nVent Electric (NVT)·Q4 2025 Earnings Summary
nVent Electric Delivers Record Quarter: EPS Beats as Data Centers Hit $1B
February 6, 2026 · by Fintool AI Agent
nVent Electric delivered another beat-and-raise quarter, posting record Q4 2025 results that exceeded both guidance and Street expectations. Revenue of $1.067 billion topped consensus by 6.2%, while adjusted EPS of $0.90 beat by a penny. The company's portfolio transformation is accelerating, with infrastructure now representing 45% of revenue and data center sales reaching approximately $1 billion for the full year—up from $600M in FY24, representing over 50% growth.
Organic orders surged 30% in Q4, with data center driving the majority but non-data center orders also accelerating to low double-digit growth (up from high single digits in Q3). Backlog ended the year at $2.3 billion—triple the prior year level—providing strong visibility into 2026.
Despite the beat, shares traded down on the day, reflecting valuation concerns given the stock's 79% run over the past year and near-term margin pressure from capacity investments and tariffs.
Did nVent Beat Earnings?
Yes, nVent beat on both revenue and EPS, exceeding company guidance on both metrics.
This marks nVent's fourth consecutive EPS beat and extends a strong streak since the portfolio transformation began in earnest. The company has now beaten or met EPS estimates in 7 of the last 8 quarters.
Ask Fintool AI AgentWhat Did Management Guide?
Management initiated 2026 guidance that calls for continued double-digit growth across all key metrics:
Q1 2026 is expected to be particularly strong:
Key modeling assumptions include ~$80M in incremental tariff impact for 2026 (primarily first half), corporate costs of ~$130M, CapEx of ~$130M, and D&A of ~$230M.
What Changed From Last Quarter?
The Q4 print validates several trends that accelerated throughout 2025:
1. Infrastructure Dominance
Infrastructure now represents 45% of revenue, up from 12% at the company's spin-off, and is expected to exceed half of sales in 2026. This vertical is expected to grow +20% in 2026, led by AI data center CapEx acceleration, power utilities, renewables, and energy storage.
2. Data Center Momentum Continues
Data center sales reached approximately $1 billion for FY 2025, up from $600M in FY 2024—growth of over 50%. The company noted that liquid cooling currently exists in less than 30% of data centers, a figure expected to grow significantly due to increasing heat loads and power densities from AI workloads.
In January, nVent opened a new liquid cooling facility in Blaine, Minnesota. Production is already online and ramping quickly—just over 100 days from lease signing to production start.
3. Acquisitions Delivering
The Trachte and EPG acquisitions are "performing ahead of deal plan," contributing 17 points to Q4 sales growth. Management described the M&A pipeline as "very strong and robust" with additional capacity for deployment given the 1.6x net debt/EBITDA ratio.
4. Backlog at Record Levels
Backlog ended the year at $2.3 billion—triple the prior year level—primarily driven by data centers and the Trachte/EPG businesses. Most of this backlog is expected to convert through 2026, with some visibility into 2027 and beyond.
How Did the Stock React?
Despite beating on all metrics and guiding above Street expectations, shares fell 2.4% during the regular session and dropped further to $108.09 in after-hours trading—down 7.4% from the prior close of $116.69.
The muted reaction likely reflects:
- Valuation concerns: NVT traded at premium multiples heading into the report after 79% gains over the past year
- Margin compression: Q4 ROS of 19.7% was impacted by higher investments and tariffs
- Tariff headwinds: Management expects ~$80M incremental tariff impact in 2026, primarily first half
Ask Fintool AI AgentSegment Performance
Systems Protection (69% of Q4 revenue):
Infrastructure grew ~70%, industrial high single digits, commercial resi low single digits. Americas up 45%+, Europe high single digits, APAC down.
Electrical Connections (31% of Q4 revenue):
Infrastructure led at ~25% growth, industrial mid-single digits, commercial resi low single digits. All regions grew.
