01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
nVent Electric plc reported first-quarter 2026 net sales of $1,242.0 milliona, 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 millionb 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 millionc, 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 milliond, 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.
02—Key points
Key Highlights
- Net sales increased 53.5% to $1,242.0 million, with organic growth of 34.4%, acquisitions contributing 17.0%, and currency contributing 2.1%.
- Operating income rose to $195.7 million from $130.0 million, though operating margin slipped to 15.8% from 16.1%, and gross margin fell to 35.9% from 38.8%.
- Systems Protection net sales grew 76.1% to $894.8 million, with segment income of $203.1 million (22.7% of sales), driven largely by infrastructure and data center demand.
- Electrical Connections net sales grew 15.3% to $347.2 million, but segment income was $84.8 million, down slightly from $85.1 million, and its margin fell to 24.4% from 28.3%.
- Net income was $142.4 million versus $360.7 million, as the prior-year period included a $433.9 million pre-tax gain on the Thermal Management sale; income from continuing operations rose to $140.4 million from $87.0 million.
- Free cash flow of continuing operations was $53.8 million, compared with $44.4 million, while working capital absorbed $128.3 million, mainly from receivables.
- Remaining performance obligations were $2,591.0 million at March 31, 2026, and the company has $96.5 million remaining under its share repurchase authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, nVent Electric kept $0.11.
- Revenue$1.24B100.0%
- Cost of revenue−$796.4M64.1%
- Gross profit$445.6M35.9%
- Operating costs−$249.9M20.1%
- Operating income$195.7M15.8%
- Interest, other & tax−$53.3M4.3%
- Net income$142.4M11.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.24B$809.30M | +53.5% |
| Cost of Revenue | $796.40M$495.60M | +60.7% |
| Gross Profit | $445.60M$313.70M | +42.0% |
| R&D Expenses | $22.70M$17.50M | +29.7% |
| SG&A Expenses | $227.20M$166.20M | +36.7% |
| Operating Income | $195.70M$130.00M | +50.5% |
| Net Income | $142.40M$360.70M | −60.5% |
| EPS (Basic) | $0.88$2.18 | −59.6% |
| EPS (Diluted) | $0.87$2.16 | −59.7% |
| Shares Outstanding (Basic) | 161.70M165.10M | −2.1% |
| Shares Outstanding (Diluted) | 164.00M167.30M | −2.0% |
05—Questions
Frequently Asked Questions
What drove the large increase in net sales?
Net sales rose $432.7 million, or 53.5%, to $1,242.0 million. Organic growth contributed 34.4 percentage points, led by the infrastructure vertical and data center growth in Systems Protection. The Electrical Products Group acquisition, completed May 1, 2025, contributed 17.0 percentage points, including $137.7 million of sales in the quarter. Currency added 2.1 percentage points.
Why did gross margin decline?
Gross profit as a percentage of net sales fell 2.9 percentage points to 35.9%. The company cited inflationary increases, including tariff impacts, mainly in raw materials and labor; investments in capacity to drive growth; and unfavorable product mix. Higher sales volume and productivity gains partially offset these pressures.
Why is net income lower than last year even though operating results improved?
The prior-year period included $273.7 million of income from discontinued operations, primarily from the $433.9 million pre-tax gain on the sale of the Thermal Management business, partly offset by $160.5 million of tax expense on the sale. Income from continuing operations increased to $140.4 million from $87.0 million, while discontinued operations contributed only $2.0 million in the current quarter.
How is the company returning cash to shareholders, and can it cover those payments?
During the quarter, the company repurchased $50.4 million of shares and paid $34.2 million in dividends, or $0.21 per share. Free cash flow of continuing operations was $53.8 million, which covered dividends but not repurchases and dividends combined. The company had $96.5 million left under its 2024 repurchase authorization, which expires July 22, 2027, and a $0.21 quarterly dividend was declared for payment on May 8, 2026.
Is the company meeting its debt covenants, and how much debt does it carry?
The company stated it was in compliance with all financial covenants as of March 31, 2026, and that there was no material uncertainty about its ability to meet them. Total recorded debt was $1,564.7 million, including $264.7 million of term loan borrowings and $1,300.0 million of senior notes. The revolving credit facility had $600.0 million of borrowing capacity and no drawn balance.
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