NVT - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the nVent Electric Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Tony Riter, Vice President of Investor Relations. Please go ahead.

Tony Riter

Thank you, and welcome to nVent's Fourth Quarter 2024 Earnings Call.

me Sara Wozniak, Zawoyski, with Executive and call and Officer; Chief the are Chair Beth Chief On Financial Officer. details our provide year we'll on quarter fourth Today, and performance and outlook XXXX. for our full

starting are reminder, operations of are and presentation presented with throughout a results XXXX Management reporting Thermal for basis. all operation referenced basis, a the prior the company in As the operations. discontinued guidance continuing All began continued as results on business otherwise on results a the XXXX, stated. XXXX along QX periods unless

Before and we as financial such any the filings and Securities nVent's future begin, results let made anticipated uncertainties release that and the me with the risks to remind company's Commission. subject risks statements Exchange you outlined are in statements forward-looking press about today's

anticipated are Actual nVent's statements update to events such of Forward-looking the and website. as could in you section by today, non-GAAP are the can results References no in differ reconciled webcast or made the company the reflect appendix of financials find obligation undertakes from Investors presentation. a presentation, statements results. Today's subsequent circumstances. is which to to accompanied publicly of materially

Slide remarks. the for With will I will Beth. our over We turn to have to questions turn after X call that, time prepared and please now

Beth Wozniak

for margin a X%. growth year share reported sales today you, X% quarter Thank pivotal adjusted to portfolio expansion, great with and XXXX Tony, transformation. and EPS and performance good our and fourth to marked had year It's with you our morning, growth, of be QX everyone. full strong results. nVent

and of cash expansion, reported accomplished. team XX% everything our flow. we strong had I'm we earnings growth, sales year, proud full continued the and have nVent very margin outstanding growth, For

on We have transforming Management business. we on progress portfolio. sale closed our made the week, of the Thermal Last great

be more the to capital to and focused XXXX. sustainability, with excited trends of have are expect we repositioning in to billion the $X nVent deploy electrification, how We available in digitalization. nearly portfolio very I'm around

sales guidance growth XXXX Our X% per earnings adjusted approximately growth. XX% share and reflects at the midpoint

We new Fourth earnings, down. X X%. products manage and positions. sales distribution sales are and performance. were Organic partners than year were by down key more high-growth acquisitions. Slide verticals, on sales they summarizes up Sales to inventory well positioned our our full for quarter focus expected as QX strong and their driven our were slightly

XX flow. Importantly, positive. sell-out income generated basis Adjusted remained return grew grew and year-over-year $XXX EPS up on XX% cash free Segment of with X%, we sales points. million

verticals. single with sales across was Infrastructure key low softness. Looking declined Industrial led, digits resi at up our digits performance organically. Commercial flat. continued mid-single

was up mid-teens. energy Finally,

America geography. Turning organic North was and Europe declined sales to up single digits by slightly. low

the in with mid-teens grew Pacific solid in Asia China. growth

growth including order in organic the low solutions. orders in teens up quarter, double-digit Lastly, data were

of had X%. For XX% the grew XX an billion, income up $X Segment and was increase basis full we with expanding Adjusted year, EPS of organically. points. XX% sales X% margins

$XXX For strong flow the full million, of growing cash we year, free had XX%.

a highlights. share me more few Let

to our points First, growth. X products sales more approximately we new XXXX, XX contributing in launched than

We pipeline. in momentum have great our innovation

a We vertical. XXXX. in by and year approximately grew our strong nVent Overall, and growth value I'm XXXX. solutions Second, of Within $XXX strong XXXX was and team now we believe in sales will approximately the of led results infrastructure organic creation. represents XX% in growth delivered infrastructure, proud million data the be

X. to Moving Slide

our low X ago. infrastructure are company sales we more exposed vertical, nVent on as pivotal XXXX Thermal a a our journey been focused, nearly Management and XX% positions The connection years secular of our a from the up a spun portfolio trends, is portfolio, year. have and protection We electrical Approximately higher-growth when divestiture transform of to company. teens as of and in to was X/X

also acquisitions to offerings done our We of to date, X the segments. adding significantly business have

customers. rename QX the they enclosures segment to right distribution better our provide will both includes data. reflect our for do is what Protection. solutions, power as and units, time XXXX, to far in cooling electronics be control the This buildings. systems that known Beginning segments Systems Now with air, and and customers Enclosure beyond that our is but protect solutions with We products and segment liquid

