nVent Electric (NVT) 28 Oct 222022 Q3 Earnings call transcript

Good morning and welcome to the nVent Electric Third 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 now like to turn the conference over to Tony Riter, Vice President of Investor Relations. Please go ahead.

welcome third and call. XXXX Jason you, to quarter nVent's earnings Thank

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

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

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

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

overcoming demand nVent challenges. Our customers, our team delivered exceptional supply chain and serving to strong results responding by

acquisitions, expansion the success. strategy with growth We to global with mega are new execution and we well-positioned everything, electrification trends. combined Our continues focus high drive believe on strong products, of to our verticals,

or XX% growth our consecutive EPS, and growth sales for record guidance. quarter Our adjusted with strategy once and This a organic third our quarter new was working. our above sales performance again demonstrating is sixth exceeded marked both at

sales return year-over-year both and sequentially. Our on improved

year results quarter QX, earnings and guidance raising again our third we for strong share. for expectations are sales and full adjusted our Given per

was were quarter quarter key our four segments the Sales double-digit EPS growth single points. in return up million with Adjusted year-over-year a all performance. summary on up high in up and a basis Orders slide for Segment XX% XX% of in XX% onto and income ago. third quarter. organically, Now verticals. orders on grew flow, a of impressive great top XX year XX%. XX%. up generated digits, up Overall, was free $XXX growth We cash an sales

moderate expected given this order to growth comparison. We

continue robust a forward. backlog, year-over-year strong gives have We up double-digits that us confidence to going

few a other share me Let highlights.

very launched growth. again to new New XX products we've products the progress Year-to-date, we made. have three this year. added pleased points I'm XX deliver sales with expect to and

We are show launching Association for more stop a faster customers. that recently one We nVent highly are new by our CADDY the National and Electrical at won our products reward products. Contractors of innovative valued

well, double-digit the in lead particularly perform key utilities. by residential Commercial continued organic strong growth driven automation. in broad-based Industrial all our way given America its solutions strength energy to and at data in delivered the and Infrastructure North finally, grew Europe. double-digits continued they to MRO. strong continued verticals, with Looking growth. And and trends power strong

have lockdowns to at Looking regions Developing North our all broad-based high continued geography, performance manufacturing up COVID-related digits, our America, declined experienced see China Qingdao, we plant. single Europe in in segments. where up sales quarter, largest by primarily to organic double-digits In was growth XX%. due the we in China. we

and quarter our we sales ahead, are for third expectations year reflecting Looking EEP QX. full our and raising performance guidance,

for over third please for year. and QX on will give Sarah, into Our for orders now detail future the and in us our results call to XXXX. go outlook turn updated confidence next with excited the and I our robust electrification of ahead. We're quarter backlog Sarah everything. the

execution with growth, strong to pleased I'm and return free quarter sales expansion, on share you double-digit Beth. improved you, sales Thank with of cash. another

compared double-digit review continued verticals. year broad-based slide contributed points segments million turn third to across growth XX Sales results. quarter sales and XX% be were -- points. growth adding up growth of $XXX adding Volume Let's was our all five or five with and XX% key last to price to to organically. Overall, strong, to

contributions was offset headwind. all million sequentially a of on impact Foreign and up inflationary exchange points from the year-over-year, XX million, and chain roughly Segment pressures, four and of income basis better with FX $XXX headwinds. expected. was Volume XX% points inefficiencies improved XX.X% sales basis return more point price than up cost supply $XX than XXX

in EPS was investments XX%. $XXX make marketing up year-over-year. productivity. flow to up We XX% and for sales continue cash million growth we free and addition, quarter, of $X.XX R&D, digital, in and adjusted In the QX generated

We managing capital, robust actively a environment. supply in working challenging demand while chain are supporting

