control for data center hardware.
• EPG: nVent’s acquisition of AVAIL EPG, a utility platform business contributing to growth in the infrastructure segment.

Full Conference Call Transcript

Beth A. Wozniak: Thank you, Tony, and good morning, everyone. It’s great to be with you today to share our outstanding third quarter results. Our portfolio transformation to become a more focused, higher growth electrical connection and protection company is delivering results and accelerating our growth. We had record sales and adjusted EPS in the third quarter. For the first time, quarterly sales were more than $1 billion. Adjusted EPS was $0.91. Both sales and EPS exceeded our guidance. We also had record orders and backlog in the quarter. Organic orders were up approximately 65%, primarily driven by large orders for the AI data center build-out. Excluding data centers, organic orders grew high single digits.

With the record orders growth, our backlog grew strong double digits sequentially. We had very strong cash flow in the quarter, and our balance sheet is healthy. Our first priority for capital allocation remains the same: invest in growth. We are investing in new products, commercial capabilities, and expanding four of our facilities to add capacity for data center and power utility growth. Now on to Slide four for a summary of our third quarter performance. Sales were up 35% organically, led by the infrastructure vertical. New products contributed over five points to sales growth year to date, and we have launched 66 new products so far this year.

Adjusted operating income grew 27% year over year with return on sales of 20.2%. Adjusted EPS grew 44%. Looking at our key verticals, infrastructure led the way with organic sales up over 40%, with strength in both data centers and power utilities. Industrial and commercial residential sales were each up low single digits. Turning to organic sales by geography, both Americas and Europe were strong. Americas grew high teens while Europe was up approximately 10%, and Asia Pacific was down low single digits. Looking ahead, we continue to expect infrastructure to have strong sales growth across both data centers and power utilities. We expect industrial sales to grow low single digits and commercial residential to be flattish for the year.

For guidance, we are again raising our full-year sales and adjusted EPS guidance to reflect our outstanding third quarter results and stronger performance in data centers. Our organic growth and recent acquisitions are expected to more than offset the EPS impact from the thermal management business we divested in the first quarter. Importantly, we cannot accomplish these results without the dedication of our nVent Electric plc team. Transforming our portfolio and accelerating to become a higher growth company takes a lot of effort and teamwork. I am very proud and appreciative of all the hard work by our nVent Electric plc team to support our customers and deliver this outstanding performance.

I will now turn the call over to Gary for further details on our third quarter results and our updated outlook for 2025. Gary, please go ahead.

Gary Corona: Thank you, Beth. We had another excellent quarter exceeding our guidance with record sales and adjusted EPS along with very strong cash flow. Let’s turn to Slide five to review our results. Sales of $1.054 billion were up 35% relative to last year. Organically, sales grew 16%, driven largely by volume and increased contribution from price. Acquisitions added $139 million to sales or 18 points to growth, ahead of our guidance. Foreign exchange was roughly a one-point tailwind. Third quarter segment income was $213 million, up 27%. Return on sales came in at 20.2%. Inflation was more than $45 million, including nearly $30 million in tariff impact.

Price plus productivity offset inflation, and we also continued to make investments for growth, particularly for data centers and our recent acquisitions. Q3 adjusted EPS was $0.91, up 44% and above the high end of our guidance range. We generated robust free cash flow of $253 million, up 77% year over year. Now please turn to Slide six for a discussion on third quarter segment performance. Starting with Systems Protection, sales of $716 million increased 50%. Acquisitions contributed 26 points to sales and have performed ahead of expectations. Organically, sales grew 23% with all verticals growing. Infrastructure grew over 50% with continued strength in data centers. Commercial residential grew low double digits, and industrial was up low single digits.