& will In this addition, expansion the portfolio Electrical systems to represent to known electrical with Connections This the power offers as that along make products segment safe, of and and resilient. & Electrical be Fastening Fastening segment Solutions. connections solutions Electrical efficient

in energy center Infrastructure CapEx and both as outlook the for is double storage, power electrification commercial the is America. in in to expected Also, and and with to expand investment existing North is the infrastructure electrical grow to renewables with improves fastest, digits our expected for up low electrical buildings. utilities, increase. given XXXX. low demand. is to to continue mid-single demand expected expected low Turning to new expected to increasing X is to up Data be continue Industrial CapEx improving verticals single Slide digits. grow digits to construction resi Commercial

Now products in power to on our is cable talk units, approximately the cooling, portfolio and organically in have are to sales Data and in we Slide distribution liquid both of management. vertical. infrastructure X. how infrastructure. product we growing with expanded XX% enclosures, inorganically our more I about Overall, would like solutions

a strong double-digit seen across of in the by supported have growth portfolio and expect growth growing year XXXX, backlog. We another

our The acquisition offering. Also in also an increase approximately of our data the to entirely represent and expanding with our but move to in more power new needs energy, overall for management, sales. demand is upgrading electrical and The and of offerings investing aging trade, doubled growth infrastructure our power creates control new centers. an the utilities cooling need exposure of in buildings. infrastructure, are renewable We with our increasing to distribution control platform now and grid, than expand XX% in in buildings utilities basket for year more Trachte last wire liquid innovation in power cable products example, extending that and the

this We in year. continue business, this backlog to power the for in our see forecast utilities double-digit grow supporting growth

X. Slide to Moving

core part New innovation strong of our sales and to are growth. products and strategy contributor a our a

We cable are management, core power management. protection, cooling, platforms. equipment and liquid include on buildings, control X focused connections, These power technology

from to us new capabilities. innovation et We drive modularity flexibility for Last these modeling, on are year, cetera, more to Bangalore and allow center to our expanding prioritizing R&D certifications. platforms our differentiation, global a in simulation, expanding and actively we velocity opened build technical capability design, are technology

Looking helping growth over of sales X at to drive points products, over new XX XXXX, the to year. we expect launch in

up Sara, experience. to expect and This we the above nVent core, our products over please addition, my product now company, to strong to remarks. ahead. so are I XX%. on is customer products our as call innovation strategy a our At be and vitality In growth key solutions our will new for go details Sara XXXX well turn as and our results outlook. on wraps our focus

Sara Zawoyski

pleased quarter you, to growth, cash share earnings robust another Thank and solid margin free and am sales Beth. flow. expansion, of I

with XX Return or year-over-year. income million, added to XX was Acquisitions sales sales XX%. quarter basis was Let's Organic million begin to results. on last quarter slightly $XXX on were $XX down. Slide to X% down X up were million adjusted points up each a with meaningful our year. up growth. Fourth and XX%, volume price X%, operating $XXX Sales sales fourth compared of points

of performance partially flow $XX robust by inflation $X.XX, EPS generated and of investments and was our million. $XXX driven we midpoint of adjusted at strong Our offset up cash productivity, free QX and higher was acquisitions X% and by range, the approximately guidance million.

with grew Pacific continues was in digits. execution. America grew data solutions. to Starting year-over-year, strength of over with and please to while Now each Trachte declined. Geographically, an XX XX.X% basis to and Sales of XX% ago strong Slide Fourth grew turn Asia very low quarter infrastructure million, points of perspective, now to quarter segment Enclosures, $XXX and up Industrial down Systems to vertical driven Protection. for Return commercial resi sales in points perform $XXX XX%. continues increased Europe a mid-single and million organic X% discussion on From sales acquisition and year grow. a income declined well, segment digits single digits XX a up XX strong our versus XX% sales double basis. The North increased contributed on by low performance. organic fourth backlog continued

$XXX offset income Moving Electrical points, of mainly Connections, to organic each Europe. million quarter was due organically. Electrical commercial $XX flat XX down North America Geographically, Industrial Fourth was a basis by to grew sales was on and infrastructure were X%. in This resi. segment Fastening, XX.X%, mix. million, down & sales now Return flat the quarter. decline were sales in in and

XX year with income or XX% $XXX Acquisitions of points for return for $X.XX, sales EPS full up XX Now was expanded of to up for year higher a results. our billion, execution. $XXX XXXX included year. We was with XX% XXX% XX grew the recap summary, a Overall, full X% net cash to X%. income. turn of basis ended year operating of on million. Adjusted XX.X%. Slide the XX% $X CapEx organically. performance strong contributed for conversion growth to million, up Adjusted growth This to sales XXXX and year the points flow In was Free investments in adjusted capacity.

