nVent Electric (NYSE:NVT) executives told investors the company delivered record results in 2025 and expects another record year in 2026, pointing to accelerating demand tied to AI-driven data center buildouts and a larger mix of infrastructure-related revenue following portfolio changes.
Record 2025 results and a strong finish to the year
Chair and CEO Beth Wozniak said 2025 was a “record year for sales, EPS, and free cash flow,” with each metric growing “at or above 30%.” She highlighted consecutive record sales quarters and noted that the company’s portfolio transformation—divesting its thermal management business and acquiring EPG—has increased exposure to the “high-growth infrastructure vertical.” Infrastructure represented 45% of annual sales, and data center sales were approximately $1 billion in 2025.
Fourth-quarter performance: data centers drive growth
CFO Gary Corona reported fourth-quarter sales of $1.067 billion, up 42% year over year. Organic sales grew 24%, which Corona said was “well ahead of our guidance,” driven by stronger-than-expected data center sales. Acquisitions contributed $126 million, or 17 points of growth, and foreign exchange was roughly a 1-point tailwind.
Adjusted operating income in the quarter was $210 million, up 33%, with return on sales of 19.7%. Corona said margins were “a bit lower than expected” due to higher investments, incentive compensation, and mix. He cited nearly $55 million of inflation in the quarter, including more than $40 million of tariff impact, and said price and productivity offset inflation while the company continued investing—particularly in data centers and recent acquisitions.
Adjusted EPS was $0.90, up 53% and above the high end of the company’s guidance range. Free cash flow was $189 million, up 26% year over year.
Segment and geographic details
In Systems Protection, fourth-quarter sales were $737 million, up 58%. Corona said acquisitions contributed 23 points and had performed ahead of expectations, while organic sales grew 34% with all verticals increasing. Infrastructure grew about 70% in the segment, “largely due to continued strength in data centers,” while industrial rose high single digits and commercial/residential increased low single digits. Segment income was $149 million, up 49%, though return on sales fell 120 basis points to 20.3% due to inflation, growth investments, and recent acquisitions. The Americas grew over 45% and Europe grew high single digits, while Asia Pacific declined.
Electrical Connections posted fourth-quarter sales of $330 million, up 15%, including 8% organic growth and a 6-point contribution from the EPG acquisition. Infrastructure increased about 25% in the segment, while industrial grew mid-single digits and commercial/residential rose low single digits. All regions grew, with double-digit growth in Asia Pacific. Segment income was $91 million, up 8%, and return on sales declined 180 basis points to 27.6%, primarily due to inflation.
Innovation, backlog visibility, and liquid cooling investments
Wozniak said the company launched 86 new products in 2025, which contributed about 10 points to sales growth, and reported a new product vitality of 27%. She also said infrastructure exposure has climbed from 12% of sales at the time of the company’s spin to 45% in 2025, and management expects infrastructure to be “well over half” of sales in 2026.
Executives described data center demand as a key driver. Wozniak said data center revenue reached $1 billion in 2025, up from $600 million in 2024, and said the fastest growth within data centers has been in liquid cooling and power, with cable management also growing “very nicely.” She added that in January the company opened a new facility in Blaine, Minnesota, to expand liquid cooling capacity and said production is online and ramping quickly.
During Q&A, management said data center orders can be “very lumpy,” citing “tremendous orders in Q3 and good orders in Q4.” On backlog, Wozniak said the company has more backlog than historically due to a greater mix of long-cycle business, including data centers and power utilities, and indicated “most” of the backlog is expected to convert through 2026, with some beyond that. Corona added that the expanded backlog reflects strength in infrastructure-oriented businesses including Trachte and EPG, while also noting healthy orders and backlog in Electrical Connections and core Systems Protection.
On liquid cooling penetration, Wozniak said less than 30% of data centers have liquid cooling today and that it is expected to “grow significantly” due to rising heat loads and power densities. She also said the company has been doing liquid cooling “for well over a decade,” is several generations into the technology, and is investing in labs, capacity, and modular and scalable products. Discussing product development, she said the company is working with chip manufacturers and referenced collaboration with NVIDIA and designing flexibility into new products based on technology roadmaps out to 2030.
Guidance: growth outlook, tariffs, and capital allocation
For full-year 2026, Corona guided for reported sales growth of 15% to 18%, including organic growth of 10% to 13%. Acquisitions are expected to add roughly four points, with foreign exchange a one-point tailwind. Adjusted EPS guidance is $4.00 to $4.15, representing growth of 20% to 24%. The company expects free cash flow conversion of 90% to 95% of adjusted net income.
Corona said price and productivity are expected to offset inflation, including tariffs. He forecast incremental tariffs of about $80 million in 2026, “largely in the first half of the year,” and said inflation in 2026 is expected to be higher due to labor, metals, and tariff carryover. For the first quarter, the company forecast reported sales growth of 34% to 36%, organic growth of 17% to 19%, and adjusted EPS of $0.90 to $0.93.
For 2025, Corona reported year-end liquidity that included $237 million of cash and $600 million available on the revolver. Debt was $1.6 billion, down about $600 million year over year, and net debt-to-adjusted EBITDA ended at 1.6x, below the company’s targeted 2.0x to 2.5x range. He said nVent invested $93 million in 2025 CapEx (up 26%) and returned $383 million to shareholders, including $253 million in share repurchases, and increased the quarterly dividend 5%.
Wozniak said the company plans to host an Investor Day on February 24 to share more details on its growth strategy and new medium-term financial targets.
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.