We flow working and improvements. strength expect in fourth reflecting continue the capital cash momentum quarter, seasonal our to

with basis price up execution we was with continued Starting Now supply performance. million, year-over-year inflation chain to inflation ROS please sales on and million and of the improvement third back offset organically, where and sales Sales by by double-digits XX% Return price XXX realization was turn of income XX%. see the sales supply points America of up inefficiencies. to sequentially up $XXX XXX quarter points year-to-year. segment Enclosure's was half and third basis year. margin and slide Improved Geographically, XX.X%. $XX the challenges, continued verticals, in and Recall and for this by across business was pointed all performance, impacted to strong industrial. quarter chain improved orders increased infrastructure impact most you'll and led led growth were six volume North followed our both contributing. of Enclosures, broad-based momentum Europe. segment discussion Overall,

sales QX to continue due to year-over-year to productivity. and on in return price/cost improved expect performance improve We

both up North was led verticals XX.X%, of with headwinds. chain points $XX strong America. on to Electrical double-digits- contributing. sales volume offsetting by led price Now strong $XXX on year basis XX% XX%. XX utilities to with XX%. in million infrastructure and Fastening moving Electrical over last & all up price Orders were quarter. Geographically, regions & organically grew up All double-digits relative up Fastening, grew inflation by sales power income supply and Return and the segment execution was million, increased

We and products in drive new and customers. vertical to our to teams invest growth support continue

delays consecutive Thermal growth chemicals. Overall, in orders to million America of $XXX Russia. organically both due grew industrial and impacted XX% down Geographically, to QX volume industrial sales. was for Management, with reflecting China chemicals what strongest COVID were Europe contributing. margin double-digits, impact saw MRO, we sales of by be by clean the with grew to in from led fuels. largely Turning the and demand lockdowns. with North verticals MRO flat in particular was chain price strength challenges All robust in sixth customer quarter. continued offset and industrial, strength what supply High

Return segment We Thermal from positive XX% price/cost million. continued solid activity to industrial XXX to MRO. to was sales see basis ordering Management $XX income longer year-over-year improved mix points contribution cycle by up expanded driven quote and projects. on for XX.X%,

improvements seven, exercised in and sheet the execute growth $XXX in We our quarter working available on healthy to balance capacity Moving allocation focused titled free eight with and loan sheet provides $XXX QX our flow. balance million. the slide to of revolver. with Also, our invest cash business capital million summary $XXX provides and on strategy. cash on ample the We priorities. $XXX believe we quarter cash with million flow. ended us our a million our on draw term and balance capital Slide We our in of a delayed generated option ended

a dividend net M&A We our million to strong prioritize of well our with debt to execute of and ended continue to share growth X.X returned adjusted We shareholders, and quarter maintaining to ratio X deliver and EBITDA strong a continue target have of below times, shareholder low just we liquidity a cash believe liquidity while position. purchases. range the flow attractive the third to competitive invest, to on position including X.X.Year-to-date, $XX robust returns. us We end

year our you slide will see updated nine, XXXX full outlook. to Moving

share with year-to-date adjusted XX% has strong, per performance up Our earnings XX%. been up sales and

our year raising and earlier, are highlighted earnings sales Beth outlook. full As we again

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

we at the higher working year and range. Corporate now $XX cash For range low support four to call end to cost expect our slightly conversion of flow, CapEx our point to million now few growth. approximately at top moved strong up capital free outs, headwind roughly the full expectations A end to XX% sales expect we be our approximately line. of the of million FX we now other due a $XX prior low expect prior to have

our slide Looking on fourth headwind at XX% and about of X%. X% quarter to reported X% expect be be an sales sales to XX, up with organic to FX up X% outlook to we

volume price We expect and both contribute. to

will in we backlog next between over and Beth. with cash great into expansion, performance ROS is adjusted concludes and to execute sales call now Wrapping the Our my well-positioned pleased year. I continue for $X.XX. are $X.XX and strong orders flow. well This and confidence am back to give QX EPS and expected up, us be year, we another and I free to growth, and our improved with believe remarks turn