Geographically, Americas and Europe were both strong, driven by data centers. Americas grew over 25%, while Europe was up low teens. Asia Pacific was down low single digits. Third quarter segment income was $146 million, up 40%. Return on sales of 20.4% decreased 150 basis points year over year, impacted by inflation, acquisitions, and growth investments. Moving to Electrical Connections, sales of $338 million increased 11%. Organic sales were up 5%, and the EPG acquisition contributed six points to sales. From a vertical perspective, infrastructure led, growing high teens, industrial grew high single digits, and commercial residential was flat. Geographically, sales were led by The Americas, up mid-single digits, Europe was flat, and Asia Pacific was down low single digits.

Segment income was $102 million, up 10% versus last year. Return on sales improved sequentially, coming in at 30%. Compared to last year, return on sales was down 40 basis points, mainly due to inflation and acquisitions. That wraps up the segments for the quarter. Turning to the balance sheet and cash flow on Slide seven. We ended the quarter with $127 million of cash on hand and $570 million available on our revolver. We had very strong quarterly cash flow, generating $253 million in free cash flow, up 77% year over year. We believe our healthy balance sheet and strong liquidity position support our disciplined capital allocation strategy. Turning to Slide eight, where we outline our capital allocation priorities.

We continue to prioritize growth and execute a balanced and disciplined approach to capital allocation to deliver great returns. We are investing in the business via R&D and CapEx for growth and supply chain resiliency. We returned $351 million to shareholders year to date in the form of share repurchases and dividends. We exited the quarter just below our targeted leverage range. We believe we are well positioned and have additional capacity for future capital deployment, with our first priority being to invest in growth. Moving to Slide nine. As Beth shared earlier, we are raising our full-year sales and adjusted EPS guidance to reflect our strong Q3 results and our improved outlook.

We now forecast reported sales growth of 27% to 28%. That includes expected higher organic growth and approximately 16 points from acquisitions, with foreign exchange approximately a one-point tailwind. For organic sales growth, we now expect to grow between 10% to 11% versus our prior guidance of 8% to 10%, reflecting our Q3 beat along with stronger growth in data centers and power utilities. We are raising our full-year adjusted EPS range to $3.31 to $3.33, up 33% to 34% versus last year. This new guidance continues to reflect tariff impacts of approximately $90 million. We expect to offset the impact of inflation, including tariffs, through pricing, supply chain productivity, and operational mitigating actions.

For free cash flow, we expect conversion of 90% to 95%. One additional modeling assumption to note, we now expect corporate costs to be approximately $120 million versus $110 million previously. Looking at our fourth quarter outlook on Slide 10. We forecast reported sales growth of 31% to 33%, with acquisitions contributing approximately 15% to sales, and foreign exchange approximately a one-point tailwind. Organic sales growth is expected to be up 15% to 17%. Price increases coupled with productivity are expected to offset inflation, including the tariff impacts in Q4. We expect adjusted EPS to be between $0.87 and $0.89, which at the midpoint reflects a nearly 50% increase relative to last year.

Wrapping up, we are pleased with our excellent third quarter performance. We delivered record sales and adjusted EPS, and we are well positioned for a strong fourth quarter. I will now turn the call back over to Beth.

Beth A. Wozniak: Thank you, Gary. Please turn to Slide 11. Our portfolio transformation to become a more focused, higher growth electrical connection and protection company is showing in our results. We have increased our exposure to the high growth infrastructure vertical. In addition, we have been investing in our data center business, which is growing and accelerating with the AI build-out. We believe the infrastructure vertical has the highest growth opportunity with the trends of electrification, sustainability, and digitalization. Turning to Slide 12. I want to share our latest highlights on liquid cooling for data centers. We are a leader in liquid cooling, with over a decade of experience and more than one gigawatt of cooling deployed.

Our strength lies in our ability to design modular, service-friendly, high-performance systems that simplify deployment and provide resiliency across large-scale environments. We differentiate with deep application expertise, complete system design, lab capability, rigorous testing, and a proven ability to manufacture at scale. In September, we announced a new manufacturing facility in Minnesota, our second liquid cooling expansion in the last two years. This new facility is expected to begin production early next year and effectively double our overall footprint to support our record orders and backlog. Recently, we were named to NVIDIA’s partner network as a solution adviser with our cooling solution and design architecture. This brings both credibility and awareness with global customers designing next-generation AI facilities.

