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NVT · nVent Electric

27 filings

10-Q

NVT 10-Q Quarterly Reports

nVent Electric - 27 quarterly reports

Filing record · 2018–202610-K910-Q278-K80

2026-Q3
nVent Electric Quarterly Report for Q3 Ended Sep 30, 2026
nVent Electric plc reported strong third-quarter 2026 results, with net sales of $1,514.9 million, up 43.7% from $1,054.0 million in the third quarter of 2025. Organic growth was 43.9%, driven mainly by the infrastructure vertical and data centers within the Systems Protection segment. Operating income rose to $282.3 million from $166.3 million, and operating margin improved to 18.6% from 15.8%. Net income from continuing operations was $202.4 million, and diluted earnings per share were $1.23, compared with $0.73 from continuing operations a year earlier. Gross margin declined to 35.8% from 37.4%, which the company attributed to inflation, capacity investments, and unfavorable product mix. For the first nine months, net sales were $4,228.2 million, up 49.6%, but net income was $560.7 million, down 5.2%, because the prior-year period included a $435.3 million pre-tax gain on the sale of the Thermal Management business. The balance sheet changed significantly after quarter-end. On October 1, 2026, nVent completed the acquisition of Maverick Power, LLC for approximately $1.75 billion in cash, with up to $550 million of additional contingent consideration tied to 2027 and 2028 performance metrics. The company stated that the acquisition added approximately $1.65 billion of new indebtedness, funded through the $800.0 million 6.150% 2036 Senior Notes, a $600.0 million 2026 Term Loan Facility, and $250.0 million of Revolving Credit Facility borrowings, together with cash on hand. Total debt was $2.2 billion at September 30, 2026, before this increase. Cash and cash equivalents were $1,121.8 million at quarter-end, and free cash flow from continuing operations was $489.0 million for the nine months, compared with $371.7 million a year earlier. The company also disclosed $2.6 billion of remaining performance obligations, most of which it expects to recognize within twelve months. It declared a quarterly dividend of $0.21 per share, and a new $500.0 million share repurchase authorization runs through July 22, 2029. Management stated it was in compliance with all financial covenants at September 30, 2026. Investors will want to monitor how the company manages its higher leverage following the Maverick Power acquisition.
Oct 30, 2026
2026-Q2
nVent Electric Quarterly Report for Q2 Ended Jun 30, 2026
nVent Electric plc reported strong second-quarter 2026 results, with net sales of $1,471.3 million for the three months ended June 30, 2026, up from $963.1 million a year earlier, and operating income of $300.7 million versus $156.7 million. For the six months, net sales were $2,713.3 million and operating income was $496.4 million. Net income for the quarter was $215.9 million, compared with $109.5 million in the prior-year quarter. Growth was driven primarily by organic sales increases in the infrastructure vertical, including data centers, along with contribution from the Electrical Products Group acquisition completed May 1, 2025. Six-month net income was $358.3 million, down from $470.2 million, mainly because the prior-year period included a $276.5 million income from discontinued operations tied to the Thermal Management sale. Gross margin declined modestly as a percentage of net sales, reflecting inflationary cost increases, unfavorable product mix and capacity investments, partly offset by volume leverage and productivity gains. The filing notes approximately $25 million in reimbursements of IEEPA tariffs in the second quarter and first half of 2026, offset by other incremental tariffs. Segment results show Systems Protection net sales of $1,072.1 million in the quarter, up 69.6%, and Electrical Connections net sales of $399.2 million, up 20.6%. Balance sheet and cash flow metrics were solid. Cash and cash equivalents were $256.0 million, total debt was $1,500.0 million at face value, and total equity rose to $3,986.9 million. Free cash flow from continuing operations was $221.1 million for the six months, compared with $118.5 million a year earlier. The company paid $68.2 million in dividends and repurchased $50.4 million of shares in the first half, and the Board authorized a new $500.0 million repurchase program on May 16, 2026, beginning July 23, 2026. The company stated it was in compliance with all financial covenants as of June 30, 2026.
Jul 31, 2026
2026-Q1
nVent Electric Quarterly Report for Q1 Ended Mar 31, 2026
nVent Electric plc reported first-quarter 2026 net sales of $1,242.0 million, up 53.5% from $809.3 million a year earlier. The filing attributes the increase to organic growth of 34.4%, acquisitions contributing 17.0% (including $137.7 million of sales from the Electrical Products Group acquisition completed May 1, 2025), and currency contributing 2.1%. Operating income rose to $195.7 million from $130.0 million, and operating margin was 15.8% compared with 16.1%. Gross margin declined to 35.9% from 38.8%, which the company attributed mainly to inflation including tariffs, investments in capacity, and unfavorable product mix. Income from continuing operations was $140.4 million, versus $87.0 million. Reported net income of $142.4 million was far below the prior-year $360.7 million, which included a $433.9 million pre-tax gain on the sale of the Thermal Management business. Growth was concentrated in the Systems Protection segment, where net sales rose 76.1% to $894.8 million and segment income was $203.1 million, or 22.7% of sales. Electrical Connections net sales rose 15.3% to $347.2 million, but segment income was flat at $84.8 million and its margin fell to 24.4% from 28.3%. Remaining performance obligations were $2,591.0 million at March 31, 2026. Cash generation and balance sheet items were mixed. Operating cash flow from continuing operations was $89.9 million, and free cash flow of continuing operations, a non-GAAP measure, was $53.8 million. Working capital increased by $128.3 million, primarily from accounts receivable. Cash and cash equivalents were $190.0 million, and total recorded debt was $1,564.7 million. The company repurchased $50.4 million of shares, leaving $96.5 million available under its 2024 authorization, and paid dividends of $34.2 million. The company stated it was in compliance with all financial covenants at March 31, 2026.