Thank are nVent, a XX. and more building to sustainable you, we turn Sarah. Please world. At slide electrified

our solutions. sustainability, macro everything we of of increasing the trends importance electrification of and and for increased With products are seeing the demand the

nVent, secular moves electric and with being renewables, believe world in storage, the through see made At transition, these we well-positioned and We connect grow we're trends. to infrastructure, energy As the protect. energy transportation. we investments

and bring few These to me value let solutions sustainability labor savings, efficiency, To Our and and life, electrification. propositions have electrical safety, examples. share energy a strong serviceability. include to reliability, tied resiliency, products that

compared installation usage to connections, data it and can energy more effectiveness investing e-mobility. nVent by XX% traditional remove with from many flex center new heat respectively. is is the customizable. liquid cooling. high effectively solutions When and more safer power up cooling our growth across to in the reduce source are product It applications verticals the and can believe FleXbus to energy to reliable They electrification time air and and when improve We up at efficient Our is critical. air comes electrical XX%. This centers cost XX%, to to storage sustainability data easier use, more and

value committed positioned the $XXX and electrification in have added these them and with on XXXX, focus These eco-friendly sales had to user end our propositions And spin. to We've and our than manner grow on our In than least strengthened addition By it expect at products, overall we an in growing materials, safety. revenue outstanding year, XX. product year-to-date, of impact annual and positive strong of the industrial acquisitions, of responsible adjusted data are we XX% in million sales everything. impact, in solutions, than companies since of portfolio up the outperforming lower with nVent. environmental a growth. greater comes is a EPS to quarter, our full we exceeding to have expect Wrapping our one We've focus double-digit new and When We acquisitions XX% a funnel slide EPS faster with grown introduction automation, on to for renewables. guidance. developing categories. more

me thoughts. ahead XXXX, some you Looking with share to initial let

tailwinds we GDP. persist, secular While to and challenges macro chain is the believe the as outperform electrical environment uncertain position supply well

will our environment still and we've We We products effectively. demand believe infrastructure price/cost in be and next expect consistently manage transition the drive the shown solutions. will an energy and year investments can inflationary we for

in and to to continue customers. capacity invest will our for We deliver productivity

it our journey Our us. will digital of do making the transformation easier business goal customers to accelerate with with for

Q&A. to in everything. now our over future about will the Question-and-Answer further the believe to With a the products high to growth be our operator call and I electrification position growth. expect momentum in verticals We Session innovation we're I'm that, of excited and to and start strong our contributor new turn for enhance well-positioned

begin Joe from Sachs. Ritchie question-and-answer question Instructions] Thank go from Please the first comes you. session. We'll now Our [Operator ahead. Goldman

Thanks. quarter. Good morning everyone and nice

and morning Joe. thanks Good

Good morning.

Yeah.

a was was a an the was that because the but acquisition yesterday. was double-digits, announced bit Stock So, leverage odd think to that on. taking of partly company there of question start off, down I big

But you do environment, Beth, I this mentioned type M&A curious, you you would focus you in opening in And would the how and pipeline leverage maybe you I'm that this acquisitions the are of the are know, size remarks, type in of your just that -- take potentially environment? that of so and are everything. your and of on really deals your thinking just the on electrification about in

Yeah.

think of very things. and pipeline a I is M&A robust, Our couple

in never they targets You the quite proven terms be strategically we've of our and to fit. disciplined timing very control how and

performance, one us optionality. nVent could we overall deal our certainly, acquisition we is, we ones all integration can a we're gives that demonstrated have have say and and think a this, our mentioned, would sheet that gives execution those confidence, better And we also models our have then I targets, targets that disciplined that meet of going we've the we strong and such me larger But than to than I say had. hurdles. do I remain strong think course, flow of and we position, ensure cash we as thing balance and which I'd

then XXXX. to And your did concern activity is non-residential seem doesn't residential, portfolio. some follow I you the that across is seeing signs of helpful. That's commentary Great. There guess provide going you're like on that some investment Okay.