on cash from exited the and putting revolver, our proceeds on sale. Sheet Flow. us even million a to strong titled available We turning XX Thermal $XXX Slide very Balance Now liquidity the and the million to Cash of prior with position, hand in $XXX year

the just Our paid $X.X $XXX we in million quarter. debt stands at down billion, and under approximately fourth

improvements us strong and value. execute particularly growth inventory. cash our capital, ample strong by on We to capacity sheet driven and our flow balance provides position Our cash in shareholder believe create free working strategy was with healthy

Turning to priorities. allocation where outline we XX our Slide capital

prioritize footprint to and to in We returns. million a balanced expanding continue $XX capital in growth up deliver included This CapEx to to invested XX%. allocation execute disciplined our growing increased our approach $XXX strong We ] our quarterly We shareholders backlog. liquid in cooling $XXX of [ repurchases we dividend capacity and share Xx including to and X%. million returned our million, XXXX, support increase XXXX,

further have cash year, $X significant This deployment. have in net including billion capital flow. Looking proceeds ahead, cash the the capital sale our we to available we nearly and deploy, expect strong Thermal optionality to from for

to outlook. to the with approximately Slide growth XXXX year our forecast X% expected growth. to XX% range Acquisitions X%. XX are organic and sales in earnings to Reported to points expected of grow strong X We to another growth. sales are and Moving X% contribute of

to year. $X.XX, for full to items between Our adjusted note to to conversion few $X.XX represents outlook EPS XX% of year we flow expect growth important XX% be other the for And is cash free which XXX%. A and XX%.

This million. assuming purposes, assuming cash portion second, $XX And debt. we of net and are dilution. the of earn assumes a buybacks beyond Management expense the proceeds net modeling we've sale we share which the Trachte are for Thermal down includes from now, shares of acquisition First, interest, interest XXX million, for approximately paid

forecasted intend Management use continue costs to impact we come now be And assumptions to As CapEx finishing not expect expect and tax repurchases. sale to year. versus indirect we XXXX. These said, couple costs potential in acquisitions lastly, reduce to of that rate Thermal and XX% allocated that approximately are the share these down we we and million. proceeds of $XXX expect yet our for to have to And $XX And $XX our guidance. A are of we costs to million. in million third, up, some actively adjusted tariffs reflected XX% additional have include to we working the evaluate didn't note. get of approximately through be Corporate them XXXX

Slide outlook. XX to quarter first Moving and our

to the turn in Wrapping in flat delivered strong With are will expect of a sales well expect We I and to organic we X% adjusted range X%, Slide range the I earnings and $X.XX, team XX% growth back year-over-year. share, for up EPS believe XXXX. please XX and per great of to year now to for our to $X.XX turn Beth. up, we positioned a that, call the

Beth Wozniak

work. our has success our our people culture great and Key nVent to Thank making you, to and a been place Sara.

on and and that you see slide, having more our On people impact communities. are and we've We our customers this on our electrified delivering a for focused awards sustainable and received positive numerous focus a building we as world. can recognition on

For ethical world's recognized first were by of last companies year, the one the we as Ethisphere. most time

consecutive was can there's that I'm while year do. Wrapping another portfolio. up we XX. the received. for from nVent sustainability of Work have certified extremely were a also silver nVent transforming team Great everything more the on many proud Slide and of the and a third have as Place and XXXX rating We are we a accomplished. awards performance we just of to earned These our And EcoVadis, recognitions for year. always we few strong

with We sales, we expect cash sustainability everything, the are be year And another trends. of strong positioned XXXX well and of electrification digitalization and to flow. earnings

is will the turn I future Our to With call the that, to start operator now bright. over Q&A.

Operator

Joe Instructions] question of from comes Ritchie first [Operator Goldman Our Sachs.

Joseph Ritchie

progresses. see businesses organic walk and start through the to the Beth, particularly then as commercial So gives of maybe and X% the with I'm year just businesses your a the comps that know at interested the to get that in us accelerate you're off little why in you expectations? year and I don't looking industrial growth as today but on easier. organic can we just confidence bit progresses. start year X% the expectations, ultimately a slower Slide growth that kind you So seeing will what accelerating on But those just maybe of you certainly X

Beth Wozniak

Joe, Thank you, question. Okay. the for

correct. you our backlogs in quarter year, strong verticals. both couple have our things and from solutions year Last QX when think so data growing lapping are of was So outlook is, strongest ago. utilities power of we our first, some growth we a we're A

backlog inventory see the course when we management year-end. given progress organic which would with we and ended the were year. The that distribution I the and expecting, as -- out commented, that is we growth certainly, ramping, than effect of And is of our over year less also through point we sales I the will thing so next it growing we is of believe through