May 1, 2026
2025-Q3
nVent Electric Quarterly Report for Q3 Ended Sep 30, 2025
nVent Electric plc reported third-quarter 2025 net sales of $1,054.0 million, up from $782.0 million in the prior-year quarter, with the filing attributing the increase to organic growth of 16.0%, acquisitions contributing 17.8%, and currency contributing 1.0%. Operating income rose to $166.3 million from $133.2 million, though gross margin declined to 37.4% from 39.8% of net sales, which the company attributes mainly to inflation including tariff impacts and investments in capacity. Net income was $121.2 million for the quarter versus $105.0 million a year earlier. For the nine months ended September 30, 2025, net income was $591.4 million, including $278.7 million from discontinued operations, primarily the gain on the January 30, 2025 sale of the Thermal Management business. Balance sheet and cash flow highlights include total debt of $1,602.0 million at September 30, 2025, down from $2,166.3 million at December 31, 2024, following debt repayments of $869.7 million. Cash flow from continuing operations was $426.6 million for the nine months, and free cash flow of continuing operations was $371.7 million, compared with $277.1 million a year earlier. The company spent $978.7 million to acquire the Electrical Products Group on May 1, 2025, and repurchased $253.1 million of its shares during the nine months. Goodwill increased to $2,678.8 million and intangible assets to $1,916.9 million, reflecting the acquisitions. The company reported that it was in compliance with all financial covenants as of September 30, 2025, and the board declared a quarterly dividend of $0.20 per share payable November 7, 2025. The filing states that Systems Protection and Electrical Connections represented approximately 66% and 34% of revenues in the first nine months of 2025, respectively.
Oct 31, 2025
2025-Q2
nVent Electric Quarterly Report for Q2 Ended Jun 30, 2025
nVent Electric plc reported net sales of $963.1 million for the second quarter of 2025, up 30.2% from $739.8 million a year earlier. Organic growth contributed 8.7 percentage points and acquisitions contributed 20.7 points. For the first six months, net sales were $1,772.4 million, up 20.4% from $1,471.9 million. Operating income rose 8.1% to $156.7 million in the quarter, but gross profit as a percentage of net sales fell 3.0 points to 38.6%, which the company attributed mainly to inflationary raw material and labor costs and investments in capacity. Net income from continuing operations rose 14.5% to $106.7 million, while total net income was $109.5 million, down 1.4%. Management cited the Electrical Products Group acquisition, which contributed $78.5 million of net sales from May 1 to June 30, 2025. First-half 2025 net income of $470.2 million was driven largely by the January 30, 2025 sale of the Thermal Management business, which produced a pre-tax gain of $435.4 million net of transaction costs. The sale generated $1,585.2 million in net cash proceeds. Against this, the company acquired the Electrical Products Group for $975.4 million in cash in May 2025, and it repaid $866.3 million of long-term debt while repurchasing $253.1 million of shares. Cash and cash equivalents were $125.8 million at June 30, 2025, and total debt principal was $1,775.0 million. Free cash flow from continuing operations was $118.5 million for the six months, compared with $134.2 million a year earlier. The company stated it was in compliance with all financial covenants. Management highlighted electrification, sustainability and digitalization megatrends, including increased use of artificial intelligence, as drivers of infrastructure sales growth, which it expects to continue through 2025 and beyond. It also flagged continuing inflation and uncertainty from tariffs and trade policy changes. The company stated that tariffs imposed in the first half of 2025 did not have a material impact on first-half results.
Aug 1, 2025
2025-Q1
nVent Electric Quarterly Report for Q1 Ended Mar 31, 2025
nVent Electric plc reported net sales of $809.3 million for the quarter ended March 31, 2025, up 10.5% from $732.1 million a year earlier. The filing attributes the increase to organic growth of 1.6%, acquisitions contributing 9.8% (including $71.4 million of sales from the Trachte acquisition), and a currency effect of (0.9)%. Operating income declined slightly to $130.0 million from $131.9 million, and gross profit as a percentage of net sales fell to 38.8% from 39.7%, which the company attributes mainly to inflationary labor and raw material costs. Income from continuing operations rose to $87.0 million from $85.2 million, while free cash flow of continuing operations was $44.4 million compared with $33.6 million. Segment income for Systems Protection was $104.2 million and for Electrical Connections was $85.1 million. Net income of $360.7 million was driven by $273.7 million of income from discontinued operations, which reflects the January 30, 2025 sale of the Thermal Management business for a purchase price of $1.7 billion in cash. The sale produced a pre-tax gain of $433.9 million, net of transaction costs of $34.7 million. Cash and cash equivalents were $1,343.0 million at March 31, 2025, up from $131.2 million at December 31, 2024. During the quarter, the company repaid $392.5 million of long-term debt, leaving total debt of $1,773.8 million before unamortized issuance costs and discounts. The company also repurchased 1.0 million shares for $53.1 million and paid $33.4 million in dividends. After the quarter, on May 1, 2025, nVent acquired the enclosures, switchgear and bus systems businesses of Avail Infrastructure Solutions (the Electrical Products Group) for $975.0 million, funded with available cash on hand. The company also repurchased 3.9 million shares for $200.0 million in April 2025, leaving $346.9 million available under its 2024 repurchase authorization as of March 31, 2025. Management expects inflationary cost increases, including tariff-related impacts, to continue throughout 2025.
