Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q1 2024 Earnings Presentation
19 slides from Nvent Electric's earnings presentation, May 3, 2024
Slide 1: nVent First Quarter 2024 Earnings Presentation
nVent First Quarter 2024 Earnings Presentation May 3, 2024 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 Delivered record Q1 sales of $875M, up 18%; adjusted EPS up 15% Another quarter of impressive segment income growth and robust cash flow Data Solutions well positioned for accelerated AI demand Released 2023 Sustainability Report; significant progress on our ESG goals Raising full-year
Slide 4: Q1 2024 Summary
Q1 2024 Summary ▪ Sales of $875 million, up 18% and 5% organically; volume contributed 4 points ▪ Segment income of $192 million, up 30%; ROS of 22.0%, up 200 bps year-over-year Q1 2024 ▪ Adjusted EPS of $0.77, up 15% ▪ Free cash flow generation of $74 million, up 41% ▪ Organic sales growth led by I
Slide 5: Q1 2024 nVent Performance
Q1 2024 nVent Performance Sales ($M) Financial Highlights (YoY) $98 $1 $875 ▪ Sales up 18%, organically up 5% $741 $29 $6 - Volume added 4 points to growth +18% YoY - Acquisitions added 13 points to growth ▪ Segment income up 30% 4 pts 1 pt 13 pts 0 pts Q1 ’23 Volume Price Acq. FX Q1 ’24 - Year-over
Slide 6: Q1 2024 Segment Performance
Q1 2024 Segment Performance ($M) Sales Segment Income Commentary Organic sales up; Infrastructure, Industrial and Comm/Resi all grew Enclosures $440 $95 Data Solutions sales up strong double digits; expansion efforts on-track Up 13% Up 15% Up 11% organic ROS 21.6% (+50bps) North America and Eu
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $1,785 Maturity Q1 2024 $500 @ 2028 Net Income $ 105 $1,300 73% Fixed $300 @ 2031 Amortization 25 $500 @ 2033 Subtotal $ 130 $485 27% Variable 2026-2028 Depreciation 15 Q1 ’24 Weighted Average Rate ~5% Capital Expenditures (16) Note: Does
Slide 8: Capital Allocation Update
Capital Allocation Update Manage Reinvest in Return Cash M&A Leverage the Business to Shareholders ▪ Net debt to adjusted ▪ Full-year capex of $85 to ▪ Acquisitions remain a top ▪ Returned $32 million to EBITDA ratio at 1.9X $90 million in 2024 priority shareholders in Q1 ▪ Target of 2.0X to 2.5X ▪
Slide 9: 2024 nVent Outlook
2024 nVent Outlook Total nVent Expected Drivers • Secular tailwinds in electrification, sustainability and digitalization Guidance as of 02/06/24 Updated Guidance • Volume growth and positive price Up 8% to 10% • Price and productivity offsetting inflation Sales No change Up 3% to 5% organic • Inves
Slide 10: Q2 2024 nVent Outlook
Q2 2024 nVent Outlook Q2 ’24 Q2 ’23 Other Items Reported sales Up 10% to 12% $803M Tax rate ~23% Organic sales Up 3% to 5% 4% Net interest expense ~$22M EPS (reported) $0.70 to $0.72 $0.67 Shares ~169M EPS (adjusted) $0.81 to $0.83 $0.77 Expected Drivers ▪ Acquisitions to add ~7 points to sales grow
Slide 11: AI Adoption Driving Demand for Data Solutions
AI Adoption Driving Demand for Data Solutions Strong growth drivers Innovative and Broad Portfolio ▪ AI driving demand ▪ Only 5% of data centers liquid cooled today ▪ Liquid cooling growing 3X faster than legacy cooling Position to Win ▪ Leading with technical expertise, innovative designs and manuf
Slide 12: 2023 Sustainability Report
2023 Sustainability Report Goals Progress in 2023 Highlights New Goals ▪ Increased global representation of women in management by 4% Products ▪ Improved total recordable incident safety rate by more than 20% Eliminate single-use 100% plastics from all product packaging by 2030 ▪ Made product enviro
Slide 13: Summary
Summary ▪ Strong quarter with organic sales and adjusted EPS exceeding guidance ▪ Continued progress on our ESG goals ▪ Expect strength in high- growth verticals and new products 1 3 Well positioned with electrification, sustainability and digitalization trends Q1 ’24 Earnings Presentation 13
Slide 14: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 14 14
Slide 15: Reported to Adjusted 2024 Reconciliation
Reported to Adjusted 2024 Reconciliation Q1 ’24 Earnings Presentation 15
Slide 16: Reported to Adjusted 2023 Reconciliation
Reported to Adjusted 2023 Reconciliation Q1 ’24 Earnings Presentation 16
Slide 17: Reported to Adjusted 2022 Reconciliation
Reported to Adjusted 2022 Reconciliation Q1 ’24 Earnings Presentation 17
Slide 18: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation Q1 ’24 Earnings Presentation 18
Slide 19: Q1 2023 Organic Sales Growth Reconciliation
Q1 2023 Organic Sales Growth Reconciliation Q1 ’24 Earnings Presentation 19