nVent Electric (NVT) 28 Apr 232023 Q1 Earnings call transcript

Good morning, everyone, and welcome to the nVent Electric First Quarter 2023 Earnings Conference Call. [Operator Instructions].

And at this time, I'd like to turn the floor over to Tony Riter, Vice President of Investor Relations. Sir, please go ahead.

Thank you, and welcome to nVent's First Quarter 2023 Earnings Call.

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

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

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

turn please and turn call to X, that, With now Beth. over I the to will Slide

be Tony, to everyone. the had strong to and morning, today first you results. It's good a start share great We year. you, quarter to Thank our with

high-growth to sales, expansion delivered and strategy our continue had verticals, margin year-over-year adjusted free We expansion. impressive X% with We EPS geographic robust new flow. with record focus our and growing on products quarter advance We first up cash XX%.

double sales with the segment Our trends Fastening of grew digits Enclosures Electrical and & Everything. Electrification the in

with start the raising year guidance. ECM portfolio adjusted the to sales we're are announcement excited protect strong our to addition, acquire to pleased Overall, are and expand Industries. with and full EPS our and connect year we In the

for our a to summary on performance. of Now quarter Slide first X

X% up were verticals with organically sales all growing. quarter First

growth, launched and million grew basis compared We're an XX% $XX income usage a we approximately on we million products ago. of new to Adjusted with a the in another for flow EPS Segment XX%, free track year-over-year points. year points up $X impressive year. and XX XXX grew strong products quarter. cash our sales return on New contributed X sales generated to

the won solutions, With contract have our large liquid to our semiconductor with in recently new data we their portfolio. for a Electrification we system focus continue a In significant cooling center. a data of Everything, on for wins company

We also a center for with provider. management hyperscale won multimillion a dollar contract modular data solution cable

for clean capture. On e-mobility, connections our been continue EV contracts And We leader carbon reliability specified ERIFLEX the transition, heat to with fuels won European solutions and in recently several optimization. our LNG, and by in wins have systems, OEM we multimillion-dollar energy power chargers. have providing tracing for

Industrial key quarter. including verticals, mid-teens, grew commercial growth. high XX%. with Infrastructure power data low organically broad-based the utilities way grew and up at all Looking and over solutions up digits residential led single up performed Energy in finally, well, XX% And single growing digits. our the mid-teens. grew

Turning sales to by organic geography.

China. high in Asia continue North primarily due up in slow a Pacific see double grew to declined digits growth broad-based Europe digits. and We to low recovery single America,

order QX year-over-year. the year a in XX% flat were in we orders had Lastly, Recall, quarter. growth ago first

said we orders our were As positive through Investor February. at Day,

from with orders ago. comparison declined March monthly a year toughest However, our

destocking distribution with chains. adjusting In addition, inventories their partners our and were improved supply

into We expect continue this to QX.

Importantly, and strong. remains sell-through customer distributor demand

to start full our raising are we year reflecting the year. ahead, guidance, Looking our strong

drive demand. and We expect digitalization electrification, to sustainability

the energy including and solutions, industrial, expect in data onshoring and power of energy renewables. continued in the infrastructure, with trends we automation transition. strength and In with Specifically, utilities

to We expect commercial resi slow.

our perform how our I'm impressive macroeconomic outlook we nVent and we is overall, While to the continue results. of remain cautious environment, deliver positive, due and to proud team

and some detail our strong call updated go over quarter We for results Sara, to outlook turn now another our will I are for year. XXXX. the for Sara ahead. on first please track on

Thank you, Beth.

first Let's with results. begin our quarter Slide on X

to are to free cash and margin outstanding with flow. robust strong performance start the year a We off

Sales up modestly on X XX% and to $XXX of year relative top to of million points compared were were ago, organically. or Volumes up a year last year to price X% last added growth. X%

Foreign was headwind. exchange X-point a

quarter sales expectations. $XXX Better million, the income Price impact the up offset and basis than positive more First productivity points versus price-cost segment from XX%, of XX%. $XX was inflation XXX our drove roughly up on Return was year-over-year. million. outperformance

productivity in resulting improve, to continued chain sequential year-over-year improvement. supply Our and

$XX CapEx a year flow ago, investments was of This also XX% EPS and our and $X significant above for strong reflecting adjusted guidance the includes compared free high $X.XX, capacity. range. of in of up to our operational growth usage end robust the cash QX million quarter generated a We million performance.