May 2, 2025
2024-Q3
nVent Electric Quarterly Report for Q3 Ended Sep 30, 2024
nVent Electric plc reported net sales of $782.0 million for the third quarter of 2024, up 9.4% from $715.0 million a year earlier, and $2,253.9 million for the first nine months, up 13.9% from $1,978.4 million. The filing attributes the growth mainly to acquisitions, which contributed $58.6 million of sales in the quarter and $208.1 million in the first nine months, along with organic growth in the infrastructure vertical. Operating income rose to $133.2 million in the quarter from $126.2 million, and to $410.0 million for the nine months from $345.2 million. Net income from continuing operations was $78.9 million in the quarter versus $81.9 million a year earlier, and total net income was $105.0 million versus $105.5 million. Results for the nine months were $257.3 million from continuing operations and $321.1 million in total. Higher net interest expense of $30.4 million in the quarter, and an effective tax rate of 22.3% versus 17.6%, reduced the bottom line. The balance sheet and capital structure changed substantially during the period. Total recorded debt rose to $2,270.0 million at September 30, 2024 from $1,792.5 million at December 31, 2023, mainly to fund the $691.3 million cash acquisition of Trachte, LLC, completed July 16, 2024, which was partly financed with a new $500.0 million 2024 Term Loan Facility. The company also agreed on July 31, 2024 to sell its Thermal Management business to BCP Acquisitions LLC, an affiliate of funds managed by Brookfield Asset Management, for $1.7 billion in cash, expected to close by early 2025 subject to regulatory approvals. That business is presented as discontinued operations, contributing $26.1 million of net income in the quarter. The company repurchased $100.0 million of shares in the first nine months, leaving $400.0 million available under its 2024 authorization, and paid a quarterly dividend of $0.19 per share. Cash and cash equivalents were $137.1 million at quarter-end. Net cash provided by operating activities was $418.5 million for the nine months, and total free cash flow was $365.9 million, compared with $250.0 million a year earlier. Management stated it was in compliance with all financial covenants and that there is no material uncertainty about its ability to meet them. Management also disclosed that it is integrating Trachte's internal controls and augmenting company-wide controls, and it concluded that disclosure controls were effective.
Nov 1, 2024
2024-Q2
nVent Electric Quarterly Report for Q2 Ended Jun 30, 2024
nVent Electric plc reported second-quarter 2024 net sales of $880.3 million, up from $803.0 million in the second quarter of 2023, an increase the filing attributes primarily to acquisitions (contributing 6.4 percentage points) and volume growth. Operating income rose to $167.8 million from $146.7 million, but net income declined slightly to $111.0 million from $112.9 million, mainly because the prior-year period included a $10.2 million gain on sale of an investment and the effective tax rate rose to 22.3% from 15.8%. For the six months, net sales were $1,754.9 million (up 13.7%), net income was $216.1 million, and diluted earnings per share were $1.28 versus $1.23. Cash generation improved, with operating cash flow of $220.8 million for the first half of 2024 compared with $146.6 million a year earlier, and free cash flow (a non-GAAP measure defined in the filing) of $186.5 million versus $114.5 million. Cash and cash equivalents were $274.0 million at June 30, 2024, and total recorded debt was $1,777.5 million. The company stated it was in compliance with all financial covenants. The filing's most significant developments are subsequent events. On July 16, 2024, nVent completed the acquisition of the parent of Trachte, LLC for approximately $695.0 million in cash, funded mainly through its 2024 Term Loan Facility and Revolving Credit Facility. On July 31, 2024, it agreed to sell its Thermal Management business to BCP Acquisitions LLC, an affiliate of funds managed by Brookfield Asset Management, for $1.7 billion in cash, with closing expected by early 2025, subject to regulatory approvals.
Aug 6, 2024
2024-Q1
nVent Electric Quarterly Report for Q1 Ended Mar 31, 2024
nVent Electric plc reported first-quarter 2024 net sales of $874.6 million, up from $740.6 million in the first quarter of 2023, with the filing attributing the 18.1 percent increase primarily to $97.8 million of sales from the ECM Industries and TEXA Industries acquisitions, plus organic growth of 4.8 percent. Operating income rose to $159.2 million from $124.1 million, and net income increased to $105.1 million from $93.8 million. Diluted earnings per share were $0.62 versus $0.56. Gross margin slipped to 40.6 percent of net sales from 40.9 percent, which management attributed mainly to inflationary labor cost increases, while SG&A fell to 20.1 percent of net sales from 21.9 percent. Net interest expense more than doubled to $22.2 million from $7.8 million, reflecting debt raised to finance the ECM Industries acquisition, and the effective tax rate rose to 22.6 percent from 18.5 percent, driven by the Pillar II global minimum tax. Cash flow from operations was $90.0 million compared with $69.4 million a year earlier, and free cash flow, a non-GAAP measure the company defines as operating cash flow less capital expenditures plus proceeds from asset sales, was $74.2 million versus $52.5 million. Cash and cash equivalents ended the quarter at $211.4 million, and total debt was $1,785.0 million on a recorded basis. The company paid $31.9 million in dividends ($0.19 per share) and made no share repurchases in the quarter, leaving $81.8 million available under its 2021 authorization, which expires July 22, 2024. Across segments, Enclosures net sales grew 12.5 percent to $439.9 million, Electrical & Fastening Solutions grew 42.1 percent to $292.2 million (largely acquisition-driven), and Thermal Management declined 1.0 percent to $142.5 million. The company stated it was in compliance with all financial covenants as of March 31, 2024.