Now orders thing are type see will is one through as seeing to we particularly the partners, have CapEx year. funnels things as our go And sales teams to talk say, positive, be we our but with ramping small channel we build I projects. continued we our and and

pervasive across verticals. seeing different And so applications that industrial and we're many

funnel to continuing at projects, So We're resi about. start be mega year. the always but improving, talked it's those improve And growing, we a we've as see infrastructure over we later for strongest we of course little supporting momentum the cycle, the commercial us expect there. been look industrial to in backlogs to a have areas and that the that believe those, we that,

Joseph Ritchie

should have the just embedded I also, in for helpful. of That's clarified in what's as terms year well, pricing your assumption?

Beth Wozniak

important price organic X% last volume. plus year, I we continue more we expect does expect growth to an heavily equation of of price be be inflation, price factor would in positive Joe, overall X% late to towards that But XXXX. in Yes. say, that to so managing to that weighted play productivity offsetting would

Joseph Ritchie

position then Okay, to with front-footed that the breakout great. And in technology core a X. just X, Also of love great deployment. the Slide X now very capital you're platforms. be last

breadth looking potentially kind your to of So think you potentially at areas as the ways M&A, it to are you're platforms, about logical increase maybe are the thinking these you other that of that would is just in? like other Or invest portfolio?

Beth Wozniak

Yes.

organically differentiation. we was be our at look to and high-growth we think to areas we But products. always a Slide investing great new X drive how So about product we're say in look verticals M&A, the as meant at

So product in we add focused on very could We're infrastructure vertical. portfolio. that to growing this

And so we a that high-growth as grow and to is invest pointed you that that we verticals. know, can products great in in scale flywheel have

applying framework. be to going continue we're discipline so And to within that

Operator

comes next of from The Julian Barclays. question Mitchell

Julian Mitchell

with margin the operating Maybe just to start guidance.

quarter margin we any X whole. was should as of? check of be then performance are divergences between correct. So for of year-on-year the it flattish if in if Wanted sort to that aware looks the roughly main segments the the that a margins year And maybe as down operating first and

Sara Zawoyski

Yes.

me So start QX. with maybe let

little And in you're highest, work overall about to would if Julian. our do return QX. in a tend from the costs I go QX our prepared to a of Embedded that we will, that's modestly. overall, the some Thermal be QX have costs in So down of us you couple And sales year. guide, perspective, sale, that we going at our with right. that point be didn't a things indirect down course so to bit would do do just One time see on we take remarks, corporate to out, that just of as talked

second I giving would confidence vertical, that us we and in think utilities. infrastructure our said, the in and invest to half say, our is particularly to growth. second solutions thing are that I backlog is and power as build Beth continues continue there that data And

And so invest QX growth price/cost, to that in would we we to in I expect here thing second continue the I half. And in only QX in say do there the that of other think is QX earnings here impact overall, But there and X%. more in QX a half would overall. we're I at end the so to seeing expect that roughly saying, ramp share back per midpoint bit we just by of anticipation grow

growth our of out the a do that year, full would drop-through sales. kind perspective, in lap good investment We profile that in the an top It's X the is from line. sales expected point just return beyond year. of guidance return For and the to mid-July. that and expect contributing flat solid overall modestly. And be have on volume up to just thing really the maybe But on bottom other embedded impact to a to growth guidance beginning nicely on kind implies that with for that on in overall Trachte. But top the does line

Julian Mitchell

X That's follow-up the helpful. maybe on just side. then revenue And

there. the laid understand lot embedded see the a year You've on sort X, Slide for of pieces, can of But to just what's I revenue. given full out very good non-infrastructure color

as looks to expected move QX, it year-on-year comps higher and the in if year. through are because partly down they're the improvement that wondered, pieces then Just non-infrastructure

is normal fundamental of verticals. in and non-infrastructure of year-on-year guess, was that, about when that whether versus you're strength improvement any in Just thinking tied to seasonality that much that, I comps improvement? And how wondered is some QX order

Beth Wozniak

Yes.

did positive we our see orders orders as So did QX, see improve in non-infrastructure. we in

And projects, pick our at of think funnel, which and commercial But translate so the do we like orders this, progress. some many over CapEx vertical start to we're certainly the as to we we course to of over the in comes example, we've just smaller momentum for year industrial, and expect sales. When a the the the I across of seeing year. different other course verticals over up take things to will believe as mentioned, looked improve areas, it it's -- as --

a it's infrastructure comp see of in the projects given that Some things improving we course on, but in and backlogs and over QX, of year. the given generally we're momentum working

Operator

The of Capital from comes question next RBC Deane Dray Markets.

