nVent Electric (NVT) 29 Jul 222022 Q2 Earnings call transcript

Welcome to the nVent Electric Second Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded. I'd like to turn the conference over to Mr. Tony Riter, Vice President Investor Relations. ahead. go Please

and call. Nick nVent's quarter second Thank welcome earnings XXXX you, to

On Wozniak, update Today are Officer; me third performance, the with call for outlook Beth full on second Zawoyski, the year Chief provide outlook. an details and and our our our Financial provide Officer. an we'll quarter, our quarter to Sara Executive Chief XXXX

risks company's statements remind and begin, that Securities any today's future the I subject about forward-looking are will in you Exchange uncertainties. and as anticipated we nVent's such results Before made financial outlined the A the and to statements Commission. filings risks with release press

or made anticipated presentation no of publicly which to is update Today's References circumstances. the statements and questions presentation. financials the of three in could events section non-GAAP webcast to are a statements now to as and Investors differ materially remarks. I prepared after have Actual obligation are results. in reconciled turn accompanied We'll results from call to that you will company undertakes by With nVent's to the Beth. over such find Forward-looking the please subsequent can today slide the of time website. turn appendix for reflect

morning you, outstanding today to to second everyone. share quarter and Thank Tony be good our great It's with you performance.

to Our nVent team and demand, strong responding supply serving a overcoming challenges. tremendous customers, has done our chain job

and guidance sales our Our exceeded earnings. second quarter once performance on again

XX% exited growth grew the Our strong key expansion, our solid record price quarter to double-digits verticals, both QX, sales delivered a strategy combined with backlog. Orders with and products, second volume. and focus to success. on execution broad-based were we in from high-growth growing strong with new contribution and global We and in

ROS XXX basis points improved Our sequentially.

QX XX%. grew EPS Our

are we results, quarter and guidance. year second sales raising again strong our adjusted EPS full Given

price segment a the organically and quarter double-digit growth our performance. were summary each Now, four second QX in with well of guidance, volume. was on of ahead quarter XX% by up to our for and both vertical. slide This Sales in driven

Our results are show and winning well. to we continue executing

three free we're deliver New EPS $X.XX points and in again XX generated million cash added products was our track from strength up growth double-digits. adjusted material this flow on with results grow year. across new beverage, by key $XX We of nice in utilities. energy, growth our our to XX% North was everything. with to year. double-digits MRO. driving and to in We growing products and way to prior grew continued food residential verticals continued automotive, strong Commercial and Industrial believe our particularly solutions the And America driven finally, chemical. led Overall broad-based and particularly data organically the Infrastructure broad-based and the the in see each focus power best handling, mega the Europe. on of in recovery trends. continues growth positioned secular a factor its A continue companies electrification we be our in one are of to we and

America, North to sales we up of growth was segments. the the in the and Europe geographical our single-digits at continue regions nearly up strongest Looking in performance, slightly. developing XX% declined see each high

and full are our guidance, quarter sales our Looking EPS performance. ahead, raising we second reflecting year

and rest orders strength backlog Our year. the confidence ongoing -- strong the us in of gives

go XXXX. updated uncertainties over the for Sara macro and quarter will in deliver and call continue outlook ability to remain challenges. positive, results now remains we our outlook ahead. to our customers cautious and We and chain please ongoing Sara, our some confident detail to on supply for turn be shareholders. second While given the for our our I execute

the I'm pleased to above high sales of our and strong quarter another performance Thank with adjusted both guidance. EPS share you, Beth. you end with of

quarter with second basis. our nine FX headwinds. review million up to improved X was to on Return a income Volume contributing slide XX% $XXX and relative another both points of strong, last up to price XX results. $XXX Sales reported on sequentially Segment XX% growth points. organic year were four-point million to growth. adding by to was turn a Acquisitions strong sales was which four on added points, sales XX.X%. offset Let's