At the upcoming supercomputing conference, we will debut over 10 new products, including our newest generation of high-performance, high-reliability, modular liquid cooling solutions, purpose-built to meet the growing power and thermal demands of next-generation AI data centers. And we now have a new tagline for our liquid cooling solutions: We do cool stuff. Wrapping up on Slide 13. We had record performance in the third quarter, including strong double-digit growth in orders, sales, adjusted EPS, and free cash flow. Our backlog has never been larger. Our portfolio transformation and our focus on data centers is delivering accelerated growth, which we expect to continue in Q4 and beyond.

I’m very proud of our nVent Electric plc team that is working tirelessly on growth, delivering for our customers and our shareholders. We believe we are well positioned with the electrification, sustainability, and digitalization trends. Our future is bright. With that, I will now turn the call over to the operator to start Q&A. We will now begin the question and answer session. Our first question comes from Joseph Alfred Ritchie with Goldman Sachs. Please go ahead.

Joseph Alfred Ritchie: Thanks. Good morning, everyone.

Beth A. Wozniak: Good morning. Good morning.

Joseph Alfred Ritchie: Yeah. So look. Let’s start with the incredible order acceleration this quarter. Beth, I’m wondering if you can maybe just parse it out a little further for me. So it seems that if my math is right, your data center orders were up, I don’t know, almost three times this quarter. I’m just wondering, are you starting to see a little further out in your pipeline for data centers? Is the lead time still pretty comparable? I always think of your backlog as being kind of like nine to twelve months. And is the type of data center order changing? So are you doing more modular type data centers? Just any color on that would be helpful.

Beth A. Wozniak: Okay. Thanks for the question. Well, yes, you are correct. Our data center orders are accelerating. And as we look at that, some of those orders are through 2026, but we do have some view into 2027. And of course, we have visibility into ’27 and beyond with some of our key customers. One of our key focus areas this year was to continue to expand our customer base and expand our portfolio. So I would say we’re seeing some new customers there as well. But as you know, a lot of these orders are particularly for liquid cooling and are large orders, and so they can be lumpy.

And I think we’re just seeing the overall data center growth accelerating. Okay. Great. And then maybe just as part of that question, just as the type of data centers that you’re actually booking orders for, I know that you have some more modular offerings as well that typically carries higher content. Just trying to get an understanding for the orders that were booked this quarter. Whether you’re seeing any shifts in the type of orders that you’re booking for the data center business. Thank you.

Beth A. Wozniak: Thanks for the question. As I mentioned, we are expanding the customer base, and we are seeing a broader range of orders. So it’s not just liquid cooling. There’s other things in there in cable management and our power distribution units. But I would say our expectations for seeing smaller customer orders through distribution, for example, goes hand in hand with this portfolio of new products that we are going to showcase at supercompute and launching through the end of this year and into next year. And I think that will take some time, but we really do expect that modular platform and suite of products to really drive a further diversification of our customer base.

And, of course, I want to make the point that it’s the level of orders that we’re seeing that gave us confidence for our capacity expansion to be able to meet that overall demand.

Joseph Alfred Ritchie: Yeah. Great. Great to see. I’ll see you at Supercompute. Thank you.

Beth A. Wozniak: Excellent. Thanks, Joe. Our next question comes from Deane Michael Dray with RBC Capital. Please go ahead.

Deane Michael Dray: Thank you. Good morning, everyone. Good morning. I want to stick with this, the new modular liquid cooling launch. So congratulations. Can you talk a bit about the implications for the industry data cooling? Is it moving more towards standardization? What are the implications that there’s less customization? What does that do to your mix?