Deane Dray

I have really partners. older cooling feedback generation specifically, and from and from and AI liquid heard your there, they differences lot broadly in there's be change? load and customers just once loads chips? the thermal implications thermal but use what Or the it Do helpful. DeepSeek But potential cooling about might impact be that don't a question have AI you've a you is binary on And to to the just thermal any liquid can if matter? unpack really there assumptions you're use loads chips, would any using color

Beth Wozniak

the for you question. thank Deane, Okay.

start I'll liquid launched. been I first cooling is think maybe recall, data thing we've all doing were these centers even chips before GPU in the with

their applications on early liquid they efficient hyperscaler depending were on other to were using design system some chips more of heat we be finding their because these cooling. the to loads, and trying therefore, get so And in and

more and that we've is around CapEx very now going is different It liquid the to we drives efficiency, slowing there's from customers heard be cooling also investments view ways AI. and there our is forward, our to is down. go ways not But commitment So energy what still important. and efficient as

for that demand we to there feel is continue So solutions. liquid going cooling to be

is As cooling you way energy significant, for demand these centers to is know, liquid efficiency. the power data with X offer and

imply we to liquid AI, and with really we And is be if forward. which drive see continued there's will here infrastructure think, scale, strength believe role. further and opportunity adoption anything, again, that innovation built will go that, cooling we the I as out a important and so plays key So that

Deane Dray

customers great a what exactly That's partners. the hear. And especially related That's feedback was from to I for, follow-up just question. and your looking

entering capacity? through cooling cooling you your liquid quadrupled So you still some add you this Because on you've could sense 'XX it capacity there. directionally that your And process hadn't was Do liquid there last need quadruple question what capacity? in that. give year, us to are gone rates finishing any to test utilization

Beth Wozniak

Deane, So and in of we that this, continuing that capacity, was that say some when building the the remember, we're Xx invest ] continuing would needed, out. because the [ we space lines that expansion we're to and I

that capability phase lab was and we're out. And testing that. now, that Our progressing after in right building

year make in to investments that product make continuing this And data continuing be going very that launches we're we're new and solutions in to is a area. capacity innovation. of So investments to strong expansion, in

in excited lot us, and the we very of we're going the so see a just opportunity here front growth it. in So about investment and of

Operator

The question Bank. of from Nicole comes Deutsche next DeBlase

Nicole DeBlase

with starting with inventory. what more bit little saw just around to Maybe color respect you channel a

You do next today mentioned How to for in that you your that, year? a channel to initial XQ inventory stands expectations. current factor needed what's feel relative relative was

Beth Wozniak

progressed QX, order I of everyone drop orders in managing really to we picked off patterns the up think the through was think -- And sell-out et way, that a that as month we this because was as quarter. positive, inventory we'll see adjustments capital, think we cetera. go in certainly saw that year. our start But improvements to been through through we'll things has as I January. our see I Well, have the And third start in working

Nicole DeBlase

respect you maybe exposure a help it. a now, with know in by I right up air Mexico, bit to perspective tariffs, little your COGS a could And sizing the then from China? us and got lot to Okay, but Canada,

Beth Wozniak

China. with start Well, let's first

We China. we little have that from very import

we announced have impact covered. and our it tariffs, so with And the it's really minimal in view,

working. Mexico think Certainly, that when teens are And we've look got structure. all to like our we've it how we record that's that's plan and Canada. minimal, on We supply in through currently through for at I chain actions low have a actions. And Canada, track I'd when managed of previously good really, pricing and looking management say, a and COGS at tariffs we're Mexico, to those the with comes things

Operator

next Our of Jeff question from comes Sprague Vertical Research.