While million as offset Price approximately down it in to performance XXX QX of the improved in indicated basis quarter. points compared $XX inflation April. year-over-year, the total we would

the digital R&D support and In addition, growth due to customers in issues we cash We our This to address fuel prior $XX inventories supply generated to QX. up QX is from investments flow to XX%. demand. and lower marketing productivity. make million adjusted robust future continue than and of and support higher was quarter, an improvement and mainly $X.XX free year in sales EPS chain

We higher improvements. All-in results in and second momentum the in strength flow capital expect volumes our cost reflecting seasonal QX. and cash half improvements drove better-than-expected working the in price

well standout a infrastructure Global for a broad-based America. solutions. regions adding by strong Geographically, from with our in led second with Starting million double-digits grew CIS grew of verticals XX%. X slide particularly eight quarter growth also to up performance Sales contribution points across $XXX North segment performance. to contributed the of all XX%. Enclosures. in volume Sales Organically, and price. with with data perform Acquisitions increased turn year-over-year to all of strength was quarter please over another exceptionally discussion both segment Now XX% growth

mainly the second to supply challenges but million For $XX sales remain similar basis a quarter Global bit, double-digits eased XX.X%. XXX have in improved chain by a productivity. sequentially however, income segment Enclosures to orders headwind growth. on up another was quarter cost. year-over-year, volume down to tremendous performance This of price XX% were was driven reflects Return Enclosures improving up sales quarter strong growth. points

to In us addition, well growth we in position the and continue to capacity for future. invest

on better productivity. price improve with and return to cost expect continue We performance to sales sequentially improved

Volume all strength Electrical double-digit verticals our & led QX. with Pricing Orders in with by value chain products in $XXX customers. to remained strong growth. labor-saving supply again was our of led the outpaced million sales strong America across by North quarter organically impacted Moving commercial. demonstrating provide the increased constraints. Fastening. Geographically, the way Sales to XX%

coupled However, output to was half. in invest in $XX points our we June drive and higher-than-expected on up growth. orders offset segment us continue with XX%. our basis up last give confidence strong & million Electrical to Return income second sales the and customers year. improved XX Price inflation support and backlog relative XX.X%, to Fastening was

to for Management titled by sheet expanded XX.X% with flow, Sales Geographically we to Europe North year-over-year industrial growth XX digits Russia, of were basis up Thermal we longer positive up both sales be ended single quarter grew low million. and strength by for organically Slide in the orders turning points contribution robust was $XXX $XX cycle see continue income margin High orders Thermal and up XX% strong driven volume Now segment on America to digits. up Management. and robust Overall, MRO cash Return to by continued China the lockdowns to XX% million. of quarter mid-teens. from million balance industrial consecutive double driven X mix balance impacted projects. a industrial. and On were $XX MRO. fifth cash

have an also available our additional We on $XXX revolver. million

with us balance provides sheet capacity. ample healthy Our

We and allocation two of the two our our We ratio of a our execute priorities low dividend million sheet invest range including times of to Year-to-date a to with QX end X. to believe EBITDA puts on competitive robust Slide target net and share a capital shareholders, balance generation and we strategy. at to Turning X.X. $XX in exited great our in adjusted us to cash debt position M&A growth on returned repurchases.

continue growth attractive to deploy and expect We shareholders. to capital to drive returns deliver for

Now titled X Slide moving nVent to outlook. XXXX

earnings share half. a XX% up XX% and are sales adjusted strong We per first in with to off up start, the

and highlighted we are higher Beth strong outlook. greater to As partially first reflects full of A call by key and offset half raising FX our couple pricing and year headwinds. assumptions, This our out. points earlier, inflationary sales other earnings performance

through in a challenges persist. saw we quarter, we the gradual supply expect chain to the While improvement