Beth A. Wozniak: Yeah. Thank you for the question, Deane. I think one of the things that we’ve stated is it’s a modular platform. And as we start to see expansion of liquid cooling from hyperscalers to colos to enterprise, to more different types of customers, that we wanted to have complete flexibility in our offering. And so the modular approach allows us to meet higher flow rates, higher power rates, and or smaller applications. And so if anything, we’re seeing more standardization on the interoperability, which is really key for all these data center customers. But the modularization gives us the flexibility and allows us to scale through our manufacturing processes and capabilities to be able to deliver with speed.

So, if anything, what we’re, you know, what this whole launch of new products is allowing us to liquid cooling beyond hyperscalers into more diverse customers and applications.

Deane Michael Dray: Great. That’s exactly what I was looking for. So I appreciate that. And then second question, and thank you for sizing the capacity expansion. You said it was two times. Can you help unpack the margin impact on systems protection? You said part of it, the decline we had modeled for, was the impact of investments. Is that all M&A, but is there any capacity expansion there, that new facility?

Gary Corona: Deane, this is Gary. I’ll take the margin question. And as you noted, systems protection in the quarter was actually a bit better than we expected on the margin line. Some of that is driven by growth, but certainly also we did experience a bit of a headwind from the M&A in systems protection, a bit less than we expected. And the investments are certainly in there to support the really nice growth both of the business this year as well as we move into next year and expand capacity. So good quarter for systems protection on the top line and on the bottom line.

Deane Michael Dray: And is the capacity expansion in that as well? Or is that part of the CapEx spend?

Gary Corona: Yes. It’s both CapEx and OpEx investment to support the expansion.

Beth A. Wozniak: Including investments in our engineering capability as we continue to launch and expand our new product offerings.

Deane Michael Dray: Great. Thank you.

Beth A. Wozniak: Our next question comes from Jeffrey Todd Sprague with Vertical Research. Please go ahead.

Jeffrey Todd Sprague: Hey. Just back to all these orders, we dialed right on this. First, I’m just wondering, are you including in the organic the orders at ABL, EPG because you now own it and therefore, you consider those organic? And I’m also just wondering sort of the base we’re coming off of. Obviously, things are very, very strong. Right? But wanna run with 300% order growth if that somehow misleading, so to speak. Can you just kind of give us a sense of the base and this question about the acquisitions, if any?

Beth A. Wozniak: Yeah. When we talk about the 65% order growth, that is all organic. And so that does not include inorganic. So, for example, the AVAIL EPG acquisition. So this is all organic orders. And as we mentioned, the core business is up high single digits on orders, and you know, excluding AVAIL EPG. But data centers overall is driving significant order growth for overall nVent Electric plc.

Jeffrey Todd Sprague: Yeah. And then can we just think about as you know, we’re gonna exit the year with data center being roughly 20% of revenues. What percent of orders might it be? As we think about 2025?

Gary Corona: Jeff, as you think about it, I mean, kind of go back to Beth’s point, right, is you know, think about it from the standpoint of all-in orders, we’re roughly 65% organically. Taking Data Solutions out, so you can say 20% of the business, orders were up high single digits. So certainly, data centers are growing very, very healthy in the quarter. We saw some very large orders come in.

Jeffrey Todd Sprague: Great. No, understood. And then can you just give a little bit of more color on what you’re seeing on the utility side of the equation? Primarily, I would guess, enclosure related and the like but any other detail there would be quite interesting. Thank you.

Beth A. Wozniak: Yeah. I think on the utility side, we’ve continued to see nice orders in our electrical and fastening solutions business. Recall they have some utility exposure. And then what we’re also seeing is continued orders and continued growth for the large enclosures that we acquired through the last two acquisitions. So overall, we talked about our growth being driven by both data centers and power utilities, and that we’ve been expanding our capacity to support power utilities as well.

Jeffrey Todd Sprague: Great. Thank you.

