nVent Electric (NYSE:NVT) reported record second-quarter sales and earnings, driven by continued demand from AI data centers, power utilities and improving short-cycle businesses. The company raised its full-year sales and adjusted earnings outlook and announced plans for a third Minnesota facility to expand liquid-cooling capacity.
Chair and Chief Executive Officer Beth Wozniak said second-quarter sales exceeded guidance as infrastructure demand, led by data centers, remained strong. The company also saw stronger demand in short-cycle businesses through distribution partners.
Second-Quarter Results
nVent reported second-quarter sales of $1.47 billion, up 53% from the prior year, including 47% organic growth. Acquisitions added 5 percentage points of growth, while foreign exchange provided nearly a one-point benefit.
Adjusted operating income increased 61% to $323 million, and adjusted operating margin rose 110 basis points year over year to 21.9%. Adjusted earnings per share increased 69% to $1.45. Free cash flow was $167 million, up 125% from a year earlier.
Chief Financial Officer Gary Corona said price and productivity actions offset more than $50 million of inflation, including more than $30 million related to tariffs. The company continued to invest in data center and power utility growth initiatives during the quarter.
- Infrastructure organic sales more than doubled, supported by data center demand and double-digit growth in power utilities.
- Commercial residential sales increased by high single digits.
- Industrial sales rose by low single digits.
- The Americas posted very strong double-digit growth, while Europe grew mid-single digits and Asia-Pacific grew double digits.
New products contributed more than 30 percentage points to sales growth, according to Wozniak, and nVent introduced 14 new products during the quarter. The EPG acquisition continued to grow sales at a strong double-digit rate year over year.
Segment Performance
Systems Protection sales reached $1.07 billion, increasing 70% year over year and marking the segment’s first quarter with more than $1 billion in revenue. Organic sales in the segment rose 62%, led by infrastructure growth of more than 100% as data center demand continued.
Systems Protection segment income rose 81% to $248 million, while return on sales increased 150 basis points to 23.2%, benefiting from volume growth and productivity.
Electrical Connections sales increased 21% to $399 million, including 18% organic growth. Growth was broad-based across end markets and geographies, with infrastructure and industrial each increasing by strong double digits and commercial residential sales rising by low teens.
Electrical Connections segment income increased 15% to $109 million. Its return on sales declined 140 basis points to 27.3%, reflecting inflation and sales mix, partially offset by pricing and volume. Corona said margins improved sequentially into the high 20% range and are expected to continue improving as pricing and productivity actions take hold.
During the question-and-answer session, Wozniak said the short-cycle growth in Electrical Connections was not driven by unusual or one-time activity. She said the company saw strong orders through distribution partners and described distributor sell-in and sell-out trends as balanced, indicating what she characterized as real underlying demand rather than inventory restocking.
Backlog, Capacity and Data Centers
nVent ended the quarter with backlog of $2.5 billion, which management said provides visibility through the remainder of 2026 and into 2027. Wozniak said data center orders can be large and uneven from quarter to quarter, though the company has experienced strong data center orders early in the third quarter.
Management said its backlog is generally for 12 months or less and that the current level is approximately appropriate because the company is seeking to maintain customer lead times while turning backlog into revenue.
The company expects total data center sales to exceed $2 billion in 2026, more than double the prior year’s level. Its data center offerings include liquid cooling, cable management, power-related products and engineered buildings, serving hyperscalers, neoclouds, multi-tenant customers, distributors and integrators.
To address liquid-cooling demand, nVent announced a third Minnesota facility, called Blaine 2, which is expected to open in the first half of 2027. The facility will be similar in size to the company’s Blaine location, which opened earlier in 2026 and is continuing to ramp.
Wozniak said the Blaine facility was opened within about 100 working days of signing its lease and is performing ahead of expectations, although it will continue ramping through 2026 and into 2027. She said Blaine 2 is expected to support demand through 2027 and into 2028.
nVent also plans to launch a modular liquid-cooling platform later in 2026. Wozniak said the platform is designed to support modularity and serviceability, including hot-swappable components, and that customer interest has been high.
Raised Outlook and Capital Allocation
nVent raised its 2026 outlook for reported sales growth to 37% to 39%, from a prior forecast of 26% to 28%. The company now expects organic sales growth of 32% to 34%, compared with previous guidance of 21% to 23%.
The company raised its adjusted EPS outlook to $5.00 to $5.10, from $4.45 to $4.55 previously. At the midpoint, the revised outlook implies 50% adjusted EPS growth from 2025. nVent expects tariff costs of about $100 million for the year, up from its prior estimate of $80 million, primarily because of higher expected sales volume.
For the third quarter, nVent forecast reported and organic sales growth of 32% to 35% and adjusted EPS of $1.35 to $1.38. The company said it expects pricing to offset inflation and tariffs while it continues investing in capacity and capabilities for data centers and power utilities.
At quarter-end, nVent held $256 million in cash and had $600 million available under its revolving credit facility. Debt stood at $1.5 billion after the company repaid nearly $70 million of its prepayable term loan during the quarter. Net leverage was 1.2 times, below management’s stated target range of two to 2.5 times.
The company continues to expect capital expenditures of about $130 million in 2026, up 40% from the prior year, with much of the increase directed toward capacity, power utilities, data centers and supply-chain resiliency. Through the first half, nVent returned $118 million to shareholders, including $50 million in share repurchases, and increased its quarterly dividend by 5% from a year earlier.
About nVent Electric (NYSE:NVT)
nVent Electric PLC is a global manufacturer of electrical connection, protection and thermal management solutions. The company designs, engineers and produces a broad portfolio of products aimed at enhancing safety, reliability and performance in electrical systems across a variety of industries. Its core offerings include electrical enclosures, heat tracing systems, grounding and bonding products, cable management, and fastening solutions. nVent serves markets such as commercial and industrial construction, oil and gas, telecommunications, data centers, utilities, and renewable energy.
The company’s electrical enclosures and housing solutions protect sensitive components from environmental hazards, while its Raychem brand heat tracing products provide freeze protection and temperature maintenance for critical piping and equipment.