For productivity we the expect plus inflation. to offset pricing year,

our support we expect We investments and customers million higher corporate now to will costs invest mainly and inflation. roughly of continue to $XX to

a XX% organic in to in XX% This we be expected to range XX% Adjusted top new of versus of $X.XX. earnings our is guidance EPS EPS $X.XX on XX% the growth guidance reflects $X.XX growth, to versus prior XXXX. the expect our of year. range now of the $X.XX XX% of to prior growth XX% of XX% for For to guidance to

net support our XX% in income strong expect capital working cash of and due to to challenging to supply range flow, the chain. we free the backlog amid of sales conversion For higher growth adjusted now XXX%

have we to continue remains will We respond and and are as macro to closely, in we watching which be dynamic the scenario plan the past. ready environment uncertain, done

outlook at Slide Looking XX. quarter our on third

to midpoint, this with second between sales to to organic the We and am adjusted reflects earnings quarter I growth up, $X.XX expect XX% relative year. up Wrapping XX% pleased performance. EPS XX% to our At and last be $X.XX. be

ability customer execute costs. demonstrate manage and our We to continue to with well price strong demand

set and I And half, the believe importantly, continue call back acquisitions successful This to value we for the my another for now to and in remarks first shareholders. a concludes we're invest over With up and great Our future. to we generate customers continue year. turn great will for capacity growth Beth.

Sara. you Thank

new had We've has we company to a driving been a success. XX. since Slide Turning strategy consistent our that became

we everything, our our believe will of drive performance. growth electrification strategy to the With continue

and Our focus growth high products acquisitions and new is innovation, on global and partnerships. growth verticals,

XX. to Turning Slide

we're some provide on me executing Let highlights of strategy. our how

power includes sales data cabinets approximately a our distribution many year. grow with data represents our We've offerings. more of cooling and to expect and as the partnerships. customers, with Looking communications, acquisitions management. XX% We've our This grown portfolio. liquid growth networking to key strengthened networking large and from offerings nVent differentiated which portfolio of at technology XX% multimillion high We've dollar than solutions, of now and wins vertical had cable overall solutions, we vertical centers, our this server result units,

efficient are Our for in and liquid data energy reducing consumption center example a sustainable, and reliability. power cooling solutions more improving

tenet launched strategy. we've Year-to-date, products and innovation is year. New a new path to key full XX products XX another for on our the of

to have in New contributed three our points products sales growth first the overall half.

connection our solution enables faster One our to and by installation installation costs products, new total FleXbus more. XX% up introduced XX% or of

easily an acquisitions and called be seeing storage, energy applications wins I recently to reliable, product. across install, On investment to that customizable. to this and many to verticals company a centers. This want significant it in share new announced found have highly from data partnerships, we high-growth has We e-mobility, Iceotope. with and product new easier We're safer to

technology cooling celebrated the recently solutions, We of and computing acquisition. We strong offer portfolio collaborating in grown CIS applications. over for data the innovative it emergent and With relations, one-year first to new are Global XX% cooling has customer half. expanding precision its center innovative anniversary products and our our

We new results are winning investing and we Thailand in key two one expansion We're our capacity demonstrate to this quarter. increase with customers. our initiatives. our are moving factories, portfolio including more opened data global and global serve to This growth have center that with and is velocity this in

slide solutions In we proud the the and XXXX we This our pillars. COX of XXXX we you resource XX% innovative X impacts. report. XX. great and are I'm that of in I performance. to and the efficiency, planet, Scope three very a now Directors our we've by reduced and progress product outlined people XX%. be of including of our planet. On made diverse. each new are to are On give to introductions, after made published and emissions and XXXX, we and our Board people, an these have long-term week, three making goals, inclusion update more number aligns culture of company. the our a have product place with products, positive report, I'm work our ambitious, to with pillars, to our for ESG safety vision time nVent's ESG Earlier progress. have deliver we X for reducing Moving of we differentiator want great goals each new consumption. We diversity, safety to first in believe increasing updated our developing on goals in progress tremendous this in certified highlight strides people, invest, our set And On ESG pleased significant

quarter. more Scope reduce to X With XX% strategy, gas center sustainable the is world, our by about up are the nVent. electrified by XXXX. delivered excited I'm goal and we at strong new what of a ESG, building and X another on Our future for slide holds we emissions XX, greenhouse Wrapping and

that And progress us our gives We winning We've our in well ESG are growth significant future. commitments. executing made with and strategy. confidence the on

and everything. double-digit believe for growth for electrification EPS of year, sales the the are we We positioned and well expect

Our over start I call that, to future turn the the is will Q&A. operator bright. With to now

the question ahead. Please session. now Julian Barclays. We'll go comes question-and-answer begin [Operator First from Instructions] Mitchell,

morning. Good Hi.