May 3, 2024
2023-Q3
nVent Electric Quarterly Report for Q3 Ended Sep 30, 2023
nVent Electric plc reported third-quarter 2023 net sales of $858.8 million, up 15.2% from $745.2 million a year earlier, with net income of $105.5 million versus $93.4 million and diluted earnings per share of $0.63 versus $0.55. The filing attributes the sales increase primarily to $104.3 million of sales from the ECM Industries and TEXA Industries acquisitions and favorable foreign currency effects. Volume declined 3.4% in the quarter, while price contributed 3.6%. Gross profit as a percentage of net sales rose to 41.1% for the first nine months, and operating income reached $427.0 million, or 17.8% of net sales, for the nine-month period. Management cited selling price increases and productivity gains as the main drivers, partly offset by labor inflation and $17.7 million of inventory step-up expense tied to ECM Industries in the nine months. The company's balance sheet changed materially in 2023. nVent acquired ECM Industries for approximately $1.1 billion in cash on May 18, 2023, funded primarily by a $500.0 million 5.650% senior notes due 2033 and a $300.0 million 2023 term loan facility. Total debt rose to $1,873.8 million at September 30, 2023 from $1,088.8 million at December 31, 2022, and cash fell to $113.3 million from $297.5 million. Net interest expense for the third quarter was $25.5 million versus $8.1 million a year earlier. Nine-month operating cash flow was $291.6 million, and the company reported free cash flow of $250.0 million, a non-GAAP measure. Management stated it was in compliance with all financial covenants. Other items for investors include a $0.175 quarterly dividend declared September 26, 2023, $127.3 million remaining under the 2021 share repurchase authorization, and the company's exit from Russia in response to the conflict with Ukraine. The filing also flags that the Pillar II global minimum tax regime could negatively affect the effective tax rate beginning in 2024. Management identified ECM Industries integration as an ongoing internal control priority.
Oct 27, 2023
2023-Q2
nVent Electric Quarterly Report for Q2 Ended Jun 30, 2023
nVent Electric plc reported second-quarter 2023 net sales of $803.0 million, up from $727.5 million a year earlier, with net income of $112.9 million versus $79.9 million and diluted earnings per share of $0.67 versus $0.48. For the six months ended June 30, 2023, net sales were $1,543.6 million and net income was $206.7 million. The filing attributes the sales increase primarily to the ECM Industries acquisition, which contributed $49.7 million of sales since its May 18, 2023 close, along with price increases and organic growth in the infrastructure and industrial businesses, partly offset by unfavorable currency effects. Gross margin expanded, with gross profit at 41.3% of net sales in the quarter versus 36.8% a year earlier, though the filing notes a $5.9 million inventory step-up expense tied to the acquisition. The acquisition was funded largely with debt. Total debt rose to $1,981.2 million at June 30, 2023 from $1,088.8 million at December 31, 2022, following the issuance of $500.0 million of 5.650% senior notes due 2033 and a $300.0 million 2023 term loan facility. Cash and cash equivalents declined to $138.5 million from $297.5 million, and the company reported $1,091.8 million of acquisition cash outflows for the six months. The filing states the company was in compliance with all financial covenants, with no material uncertainty about its ability to meet them, and that it elected a higher leverage covenant threshold of 4.25 to 1.00 for four quarters following the ECM acquisition. The company also disclosed a July 10, 2023 acquisition of TEXA Industries for approximately $38.5 million in cash, a $4.3 million non-cash tax benefit from a valuation allowance release, and a quarterly dividend of $0.175 per share payable August 4, 2023. The filing identifies continued inflationary cost pressure, primarily labor-related, and notes that the company is exiting its Russian business operations and expects Pillar II global minimum tax changes to potentially affect its effective tax rate beginning in 2024.
Jul 28, 2023
2023-Q1
nVent Electric Quarterly Report for Q1 Ended Mar 31, 2023
nVent Electric plc reported first-quarter 2023 net sales of $740.6 million, up 6.6% from $694.7 million a year earlier, driven primarily by price (8.1 points of organic growth contribution) and partly offset by unfavorable currency (-1.8). Operating income rose to $124.1 million from $90.1 million, and net income increased to $93.8 million from $67.8 million. Diluted EPS was $0.56 versus $0.40. Gross profit as a percentage of net sales improved to 40.9% from 35.6%, reflecting pricing actions and lean/supply chain savings, partially offset by labor inflation. Net cash provided by operating activities was $69.4 million, and free cash flow was $52.5 million, compared with $(2.7) million in the prior-year period. The most significant development for investors is the April 1, 2023 agreement to acquire ECM Industries, the parent of ECM Industries, LLC, for $1.1 billion, subject to customary adjustments, with closing expected in the second quarter of 2023 pending regulatory approval. Financing includes a $300.0 million five-year senior unsecured term loan (2023 Term Loan Facility) entered April 26, 2023, and a $500.0 million offering of 5.650% Senior Notes due 2033 priced April 24, 2023. A bridge facility of up to $800.0 million was committed and is being replaced by these instruments. The filing notes that indebtedness is expected to increase materially, and total debt was $1,088.8 million at December 31, 2022. At March 31, 2023, cash and cash equivalents were $303.1 million, total debt (recorded) was $1,085.0 million, and the company stated it was in compliance with all financial covenants. Management cited continued inflationary cost pressures, particularly labor, and the ongoing effects of the Russia-Ukraine conflict and COVID-19 as risks. The company also repurchased 0.3 million shares for $13.2 million during the quarter and paid a $0.175 per share quarterly dividend.
Apr 28, 2023
2022-Q3
nVent Electric Quarterly Report for Q3 Ended Sep 30, 2022
nVent Electric plc reported third-quarter 2022 net sales of $745.2 million, up from $642.8 million in the prior-year quarter, with net income of $93.4 million versus $74.3 million and diluted earnings per share of $0.55 versus $0.44. For the nine months ended September 30, 2022, net sales were $2,167.4 million (versus $1,793.0 million) and net income was $241.1 million (versus $205.9 million). The filing attributes the growth primarily to price increases and organic volume gains across the Enclosures, Electrical & Fastening Solutions and Thermal Management segments, partly offset by unfavorable currency effects. Gross margin declined modestly, with gross profit at 38.9% of net sales in the quarter versus 39.0% a year earlier, as inflation in raw materials, logistics, labor and energy and supply chain constraints weighed on costs. Management expects these inflationary and supply chain pressures to continue through 2022 and into 2023. Cash generation was weaker on a year-over-year basis. Net cash provided by operating activities was $199.8 million for the nine months ended September 30, 2022, compared with $258.1 million a year earlier, and free cash flow was $171.0 million versus $233.0 million. Working capital increased by $144.0 million, and the company ended the quarter with $194.0 million of cash. Total debt rose to $1,092.5 million principal amount, driven by a $200.0 million term loan draw in September 2022 that increased the term loan to $300.0 million, partly offset by repayment of $106.7 million on the revolving credit facility. The company declared a quarterly dividend of $0.175 per share and reported compliance with all financial covenants. The filing also notes ongoing risks tied to the COVID-19 pandemic and the Russia-Ukraine conflict, with the company having suspended new business activities in Russia while stating that its Russian business is not material to operations. Restructuring costs for the nine months were $4.8 million, versus $7.0 million a year earlier.