so, bit more you about a And your provide head as thinking just color into maybe XXXX. how markets little on end you're

investments Now, to I very we being to the is as -- transition. and that's really strong, mentioned, are infrastructure the XXXX, continue It's with going I and change be head energy into because we made. initially think as the think of that

trends those all we favorable. So, of are believe

and we we so has a strong or particularly As industrial, industrial, our there's that labor that backlog many at And have the everyone look of just business. a Enclosures focus challenges. constraints fact really on and had in automation lot there, see we reassuring

our we think year with there. so, believe next some And strength we into we'll backlogs, going have

certainly, slower. on seen residential, think I residential the piece we've a is commercial and big our and not that portfolio of

a side, look to data in you do at related business commercial solutions, our have we what in the is lot & On Fastening power Electrical -- of of where we our infrastructure. most commercial if and the

think drives looking for So hotel of anytime have outlets to are it you the and of solutions. content, like room that you and more things retrofitting building different a all plugs or and that, more the our

to And fuels, labor So savings, plays We contractor we market, also new finally, think in our business. that seen biofuels, keep continued to of quote come some energy in labor cetera. dependency, energy, just And we've are see products to strength we et the shortage project strength. out continue given that and innovating. because good that there, Management we'll switch then and with activity the the well our clean Thermal

Thanks good. sounds All guys.

Thank you.

Please comes question next ahead. The go from Julian Mitchell from Barclays.

morning. good Hi,

Good morning.

focus a morning. to Good the the near bit. wanted Maybe I term little switch just to

your just the down two it. sales mid sequentially guide think parts guide, So your they're guess and that, for One normally is in are implies I flattish digit -- to fourth revenue I QX. quarter single

volume be shipping headwind, a bit else So an that but maybe QX. very just like in how I And is pricing you FX there's tailwind something anything sales, that stepping is growth much sequential we look to on understand down you going big QX, I organic like frame of there when get aware should or in days from then, said year-on-year at of? think so

Okay. Good.

just start, thought first with the about me we quarter. Let Julian, how

-- there's so the a distribution would demand short And at really were our positions. but knowing their as views the at don't us positions how with that may inventory orders on do of modify our one out while of that know, that significant what for And And we channel is one remember, is our being this just we but still not they as our fourth and our partners our quarter. of there tend our QX. we is things to of with strong, cautious very output in was the also portion we We their strong and looked looked channel business cautious partners inventory thinking through cycle. is go backlog,

it currency, I piece think you then that add it's terms said of that to maybe the that what currency mean, is a side and other of sequential thing Beth is, flagged And in paying the downtick. to on I

from QX. other we And includes it's impact that prepared remarks, standpoint, of I volume both in price, a XX%, our is having but X% to XX% oversized I double-digit not said of going growth that then, saw kind piece volume. still Obviously, we're of mind think more And to on expectation in overall the to as and price. a It's where and we bit Russia. year an skewed be lapping volume that keep price. ago mean double-digit

is price down a of of else. than a factor stepped what that's ago on So we're more anything lapping year

just very very a That's And Thank quick follow up. helpful. you.

the are and the flattish, we leads down? margins, Enclosures maybe increase, thinking On of quarter fourth EFS thermal year-on-year then sort

mean, would than guess margin what in and another driver here's say. we expect would good strength from strong productivity. be a to of of perspective, market performance normal would what else. see Well, we a significantly a bit to to expect ago, really of that that little the margin margin I EFS platinum I in would incrementals. performance more I to than Enclosures do but sequential of function on price in the of then, and kind modest a QX, of based saw better year-on-year QX that margin really look I more and anything terms it downtick We Yeah. expect And year we costs it's more improvement a of thermal. QX it ago like largest performance year characterize ROS, this, better and

Thank you. Great.

