Vlad Bystricki

Vlad Bystricky from Citi asked about the underlying trends and nVent's confidence in achieving mid-single-digit growth in the industrial market for 2026, and whether current order trends align with this outlook. He also inquired about nVent's evolving position in thermal management as data center technology advances and new entrants emerge, specifically asking about competition in liquid cooling.

Answer

CEO Beth Wozniak noted that ex-data center orders were high single digits in Q3 and low double digits in Q4, with industrial orders showing a nice rate driven by CapEx, automation, and reshoring investments, supporting the mid-single-digit growth outlook for 2026. Regarding liquid cooling, Ms. Wozniak highlighted nVent's decade-plus experience, application expertise, and manufacturing/supply chain capability (e.g., 100-day ramp-up for a new facility). She acknowledged new entrants but emphasized nVent's continued investment, broader product launches, and partnerships to differentiate performance and scalability across various data center and non-data center applications.

Vlad Bystricky asked about the underlying trends in the industrial market, nVent's visibility and confidence in achieving mid-single-digit growth in industrial in 2026, and whether current order trends align with that demand. He also inquired about the evolution of nVent's position in thermal management as data center technology advances and the competitive landscape in liquid cooling.

Answer

Beth Wozniak, Chair and Chief Executive Officer, noted that non-data center orders, including industrial, improved to low double digits in Q4, driven by CapEx, automation, and reshoring investments across various industries, which supports the mid-single-digit industrial growth outlook. Regarding liquid cooling, she highlighted nVent's decade-plus experience, application expertise, and manufacturing capability, citing the rapid ramp-up of a new facility. She acknowledged new market entrants but emphasized nVent's continued investment, product breadth, and partnerships to differentiate and scale across hyperscalers, colos, enterprise, and future non-data center applications.

Vlad Bystricki asked for more color on the 5% increase in Industrial Process short-cycle orders, including regional and end-market drivers, and the sustainability of this momentum. He also questioned the underlying market demand trends and opportunities in Saudi Arabia and the broader Middle East for IP, given ITT's strong win rates there.

Answer

Emmanuel Caprais, CFO, highlighted strong short-cycle activity in parts and valves, with August and September driving growth, particularly in medical valves for weight loss drugs. Luca Savi, CEO and President, added that legacy short-cycle growth was 7%, with 4% from volume. For Saudi Arabia and the Middle East, Mr. Savi expressed excitement about growth opportunities, citing a 95% win rate, a 21% sequential increase in the active project funnel, and ongoing investments in downstream and other areas. Mr. Caprais emphasized that customers recognize ITT's project management performance, delivering pumps on time with required quality.