Beth A. Wozniak: Thank you. Thanks, Jeff. Our next question comes from Julian C.H. Mitchell with Barclays. Please go ahead.

Julian C.H. Mitchell: Hi, good morning. Maybe just wanted to start off with the operating margin outlook. So I think the April, it seems that maybe the operating margin that’s dialed in is maybe up slightly sequentially and down a bit year on year, maybe in that 20%, 21% range. Just wanted to understand if that’s the right sort of placeholder and should we expect the company to return to operating margin expansion sort of fairly soon next year, just when you’re thinking about the margins in the backlog and the margins in the current orders being booked today?

Gary Corona: Julian, it’s Gary. Thanks for the question. And you’re pretty close there. Margin performance for the quarter, it came in essentially in line with our expectations. Coming into the quarter, for the second half, excluding EPG, we expected margins to be slightly down in the third quarter and up in the fourth quarter. And that’s what we’ve assumed in our updated guidance. Q3 is impacted by recent acquisitions being margin dilutive, the investments for growth that we talked about. And it’s worth mentioning we had higher incentive compensation in the quarter as our 2025 performance continues to exceed expectations. As you mentioned, Q4 margins will be up sequentially. And an improvement to Q3 as our actions continue to build.

And we’ll build be up excluding APG in the fourth quarter. We’re not going to give guidance here on ’26 on this call. But all in, we do expect margins to improve and to see better incrementals next year.

Julian C.H. Mitchell: That’s very helpful. Thanks, Gary. And then just circling back, I’m sure not for the last time to the whole orders and so forth discussion. Maybe one other way I would ask about it perhaps is that I know you don’t disclose the backlog quarterly, but you typically in the 10-Q disclose the RPO. And I think that was about $800 million at the June. Up from about $150 million in March. I know we’ll get the queue fairly in the next few days, but any help you could give us on how that RPO ended September just as some kind of crude backlog movement proxy?

Gary Corona: Julian, as we mentioned in the script, you know, our backlog was up, you know, double digits, sequentially. And we’re feeling very good about where we’re at. And we will disclose the backlog as we get to the end of the year.

Julian C.H. Mitchell: Got it. But the RPO is sort of moving sort of commensurate with that?

Gary Corona: Directionally makes sense.

Julian C.H. Mitchell: Great. Thank you.

Beth A. Wozniak: Our next question comes from Nigel Edward Coe with Wolfe Research. Please go ahead.

Nigel Edward Coe: Thanks. Good morning. Gary, I’m going to really annoy you here. We’re calculating something in the range of about $1.3 billion, 1.3 times book to bill. Would that be in the right zone not looking for decimal points here, but in that kind of ballpark? Then just thinking about the gross margins, obviously, you’re sort of absorbing a lot of headwinds here with tariffs, inflation, acquisition dilution. How do we think about the contribution margin from liquid cooling sort of ramp up? Is the gross margin comparable to the average share? Or is there any kind of variance that we should be aware of? Thanks.

Gary Corona: Yes. I’ll just start with we’re not going to disclose the book to bill, but we had healthy book to bill in both segments in the quarter. On a gross margin perspective, as I mentioned in the script, price and productivity is offsetting inflation. What it’s not offsetting is the investments that we’re making and then the incremental compensation expense, as I mentioned. But we do feel really good about our margins on liquid cooling. And, you know, as we’ve mentioned before, they’re healthy and in line with the averages in systems protection. So it’s also worth mentioning, from a gross margin perspective, we bought a couple of businesses that structurally had lower gross margin.

We’ve got good plans in place as we deliver against our playbook. But it’s in line with our expectations, and we expect it to continue to improve.

Nigel Edward Coe: Okay. You can’t pay me for trying to get that number, but thanks for the detail there. And then just a quick one on four key modeling. Your revenue range, obviously, very healthy growth, but it does imply revenue step down quite a bit and I think maybe 5% in 4Q. Q over Q. As the mix of data center increases, I expect that the quarterly revenue profile to be a lot more stable. In fact, in many cases, 4Q can be stronger than 3Q in the data center. Just curious why sales would be below so much further below 3Q levels?