Deane The Please ahead. Dray Markets. comes next from question Capital go from RBC

everyone. morning Good you. Thank

Good morning.

with here. performance start geographies. I impressive Maybe Hey,

at from third for called about shutdown. numbers -- China, For not quarter you're expecting that activity. similarly for Would quarter, us? And size you are just your potential given but to headline the in margin quote today fourth the all recoup it seeing can you the that changes the COVID anything slowdown, and the out then Europe, here anxiety in you

Okay.

our European The to business. So -- us was be Russia, one that's strong. Europe starting with continued area, performance largely right? And mentioned Management a Europe, as we course, is negative Thermal impact where our just -- in of for

mid that for China's to So well at and in that we terms overall was look perform continues But our China, digits the you portfolio. saw. only us. remember When impact otherwise of Europe single

quarter And significant. some and QX Management COVID was that see vary to going working on there we're not lockdowns timing there. and and so I these were in some it's really and improved So plant just impacted, Thermal also performance QX, we're region expect by our recover to the from our we and impacted business, it's in

So, I progress think that through we're going turnaround the we to see as quarter.

Sarah, it Great. the for related the the surgeon was this like the cash and ongoing capital on to demands working you Thank for tweaked free it side. And then, higher down sounds -- for strength [ph] you. flow year industrial on and all

on chain, expectation you quarter? all anything supply an work You are chain improved so since that be carrying supply and that you it didn't down buffer the has out call inventory? last there would Is to still able

Yeah.

would is really we what of see And flow a is still the strong in pointing end of it chain. function conversion. demand guide amidst quarter, our is the to range the of supply low XX% So a say of that I terms free cash that guided that challenging in previously simply usually

QX. higher our service these managing challenging. flat and modestly we actually AR And QX that higher was will are it's Inventory continue inventory I be better, customers. surgically to think the but from actually capital. sales same at time, it in to with still we to gradually invest see working we getting

conversion our over terms of that changes I of getting XXX%. the in So long-term, to think nothing cash goals

this demand we And going at see I with chain, as continue to capital XXX%, in prior the track XXXX. a being a We this to year strong strong opportunity. have of against supply into including record working to challenging think converting big

is members I of kind it asked we're we You amidst we're there's taking here volume started getting half in availability, than factories the the our of output. clearly to what still door time kind team would a again, Material continues would what say, chain the than those what into year in terms the year. members really see of that strong saw better in ago. team first be and lapping on get still of But we front. But supply to trained productive in still challenged. DCs from where pockets, we improvements of where the first onboard I better half, say

as surgical we're here. and the managing So, focused where we all how very capital be having in of and very to we're terms this balance working factors

you. Thank helpful. real That's

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

morning. you. Thank Good

morning. Good

Morning.

Yeah.

year. assuming to And Enclosures, sort the seeing labor would of second normalized it's would margin And for teens some to the sounds that be would the there's in more go as that say? going just issue, So labor XXXX, think if fair here do is to full at like the a recession, is through part supply a It we wondering be, into issue path -- of I'm obviously nice no into productivity more high year than then momentum when so you in Enclosures? we're obviously, Enclosures? chain, expect you a

backlog yet just we areas see. prudent the earlier color strong that see the not any into momentum think, giving XXXX. strategic with we the infrastructure So just we're to for Enclosures, at our we say, And even more a think electronics, I would forward as operations comes still would trends got labor going particularly that expanding And our go strong say but Mexico for in. on looking really looking XXXX. that in also at and both the just very demand and way has our Enclosures, working for We're a challenge into including I in still it's And is of with, But I And and in capacity it but challenging, materials, when is investing some yes, we electrification expanded through we've we're I -- some let many as challenge. we remarks, mentioned think in start we're that's prepared that. my improving, industrial me us Enclosures. of plants, been just

assuming some more if Okay. there. good size outlook the maybe thermal, I'm obviously And pretty code project the come Russia, wondering, from then in could but That's to great. there interested activity the outlook orders, you to just than you impact and there's that. and looks But