Jeffrey Sprague

I bit dig continued if teens, a the QX think, we low commentary And was sneeze you January. little wondering more could up to at. then is Beth, I nothing order into in this into said that

the think in comp that I driving you anything unpack easy, a can but what terms of growth? bit And sub of sort stand comps in that were relatively that little was? the out the particular verticals

Beth Wozniak

orders looked at was Well, the we we good infrastructure we wasn't also saw it I orders saw across the board. think get some we right? certainly, board, portfolio. again, broad-based some And all seeing QX, just So orders but the into across across we're it good infrastructure, as QX, as

Jeffrey Sprague

about question, thinking bit magnitude of there the a sell-in the little way versus line in follow-up by of the QX top difference headwind to just sell-out? Nicole's then a the And a sizing is to quantify maybe the in of kind

Beth Wozniak

growth was we just in more channel slightly as distribution some want know, expect to don't to we adjustments, we're on you in just or say, saw say would positive and Because I comment but this. inventory expected. the see than negative what of terms No, we our that flat. normally reductions What I to we

in that quarter. the that so impact we was saw the really And

Jeffrey Sprague

X X maybe for last just then on And Okay. me price.

again go to here little in a QX So you're negative expecting but positive. bit it

I it Just blanket still of you XXXX? in it don't sort is of of sort wondering beginning in negative managing it know if current increases are what Is environment? of you price QX if positive Enclosures. the kind how weakness just weakness And the price or but year drives call or slightly the in

Sara Zawoyski

Yes.

would ROS saw So point of But in year. the to terms modest expansion. price EFS an for Enclosures to say we slightly standpoint, that's that continue I QX, out, declines slightly see I Enclosures, even saw and would in overall as negative Joe, in we positive and say in we good pricing

minimal So continue expect done to and XXXX, has we job be to to show simplification the product nice of year. managing Labor portion are of we've nonetheless, XXXX our It's a China that as for us, offset really that into to we But and got programs also as another nice that. team be inflationary help continues overall. Clearly, ROS to it's productivity do through expansion Beth big a to something working we walk but some the tariffs. here. work efforts mentioned,

as And inflation well, putting our again, actions nice to pricing would look the we inflation. we saying, end with at focus some indirect productivity that price an continue productivity got we that on to and a as enter to We're And I that. I'd broad-based, efforts so as offset business of a some the we to spend for do, continue think funnel customarily we've transportation. around into continued year offset to transformation. that's look backdrop help covers simplification of probably as extra DCs, by look, plus factories,

combination have productivity the of as to So we're going to price work historically. offset we inflation that that plus

Operator

Nigel from of question Wolfe next Coe Research. comes The

Nigel Coe

industrial, asked the between delineate and just all infrastructure I back on question the feels think maybe at that's verticals, when I want to it. the about sure is sure make and like growth. commercial just go and try residential, and just earlier want look low was portfolio your to is the a growth. to we to to just single-digit how maybe to like driving want plan feels And make that infrastructure flat that I because rest it really of it

Beth Wozniak

big infrastructure driver our of as our was QX a performance, Well, growth. certainly, look you at

on said the Solutions by the we what business. So look did for industrial we breakout Fastening grow however in -- that if & Electrical you our at XX, Slide right, quarter see

through this low as coming also of we look seeing we distribution. But we some we're and at is orders in impact our expect outlook, of go forward Now what growth that double-digit infrastructure.

So certainly strongest for us going growth forward. the yes, driver infrastructure is

single expect outlook the digits. mid-single is digits single However, do digits both low grow to is vertical and low to we industrial commercial

more infrastructure for our are the to will growth so contribute backlogs other And and areas. than us certainly where strongly

Nigel Coe

obviously residential, clicking That's I'm acquisitions be digits, better. just mid-single contribution very double XQ bit was will the well, maybe And you guessing Okay. okay. Trachte small to then guys, probably helpful. And is certainly, really for to which from feels a it like -- down because

double wondering, talk in the Trachte for I growth. the of and of in seeing year, know organic about just what terms of I'm just growth seeing until So into that but XXXX, some half Trachte you're perhaps isn't second the you're just maybe verticals click where

Beth Wozniak

All right.

like us Trachte often the ability strength we've continued backlog like and is nice with And thought you to there. platform certainly control for we Enclosures growth think our of sales say, about as buildings. seen much a about growth enclosures And expand data So we've new to we control and applications That it plays utilities, buildings. about There's control various various how it us this supports energy the it platform. power, in plays storage. think supports centers, in specifications, for provide to is opportunities for and it backup buildings

good strong broader driver will be this and -- vertical. seeing contributor that a it we to we're think us infrastructure see momentum in and So platform in

Operator

of next question The comes KeyBanc. Hammond from Jeff

Jeffrey Hammond

and entrants. there cooling lot business, on dynamic of new a a movement lot liquid Just the of

any seeing look you this And are NVIDIA in announced? you win early So backlog? you near term, of just as pricing I'm of from the rates, in wondering, collaboration terms what kind traction