Good morning.

Good morning.

morning. first question the Good and Maybe a on line. top just orders the

front, the up QX? firm-wide you just at orders now? And we broadly right picking Thermal in line, And on business, there when what low you're wondered on in those headwinds So, look assuming single-digit you then seeing the orders volume see the are after do the revenue more QX? growth in Europe

Julian. Good morning,

just me on orders. let start the So

Management, generally we've we strongest you commented North and North know, orders is disruptions orders by sales, European our were Remember had on sales. seeing in our most as the also in we're we America On as Thermal projects have business been chosen there. generally have some work cycle in North our any global pursue than what strongest couple that -- our of impacted America. business in look -- not there Russia and growth And longer have And sales with and lockdowns so is new So followed at a America. the of we you Management we activities. China some in of we line less and European when so our in to have orders as Thermal the business, we the

this of next orders as very our looked beginning So enter as the across strong -- we we of but quarter. are segments at all July,

me there. Julian And your color think from question a perspective on bit in of of let volumes a terms I give QX little then

half. So both we back strong would contribution see in volume expect to continue to from the and price

a stack saw simply to bit top to in both volume Now, line perspective. in the year little expect the overall on side if we quarter see more volume QX the continue of a QX. you volume And that contribute expect two-year contribute But QX to lap the each we of across would of from price we'd more to again and will of we that's the expect But in than ago. in volume half. back kind a we nicely

quarter. the a my would larger in follow-up around looking assumption the Thank for just that you. with And When then inflation million in figure the bridge net that number for productivity thinking QX a How about X mentioned year. figure was your be we're -- you are that $XX-ish full year? that you income at in segment guidance similar the slide the first

Yeah.

a that in on From take point standpoint, I'll things number about $XX two that front. million So the roughly is last that of walk, $XX million talked first. productivity inflation. in that we productivity net

here that negative to challenging is given going So sit of very balance a still of One strong really as we be couple that and supply seeing, productivity is amidst a the showing up things. today chain. that's demand just the we're

suggested right, gradually a we as still we're in the those better through the So getting factory, seeing inefficiencies bit quarter.

investments that we to fuel growth. continue to those are thing be able other make to The that

as easier I the the thing year-over-year is I out in significant half, think because look that show productivity QX in remember you is a of think comparison that began just line. to terms those from really when back point we see through most challenges chain would supply the QX, I

to important counting supply but standpoint that productivity that meaningfully expect would we getting to better, you it's will note a sequential from if on not we're better. year-over-year get So that chain

some perspective, on mind your would much in spot metal important of perspective, or From overall we're a our keep we And of say locking to that have are lag. from a a buys to terms with our that think an in there. of It's what tends strategy quarter I question seeing. seeing two easing couple inflation things. commodities I

The seeing I inflation other metals. piece meaningful of would say outside we're

whether So logistics I broader costs. what that significant seeing health inflation would call energy we're care, wage, significant that's inflation

So we're broad-based that seeing inflation.

cost equation. And we continue that price where so have to manage that's to

material we're front, the it outside meaningful more inflation I generally see say we material. would As on of seeing but as

very Beth much and That’s Thanks very Sara. helpful.

you Thank Julian.

Thank you.

from Please comes Nigel Wolfe ahead. go Research. question next Our with Coe

everyone. morning, Good Thanks.

