nVent Electric (NYSE:NVT) reported record third-quarter sales, orders and adjusted earnings, citing broad-based demand across its end markets and geographies, led by data center activity. The electrical connection and protection company raised its full-year sales and adjusted earnings outlook and said it expects the recently completed Maverick Power acquisition to support its expansion in data center power distribution.
Third-quarter sales increased 44% from the prior year to $1.515 billion, with reported and organic growth both at 44%. Adjusted operating income rose 57% to $335 million, while adjusted operating margin increased 190 basis points to 22.1%. Adjusted earnings per share grew 67% to $1.52, and the company generated $268 million in free cash flow.
“We had another tremendous quarter with record sales, orders, and earnings, well ahead of our guidance,” Chair and Chief Executive Officer Beth Wozniak said. She said sales growth was broad-based, including double-digit growth across each vertical and geography.
Data Centers Drive Infrastructure Growth
Infrastructure was the company’s strongest vertical during the quarter, with organic sales rising more than 70%, primarily due to data center demand. Industrial organic sales increased by the high teens, while commercial and residential sales grew by the mid-teens.
By region, sales in the Americas rose about 50%, Europe increased by the low double digits, and Asia-Pacific also posted double-digit growth. Organic orders grew by the low double digits against a 65% increase in the comparable period a year earlier. Backlog increased sequentially to $2.6 billion.
Wozniak said October orders had begun strongly, while Chief Financial Officer Gary Corona noted that orders can be uneven in timing as the business moves toward longer-cycle opportunities. He added that the company expects backlog to build as Maverick Power becomes part of its reported portfolio.
New products accounted for about 30 percentage points of sales growth in the quarter, and nVent introduced 24 new products. Wozniak said product development remains concentrated in high-growth verticals, including data center power and cooling, as well as utility-focused offerings.
- Electrical Connections sales rose 53% to $1.098 billion, including 54% organic growth.
- Electrical Connections infrastructure sales increased about 90%, driven by data centers.
- Electrical Connections segment income rose 73% to $253 million, and margin expanded 260 basis points to 23%.
- Systems Protection sales increased 23% to $417 million, with growth across all verticals and geographies.
- Systems Protection segment income increased 16% to $118 million, while margin declined 180 basis points to 28.2%, reflecting inflation and growth investments. The company said margins improved sequentially.
Maverick Power Expands Data Center Offering
nVent completed its acquisition of Maverick Power on Oct. 1. Maverick manufactures engineered power-distribution and infrastructure products for data centers, including low- and medium-voltage switchgear, switchboards, integrated modular solutions and services.
Wozniak said the acquisition adds a new power-distribution platform and broadens nVent’s capability to provide system-level power and cooling solutions. Maverick has more than 1,000 employees, key locations in Texas and Arizona, and about 1.5 million square feet of manufacturing space, according to the company.
The company plans to display Maverick’s 800 VDC power rack at the Supercomputing conference next month. The system is designed to be positioned alongside IT racks and convert existing AC power to 800 VDC for high-density artificial intelligence computing without requiring a facility-wide power redesign.
nVent estimated that Maverick increases its total data center opportunity to about $2 million per megawatt. Wozniak said the company sees opportunities to combine Maverick’s power offering with nVent’s liquid-cooling products and related service capabilities.
Corona said Maverick is expected to generate operating margins in the mid-teens during the fourth quarter, as nVent invests to prepare the business for anticipated growth in 2027. He said those margins are expected to improve as Maverick increases production and more fully utilizes its facilities.
Capacity Investments and Raised Outlook
The company is expanding capacity to meet demand in data centers and power utilities. It announced a 400,000-square-foot Arizona facility for engineered building solutions, with production expected to begin in mid-2027. The facility will support data center and power utility demand. nVent also said its Blaine 1 liquid-cooling facility is already in production and ramping, while Blaine 2 is expected to begin production around the middle of 2027.
Wozniak said the company works closely with suppliers as both nVent and its supply base add capacity. She said decisions on new facilities consider current orders, unfulfilled demand, customer feedback and expected investment returns.
For the full year, nVent raised its forecast for reported sales growth to 48% to 49%, from prior guidance of 37% to 39%. It now expects organic sales growth of 38% to 39%, compared with its earlier outlook of 32% to 34%.
The company raised its full-year adjusted EPS forecast to $5.36 to $5.39, from $5.00 to $5.10 previously. At the midpoint, the updated earnings outlook would represent 60% growth from the prior year. Acquisitions, including Maverick, are expected to add about 10 percentage points to full-year sales growth.
For the fourth quarter, nVent forecast reported sales growth of 45% to 48%, including about 19 percentage points from Maverick. Organic sales are expected to rise 26% to 29%, while adjusted EPS is forecast at $1.30 to $1.33. The company expects price and productivity to offset inflation and tariffs while it continues investing in capacity and capabilities.
During the quarter, nVent issued $800 million of 10-year senior notes to help fund the Maverick transaction. It ended the period with more than $1.1 billion in cash, $2.2 billion of total debt and $600 million available under its revolving credit facility. Corona said the company expects leverage, including the acquisition, to remain within its targeted range of two to 2.5 times by year-end.
About nVent Electric (NYSE:NVT)
nVent Electric plc is a global provider of electrical connection, protection and management solutions. The company designs and manufactures products that help protect electrical and electronic systems, manage heat, and support the installation and operation of critical infrastructure.
Its products include electrical and electronic enclosures, industrial cooling and thermal-management systems, cable management and fastening solutions, grounding and bonding equipment, busway and power-distribution products, and related connection technologies.