Beth Wozniak

liquid we're would seeing Well, more cooling. in speak I broadly to maybe just what

have our solutions, NVIDIA. And XXXX customers, that us solutions So so to to grow some offerings that we're set. and NVIDIA -- new a our have out to would we us. to launch focus and certainly including working we a see I positive that's product is for well we of where they just want That several build partnership continue I with has big in the customer adding which the for think say of content expand offerings, that as as new continuing we're customers. And application portfolio existing

So as but some and colos enterprise hyperscalers distribution. customers through type and at well not looking just integrator

we we're very backlog XXXX. see to So I have into build, continuing and strong the going think momentum

Jeffrey Hammond

helpful, Okay. That's Beth.

of flexing of that And kind don't to talk what I deals And actionability back for thought of do through? maybe what's pipeline. you about Just allocation, if come have in don't just the know, buybacks? baked capital the

Beth Wozniak

said start pipeline. acquisition let on previous Well, me on calls. this I've first our

opportunities. the have timing year. course couple the of pipeline pipeline disciplined strong over we of believe a I also execute do do very we after at always deals. believe never I And and look I is But and can very have a we and that I deals And our we healthy, we can goal of approach ability to if the you said, that our go well. to also control our robust a think to what and is have

priority the including I'll allocation, like think a key we'd priority that for as capital it the And execute a over for year. we us. about buybacks. over the are to talk growth, able course So of to turn to acquisitions, believe, on And to Sara we're

Sara Zawoyski

then million provided share guidance just would say expectation X our shares Yes. $XXX million, of of a And that Roughly debt part. aligns paydown XXX that guidance I this acquisition just XXXX. as as Trachte in the versus outlook we morning lower of reflects interest million as that baseline well buybacks. on the things: our to to reflects for related in an modeling purposes, XXX really earned proceeds which interest one, the the

that XXXX point of Xx the and you out fold the net than to are about is So thing our net debt we $X.X important in debt, in think less billion with just of terms leverage. sitting at to I net EBITDA EBITDA proceeds if our our

XXXX emphasizes create we and in return the and point have shareholder that ample capital and to So creation. it just that go value capacity that deploy

Operator

The next from Brian Drab Blair. comes William question of

Brian Drab

for power in for what that and on for was growth I remind the think the the said full specific be year double-digit could I growth wonder any expectation solutions for if power is XXXX. us solutions, more you 'XX. you that

Beth Wozniak

strong On on utilities sales, Yes. acquisition contributor saying of our being about power double-digit that as that Trachte our XX% we our growing and just by to -- and I think is talked is infrastructure in growth chart the where we a very forward. -- driven certainly, is go overall about now,

products we're growing well utilities our by So that only backlog. that not of are that in segment at then acquisition looking core some as our but supported

Brian Drab

digit? it I'm 'XX? like was And wondering, I much Or I XX% that data will there. solutions, guess, I XX% proceed? how assume for sales up How not data I Okay. double you're can of XX% that in or just guess, like say call you that should -- thinking

Beth Wozniak

Okay.

So we're XXXX. that growth and last that we say grew again solutions year did data double-digit we for in XX% expecting

Brian Drab

business put on to I is could get and I'm revenue And XXX revenue trying if organic on second Am a is or the year. potential business basis way? million strong very digits. of further, we're X press the XX% going this to about this that. thinking like that's from on Okay. mean, of you not the probably, of in growing that seems won't to or double track the I half just you points -- contribute a don't It better it even, point $XXX get on what, know, Trachte, points growth I finer growth the sense contribution I to continue but a now I a guess, contribution. that than right

Sara Zawoyski

frame that Well, roughly into we business. it, to coming said XXXX maybe $XXX million had just a there it's

So imply contributing even we line QX. the that nicely really it's guidance strong say you in double digits, our when top and can exceeded to

to it XX contributed it expected points, to growth. We points X contribute

the data be of and part expect power kind do contribute if zoom vertical that point and of that back for to we the think centers So solutions out about and utilities to other infrastructure business just outlined as power of data moment X half. Maybe I Beth part Trachte that to utilities that and a that piece. nicely continue

the is Our backlog will prior up $XXX from meaningfully a of exit million, with year. backlog which XXXX

it's in, solutions that Trachte as folding some that backlog is backlog that data well. the building Now well but as year-over-year also Trachte building as of

in demand as So that that back that again, half that good we growth. back look giving coupled have the in that's visibility half increasing with we at confidence us well as backlog seeing we're

Brian Drab

great seems half XXX it's this of and mean, I if even of acquisition seems year. a it's XX%, than is that bps could made. growth it's it you quickly. revenue like growing XX% more And -- of that it even like growing a that obviously, that if great second the business be And Yes, in the

people acceleration growth to feels material. trying of as revenue the reconcile are So just organic

up though. later follow I'll more So

Beth Wozniak

that great the about very a it's for applications excited growth us, we Yes, have we're platform opportunities and there. and broad

start. So off great to a

Operator

comes Bystricky from Vlad The of next question Citigroup.