with Now trends both contributor to $XXX standout X discussion turn strength first Starting data continued up segment our was contributing. up of verticals increased Slide and organically, led, all followed digits, Geographically, by America in Europe. with price also with quarter by of Infrastructure solutions for with industrial-led, XX% growing, Sales broad-based Sales automation. growth continued performance. please North XX%. double was in a million Enclosures. volume driven a

driven quarter $XX income increased by was strong sales segment XX.X% million, first an impressive basis up on XXX Enclosures points execution. Return XX%. of year-over-year,

simplification improvements We from also margin efforts. continue to see our

ramp our this investing to half. solutions are in capacity and and business added second of expansion data and QX in expect We

commercial relative million, execution. Fastening. strong in utilities of and notable Return segment up income year sales strength and & XX% growth infrastructure $XX XXX by was XX.X%, $XXX basis America strong on over and to with North was led a All solutions. with & Electrical points grew up data price. to million last by increased XX%. Geographically, XX% on sales power Electrical organically Moving Europe. up up driven verticals Fastening modestly was Sales organically,

declined flat negative. projects digits biofuels, demand Management. in of down was was was down growth, Geographically, to in growth were X%. both residential and Management primarily and solid down Price Thermal million volumes declines Return digits. hydrogen XX a of pipeline double and on of transition Industrial strong. energy by million to Turning capture. residential mix. organically with infrastructure X remained points organically. of basis America $XX grew XX.X% LNG, sales North led MRO to contributed segment Sales were year-over-year, due while with $XXX Energy China. Thermal points double Commercial with carbon income

pricing for On will our existing through week, combination be The Slide XX-year hand hand a new This quarter a titled notes available prepayable ECM term Cash cash million on pending Flow, we announced revolver. million on cash and Industries $XXX $XXX of acquisition, our including facility. our balance X, with Balance on Sheet million ended and funded senior $XXX of million revolver. loan and the financing the $XXX of we and

believe So X, with QX net debt us exited in growth, now return deliver adjusted cash our EBITDA our balance turning We basis, the ratio and a cash returns. be forecast will On generation EBITDA great X.Xx our ECM allocation puts priorities. a to robust capital to at to net of outline Slide X.Xx. a shareholders forma to We adjusted closing debt acquisition. the sheet we to in to pro great position and where to invest we continue of

targeted we share shareholders repurchases. including plan range million within In XX quarter, months. to million returned delever and of With be we the our generation, quickly dividends $XX to next cash strong to our the X.Xx of XX within approximately flow X to and $XX

Moving to Slide X.

guidance, strong reflecting our are full our We raising performance. year

to expect strong X%. start to expect in original reflects to to the range to $X.XX continue $X.XX, XX% now our guidance better This of We the reflect grow and the adjusted execution price-cost versus We sales be to to organic X% also in XX% up the new continues $X.XX. second of EPS $X.XX to It uncertainties guidance solid year, the half. productivity. to

yet the our impact of to does guidance note It's ECM include not important that Industries.

adjusted synergies $XX margins. XX% we to margins benefits We be to EBITDA by ECM's with to X overall accretive starting of expect in year cost $XX and expect million XXXX. of nVent million

We continue the excluding costs. price and to onetime to EPS to deal deal-related XXXX accounting be purchase in adjusted accretive expect

modeling assumptions note. A to couple of

we a rate expect to XX.X%. be headwind. neutral to First, now foreign expected tax versus our exchange is sales X-point to a And have previous second, impact approximately

second be X% Looking on Slide to at up our sales X%. XX, outlook organic we expect quarter to

and distribution to inventories partners improved expect with supply to continue chains. We adjust their our destock

EPS to at the $X.XX midpoint between relative year. to be which reflects last XX% adjusted growth and expect $X.XX, We

cash I'm pleased up, Wrapping and are year. I We robust will positioned call delivered flow our well This for with another great margins, now the strong Beth. back first remarks, quarter performance. and over to turn my concludes

Thank you, Sara.