Oct 28, 2022
2022-Q2
nVent Electric Quarterly Report for Q2 Ended Jun 30, 2022
nVent Electric plc reported second-quarter 2022 net sales of $727.5 million, up from $601.3 million in the prior-year quarter, and net income of $79.9 million, or $0.48 per diluted share, compared with $66.2 million, or $0.39 per diluted share, a year earlier. For the first six months of 2022, net sales were $1,422.2 million versus $1,150.2 million, and net income was $147.7 million, or $0.88 per diluted share. The filing attributes the sales increase primarily to organic growth, which includes higher selling prices, and to the Vynckier and CIS Global acquisitions, partially offset by unfavorable foreign currency effects. Gross margin declined to 36.8% of net sales in the quarter from 39.1% a year earlier, which the company attributes to supply chain challenges and inflationary cost increases. Cash generation weakened in the first half of 2022. Net cash provided by operating activities was $63.9 million, compared with $143.3 million in the first half of 2021, reflecting a $153.4 million increase in working capital. Free cash flow was $45.1 million versus $125.5 million a year earlier. Total debt rose to $1,054.2 million from $1,005.5 million at year-end 2021, driven mainly by net revolving credit facility receipts, and the company stated it was in compliance with all financial covenants. The company expects inflationary trends and supply chain pressures to continue through the remainder of 2022, and it has suspended new business activities in Russia.
Jul 29, 2022
2022-Q1
nVent Electric Quarterly Report for Q1 Ended Mar 31, 2022
nVent Electric plc reported net sales of $694.7 million for the quarter ended March 31, 2022, up 26.6% from $548.9 million a year earlier. The increase was driven by organic growth of 24.5%, including 11.4% from price, plus a 4.5% contribution from acquisitions, partly offset by a 2.4% currency headwind. Operating income rose to $90.1 million from $80.4 million, and net income increased to $67.8 million from $65.4 million, or $0.40 per diluted share versus $0.39. Gross profit as a percentage of net sales fell 2.5 points to 35.6%, which management attributed to supply chain challenges and inflationary increases in raw materials, logistics and labor costs. Cash generation weakened sharply. Net cash provided by operating activities was $6.5 million, compared with $49.9 million in the prior-year period, and free cash flow was negative $2.7 million versus $40.1 million. Inventories increased $29.1 million and employee compensation and benefits declined $28.4 million in operating cash flows. Net receipts of revolving long-term debt were $47.8 million, which funded dividends of $29.0 million and share repurchases of $8.5 million. Total debt was $1,052.0 million at March 31, 2022, and the company stated it was in compliance with all financial covenants. The filing also highlights ongoing risks. Management expects supply chain pressures and inflationary cost increases to continue through 2022. The company has suspended new business activities in Russia and is conducting remaining activities in compliance with sanctions, and it stated that its Russia business is not material to operations. Management said the magnitude of the COVID-19 pandemic's impact cannot be determined at this time.
Apr 29, 2022
2021-Q3
nVent Electric Quarterly Report for Q3 Ended Sep 30, 2021
nVent Electric plc reported strong third-quarter 2021 results in its Form 10-Q for the period ended September 30, 2021. Net sales rose to $642.8 million from $509.3 million in the prior-year quarter, and net income was $74.3 million, compared with a net loss of $138.7 million in the third quarter of 2020, which included goodwill and trade name impairments of $220.5 million. For the nine months, net sales were $1,793.0 million and net income was $205.9 million. The filing attributes growth primarily to organic volume and price increases across the Enclosures, Electrical & Fastening Solutions and Thermal Management segments, along with contributions from the Vynckier and CIS Global acquisitions. Cash generation remained solid, with net cash from operating activities of $258.1 million and free cash flow of $233.0 million for the nine months. The company spent $235.1 million on acquisitions, including CIS Global for approximately $202.4 million, funded mainly by revolver borrowings. Cash on hand fell to $46.0 million, and total debt was $979.9 million at quarter-end. In September 2021 the company entered into an amended and restated credit agreement with a $300.0 million term loan and a $600.0 million revolving credit facility. Management expects continued supply chain pressures and inflationary cost increases through 2021 and into 2022. The company paid dividends of $0.175 per share in the quarter and has $300.0 million available under its 2021 share repurchase authorization. Management stated it was in compliance with all financial covenants as of September 30, 2021.
