Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q4 2024 Earnings Presentation
23 slides from Nvent Electric's earnings presentation, Feb 6, 2025
Slide 1: nVent Fourth Quarter and Full-Year 2024 Earnings Presentation
nVent Fourth Quarter and Full-Year 2024 Earnings Presentation February 6, 2025 1
Slide 2: Forward-Looking Statement and Key Definitions
Forward-Looking Statement and Key Definitions Caution Concerning Forward-Looking Statements This presentation contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of hi
Slide 3: Key Messages
Key Messages Q4 sales up 9%; adjusted EPS up 7%; ROS expanded 50 bps; robust cash flow Full-year sales up 13%; adjusted EPS up 7%; free cash flow up 20% Portfolio transformation on track: divested Thermal Management and Trachte acquisition performing well Expect significant capital deployment in 202
Slide 4: Q4 and Full-Year 2024 Summary
Q4 and Full-Year 2024 Summary ▪ Sales of $752 million, up 9% and down 1% organically ▪ Adjusted operating income of $158 million, up 12%; ROS of 21.0%, up 50 bps Q4 2024 ▪ Adjusted EPS of $0.59, up 7% year-over-year ▪ Robust free cash flow generation of $150 million ▪ Sales of $3.0 billion, up 13% a
Slide 5: nVent Portfolio Transformation
nVent Portfolio Transformation Segments Verticals ~70% of nVent portfolio exposed to secular trends 39% Electrical & Fastening 29% 3% Energy 35% Industrial Commercial & Residential Infrastructure vertical 33% increased to 33% of nVent sales in 2024 61% Enclosures 33% Infrastructure 5% <1% APAC ROW G
Slide 6: 2025 Vertical Outlook
2025 Vertical Outlook Industrial Infrastructure ▪ Infrastructure expected to grow the fastest - Data center capex expected to continue to increase - Electrical infrastructure expected to continue to expand within power utilities, renewables, and energy +LSD/MSD +LDD storage given electrical demand ▪
Slide 7: Growing in Infrastructure
Growing in Infrastructure Data Solutions Power Utilities ▪ ~20% of nVent sales ▪ ~10% of nVent sales ▪ Expect double-digit growth, supported by growing ▪ Trachte is a new growth platform of control backlog buildings ▪ Core products include liquid cooling, power ▪ Expect double-digit growth, supporte
Slide 8: Growing with New Products and Innovation
Growing with New Products and Innovation 6 Core Technology Platforms ▪ 6 core technology platforms: driving CABLE CONTROL differentiation, modularity, and global MANAGEMENT BUILDINGS certifications ▪ Opened new nVent technology center in Bangalore EQUIPMENT LIQUID PROTECTION COOLING ▪ Expect to laun
Slide 9: Q4 2024 nVent Performance
Q4 2024 nVent Performance Sales ($M) Financial Highlights (YoY) $66 ($1) $752 ▪ Sales up 9%, organically down 1% +9% - Acquisitions added 10 points to growth $691 ($2) ($2) YoY ▪ Adjusted operating income up 12% flat flat 10 pts flat - Year-over-year ROS up 50 bps Q4 ’23 Volume Price Acq. FX Q4 ’24
Slide 10: Q4 2024 Segment Performance
Q4 2024 Segment Performance Sales Segment Income Commentary ($M) – Organic sales down driven by Commercial/Resi and Industrial Enclosures $466 $100 Infrastructure grew; Data Solutions sales up double digits Up 16% Up 18% Down 1% organic ROS 21.5% (+40bps) ± North America declined, Europe and Asia-
Slide 11: Full-Year 2024 nVent Performance
Full-Year 2024 nVent Performance Sales ($M) Financial Highlights (YoY) $274 ($2) $3,006 ▪ Sales up 13%, organically up 2% $69 ($5) +13% - Volume added 3 points to growth $2,669 YoY - Acquisitions added 10 points to growth 3 pts flat 10 pts flat ▪ Adjusted operating income up 15% FY ’23 Volume Price
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) Q4 YTD Maturity 2024 2024 $2,166 $500 @ 2028 Net Income $ (16) $ 241 $1,300 $300 @ 2031 Amortization 28 95 60% Fixed $500 @ 2033 Subtotal $ 12 $ 336 $866 40% Variable 2026-2028 Depreciation 13 51 Capital Expenditures (26) (74) Q4 ’24 Weigh
Slide 13: Capital Allocation Update
Capital Allocation Update Manage Reinvest in Return Cash M&A Leverage the Business to Shareholders ▪ Target of 2.0X to 2.5X ▪ Full-year capex of $74 ▪ Acquisitions a top priority ▪ Returned $227 million in ▪ Maintain investment million, up 13% ▪ Target ROIC > WACC in cash to shareholders in grade me
Slide 14: 2025 nVent Outlook
2025 nVent Outlook nVent Expected Drivers Guidance ▪ Secular tailwinds in electrification, sustainability and digitalization Up 8% to 10% reported ▪ Price and productivity offsetting inflation Sales Up 4% to 6% organic ▪ Strong backlogs in data solutions and power utilities ▪ Investments in new prod
Slide 15: Q1 2025 nVent Outlook
Q1 2025 nVent Outlook Q1 ’25 Q1 ’24 Other Items Reported sales Up 7% to 9% $732M Tax rate ~22% Organic sales Up 0% to 2% 6% Net interest expense ~$20M EPS (reported) $0.52 to $0.54 $0.51 Shares ~167M EPS (adjusted) $0.65 to $0.67 $0.61 Expected Drivers ▪ Acquisitions to add ~8 points to sales ▪ FX ~
Slide 16: 2024 nVent Recognition
2024 nVent Recognition 2024 Most Influential Corporate Directors Our people and culture are a differentiator Q4 ’24 Earnings Presentation 16
Slide 17: Summary
Summary ▪ Expect strong sales and earnings growth with robust cash flow in 2025 ▪ Portfolio transformation underway ▪ Well positioned with electrification, sustainability and digitalization trends Our future is bright Q4 ’24 Earnings Presentation 17
Slide 18: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 18 18
Slide 19: Reported to Adjusted 2024 Reconciliation
Reported to Adjusted 2024 Reconciliation Q4 ’24 Earnings Presentation 19
Slide 20: Reported to Adjusted 2023 Reconciliation
Reported to Adjusted 2023 Reconciliation Q4 ’24 Earnings Presentation 20
Slide 21: Reported to Adjusted 2022 Reconciliation
Reported to Adjusted 2022 Reconciliation Q4 ’24 Earnings Presentation 21
Slide 22: Reported to Adjusted 2025 Reconciliation
Reported to Adjusted 2025 Reconciliation Q4 ’24 Earnings Presentation 22
Slide 23: Organic Sales Growth and Free Cash Flow Reconciliation 2024
Organic Sales Growth and Free Cash Flow Reconciliation 2024 Q4 ’24 Earnings Presentation 23