a new a we XX. company, place in working. that put Slide Since has strategy been we to Turning became

approximately last $XXX elements, of success Industries. X than Each deal new X high-growth to weighted will on believe value exceeded We expansion cost We've an within the agreement with on global focusing continue capital great metric. revenue announced We done, create and the products, financial deal we we've acquisitions totaling nVent. the execute primary growing with and acquisitions. of to of great faster years acquire year X, Industries. We ECM average ECM core recently closing had our overall million verticals,

extend fit add tremendous Fastening solutions It growth Slide to our Turning Electrical complementary a potential. grounding instruments solutions management great and complements connection electrical and & with our labor-saving will nVent's portfolio. within our will to XX. portfolio is segment. ECM strategic ECM with testing offerings tools cable power and

of solutions, such Everything power data ECM further verticals the and addition, renewables. In utilities, commercial with Electrification centers positions nVent in as high-growth

portfolio, complementary will brand million strong nVent. accretive customer add ECM's expected relationships $XXX and be be over and believe long-standing nVent. margin to ECM channel great we a sales is Overall, with combination and to in

integration a dedicated the transaction detailed We to close QX expect with and working team. plan are our in

of the on potential from We ECM nVent. combined have look customers to the partners. employees, team forward the lot welcoming received to and We companies a positive of comments

to digitalization well to of have our off Everything, We're sustainability with strong XX. trends. guidance. full positioned year start and Slide and year increased We're on up Wrapping the a the Electrification

team's to to I'm very add of performance. excited are We proud ECM the our Industries portfolio.

is Our bright. future

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

[Operator Instructions]. And we from question have Mitchell Julian Barclays. from a

-- said aggregate, in to and tough noteworthy the geographies -- orders destocking. but I seen for in a and all in markets I end for there wondered color April? more start sort example? how think context it's you little March, on quarter tied the of year-on-year anything a detail, that's weighed that month with some orders were know you March could in if first bit does month I with you've at on compare any I flattish just largely just and anything give QX of to feeble comps the wanted this or off

Yes.

to as remarks, tough with a I we indications getting But orders really comp had starting felt distribution several started supply I the down to their over result, were last them in our said from that some lead a had in of of talk times. months levels. also several our as partners. chain March. So we they bring opportunity inventory very in prepared And they the confident

looked tough it look partners. March, into it that's orders, both when but area February, like to at for day a down. that April, is a I I say would we slow, And when basis, for orders we comp. I would China. -- -- in was mean, in it say one very go see continuing been on big I So our had as we're had much also I APAC And really is and distribution through as mentioned per us

then... And very helpful. That's

But orders want and even we our from sell-through good though demand see point down, that good customers. product of I end our make Julian, the to are

rightsizing the distribution of through So it's channels, seeing the their inventory. what just largely we're

That's follow-up year And top trying kind my about down. just the very just of helpful. think would be to then

So $X.XX number. quarter in guide high your seems embed this you're your -- of per sort to

in year a and there were that through think, in I QX half. you at there QX, are sort in full staying guide the you QX, $X.XX, $X.XX think that back the guided I of embeds quarter, for

the way of Just I'm EPS between having and QX split similar QX the about sequentially. wondered right thinking if it for sort

in tend quarter And sort industrial or things for to long. up sort also, general the sales after unusual too down same have and and it's break before of -- to of nVent of it's quarter, earnings companies kind

that perspectives your of respect. environment sort on wondered the just So in

and to wanted if I it see You've move moving sideways correct that's got your you in sort earnings. sales that. of after sequential and check how

Yes.

So Julian, this one. is take Sara. that I'll

say was half the EPS to with that consistent year I the and normal fair it's for perspective we was say half. back But more we this the would I would typically a first coming slightly a seasonality half nVent, from versus first February gave that say in see that into half. versus guidance the EPS second would more bit in for assumptions our little So

point to part the things of we those that a a carryover we here we out would price and of that in cost out, in lot more And first we here half couple XXXX. due took to I pointed the expect would think continue pricing actions the one, in be, positive of

and as simply uncertainties. the think into for. I would second entered the think be I would just And piece half, year characterize it second the visibility the I being good backlog the macro just we

nothing has we in at sit really guidance where So that from to from were where in February changed standpoint our here today. we

early But the And we'll that back other and our how the it's or year, half it just nothing takes unfolds. and more we're think the in that positive that's of been all I balancing relatively to view year see puts smaller to meaningfully is unchanged. have that negative. remain there's

from Dray does question Capital come next Deane from RBC our Markets. And

You me hear this okay, time?

We Yes. can.