Good morning.

morning. Good Good details always. as

want your pick on up cost. I price So to just just on Sara response

margin million I in think, inflation. mentioned the $XX million $XX of bridge you the of bucket

How pricing it real of I see think ex-metals. the guess, cost. project And looks half back price is So we that like million question do over And, the inflation year? how should $X the roughly mentioned evolving? you about of you

So how pricing with would your you conversations describe the right customers? now

of Well, that. let with piece the start me pricing

in we're environment. think, I an inflationary

are logistics inflation those channel understanding you because customers wage and they're our our energy of inflation experiencing all so look things. partners all it of well as at And when

having down isn't good increases coming, having when we to so comes is of but everyone there are that it are why what lines a understands certainly just about price really there price So communication increases. question

for So months. that the ongoing been months XX an to last XX would has say situation I just over

And we to as in half. into then our part the talked remarks the prepared in QX. of just to to is costs that managing would expect -- would improve We're continue continue about Enclosures of improvement of outside improve material to is in front. from half. we some inflation back going equation cost look cost QX we But a vigilant the to be price And we numbers price that perspective, this that a expect as continue that equation big see that back to to these in we

that follow-on a have but point. just do I on question, Okay.

like of So, you But cost double-digits time end increases. the margin by dilutive, of to and is the would the this -- kind to low neutralize balance year. we the price price margin a still get it looks obviously, but on that expect

A center of lot that to the of just market right ask A wanted for a lot given fact guys. around small, that. So a customers data investments just wondering smoked these data I question tech center. important are getting you debates now. about but just relatively But on

outlook do XX how investments DC and months next So you the see to for the months? XX

the think have when I data we we're And computing we capability to because about I centers. the We're we've And applications. liquid and over centers, positive at want looking think very expanding. on looking communications. other is We're think lot outlook. and the edge in at point networking important one years that We're don't serve the talked about data our cooling a I to make investing hyperscale

with a and solution an good more cases, If about is power really that really some a getting in solution retrofitable liquid you it's computing but centers think it a hotter it cooling lot energy-efficient data as of sustainable, has investment a payback. is

And so which liquid is technology new shift off. that's cooling where we're seeing this really a taking

from we're going for centers So data in believe growth many our we come. see years to to standpoint solid

Thank Great. you much. very

off perspective. that it the ROS from was impact price we I little that a element expect Nigel, our we're But you an improvement, cost implied a and second showing that covered think the about year-over-year QX And question think, earlier. as our is in And A couple price equation. things. in in guidance back dynamic getting outsized talked price because really that that to in I here that half margin right say had back even be having We the the with productivity we on you're year-over-year of expansion cost of sequential would ROS QX to in so is bit I would half. ROS inflation that QX terms more piece cost. confident started is expansion in during improving ROS

much. very Thanks great. That’s

you. Thank

Vertical Jeff Sprague, comes question next Research. Our from

morning, you. Thank everyone. Good

Good morning.

morning. Good

Good morning. things couple me. A of from

is on electronics that's different some First and of there emerged? issues supply bottleneck still it you other new Is a on the Can elaborate are? kind or tilted just that's towards or chain. where

well. had our challenges, we've electronics material it's would not it down impact focused as on still our seen we're get had that challenges that the last same starting better say with But same is area in and some from would definitely. is we there some input getting as we're well some but shut year businesses recall business had that -- as still I well. it's EFS of that even say some across so those as an China the and we electronics that I just Yes, things of

your That in this on actually lot things of different resi we've quarter. other then prepared And a in strength mentioned remarks a heard you resi. sounds than lot

think just So, down visibility me wonder I a also. give that there QX and the sequentially. clear your QX be on that And implies to the that color you seasonality a would not guide just why be little color could if can kind have little also case revenues of looking would trends. you maybe give order there? based and you It's at on Maybe I us

Okay.

segment. start commercial -- about will for my resi in a I we with Let really together sometimes and resi me isn't significant us because them talked comments group and

So, we kind of group that together.

that Some will from management businesses of heating. some resi thermal our reduce underfloor

that look we was not us commercial combined thermal management strong commercial at EFS. and when but only residential in of it So, side for business, the

pertained So, that's to. what comment that

Jeff sales from a sequential Beth Management what from then a -- perspective, I earlier from to perspective think And alluded a perspective. it simply is Thermal