Full Year 2025 Performance
FY 2025 capped an outstanding year of execution:
Key highlights:
- Launched 86 new products, driving ~10 points of sales growth
- New product vitality reached 27% of sales
- Data center revenue grew from $600M to $1B (+67%)
- Successfully closed EPG acquisition and thermal management divestiture
Margin Trends and Investments
Margins remained a point of focus. Q4 ROS of 19.7% was down 130 bps year-over-year, reflecting:
- Inflation impact of ~$55M including over $40M in tariffs
- Higher growth investments and incentive compensation
- Acquisition-related mix from Trachte and EPG
- Capacity ramp inefficiencies as the company trains new employees
Management reiterated that price and productivity are offsetting inflation—they've announced pricing that's in the market. Looking to 2026, incrementals are expected to improve "nicely throughout the year" as tariff headwinds (first-half weighted) abate and capacity investments mature.
Capital Allocation
nVent maintained its disciplined capital allocation approach:
The healthy balance sheet ($1.6B debt, $237M cash, $600M revolver availability) positions nVent for additional M&A. Management described the pipeline as "very strong and robust" with a disciplined approach to evaluating opportunities.
Key Quotes From Management
On the company's transformation:
"2025 was a record year for sales, EPS, and free cash flow, each growing at or above 30%... Infrastructure now makes up 45% of our annual sales, with data center sales representing approximately $1 billion in 2025." — Beth Wozniak, Chair and CEO
On liquid cooling competitive positioning:
"We've been doing liquid cooling for well over a decade and have been working with some large hyperscalers for a long time. We're several generations in here... From when we announced that we were going to expand to a new facility and sign the lease to where we started actually producing, that was just over 100 days." — Beth Wozniak
On technology roadmap visibility:
"We've been working with NVIDIA, and we understand those technology roadmaps and those heat loads out of 2030, and we have designed those products with a lot of flexibility built into them." — Beth Wozniak
On margin investments:
"We're ramping so quickly and having to train a lot of new people. There are some inefficiencies, and as we start to scale, we'll get better in terms of improving those inefficiencies and that productivity." — Beth Wozniak
Q&A Highlights
Key themes from analyst questions:
Order Trends Improving Across Portfolio: Non-data center orders improved from high single digits in Q3 to low double digits in Q4, driven by industrial CapEx, automation, and reshoring. January orders "continue to look good."
Backlog Visibility: The $2.3B backlog is "three times what it was last year," with most converting through 2026 and some visibility into 2027. Management noted the mix has shifted from short-cycle to longer-cycle given the infrastructure portfolio transformation.
Margin Trajectory: Incrementals expected to improve throughout 2026 as tariff headwinds (~$80M, primarily first half) abate and recent capacity investments begin generating returns. Q1 margins expected flat sequentially due to accelerated share-based compensation timing.
Competitive Moat: On new entrants to liquid cooling, CEO noted nVent's decade-plus experience, multi-generational product portfolio, and supply chain agility as differentiators. The company continues investing in labs and partnerships to maintain technology leadership.
Industrial Outlook: Mid-single digit growth expected in 2026, supported by CapEx investment, automation trends, and reshoring activity. Industrial represents roughly one-third of the portfolio.
What to Watch in 2026
Catalysts:
- Investor Day (February 24, 2026): Management will share growth strategy, new medium-term financial targets, and incremental margin expectations
- Blaine facility ramp: New Minnesota liquid cooling facility opened in January and is already in production, with capacity ramping quickly
- New CDU launch: Product showcased at Supercomputer with NVIDIA partnership and roadmap visibility to 2030; expected to launch in Q1-Q2 2026
Risks:
- Tariff headwinds: ~$80M incremental impact expected in 2026, primarily first half weighted
- Margin recovery: Growth investments and capacity ramp creating near-term inefficiencies; management expects improvement as scale increases
- Order lumpiness: Large hyperscaler data center orders "can be very lumpy" and create quarter-to-quarter volatility
- Competition: New entrants pursuing liquid cooling opportunity, though nVent cites decade-plus experience as moat
Ask Fintool AI AgentAnalyst Sentiment
Wall Street remains bullish, with 6 Buy ratings and 0 Sells prior to this report. The average price target of $134 implies ~18% upside from current levels, though this may adjust following the earnings release.
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