Yes.

month on start tear last I the Tony's to his Analyst had the with such been chance to a want also Meeting, you just have ECM positive Well, pre-announcement, right. All think Good. don't breath. guys the off a -- between for right. and catch All

right. All

question of can -- is obvious. I have give how But how you move? That's said was was out price? know Any break particular first could So you anything you lifts, just kind that basis execution. that kind it some much XXX And sustainable on just onetime us margins, for exaggerated would further us points. up of maybe Enclosures that? is color

Yes.

we to So of performance, to pleased terms out I nothing onetime in we're the would with nature. that QX. in I see would say Deane, of really say, kind Enclosures and very margin call in began

a that remember that, points. of XX from really business and just equation, working year-over-year ramping that terms volume they cost slower in and perspective, of price start a think kind productivity up hard, had like I were

last of able lot a involved to to a year big chain for be challenges. supply against there's of So backdrop our deliver costs customers

pleased in see the price just would QX, volume X to X points, I was really points. say of over So their context and

and So they a had nice cost. both contribution price of

that point out And at a other expected that than bit be the I is would sure, the have would probably that for for saw the we thing on nVent. what coming year. a improve think rate broadly we across better would I is productivity into side productivity. of But Enclosures

gradual We supply are market, We calling always for more labor see see better overall. we maybe chain but getting improvement. tight very a do a still it

productivity. equation and to performance some has a margin really better that So price-cost it good

half, online. XX.X% out that for reasons, QX new is In terms talked in of how one we investments of capacity it return on see increase my are the think expecting easing about absolute pointed a there. I We've That some a back a coming and great prepared remarks, bit. the about we in we different to sales couple which of

also has but Some some well. to of data as business building that solutions out that, pay-go our expense

will and other into wage the inflation broadly half. our numbers is think I here QX thing just the more back drop into

seeing across the shorter is supply and the sector. part just just are much then times and you're that is our stock there's regarding right. here normalization comment destocking not as on on seeing buffer this All There's -- we're thought all And the to And it. want of lead Beth's of Got follow the so up needed. chain. I getting this

kind take that remained because the through of strong. has dynamics Just sell-through us said you there also the

from you do viewed any How So just distributors really you helpful. that can the of negative. destocking should But kind as be think kind long -- of quantify And runs? be this? a not would it color

Okay. really think that. you said Deane, I it is it,

in it need shape. their partners the to but don't their carry As in well, have from much because chain this they the is have Therefore, suppliers we've other supply inventory many much they year, better seen confidence distribution have and including we've the come as ourselves suppliers, our of it into seen as us.

reduce And on they lead That to so their our were they're right? inventory. simply times, counting taking actions

that where supply half get QX. that's of our a And back going inventory with guide for the they better that to in we them uncertainties, think just position we're our the QX. that started And We'll many the really had macro the their year see is reflected in of that QX, into to or QX chain. have that to in that's confident And but in conversation with see I've we're I performance. feeling through see is the wanted to seeing and

exactly I That's Great. for. what was looking

them, I demand. to just results And made the we're pleased sell-through Julian point our look as really we it's Yes. customer when at is but through is, their sales our of what with strong and

Joe from next Goldman from Sachs. question our comes And Ritchie

I So harp EFS Like you one helpful. the you're it any have in give portfolio? it on Is color and to where are curious, seeing be you seeing hate can across I'm destocking, follow-up. other mostly broad-based but on it the do thermal? I would

Yes.

broad-based. segment just think about generally see I chain. think as our Enclosures in it's We overall very supply the you even it

when So were they get customers. just distributors where and much inventory at to serve inventory look ago, they these trying carrying could as as they're to a year

see entire So do really it our across portfolio. we

whether Beth. of least as And incredibly like It modestly dynamics price seems margins a XX% I cost turned it it. for curious, helpful, to rest off EFS, year, you're Got through the I'm started just the additional pricing sense -- I strongly. we about here. putting negative. costs guess, for doesn't like right? you're through to You're price trying progress as the get from anticipating That's now. up think close I'm -- year probably and clearly, putting volumes the at

and manage view the the inflation. we that last we've have course year from the then years. equation of it continue the and of We of And standpoint going positive continue we're to this came managing saw price here start for right, to should cost into as year. productivity to turn with probably do couple the over going vigilant, I done Joe, Well, as to offset that in we're that QX to continue view to price that be