We're not So, business seasonal the Management from April business. transpired uptick and that made in the spend Russia. learning to price in we Russia-Ukraine new that And in to the things typically not conflict decision in that Thermal seeing timeframe. is

Thermal overall being Management roughly is half just We've in sales for Russia back our So, of talked Management. impact in that that nVent. about there X% you're business. of particularly that seeing the in Thermal Most

that in you're reflected that So, just overall guide. seeing

Great. Thanks for it. color. the Appreciate

you. Thank

from Next KeyBanc Markets. will Hammond, Jeff question Capital ahead. be Please go

good Hey everyone. morning

Good morning.

out how seeing if industrial you're Thermal, that think out? spike you number playing mix on half. driver maybe cited of still the just I second a a can into MRO that's know moving back there. And you positive pieces Just you

a something Yes. as times of the bounces has combined provide half an how to for And usually seen one our of we year. in some some just That focus year in positive mix have that back with and And continue products commented MRO at takes business and to as years. some have support expect we've couple all back it not of it MRO services looking we've and a previous that with the been in us impact new on strength uptick. we industrial grow it's we

particularly And or that think remarks is new inflection? are the where do what strong it products a I Just then in particularly driving that July little sounds of June is it was prepared more market think in color and great. Okay, you EFS like you broad in dynamic? the a said a lot EFS Is there.

When and some of comment made supply ability great EFS backlog, challenges but get we that orders bottlenecks. out and to had Yes. of that execute that chain those our so and we've some those worked through

saw of we things is and So, We've July. of would through what's and June that growth focuses I a our couple on a But data some portfolio solutions. launched strength products labor-saving are there say driving lot a there great infrastructure. lot new that power

in some as seeing times building that very the we're finding some that we're that are I growth do to And applications well-suited of constraints, out one well. are really new in that So, -- they labor that of of gave product electrification example this infrastructure. everything

our have verticals nice then high-growth So, secular trends, drive execution ability plants. our to it's great really through in sitting our and that products own manufacturing some new

bit to Okay. on your to mix one could center area slow, just the said more? of all, a or hyperscale. the do comment, were you back at I -- you But feel hyperscale one that you're if sneak maybe that's just If in little be underexposed to what's -- data frame last that maybe kind on

think, balanced it's all product. to greenfield we're integrators plenty and as how an think terms now rely and system continue liquid our believe liquid And at energy-efficient And solutions, in mentioned doesn't it earlier, to we've way really that between mean, retrofittable. opportunity can expand is distribution the of well and I be cooling, because fairly between applications, an I edge, it's to we whether look communication. some have solution we're network of trying Yes. I positive I cooling whether power of to on units whether a I very with hyperscale closet, to mean, account. the hyperscale got a it's or we're provide with we growth

Okay. Thanks so much, Beth.

go The next Capital from you. Deane question RBC ahead. Thank Please Dray, will come Markets.

Thank you. Good everyone. morning

Good morning.

we the can channel. inventory start Hey, with in

sell-through us your you where give today? update think Just do an sell-in are distributors

track things. that to very channel and it's sell-in and robust uncertainty that how this Yes. is or understand to our out. believe both One trying increasing key as something we just it A position with closely, couple partners, This some look strategy of been playing as we the sell-out believe cases. expand in well. and doing our we remains We our of has we're we're that at

but and it at point this time balance so good And we're think at that is would area it's our products sell-through we this in an watch, I seeing of speak I inventory. remains how to

Good. we've this And sector. target, in flow for everywhere free trimming cash of Sara, the -- the then the look, this seen

how much any the we on and can parse way -- side of just just the here. there is you additional could dynamics out understand So, But the capital working build, you for inventory you're you would backlog. classify is much that how buffer building and all inventory as it then inefficiencies demand inventory inventory? carrying chain what ahead of is And satisfying supply where more of

year would backdrop, say, and coming for a chain I some supply Deane, our we the customers. the here's seeing especially vol, Well, of bit into little delivering is of obviously prioritized what we're

long in And so our even in elements, of lead time from that with supply we some that leaned perspective.

