Record sales and strong EPS; updating full-year guidance

• Reported sales of $859 million up 15%, organic up slightly
• Reported EPS of $0.63, up 15%; Adjusted EPS of $0.84, up 27%
• Cash Flows from Operations of $145 million, up 7%; Free Cash Flow of $136 million, up 8%
• Updating full-year sales and adjusted EPS guidance
  • Reported sales growth of 12% to 13%; Organic sales growth of 3% to 4%
  • Reported EPS of $2.46 to $2.48; Adjusted EPS of $3.01 to $3.03

^{Reconciliations of GAAP (reported) to Non-GAAP measures are in the attached financial tables.}

nVent Electric plc (NYSE:NVT) (“nVent”), a global leader in electrical connection and protection solutions, today announced financial results for the third quarter of 2023 and provided guidance for the fourth quarter and full-year 2023.

“I am very pleased with our execution in the third quarter. We had outstanding income growth and robust cash flow. The ECM Industries and TEXA Industries acquisitions have been great additions to nVent and are performing well,” said nVent Chair and Chief Executive Officer Beth Wozniak.

“We believe we are well positioned with electrification, sustainability and digitalization trends. We continue to execute on our strategy for growth focused on high-growth verticals, new products, acquisitions and geographic expansion. As a result of our year-to-date performance and expected continued channel inventory adjustments in Q4 we are updating our full-year sales guidance and raising adjusted EPS guidance.”

Third quarter 2023 sales of $859 million were up 15 percent relative to third quarter 2022 and organic up slightly, which excludes the impact from currency fluctuations and acquisitions. Third quarter 2023 earnings per diluted share (“EPS”) were $0.63, up 15 percent, while on an adjusted basis, the company had EPS of $0.84, up 27 percent. Segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.

Third quarter 2023 operating income was $156 million, up 30 percent, compared to $121 million in the prior year period. On an adjusted basis, segment income was $202 million, up 40 percent, compared to $144 million in the prior year period.

nVent had net cash provided by operating activities of $145 million in the third quarter compared to $136 million in the prior year period. Free cash flow generated was $136 million compared to $126 million in the prior year period.

THIRD QUARTER PERFORMANCE ($ in millions)⁽¹⁾

GUIDANCE FOR FULL-YEAR AND FOURTH QUARTER 2023

The company now estimates reported sales growth for full-year 2023 of 12% to 13% versus prior guidance of 13% to 15%. The company now expects organic sales growth of 3% to 4% versus prior guidance of 4% to 6%. The company now expects full-year 2023 EPS of $2.46 to $2.48 on a GAAP basis and adjusted EPS of $3.01 to $3.03, versus prior guidance of $2.30 to $2.36 on a GAAP basis and adjusted EPS of $2.85 to $2.91.

The company estimates reported sales for the fourth quarter of 2023 to be up 15% to 17%, which represents an increase of 1% to 3% on an organic basis. The company estimates fourth quarter 2023 EPS on a GAAP basis of $0.61 to $0.63 and adjusted EPS of $0.73 to $0.75.

DIVIDENDS

nVent previously announced on September 26, 2023 that its Board of Directors approved a regular cash dividend of $0.175 per share, payable during the fourth quarter on November 3, 2023.

EARNINGS CONFERENCE CALL

nVent’s management team will discuss the company’s third quarter performance on a conference call with analysts and investors at 9:00 a.m. Eastern today. A live audio webcast of the conference call and materials will be available through the “Investor Relations” section of the company’s website (http://investors.nvent.com). To participate, please dial 1-833-630-1071 or 1-412-317-1832 approximately ten minutes before the 9:00 a.m. ET start. A replay of the conference call will be made accessible once it becomes available and will remain accessible through November 10, 2023 by dialing 1-877-344-7529 or 1-412-317-0088, along with the access code 6819843.

About nVent

nVent is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high performance products and solutions that connect and protect some of the world's most sensitive equipment, buildings and critical processes. We offer a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Our principal office is in London and our management office is in Minneapolis. Our robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER.

nVent, CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER are trademarks owned or licensed by nVent Services GmbH or its affiliates.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “forecasts,” “should,” “would,” “could,” “positioned,” “strategy,” “future,” “are confident,” or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. All projections in this press release are also forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include our ability to integrate ECM Industries and other recent acquisitions successfully; our ability to retain customers and employees of the acquired businesses; adverse effects on our business operations or financial results, including due to the overall global economic and business conditions impacting our business; the ability to achieve the benefits of our restructuring plans; the ability to successfully identify, finance, complete and integrate acquisitions; competition and pricing pressures in the markets we serve, including the impacts of tariffs; volatility in currency exchange rates, interest rates and commodity prices; inability to generate savings from excellence in operations initiatives consisting of lean enterprise, supply management and cash flow practices; inability to mitigate material and other cost inflation; risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging and transportation; increased risks associated with operating foreign businesses, including risks associated with the conflict between Russia and Ukraine and related sanctions; the ability to deliver backlog and win future project work; failure of markets to accept new product introductions and enhancements; the impact of changes in laws and regulations, including those that limit U.S. tax benefits; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating goals. Additional information concerning these and other factors is contained in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date of this press release. nVent assumes no obligation, and disclaims any obligation, to update the information contained in this press release.

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