Beth A. Wozniak: Well, one thing I just want to point out, yes, certainly, there’s strength in data centers. But, typically, as a business, we always see four as a lower revenue quarter. And recall in Q4, it depends what our distribution channel wants to do with their inventory position. So we tend to see some seasonality in the core business in Q4.

Gary Corona: In our organic guidance, 15% to 17% is very much in line with the growth that we’re seeing, which is significantly accelerated from the first half and where we’ve been, you know, we guided 15 points from acquisitions in the fourth quarter. That is down a bit from a much higher than expected performance in Q3. But remember, we also had a little bit of track fee in the inorganic growth in Q3.

Nigel Edward Coe: Yep. Okay. Thanks, guys.

Beth A. Wozniak: Our next question comes from Brian Paul Drab with William Blair. Please go ahead.

Brian Paul Drab: Hi, good morning. Thanks for taking my questions. I was wondering if you could just remind us of the margin impact as you’re developing this modular solution and you’re rolling out new products, a lot of which are going to be in the standard more standardized category. How does that impact margins and maybe, like, the timing of when we could start to see that impact margins?

Beth A. Wozniak: Yeah. Brian, as we create this more modular suite of products, over time, we expect that to scale through distribution, and we typically see stronger margin through our distribution business. But that is going to take some time, because, certainly, there’s a lot of growth through our hyperscaler customers. So, you know, that we won’t see that, any impact on margin there. The margins will continue to be good and in line, but it’ll be, you know, a while before we really see that grow to the scale that we see. But, you know, that is our strategy as we go forward, that liquid cooling will play a role in many different applications and even beyond data centers.

Brian Paul Drab: Okay. Thanks. And then, you know, there’s a it seems like every couple months or six weeks, there’s just a panic among investors around these companies like stocks like nVent Electric plc and others exposed to data center because there’s some new technology that’s gonna change entirely the way that we’re cooling data centers. Like, the microfluidics announcement for Microsoft and earlier announcements from Amazon and people are talking about two-phase direct to chip potentially changing the world. What can you just talk for a second about what you’re seeing across all the different types of customers that you’re serving and you know, what direction do you see the market going over the next two to three years?

In terms of technology?

Beth A. Wozniak: Well, sure. I mean, recall, we always start with by saying that less than 10% of data centers are liquid cooled. And if and as you think about the new GPU chips and the need for liquid cooling, it is only going to expand. And on top of that, liquid cooling also provides up to 50% energy efficiency. So when you think about it from that perspective, there’s going to be a continued increase in liquid cooling. And there’s many different types of architectures.

However, right, our view is you need to have a cooling distribution unit and, you know, typically, manifolds, no matter what configuration you have, whether it’s immersion, whether it’s cold plate, there still needs to be that controlling CDU type of capability. And in fact, at supercompute, while we’re showing a whole launch of new products, we’re also showing how we partner with immersion players and how we partner with those who are looking at two-phase. We think some of those cooling technologies will have applications but not as broad.

And so our strategy has been to have a wide range of products and portfolio we’re flexible that we can integrate with any of these different types of cooling technologies and fluids that are being used.

Brian Paul Drab: That’s really helpful. Thanks very much.

Operator: Alright. Our next question comes from Nicole Sheree DeBlase with Deutsche Bank. Please go ahead.

Nicole Sheree DeBlase: Yes. Thank you. Good morning.

Beth A. Wozniak: Good morning. Good morning.

Nicole Sheree DeBlase: Can we just start with EPG AVAIL? I think in the slides you mentioned that the business was performing ahead of your expectations. Is there any way to give some stats on what you’re seeing with respect to apples to apples growth in that business or if it’s margins ahead of expectations, just some more color there would be helpful.