And think, Ukraine, what here was what you probably so of saw happening in China, you in you QX. I if getting in that that's is thing the other QX here some in QX, and will that see stuck QX, exacerbating actually

be this talking continue it to and of see other sit converting it the we've right about you backlog but we been strong. is piece that I the still and orders with into sales, think a of lot

those so two levels. things higher right inventory And coupled seeing we're

we're capital from that Deane, very same standpoint. the right, at time, initiatives. Now Nothing changed on working has focused our

opportunity. And so still continue we to see

So guys -- settles you bit, as and what supply and XXX% chain we to to have driving down for what as we're net get cash. the income counted is that back a us to to on of we that expect conversion

side good front just how of then just kind energy and How side Thermal lastly in. the industrial can us still for a may you about out? energy tell on lot play about And about on the expectations kick either that or to those What That's MRO. quote activity waiting hear. of we're discussion on projects, to log

Yes.

We "activity" as independent, seeing projects. are have are pick but globally, longer up these energy and to everyone right, more cycle typically looks

And got would outgoing into to expect years. so we growth the view is that our in translate

to are conversion It's cycle. more picking up, we're see things but longer not this going revenue. So into that

Got Thank it. you.

[Operator Thank go Goldman question Please Next Joe Sachs. from Instructions] comes you. ahead. Ritchie

Thanks, and morning everyone. good

morning. Good

morning. Good

the I'm know to got pricing on still your of price your just just to due with the across go. go did to it going some the if well. what to in will some you I down seeing be work you're we to to that work pricing XXXX, industry mechanism able most come how keep hi, your flat are a of back How going customers? Hey you metal But through? XXXX, lot commodities dynamics, the you is as you pricing curious, cost consistent is head Will seeing we're of into of put as base across portfolio? we mention ways

products other we based And I that of solutions. two, we couple about on as labor-saving not would we of that, think would it's inflationary in just There's, think say I comments make new portfolio some commodity about at metals. as A Yeah. all the on is pricing one, our look elements.

because pricing environment -- think time new certainly they because price value of I even distribution our in. command we're just three, stronger levels we're So about And view the labor shortages their as creating through say, they come manage customers. to typically a we end hope more is Those equation of there's in value. with real out inflationary just And that would there. a as new we the pricing products partners hold

view next inflationary So to we're that this pricing see we're to those on. just pricing, going believe, dynamics all still result that's as able maintain year of a that to that levels going the be And are our strong just given we going environment.

on And I maybe hear guess That's that. great to up following just that.

really get XX% of margins I'm no interesting of to you quarter probably that see EFS? guys don't of close trajectory what made the come the trying it's the the price has. very margins then, the But this dynamic. out to EFS organic have really despite growth component in cost it progress just from EFS Q I those understanding really like I've seen are benefit approaching and And was For an the the maybe there? pricing to what's think

Yeah.

top So price perspective of that cost from pricing a much contributed was a standpoint. quarter line this from

were make. to perspective, has a execute in that We coming A last we said factories. XXX expansion I that lot journey team of still on is volume we seeing here a we're the both expect From contribute that. lot business year. the productivity more that margin And margin Electrical think remarks opportunity basis prepared longer said in strong progress Fastening. term. in lean of We of would in price this made this points to said that, progress & we had a demand, through our to we backlog I in volume in in strong in there As volume think been orders and back able expansion see margin half. and customer like We've

there strong other & he upon I is their a to is savings attached think earlier, lot of labor portfolio piece Electrical the touched our Fastening. that

So as is that to meaningful that customers contractors our proposition to the well. brings our value

Awesome. Thank you, Beth.

very delivered you. the joining the us thank you outstanding performance Thank for proud of today. Well half. in We're we first

nVent made on on high-performance commitments. ESG us. customers positioned strategy This continue again for is and We're shareholders. delivering joining call. executing will concludes our people, to our believe top-tier progress our for a the focus great for make electrical company. nVent the of Thanks everything. to on well We We electrification We've

attending concluded. for Conference now today's Thank has presentation. you

You may disconnect. now