to what a embedded I our had I X carryover would realization pricing the and just of perspective that's points. actions. had as We and stay with sort to would say, strong, perspective points anticipated X from of as in see a we positive. closer from in guide, say price-cost front-footed those probably pricing productivity to to well for a that to be we And pricing us overall be roughly allowing roll

kind we of in into spread course kind the think from there and of price-cost through expect that would I the maybe year, to that see narrow half. question your how back we of of the sequentially terms then QX flow QX in

really more that as of begin actions we that's year. equation narrowing of So year the we would really resulting lap -- then of contribution to go those in ago, a price-cost that expect that of pricing to as we course through just and a of ease price some the

And Sprague Research. from our next comes question Jeff from Vertical

ECM. come on Nice that easily about just can the up give I months in pending on to the in sense think of close the an don't is kind should digesting a on I it. know the how accretion $X.XX of annualized when if year? but much if of X of reasonable half way sub wonder with could I to basis, you're $X.XX first quick us we year you here a expect

us with be our So go just reasonable up expect? to none maybe would Maybe models here. so could you frame crazy what of

million things X But high, the after that about the is close. half financing details roughly interest have put say more nVent. you is, to with of feel couple this Continue number. the see a to we'll in roughly week, would have bit impact still to that point rate probably like right that that guess Yes. Jeff. we the $XX taxes we interest all think of one, a here place probably I we is give I

the color rate sense of context won't a the in synergies, to from in largely think to year that that do the cost drop there. investments, the maybe makes million more that I around in kind million going give of side a run here. think that a to first the X, we well we're more begin going bit I out that the until because $XX it investments of expect $XX gate bit from make in equation months as the XXXX XX we're to R&D the of digital as

think we'll synergies of when So there's that to investments order in. synergies drop are going those achieve to some make that we ahead need cost some be of to in those

a last QX, just make QX lot that is I bit there. EFS seasonality our the just a lighter overall side. on that -- think I other point the of -- sort business the maybe the looks would seasonality, like seasonality of

thing, maybe can the I'm of just different comes is channel to sell-through of there in kind if the angle the in the And sell-through? you and of back is I terms, what speak kind guess sell-through, whole Okay. wondering of you but from destocking here. kind just strong looking a like this When volume quantify percentage actually

no X we've growth. So here a volume in of got of kind quarters row

is in your pump the the we it are is is it? if to comps, ability and point where through of Some volume are I a you've that. get we actually taking system system, the But got all the improving, more supply at So -- right? some spend, chain out have we maybe equation. do right? the good is of so price demand, in And some dollars crowding only demand price is have to continued in many volume, respects, people kind crowding volume but out respects, Or

little it's a question... guess in of that chess I bit So XD

-- start saying overall sales meaning are Yes, cases, is else. how better. the their at their by our things doing? distribution I doing to of it's in Canada saying wherever -- are U.S. sales look at would and are And are partners, look let performing we're their we're of our we what is And they're what their one matching at kind we through regional we revenue? reporting, what -- look is or performance, of whether What or always me they say, are levels the what generally, then we some in

distributor but more view And think is also exceeding is even expansion volume, there. growth when we're our we our through price some are look -- Clearly, it's than we or volume we always when maybe I sales cases. that, there's pleased see in at sales, seeing So matching our are that there there. that

from Coe comes question Research. from Nigel next our Wolfe And

So it here. like causing bit of destocking seems are a the comments concern

and And that So are did North for comment inventories channel is of outside your kind right could how sense this any this you long on now process America primarily for? where North continue America? products or

QX, It's in Yes. say but we remember, of it it's we started primarily And the through in expect in to this a our isn't And going to I -- in QX. it see and macro America. that think of half. largely primarily go think distribution, said, be I -- North and in see that there's lot we've think -- within I America. North didn't, products going and we're some X/X through we continue have QX. But to would what this this, back And to we'll uncertainties expect I we

Through QX.

