Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q3 2024 Earnings Presentation
20 slides from Nvent Electric's earnings presentation, Nov 1, 2024
Slide 1: nVent Third Quarter 2024 Earnings Presentation
nVent Third Quarter 2024 Earnings Presentation November 1, 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 Total results: Quarterly sales of $939M, up 9%; adjusted EPS of $0.84 Continuing operations results: Quarterly sales of $782M, up 9%; adjusted EPS of $0.63 Cash flow grew strong double digits Portfolio transformation on track Guidance updated to continuing operations Strong third quarte
Slide 4: Q3 2024 Summary
Q3 2024 Summary ▪ Sales of $782M, up 9% and 1% organically ▪ Adjusted operating income of $168M, up 4%; ROS of 21.5%, down 120 bps Q3 2024 ▪ Adjusted EPS of $0.63, down 3% ▪ Free cash flow generation of $143M, up 33% ▪ Organic sales led by Infrastructure; Data Solutions up double digits Q3 ▪ Organic
Slide 5: Q3 2024 nVent Performance
Q3 2024 nVent Performance Sales ($M) Financial Highlights (YoY) $59 $1 $782 ▪ Sales up 9%, organically up 1% $11 ($3) $715 - Volume added 2 points to growth +9% YoY - Acquisitions added 8 points to growth ▪ Adjusted operating income up 4% 2 pts flat 8 pts flat Q3 ’23 - Year-over-year ROS down 120 bp
Slide 6: Q3 2024 Segment Performance
Q3 2024 Segment Performance Sales Segment Income Commentary ($M) Organic sales up, led by Infrastructure Enclosures Data Solutions sales up double digits; building 2025 backlog $477 $104 Up 16% Up 17% – Industrial and Commercial/Resi sales down Up 1% organic ROS 21.9% (+20bps) North America an
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) Maturity $2,270 Q3 YTD $500 @ 2028 2024 2024 $300 @ 2031 $1,300 57% Fixed Net Income $ 79 $ 257 $500 @ 2033 Amortization 27 67 $970 43% Variable 2026-2028 Subtotal $ 106 $ 324 Depreciation 13 38 Q3 ’24 Weighted Average Rate ~5% Capital Exp
Slide 8: 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 ~$80M ▪ Acquisitions remain a top ▪ Maintain a competitive ▪ Maintain investment in 2024 priority dividend grade metrics ▪ Investments in capacity, ▪ Targe
Slide 9: 2024 nVent Outlook
2024 nVent Outlook nVent Guidance Reconciliation Continuing Operations Guidance Low High Previous Guidance $3.23 $3.29 Up ~13% reported Discontinued Operations ($0.76) ($0.76) Sales Up ~3% organic Updated to Continuing Operations $2.47 $2.53 Narrowed Range $0.02 ($0.02) Updated 2024 Guidance $2.49 $
Slide 10: Q4 2024 nVent Outlook
Q4 2024 nVent Outlook Q4 ’24 Q4 ’23 Other Items Reported sales Up 11% to 13% $691M Tax rate ~23% Organic sales Up 1% to 3% 3% Net interest expense ~$30M EPS (reported) $0.45 to $0.47 $1.26 Shares ~168M EPS (adjusted) $0.58 to $0.60 $0.55 Corporate Costs ~$30M Expected Drivers ▪ Acquisitions to add ~
Slide 11: Broad Innovative Portfolio: Data Solutions Liquid Cooling
Data Solutions Liquid Cooling 10-25 kW Leader in Liquid Cooling Server Rack W/Fans Rack w/low-capacity Rack w/high-capacity Aisle Containment In-Row ▪ Deep application expertise with multi- or AC Air to Liquid HX Air to Liquid HX Air-to-Liquid HX generational designs ▪ Strong industry collaborations
Slide 12: Looking Ahead to 2025
Looking Ahead to 2025 Verticals* 2025 Expected Key Drivers ▪ Portfolio Transformation – more focused, higher growth electrical 3% connection and protection company Energy ▪ >70% of portfolio exposed to secular trends 36% Industrial ▪ Infrastructure to grow the fastest 29% Commercial & ▪ Data Solutio
Slide 13: Summary
Summary ▪ Another strong quarter ▪ Record cash flow ▪ Portfolio transformation on track ▪ Well positioned with electrification, sustainability and digitalization trends Our future is bright Q3 ’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 (continuing operations)
Reported to Adjusted 2024 Reconciliation (continuing operations) Q3 ’24 Earnings Presentation 15
Slide 16: Reported to Adjusted 2024 Reconciliation (discontinued operations)
Reported to Adjusted 2024 Reconciliation (discontinued operations) Q3 ’24 Earnings Presentation 16
Slide 17: Reported to Adjusted 2023 Reconciliation (continuing operations)
Reported to Adjusted 2023 Reconciliation (continuing operations) Q3 ’24 Earnings Presentation 17
Slide 18: Reported to Adjusted 2023 Reconciliation (discontinued operations)
Reported to Adjusted 2023 Reconciliation (discontinued operations) Q3 ’24 Earnings Presentation 18
Slide 19: 2024 and 2023 Total Net Sales and Total Adjusted EPS Reconciliations
2024 and 2023 Total Net Sales and Total Adjusted EPS Reconciliations Q3 ’24 Earnings Presentation 19
Slide 20: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation Q3 ’24 Earnings Presentation 20