01—Abstract
Summary
Summary of the 10-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.
nVent Electric plc (NVT) reported 2025 net sales of $3.89 billiona, up 29.5% from $3.01 billion in 2024, with organic growth contributing 12.6 percentage points and acquisitions 16.3 points.
Net income rose to $710.2 millionb from $331.8 million, but this was driven largely by $281.7 million of income from discontinued operations, mainly the gain on the sale of the Thermal Management business for $1.6 billion in net cash proceeds. Income from continuing operations was $428.5 million versus $240.8 million, and the effective tax rate fell to 22.1% from 43.9%, which reflected a $92.8 million 2024 valuation allowance that did not recur. Operating income rose 17.0% to $616.8 million, though gross margin compressed to 37.7% from 40.2% on tariff and labor inflation.
The company now operates two segments. Systems Protection grew net sales 42.2% to $2.59 billionc, supported by the Electrical Products Group acquisition for approximately $1.0 billion and the Trachte acquisition, and by data center demand. Electrical Connections grew 9.9% to $1.30 billion.
Backlog reached $2.35 billiond at December 31, 2025, up from $749.3 million, and management expects most of it to ship in 2026. Balance sheet and cash flow improved. Total debt fell to $1.56 billion from $2.16 billion after repayment of term loans, and free cash flow of continuing operations was $561.0 million versus $427.5 million.
The company repurchased $253.1 million of shares in 2025, leaving $146.9 million available under the 2024 authorization, and paid dividends of $0.80 per share. The quarterly dividend was raised to $0.21 in December 2025.
02—Key points
Key Highlights
- Net sales of $3,893.1 million, up 29.5% year over year, with 16.3 points from acquisitions and 12.6 points organic growth.
- Net income of $710.2 million included $281.7 million from discontinued operations, principally the $435.3 million pre-tax gain on the Thermal Management sale.
- Income from continuing operations was $428.5 million versus $240.8 million, with the effective tax rate at 22.1% versus 43.9% in 2024.
- Gross profit as a percentage of net sales declined 2.5 points to 37.7%, driven by inflation including tariffs and investments in capacity.
- Systems Protection net sales rose 42.2% to $2,592.9 million; segment income margin was 20.7%. Electrical Connections net sales rose 9.9% to $1,300.2 million.
- Backlog of $2,349.9 million at December 31, 2025, up from $749.3 million, largely from the Electrical Products Group acquisition and data center growth.
- Free cash flow of continuing operations was $561.0 million, up from $427.5 million; share repurchases totaled $253.1 million and dividends paid $130.4 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, nVent Electric kept $0.18.
- Revenue$3.89B100.0%
- Cost of revenue−$2.42B62.3%
- Gross profit$1.47B37.7%
- Operating costs−$852.3M21.9%
- Operating income$616.8M15.8%
- Interest, other & tax$93.4M2.4%
- Net income$710.2M18.2%
Where FY2025 revenue went
$3.89B- Cost of revenue: $2.42B, 62% of revenue
- SG&A: $773.8M, 20% of revenue
- Operating income: $616.8M, 16% of revenue
- R&D: $78.5M, 2.0% of revenue
Kept 16% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 17, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $3.89B$3.01B | +29.5% |
| Cost of Revenue | $2.42B$1.80B | +34.9% |
| Gross Profit | $1.47B$1.21B | +21.5% |
| R&D Expenses | $78.50M$66.10M | +18.8% |
| SG&A Expenses | $773.80M$615.90M | +25.6% |
| Operating Income | $616.80M$527.10M | +17.0% |
| Net Income | $710.20M$331.80M | +114.0% |
| EPS (Basic) | $4.36$2.00 | +118.0% |
| EPS (Diluted) | $4.31$1.97 | +118.8% |
| Shares Outstanding (Basic) | 162.40M165.50M | −1.9% |
| Shares Outstanding (Diluted) | 164.60M168.20M | −2.1% |
05—Questions
Frequently Asked Questions
What drove the large increase in net income in 2025?
Net income rose to $710.2 million from $331.8 million mainly because of $281.7 million of income from discontinued operations, which reflects the sale of the Thermal Management business for $1.6 billion in net cash proceeds. Continuing operations income also rose to $428.5 million from $240.8 million, helped by a lower tax provision after a $92.8 million 2024 valuation allowance did not recur.
How much of the sales growth came from acquisitions versus the core business?
Of the 29.5% increase in net sales, acquisitions contributed 16.3 percentage points and organic growth 12.6 percentage points, with currency adding 0.6 points. Acquisition-related sales included $489.9 million from the Electrical Products Group and Trachte.
What are the main risks to margins and the outlook?
Management reported inflationary increases in raw materials, labor and logistics, including tariff impacts, which reduced gross margin by 2.5 points. The company expects inflationary cost increases, including tariff-related impacts, to continue in 2026 and beyond. The filing also cites customer concentration, with one customer representing about 11% of 2025 net sales, and exposure to U.S. trade policy.
How is the company's debt and capital allocation position?
Total debt was $1.56 billion at December 31, 2025, down from $2.16 billion, after repaying term loans. The company was in compliance with its financial covenants. It repurchased $253.1 million of shares in 2025, has $146.9 million remaining under its 2024 authorization, and declared a quarterly dividend of $0.21 per share in February 2026.
06—Continue