Oct 28, 2021
2021-Q2
nVent Electric Quarterly Report for Q2 Ended Jun 30, 2021
nVent Electric plc (NVT) reported a strong second quarter of 2021, with net sales of $601.3 million, up 34.5% from $447.2 million a year earlier. Net income rose to $66.2 million, or $0.39 per diluted share, compared with $25.8 million, or $0.15 per diluted share, in the second quarter of 2020. Operating income increased to $88.3 million, or 14.7% of net sales, from $45.3 million, or 10.1% of net sales. Management attributed the growth primarily to organic sales growth of 28.9%, which combined volume growth of 23.2% with price increases of 5.7%, and to favorable currency effects of 4.7%. Gross profit margin expanded to 39.1% of net sales from 35.8%. For the first six months of 2021, net sales were $1,150.2 million, up 18.8%, and net income was $131.6 million, or $0.78 per diluted share. Net cash provided by operating activities was $143.3 million, and free cash flow, a non-GAAP measure defined in the filing, was $125.5 million. Cash and cash equivalents were $101.8 million at June 30, 2021, and total debt was $1,107.5 million. The company spent $232.6 million on acquisitions in the first half, including CIS Global LLC, acquired on June 30, 2021 for approximately $203.0 million in cash, and Vynckier Enclosure Systems, Inc., acquired on April 1, 2021 for approximately $27.0 million. The company also reported that it was in compliance with all financial covenants in its debt agreements. Management cautioned that the COVID-19 pandemic's ultimate impact remains uncertain. The company also said it experienced supply chain challenges, including longer lead times and inflation in raw materials, logistics and labor costs, and expects those inflationary trends to continue through the remainder of 2021. The first-half effective tax rate of 13.0% included a one-time $5.2 million benefit related to a worthless stock deduction. The board also authorized a new share repurchase program of up to $300.0 million, beginning July 23, 2021 and expiring July 22, 2024, and declared a quarterly dividend of $0.175 per share.
Aug 3, 2021
2021-Q1
nVent Electric Quarterly Report for Q1 Ended Mar 31, 2021
nVent Electric plc reported first-quarter 2021 net sales of $548.9 million, up from $520.9 million in the first quarter of 2020, with the filing attributing the increase primarily to organic growth, favorable foreign currency effects and an acquisition. Operating income rose to $80.4 million from $60.3 million, and net income increased to $65.4 million from $18.6 million. The prior-year quarter included a $19.4 million non-cash valuation allowance charge on certain foreign deferred tax assets, and the effective tax rate fell to 8.8% from 62.5%. Segment income was $97.1 million versus $81.5 million, with the Enclosures, Electrical & Fastening Solutions and Thermal Management segments all reporting higher segment income. Cash flow improved, with net cash provided by operating activities of $49.9 million compared with $6.7 million a year earlier, and free cash flow of $40.1 million compared with negative $2.4 million. The company paid $29.4 million in dividends ($0.175 per share) and repurchased $20.0 million of ordinary shares during the quarter. Cash and cash equivalents ended the quarter at $104.9 million, and total debt was $947.1 million at face value. The company stated it was in compliance with all financial covenants at March 31, 2021. The filing notes that COVID-19 continues to create uncertainty, although organic sales have increased sequentially for three quarters since the third quarter of 2020. Management reported intermittent transportation and component availability issues that have increased costs and delays in some cases. The company also completed the acquisition of Vynckier Enclosure Systems, Inc. on April 1, 2021 for approximately $26.9 million in cash.
Apr 29, 2021
2020-Q3
nVent Electric Quarterly Report for Q3 Ended Sep 30, 2020
nVent Electric plc reported a third-quarter 2020 net loss of $138.7 million, or $(0.82) per diluted share, compared with net income of $59.9 million, or $0.35 per diluted share, a year earlier. Net sales fell 9.0% to $509.3 million, and the company recorded a pre-tax, non-cash goodwill impairment of $212.3 million for its Thermal Management reporting unit, plus $8.2 million of trade name impairment. For the first nine months, net sales declined 9.8% to $1,477.4 million and the company posted a net loss of $94.3 million. The filing attributes the sales decline mainly to a slowdown in capital spending, including effects of the COVID-19 pandemic, and to volatility in oil and gas prices. Organic sales declined approximately 22% in the second quarter and 14% in the third quarter. Cash flow and liquidity held up better than earnings. Net cash from operating activities was $203.7 million for the nine months, and free cash flow, a non-GAAP measure the company defines, was $179.8 million. Cash and cash equivalents were $159.8 million at September 30, 2020, and the company repaid the $150.0 million drawn on its revolving credit facility in March 2020 in September 2020. Total revolver availability was $465.4 million. The company said it was in compliance with all financial covenants. Shareholders' equity fell to $2,413.4 million, and the company continued its quarterly dividend of $0.175 per share. Management also resumed share repurchases in October 2020, with $585.1 million remaining under its authorizations. The company is also reducing its cost base, cutting roughly 300 hourly and salaried positions in the first nine months of 2020 and taking actions such as limiting discretionary spending, reducing payroll costs, and cutting capital expenditures. The filing states that the magnitude of the pandemic's impact cannot be determined at this time. It also notes that the Electrical & Fastening Solutions reporting unit's excess fair value over carrying value was approximately 5%, which leaves a risk of further impairment charges if conditions worsen.
Oct 30, 2020
2020-Q2
nVent Electric Quarterly Report for Q2 Ended Jun 30, 2020
nVent Electric plc reported second-quarter 2020 net sales of $447.2 million, down from $539.5 million a year earlier, as volume declines tied to the COVID-19 pandemic and slower capital spending outweighed contributions from the Eldon and WBT acquisitions. Operating income fell to $45.3 million from $87.0 million, and net income dropped to $25.8 million from $60.9 million. For the six months ended June 30, 2020, net sales were $968.1 million and net income was $44.4 million, compared with $1,077.5 million and $117.3 million in the prior-year period. The Company recorded a $19.4 million non-cash valuation allowance on certain foreign deferred tax assets in the first quarter and a $4.5 million discrete tax charge in the second quarter, which pushed the six-month effective tax rate to 47.6%. Cash flow and liquidity improved. Net cash provided by operating activities was $90.5 million for the first half of 2020, versus $57.8 million a year earlier, and free cash flow was $74.7 million compared with $46.3 million. Nvent drew $150.0 million on its revolving credit facility in March 2020 as a precaution, and cash and cash equivalents were $235.0 million at June 30, 2020. Total debt was $1,212.1 million, and the Company stated it was in compliance with all financial covenants. Share repurchases were temporarily suspended in March 2020 and resumed in July 2020, with $585.1 million remaining under authorizations. The quarterly dividend of $0.175 per share was declared and remains payable on August 7, 2020. Management stated that the magnitude of COVID-19's impact on financial condition, liquidity and results cannot be determined at this time. The Company also cited a significant decline in oil and gas prices as a potential source of sustained energy-industry weakness. Goodwill was tested for impairment as of June 30, 2020, and management concluded that no impairment test was required, though it noted that future changes could lead to charges.