Vladimir Bystricky

maybe questions a me, of on one from just quick So couple the front. capital deployment

on areas capital think X, are technology core versus for more see technology on stand those there the I incremental layer and to very about Slide or those shared, M&A helpful platforms, is you M&A? where platforms more you the think I out guess X through slide interesting. that to particular deployment as I core platforms potential core actionability

Beth Wozniak

these is us the yes. is think flywheel And but to product can vertical where overlay at as for a grow. I to vertical as our want we products it's answer and to in and think combination acquire -- that differentiated ensure that companies great high-growth a because to well the high-growth I portfolio technologies Well, a look we with we scale invest

overlay we a we find get X that together, verticals. And lot So and that we we can we platforms the at momentum from these when can that infrastructure look think at there's look of flywheel. also

Vladimir Bystricky

talk focus then I and to on Beth. you're Can designs terms whether a just when and as to just thermal you're continue seeing movements there. liquid want they about obviously, and visibility liquid of lot the helpful, material it. any refine your customers approaches their from timing in And we deliveries seeing what product of they cooling management? of cooling guess, Got That's to

Beth Wozniak

I interest what and that liquid cooling in the have seen we has in general is No, increased. awareness think

some we And their a capacity, talk existing and customers increasing seeing, from trying of about programs, new that who what so we're types to of scaling our that activity both cases, architectures. to do. expanding lot customers In understand for attract we solutions, had with some adding we've a general, time, other long enterprise and continue system of we with and Then in to new out customers. testing new it's hyperscalers are,

and supports we're that it's and and I guess, the continued busy growth So seeing say, here. active, that would very I backlog our

Operator

comes question next of Graham Seaport. from Scott Our

Scott Graham

calculation I wanted the the in in the EPS and sort first from 'XX of your quarter impact guide. to maybe of understand maybe what's embedded Trachte

Sara Zawoyski

we Scott, specific, that we gotten and right? business return said guardrails, haven't but plus/minus acquired Trachte, sales. million I in on gave a roughly think XX% that kind initially We we So of right, some it's as $XXX

back and half plays that, on half. got meaningful So contribution. look I do just and a the of drop-through suggests And first you the a contribution It an it can carryover growth as from importantly, bit in math. organic overall in part think we've the overall our at we earnings here standpoint the

Scott Graham

Okay.

inflation. had for decent rate I Is was on question second provided 'XX that inflation a quarter number The fourth you run quarters? for the you

Sara Zawoyski

a good it's it. extend point, to baseline take right, think QX I and starting that

a look labor XXXX, way driver full that at Another is to look with you can good year but of really environment we similar the inflation starting too, being at an biggest it, it inflationary Again, be to overall. just I point. it's that think expect

Scott Graham

Last that. Appreciate question.

I And went talked that, in of in you think much to, might know that projects? timing projects those out wondering was that and orders to you your your ramp January. through is how of risk based thank was, organic I spread maybe there these referred vertical-wise So you some What around on, starting you be ramp you. the about that projections, some includes whether organic

Beth Wozniak

lay think I if I and of referring good think course we that these had in Trachte, we're just over just because year, the I to have you're to So timing we said think things seeing one, orders mean, projects data other projects in. year, a how But to that's just execute what in that comp it's fairly of ramp start of we and solutions is sense QX. slower And or stable. we those the the see how QX QX from we've a

Sara Zawoyski

in guys the comp, know of we're this, I but protection QX. Yes, level, is an of XX% a and Scott, and lapping quarter. right, overall, comp maybe growth see our X%, organic I you mean, growth on too, and nVent point was meaningful, in it systems the at

of some just So it and is comp. timing

Operator

This Chair our Wozniak, closing any and I the would to for back CEO to remarks. question-and-answer conference like turn of Beth Board, the concludes session. over

Beth Wozniak

this morning. us Thank joining for you

electrification the everything, and trends our believe and for performance XXXX demand solutions. of are strong our of sustainability, and digitalization driving products proud are We

for for outstanding support joining to us. We customers our our portfolio call. execute grateful for concludes our work again This the growth of transformation. team our XXXX excited the Thanks are with on and strategy. I'm

Operator

The conference has now for concluded. attending presentation. Thank you today's

disconnect. You may now

nVent Electric (NVT) 6 Feb 252024 Q4 Earnings call transcript