nVent Electric Delivers Strong Q4 Performance, Sets Stage for Growth in 2025
nVent Electric, a leading provider of electrical connection and protection solutions, reported strong fourth-quarter performance and set the stage for growth in 2025 during its recent earnings conference call.
Beth Wozniak, Chair and Chief Executive Officer of nVent Electric, highlighted the company's achievements in Q4, which included a 9% increase in reported sales, margin expansion, and adjusted EPS growth of 7%. The full year saw a 13% rise in reported sales, continued margin expansion, strong earnings growth, and outstanding cash flow.
"2024 marked a pivotal year for nVent with our strong performance and portfolio transformation," Wozniak said. "We have made great progress on transforming our portfolio, and last week we closed on the sale of the Thermal Management business." The divestiture positions nVent as a more focused, higher-growth electrical connection and protection company.
The company expects to have nearly $2 billion in capital available to deploy in 2025, with guidance at the midpoint reflecting approximately 9% sales growth and 22% adjusted earnings per share growth. Wozniak emphasized that nVent is well-positioned for strong sales and earnings, driven by its focus on high-growth verticals, new products, and acquisitions.
"We believe 2025 will be a year of strong growth and value creation," Wozniak said. "Our focus on electrification, sustainability, and digitalization positions us for long-term success."
The company's Q4 performance was driven by strength in its infrastructure vertical, which grew low single digits organically. The data solutions segment within this vertical now represents approximately $600 million in sales and grew around 30% in 2024.
nVent also launched approximately 90 new products in 2024, contributing more than 2 points to its sales growth. The company has a robust innovation pipeline, with momentum in its data solutions segment.
The company's strong free cash flow of $427 million for the full year grew 20%, and it generated $150 million of free cash flow in Q4.