Jul 31, 2020
2020-Q1
nVent Electric Quarterly Report for Q1 Ended Mar 31, 2020
nVent Electric plc reported first-quarter 2020 net sales of $520.9 million, down from $538.0 million in the prior-year period, with the filing attributing the decline primarily to a slowdown in capital spending, including effects of the COVID-19 pandemic and a significant decline in oil and gas prices, partly offset by the Eldon and WBT acquisitions. Operating income fell to $60.3 million from $77.5 million, and net income dropped to $18.6 million from $56.4 million. Diluted earnings per share were $0.11 versus $0.32 a year earlier. The effective tax rate rose to 62.5% from 14.7%, driven largely by a $19.4 million non-cash valuation allowance on certain foreign deferred tax assets. The company also noted a deceleration in order rates during the latter part of the quarter. Liquidity was reinforced as a precaution against the pandemic. nVent drew $150.0 million on its revolving credit facility in March 2020, leaving total revolver availability of $315.4 million, and cash rose to $187.9 million from $106.4 million at year-end 2019. Total debt increased to $1,215.9 million, and free cash flow was negative $2.4 million for the quarter. The company temporarily suspended share repurchases, cut discretionary spending and capital expenditures, and continued paying its quarterly dividend of $0.175 per share. Management stated it was in compliance with all financial covenants at March 31, 2020. The filing states that the magnitude and duration of the COVID-19 impact remain uncertain, and that the company expects an approximately $6 million non-recurring tax expense in the second quarter from newly finalized U.S. Treasury regulations limiting certain interest deductions. Goodwill for the Thermal Management and Electrical & Fastening Solutions reporting units was not tested for impairment at March 31, 2020, though the company acknowledged future impairment charges are possible.
Apr 29, 2020
2019-Q3
nVent Electric Quarterly Report for Q3 Ended Sep 30, 2019
nVent Electric plc (NVT) reported third-quarter 2019 net sales of $559.8 million, down from $563.9 million a year earlier, and net income of $59.9 million, or $0.35 per diluted share, versus $68.2 million, or $0.38, in the prior-year quarter. Operating income fell to $86.1 million from $93.7 million, with the filing citing a slowdown in industrial capital spending, unfavorable foreign currency effects, $11.2 million of third-quarter restructuring costs, and inflationary cost increases as drivers. For the nine months, net sales were $1,637.3 million and net income was $177.2 million, or $1.02 per diluted share, compared with $163.8 million, or $0.90, a year earlier. Operating income rose to $250.6 million from $224.6 million, helped by the absence of $39.3 million of 2018 separation costs. Balance sheet and capital allocation shifted during the period. Cash fell to $49.5 million from $159.0 million at year-end 2018, and total debt rose to $1,155.8 million. The company drew $216.5 million on its revolving credit facility to help fund the $127.8 million acquisition of Eldon Holding AB, a European enclosures manufacturer completed on August 30, 2019. The company also repurchased $235.7 million of shares and paid $91.1 million in dividends during the nine months, and had $588.3 million remaining under its combined repurchase authorizations. Operating cash flow was $157.5 million and free cash flow was $134.6 million for the nine months, versus $156.4 million a year earlier.
Oct 30, 2019
2019-Q2
nVent Electric Quarterly Report for Q2 Ended Jun 30, 2019
nVent Electric plc reported net sales of $539.5 million for the three months ended June 30, 2019, compared with $542.7 million in the prior-year quarter, and $1,077.5 million for the six months, compared with $1,081.6 million. Operating income rose to $87.0 million from $65.3 million in the second quarter, and net income was $60.9 million versus $43.3 million. The prior-year quarter included $24.8 million of separation costs, which did not recur, and selling, general and administrative expense fell to $113.1 million from $143.1 million. Diluted earnings per share were $0.35 for the quarter, compared with $0.24 a year earlier. Cash flow and capital returns were a major focus in the first half. Net cash provided by operating activities was $57.8 million, versus $81.6 million a year earlier, and free cash flow was $46.3 million. The company repurchased $235.7 million of shares and paid $61.5 million in dividends, funded partly by $119.0 million of net revolver borrowings. Cash fell to $25.3 million at June 30, 2019, from $159.0 million at December 31, 2018, and total debt rose to $1,061.5 million from $947.5 million. The filing also discloses a planned acquisition of Eldon Holding AB for approximately €117 million in cash (about $130 million), expected to close in the third quarter of 2019 and funded with cash on hand and revolver borrowings. Management expects its annual effective tax rate to be between 19 and 20 percent for 2019 because of proposed U.S. interest deductibility regulations.
Aug 1, 2019
2019-Q1
nVent Electric Quarterly Report for Q1 Ended Mar 31, 2019
nVent Electric plc reported first-quarter 2019 net sales of $538.0 million, down slightly from $538.9 million in the prior-year quarter, with the decline attributed mainly to unfavorable foreign currency effects. Operating income rose to $77.5 million from $65.6 million, and the operating margin increased to 14.4% from 12.2%. Net income was $56.4 million, or $0.32 per diluted share, compared with $52.3 million, or $0.29 per diluted share, a year earlier. Management attributed the margin gains mainly to selective price increases, volume leverage on fixed costs and lean and supply management savings, partly offset by inflation in raw materials, labor and freight. Segment income also improved in Enclosures and Thermal Management. Cash flow was weaker. Operating activities used $13.1 million of cash, compared with $36.1 million provided a year earlier, and free cash flow was negative $16.3 million. The filing attributes this mainly to working capital changes consistent with the company's seasonal cash pattern. Cash and cash equivalents fell to $32.6 million from $159.0 million at December 31, 2018. During the quarter, nVent repurchased ordinary shares for $76.1 million and paid $31.0 million in dividends. It had $741.1 million remaining under its combined share repurchase authorizations, and total debt was $945.0 million, with the company stating it was in compliance with all financial covenants. The filing also flags a tax risk. The effective tax rate fell to 14.7% from 18.0%, but proposed U.S. Treasury regulations on interest deductibility, expected to be finalized in June 2019, could raise the effective tax rate by about 300 basis points to 21% on an annualized basis if finalized as written. Management estimates a 2019 annual effective tax rate of 19% to 20%, and a rate at or near its historical 18% for 2020 and beyond.