more And just just getting longer cycle maybe the color does touch perhaps a side? up, pipelines, Europe. in terms news you impact then us but on We're of give et nVent So that on region? How blown in a what bit lot of around partners see cetera. seeing

us activity that continuing. six most We've We've quarters was the area clean there. orders say, so Well in things is in we're us we with a and starting energy areas. we're project both chemicals Europe in strong Thermal that very, North talked very MRO. think North been -- our is of yes. the What has impacted for performed energy in well seeing And industrial Russia, I that's seen always But we and and What would impacted very by -- and has on strong. And is yeah, in go Management Russia. strong. business like so revenue orders we've America lot for transition being and in that our -- very seeing some about focus carbon and is And said that another America growth a forward. business consecutive for both focus as the in biofuels recapture,

that globally dependency, demand strength. in to some of area resiliency, energy an and transition to energy year, into changes we'll caused think looking are sure and this So strategically but definitely hasn't we're energy making about, particular any with that really for the going I It you well-positioned at here. some And hasn't disruption us. respect see we that the issue, been serve next talked that

Beth. Thanks great. That's Yeah.

from Markets. Please Capital The ahead. Hammond go next question comes from KeyBanc Jeff

good Hey, morning.

Good morning.

Morning.

some So, it I And the chain issues be talking XXXX, how that big because and challenge. you a catch-up price getting supply just on wondering, labor is, productivity still cost to the back as of I'm productivity, better, seems but look into an go want just kind about? you opportunity you're is if can to of of seems like

this we've productivity Well, I will, equation, standpoint more you to plus that inflation. would offset than I start the mean, of -- from going towards is worked price right if

that I of we've well has in we think, improvement But modest Productivity mean, that headwind years. I would we so, saw supply QX a to of current the more continue the from think managed been environment, a gradually over expect given to And improve. couple some the last to QX. chain challenges. I of

to QX. expect into continue that We

I factories, on differently before of Beth terms something our think right timing we're when that. done that automation than back earlier. of what really in putting overall the ensuring normal? we've more kind in we've that say terms of of capacity in and training, terms onboarding, that in would level environment will in got investments on as a alluded of can't of chain What have say is I view to we I supply doing that particular get focused to

we're productivity an gradually along with that to overall lot environment perspective. there's see a to improve that that looking from doing improvement, So, drive just

XQ Okay. clear on guide. be Great. to And the then just

you some in expectation near-term? that building of you're any Are So, actually destocking. for evidence distributor seeing

I'd that all, say distributors and our always we of that a the And throughput, right? not at was look caution demand first -- very demand right, It the knowing, that's had, our strong. we and

that. I with in So seen line we're order very generally pleased with have we've been QX. what And think patterns in

just for point, us you we there. So, look don't So, approach just it's But as December, think know, view fine. again, good have right? to cautious a to things this I

should Enclosures, eye been input particularly lower about material price in we're input But some on the been thinking magnitude durability Yeah. just inflation some on side. there's you're holding -- how then of And persist? seeing pretty the has wondering, of just of costs come Absolutely. popping. kind of -- costs these And I'm

other the even keep we've got material areas. price mind if see think to thing easing, is we in many inflation I so some in that

labor. inflation have in We

We have inflation in freight.

inflation have energy costs. in We

I we go as year. mentioned, to as price/cost into an inflationary think that environment next we is balance, going on and equation next So, year manage to we're continue

much. Okay. Thanks so

you. Thank

Jeff Research. question Sprague Vertical The ahead. go next from Please comes from

Good Thanks. morning everyone.

Good morning.