Beth A. Wozniak: Yeah. I think, you know, when we think about, you know, as we said, when we acquired both Tracty and Avail, we really were building a more core utility platform based. And I think what we have we’ve said it’s exceeded expectations is some of our growth synergies. That we’re seeing this growth in both the gray space, you know, certainly, need for power because of data centers continues to grow. And there’s nice steady growth there. But we’re seeing some more data center applications.

Some of that is because of the customers that we’ve that we’ve had, that we’ve brought with these acquisitions, and some of it is just the overall demand to more modular or, you know, in ensuring that we there’s data center pods and things like that. So that’s when we talk about exceeding our expectations. We’re finding more applications, and we’re winning some new type of business. And I’ll let Gary speak on the margin side.

Gary Corona: Yeah. Just to build, you know, we’re seeing double digits apples to apples growth. It will contribute 15 points to the fourth quarter. And it’s nicely accretive for us in the first year. And based on the really strong and ahead of expectations revenue and profit in Q2 and Q3. Nicole, it’ll be approximately a $0.10 impact to EPS higher than the nickel that we originally quoted when we had just acquired the business. Of course, that’s net of the lost interest benefit that we initially guided on. So really nice performance from EPG, both on the top line and on the bottom line.

Nicole Sheree DeBlase: That’s great. Thank you both for that. And then just on the non-data center order growth in the high single-digit range, Beth, can you just parse that out a little bit between commerce and industrial? Like did you see growth across all of your markets in the quarter? Thank you.

Beth A. Wozniak: Yes, we did. So we certainly saw strength of orders in industrial and commercial residential, and, you know, certainly saw some strength there for our electrical connections business as well. So we are very pleased with just the breadth of the order growth. Thank you. I’ll pass it on. Our next question comes from Jeffrey David Hammond with KeyBanc Capital Markets. Please go ahead.

Jeffrey David Hammond: Hey, good morning everyone.

Beth A. Wozniak: Good morning. Hi, Jeff.

Jeffrey David Hammond: Just wanted I think, you know, with all this demand, it’s awesome. And you guys are adding capacity and think what we’re hearing from some of our other companies is just how hard it is. And you guys, you know, seem to be confident that the margin trajectory starts to improve as you cut through kind of the acquisition noise. So I’m just wondering what you think are the big challenges or pitfalls as you kind of ramp all this, you know, capacity and you’re getting all this, all this business in? Thanks.

Beth A. Wozniak: Well, you know, growth is hard, and that’s why I said our employees are working really hard. Because as you scale, we’ve got to ensure that, you know, we’re expanding our facilities, that we’re bringing them online, that we’re developing our supply chain. I do think that’s strength for us because as I started, you know, we’ve been over working it. In liquid cooling for over a decade. So we’re partnering well with suppliers to help them scale. We’re having to ramp up in terms of people and finding innovative ways to train and bring people into our facilities. So there’s a lot that we’re doing.

I will say this, the fact that, you know, our expansions have been close to where our core are and our lab expansion. It’s given us a lot of flexibility. So it’s a lot of work, but I think we’ve got a very disciplined approach to how we’re driving this increase in growth.

Jeffrey David Hammond: Okay. That’s great. And then just a quick one. A follow-up on APG avail. I think with Tracktie, you found some really good business optimization and flow in the plan. I’m wondering if you’re seeing similar opportunity with AVAIL and if you’re considering any capacity expansions, I think you’re doing some on track. Already with Avail.

Beth A. Wozniak: I’d say it’s a similar story. You know, certainly part of our integration playbook is to look at some of the areas for optimization, which includes looking at lean and flow through the plants, which does provide capacity. It’s looking at our supply chain capabilities in combination and where we can drive, you know, where we can look to strengthen the supply base. And, yes, we are expanding our capacity in many of these facilities. Both with people and extensions to those plants, to be able to support the demand that we see.

Jeffrey David Hammond: Okay. Appreciate the color, Beth.