Apr 25, 2019
2018-Q3
nVent Electric Quarterly Report for Q3 Ended Sep 30, 2018
nVent Electric plc (NVT) reports its first quarterly 10-Q following its separation from Pentair plc on April 30, 2018, when Pentair distributed nVent shares to its shareholders. For the three months ended September 30, 2018, net sales were $563.9 million, up from $540.6 million, while operating income fell to $93.7 million from $99.6 million and net income was $68.2 million, compared with $79.7 million a year earlier. For the nine months, net sales rose to $1,645.5 million from $1,556.0 million, but operating income declined to $224.6 million from $256.7 million, largely reflecting $39.3 million of non-recurring separation costs and higher SG&A. Diluted earnings per share were $0.38 for the quarter and $0.90 for the nine months. The balance sheet changed substantially with the separation. Total debt was $950.0 million at quarter-end, consisting of $800.0 million of fixed-rate senior notes and $150.0 million outstanding under a term loan, against zero debt at December 31, 2017. Cash and cash equivalents rose to $106.0 million, and total equity was $2,715.6 million. Cash provided by operating activities was $182.6 million for the nine months, compared with $298.4 million a year earlier, and free cash flow was $156.4 million versus $277.2 million. The board authorized a $500.0 million share repurchase program in July 2018, but no shares were repurchased in the third quarter, and a quarterly dividend of $0.175 per share was declared. Management attributed the quarter's sales growth primarily to organic growth in the commercial and residential and industrial businesses, partially offset by unfavorable currency effects. The company also noted inflationary cost pressures on raw materials, labor and freight, and a slowdown in capital spending affecting its energy business during the nine-month period.
Oct 25, 2018
2018-Q2
nVent Electric Quarterly Report for Q2 Ended Jun 30, 2018
nVent Electric plc (NVT) filed this Form 10-Q for the quarter ended June 30, 2018, its first quarterly report after the April 30, 2018 separation from Pentair plc, in which Pentair distributed its Electrical business to shareholders as an independent public company. For the six months ended June 30, 2018, net sales were $1,081.6 million, up from $1,015.4 million, while operating income fell to $130.9 million from $157.1 million and net income declined to $95.6 million from $126.0 million. Results were weighed down by $34.5 million of non-recurring separation costs in the first half, and selling, general and administrative expense rose to 25.4% of sales from 22.6%. For the second quarter, net sales were $542.7 million and net income was $43.3 million, or $0.24 per diluted share. The balance sheet changed significantly with the separation. Nvent issued $300.0 million of 3.950% senior notes due 2023 and $500.0 million of 4.550% senior notes due 2028, and drew $200.0 million on a term loan, leaving total debt of $994.0 million at June 30, 2018. Cash rose to $91.5 million from $26.9 million, and total equity was $2,696.4 million. Management stated it was in compliance with its financial covenants and that it expects to continue quarterly dividends. On July 23, 2018, the Board declared a quarterly dividend of $0.175 per share and authorized share repurchases of up to $500.0 million through July 23, 2021. Free cash flow, a non-GAAP measure the company defines as operating cash flow less capital expenditures plus proceeds from asset sales, was $74.2 million for the first half of 2018, compared with $110.1 million a year earlier. Operating cash flow was $81.6 million. Management attributed the decline mainly to lower net income and higher working capital, and it expects 2018 capital expenditures of approximately $40 million.
Jul 26, 2018
2018-Q1
nVent Electric Quarterly Report for Q1 Ended Mar 31, 2018
nVent Electric plc (NVT) filed this Form 10-Q for the quarter ended March 31, 2018, its first quarterly report following the April 30, 2018 separation from Pentair plc, in which Pentair distributed one nVent ordinary share for every Pentair ordinary share held. The financials are condensed combined statements of the Electrical business carved out of Pentair. For the first quarter, net sales rose 7.3% to $538.9 million from $502.2 million, driven mainly by favorable currency effects (4.2 points) and organic growth of 3.1%. Operating income declined 3.0% to $65.6 million, reflecting inflation, a new U.S. distribution center and $9.7 million of non-recurring separation costs. Net income was $52.3 million, or $0.29 per diluted share, versus $55.3 million, or $0.31, a year earlier. The balance sheet changed significantly in connection with the separation. In March 2018, nVent Finance S.à r.l. issued $300.0 million of 3.950% senior notes due 2023 and $500.0 million of 4.550% senior notes due 2028, and entered into a $200.0 million term loan facility and a $600.0 million revolving credit facility. Cash rose to $836.7 million from $26.9 million at year-end 2017, and long-term debt was $793.0 million. Total liabilities increased to $1,660.9 million from $933.7 million. In April 2018, nVent drew $200.0 million under the term loan and transferred to Pentair all cash above $50.0 million as consideration for the contribution of the Electrical business. Operating cash flow was $36.1 million, down from $87.1 million, mainly due to higher working capital, and free cash flow was $33.0 million versus $75.8 million. Management expects 2018 capital expenditures of approximately $40 million and intends to pay quarterly dividends while focusing on cash flow and debt repayment.
May 8, 2018