-- in kind the if equation? wondering then productivity of fighting headwind if a productivity we of investment supply unpack just some us? much you're a that in interested just Good million more kind to I back of for Hey, just sort little of $XX can discussion follow-up. I've inflation against a disruptions. bit was of of how particular, I'm these could a of have you slide got five, morning. And And But

Yeah.

that be that inflationary roughly is $XX on of got going $XX million, So, you've pressures. million to

productivity. million, investing investment call I you million is of and means we So there, it I Maybe can in SG&A and line. the and up higher dollars Jeff, shows on out $XX couple that in that things to sales R&D, investments related marketing, would side, that roughly terms you've got mean P&L. see $XX a are digital on of the

so our in year-over-year we And already you're contribution, we're productivity. the making doing and around on believe that to that and what customers a product investment we're returns the terms seeing that that's drive significant service digital capabilities of new to

a that I would seeing on that different side. think things that supply that's And we're chain just there. balance volume going of with not we of would productivity efficiencies expect be to that is be, then, we're -- couple seeing. the leverage other piece of the the One yet that

to productive our put getting from better just here and continue about and marginally that's we in in to some year progress additional the as would also get and we've to as expect as we the capacity. get factories QX next that QX better think of talked I into more quarters

here just demand. sit to continue have strong we we today, As

that as we with flexing to some drive supply unlike we're factories, what coupled very what would And make And it. our our improving we demand. consistently that just that's greater to we service efficiencies us engaging our we that for has a investments, chain, means automation in as for-region put and as think more that outside in-region, a as a leveraging the backdrop normally component footprint, as progress. to we cost again, in improve those terms do so of in going maybe approach. more some see sourcing But of help we gradually capacity with of quarters We're global capacity,

pace? previously mostly We're organic a need You're of right? out and bump it's brick-and-mortar on like we low it's volume posting of capacity. not the to what for lot just labor, of thinking. companies, of lot actually there. lot companies end continue to than sounds the question capital better but this And Do of grow then, growth here got at were significant cover, a actually your you seeing working. spending of both growth a is but And on you've a kind volume, a in price It you little

maybe wondering in increase a more out the of kind you without So, just much your spending? can material footprint of existing how capital squeeze

the expansion. We've couple make been percentage said CapEx investments and to for we've that's that, able consistently about years, last able manage think a our and fairly spending true as XXXX. Having of we overall, to always think I how been

So, factory year, expanded in this a we in Thailand.

of these we more we As look we can at Jeff, manage growth as to we're that that do add maybe need that give strengthen some year, volume within today. that we going next regional some plans as for we're constraining to expand have. as But well to current going our believe us that growth, us Mexico. enables believe some areas -- capacity we do investment to is into in we is to that what infrastructure And our strategy lines

nit. And maybe just one little

-- so there in the in giving you standpoint. on Just like chemical sure surprised on it strength of every time? that I kind lost that's earnings company going something chemicals this it's business unusual that that particular I'm world an from about that's or point are imploding is mean, strong. is unique in at isn't

I I say unique there, there's particular. that know, that would Jeff, anything in don't

of -- fuels biofuels One of more conversion some or They us. these a isn't as of to about require clean -- petrochemical we've to for maintenance attempted some allow things the flow. talked maintain to temperature

So, I for supporting that's from And been us, growth. in it our content some some requires see cases, more example. of

and thing our So area just have been be played that I an point capabilities But us, to. maybe well. for value propositions the would one where it's could our just

Great. Thank you.

Instructions] Scott from go comes [Operator Graham next ahead. question Loop. The from Please

on outstanding quarter. congratulations really Good morning Hi. just Yeah. and an

Scott. Thank you,

goes little Obviously, drill I big for rates maybe pretty guys. we wanted which secular bit whole higher to get you market your impact efficiency commercial buildings is fix commercial in say into some and environment, thing, thought and just improving market, into through a of saying. though, rate slows, more that let's building a market down turns of to all next perhaps a year. higher loan without wondering, smart whether I'm if break maybe activity you that the further the

that? through thought You

Yeah. I mean, right. that's I think

our starting that really right we're think, EFS and certainly, view I we types I And different lot the driving offerings. warehouses, particularly not And with you they on is -- mean, would is see of portfolio, with the terms you've resi, we're our do products the data play. and where of in that infrastructure our labor side, so our with broad-based power flow. cetera, see centers, in see a we're seen solutions rates. homebuilders we buildings, it what of we now. but support expect interest there Again, to And et also, saving and commercial You data

is content the think So, we key.