Beth A. Wozniak: Our next question comes from Vladimir Benjamin Bystricky with Citi. Please go ahead.

Vladimir Benjamin Bystricky: Hey, good morning. Thanks for taking my call. So I just wanted to follow-up on the comments about the stronger M&A contribution in 3Q and slight raise to outlook for 2025. Can you talk about is that driven by better demand patterns that you’re seeing? Or is that more reflective of better productivity and your ability to ship product out versus sort of your initial expectations?

Gary Corona: Thanks, Vlad. Yes, as I had mentioned, our acquisition of AVAIL EPG is performing well. And to answer your question directly, it’s both. We are driving more top line growth than initially expected. And the margins are looking a bit better than we initially forecasted as well. As we drive scale and efficiency through the plant network. So very pleased with the acquisition.

Vladimir Benjamin Bystricky: Great. Appreciate that color, Gary. And then data centers and the liquid cooling growth that you’re seeing. I know, Beth, you mentioned and highlighted some large orders that came through in the quarter. Can you just talk about what you see in the large order pipeline going forward and whether you see in your pipeline incremental large orders like you saw in 3Q that could repeat over the coming quarters, understanding that they can be lumpy?

Beth A. Wozniak: Well, certainly, large orders are typically tied to larger programs from hyperscalers. They do tend to be lumpy. So, you know, they may not it’s not smooth the way those orders get booked, but, you know, I think that’s just how we see the overall data center business accelerating. And, again, it was those orders and that backlog build which is what, you know, which we tied to why we’re investing in expanded capacity, which will be online here in 2026.

Vladimir Benjamin Bystricky: Great. Thanks for that, Beth. I’ll get back in queue.

Beth A. Wozniak: Thank you. Our next question comes from Scott Graham with Seaport Research Partners. Please go ahead.

Scott Graham: Congratulations on the quarter. I was hoping you guys would tell us maybe on the 5% contribution from new products, if we took out infrastructure, what would that number look like?

Beth A. Wozniak: Well, it would be lower. Just like a lot of our growth being driven by infrastructure, we intentionally are focusing on new products across both data centers and power utilities, and that infrastructure vertical. So strategically, as we position the nVent Electric plc portfolio, to be more aligned with those macro trends, those investments in new products and R&D also targeting infrastructure. So that’s intentional.

Scott Graham: Okay. So it’s possible that the 5% is all infrastructure, what you said?

Beth A. Wozniak: It’s not all infrastructure. Oh, no. It’s not all infrastructure. But it certainly has a significant portion from the infrastructure.

Scott Graham: Thank you for that. One easy one. Will fourth quarter tariff impacts both in dollars and sort of, you know, with the price cost, you know, calculation we do here, even including your productivity, will tariffs be about the same in the fourth quarter as they were in the third? And what is that overall net number kind of look like, that net productivity number?

Gary Corona: Yes. So as I mentioned, the tariff dollars will continue to build. But I had mentioned, as well earlier, is that we expect price to be sequentially stronger in Q4 as well. And that’s what’s driving from a margin perspective, excluding EPG, we expect to be up in the fourth quarter.

Scott Graham: Thank you for that, Gary. I could just sneak in this last one, the net leverage, I know you said it’s like a little bit below your target. What does that look like pro forma right now? Is that like a one eight type of number? Or that territory?

Gary Corona: Yeah. You’re right in the zone there.

Scott Graham: Thanks.

Gary Corona: Thanks, Scott.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Beth Wozniak, Chair and CEO, for any closing remarks.

Beth A. Wozniak: Thank you for joining us today. I’m extremely proud of our performance in the third quarter. We will continue to focus on delivering for our customers, employees, and shareholders by executing on our growth strategy. We believe nVent Electric plc is a top-tier high-performance electrical company well positioned for the electrification, sustainability, and digitalization trends. Thanks again for joining us. This concludes the call. The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.