But as are institutional it So, we certainly, savings believe outperform still just because have. new keep extended value in it we and from we commercial is that grow has medical with to XXXX. up will products our can the going be or of that propositions to been coming view across to is -- where or manage slow that going that we're labor

pause. move seems Okay. least kind Happy to hear because right of you at contemplate to like that, it the it has

in of to but pricing. was wanted very a also the The cadence strong, quarter, the includes about of be to other fair orders obviously I of ask some sort you continues amount it pricing,

order two the was sort cadence up well? volumes month possible? really October, year-over-year orders, just into I'm each of what And things wondering on the are and as if So,

one in think we mind at thing I quarter, say the would and period I keep holiday as just is Well, look Europe. in big a the August that

we right? we've consistent. I fourth quarter don't there So, into fairly I fairly think overall, the quarter, was was any mean, it's the look as And gone at consistent, -- it when

growth. one and been any volume of trend it hasn't particular there price So, And, seeing. is way or that course, order another, we're both just strong

that. Thank Good to Appreciate you. it. hear

Thank you.

next go from The comes King. ahead. David CL from question Please Silver

Yeah. Hi. morning. Thank Good you.

morning. Good

focus down list I'm about a few take questions interested will I this potential way But vitality the first question of more at couple and pretty I you of new And thoughts last years, you've or those kind product here. seconds. a of and growing, product point, my you just set company at think internal are out, But guess new targets the sales. sharpening to verticals. growth pretty in healthy around high been going But broadly your your I'm -- clip has XX. pointed as on index -- your Yeah. introductions, for speaking,

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our to So, things it's labor slower. into products on cooling, And go it's let's is electrification I creating that need sustainability. changes don't value whether efficiency. approach, next think and energy we we're the year say spoke and are for when savings, liquid I because or basing our new whether which

to going we're think products of strong see I overall continue a impact growth. our on new to

looking recent I'm at guess, I acquisitions. question, XX where your corner, next you many list this And Great. Okay. of lower slide in the right-hand

in M&A may I percentage look sources. points there. inorganic quarter just there's are lagging, growth would Thank you. sized little I company that positive expectations? But if would at well. above So, in or of particular, you I X your punching on comment acquisitions been the you surprise helpful one was you this -- of as relative was or maybe of at that I When wondering to your are a I'm thinking two And weight, there's which or those mean, be average it if below? I bit different all kind maybe say proportionately. list, positively which understand contributing believe are from above or came have think that companies a maybe And

a new We've driven was had had David, at these been comment. that growth. acquisitions said rate to of of a That said products year-to-date. clarify, three-point we XX% growing points just Well, three have

overall, nVent XX%. And recall, has at so, grown

So, overall are nVent our outperforming rate. our acquisitions all growth

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think And automation. focused there. global So, we're growth and growth about industrial on seeing we Eldon

place. I use how So, a that focus we've growth know into -- acquisitions, And models the they verticals, outperformed that and show channel just we -- we done our them in integrate vertical put them our successful through approach. have really to are all high all make and on as that to when business

my that -- I'm insight. didn't got clarifying. was see a I But anyway, Thank Appreciate up. The little quite there. you. add for mistake. Thank confused the Okay. numbers you

you. Thank

our End Beth any closing I the turn to for Q&A concludes back question-and-answer to of over remarks. would Wozniak like This session. conference

We're you all proud have you of the we joining delivered. today. performance very us for thank us outstanding Thank and

for strategy We will continue shareholders. to well-positioned people, company, make execute is trends in on We to and nVent top our believe electrification a for the electrical and delivering nVent our high customers, our our sustainability. performance tier,

Our future This concludes joining us. is bright. for Thanks again call. the

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

now disconnect. may You