Okay.

decline seems margins the quarter, XQ. XX in if and know yes, was just but Okay. you're drill it that. we're -- channel, the but like like thinking into a inventory versus heavy kind pretty I basis second by second through like play-by-play of I just then expense down doesn't about a pointing seems the there's appreciate feel And Julian the we quarter, it in amount went huge Corporate Yes, towards quarter, for it like XQ. the points of

So to points. about down normalizes basis that rate, the if run that's XX

a margin the versus quarter. point about point your like compressions So of it looks first

be any And secondly, my quarter? math consider of versus segment what would are So of right? that we of we at going First just the there normally when of seeing then to all, first margins First is them level see correct? color the higher all, cause kind down outside margins helpful. is

Yes.

back standpoint. think from if sequential of that probably have I do the similar So to But see broadly of of I higher if profile talked you that's inflation seasonality, that were right, on and similar X sales, where QX. wage investments perspective. here similar at given on about. and just return dropping we what in, we a as income flowing up sales kind I EPS uptick on sales a in the we from margin to that QX say in in clearly more kind some guide, One based that you'd think of think probably QX I the margin in will, sort be that things would sequential would the And that reflected you as well has

would And overall, think year-over-year just meaningful is to growth X% again, just and of But that EPS organic price the narrows. thing good an last I perspective say another I another X% at overall. cost from quarter growing

just Great. business of us remind in Residential just Can then thermal. headwinds you a residential? quick much And one. that how is

Yes.

So residential an X% is roughly roughly of level, to sales, XX% it's of translates the nVent that Thermal but so on sales, small.

Markets. question Our comes Jeff from KeyBanc from Capital next Hammond

commercial et around vertical, kind guess, standards, on tightening lending cetera. Just construction I some clearly, of heightened concerns this bank crisis,

are about the side? how in of potential particularly slowing you kind zero thinking in that for on you risk Just vertical, there, on as

Yes.

view the to at indicator And the stock that flow year when for look we some usually I at for as us out think same in everyone and months an we look does a our is slowing. ABI and like CADDY. our of see that's business that indices us, X

those we've do say distributors. as of So tied. has demand through destocking I be slowing. think is we -- But X seen expect of more it strong the would be still occurring, we some could for to the a been us

So the of slow. think, resi yes, expect the at we do we've again, called year and here to it, that commercial start I

of speak up you mentioned some to of backlog? backlog not And -- sure is? just are kind I'm to to where kind the then backlog. And Can Okay. of as you starting you catch things starting normalize,

Yes.

our to EFS at first So all, is, make comments a couple of be of all. doesn't business a I there would backlog tend business

we as working like that that. before, we've and things past dues backlog So in been down had

flow it that we've and So always turns. generally business said stock and is

we Enclosures, X more I backlog. In created built things, would of business, solutions as that's our more data say some

talk So continue as say with and we're solutions on the about on it solutions building But Enclosures, we're still we the XX%. industrial backlog I lot, working up down to we data some side, data a side. backlog would grow

on So we side I industrial backlog we're that down working increasing. Enclosures. say and see would And the

business, And to we're activity we're on would these in of Thermal and for transition of is lot energy Management flat -- say but that our what orders building that is seeing a down, about backlog I quoting some side flip projects. of that the

And think there of of is the so that very seeing positive a trends I growth. sign we're future that that

Instructions]. [Operator

comes from Loop. next Graham Our question Scott from

One other be Another the if you'd questions print. in is data maybe up but a only X that some kind see give knew is really I that behind segments? sustainable enough capture investing we to it, that to with good on the good there the little doing pricing the year? The new -- previously, this writing. is the is around And center have not Is destocking. customer Obviously, And in still there? XX%. are you're second

So over it turn I'll to you the color give let to on me start, and Sara pricing. then

about we're opportunities liquid with solutions, where cooling. believe So and of as is growth with are data one potential areas differentiated we we've key and we significant talked the seeing for us

days So a about a news lot these is artificial lot of the intelligence.

are some required, the power And chips of computing as you be they and the to need look liquid that cooled. at new

the run efficiency to requirement a play. it's an energy It's data so And center.

going, growth in we -- and talked and to And see technology we as a this like that point our where that shift and about our Day a result. we And cooling not us, was precision huge at that potential is trend. what front standpoint, was cooling more air liquid cooling so from from of is it Investor see just shift not

up And Scott, the to question. maybe just to pricing round

Thermal prepared price points. And we in X X at points. roughly we their had roughly remarks, about points. So our talked Electrical being XX Fastening, Enclosures was then &

And floor back gentlemen, ladies like any that, to I'd we'll today's to with the Wozniak closing session. be for turn question-and-answer remarks. and concluding over Beth

you Well, thank for quarter. proud the first today. joining of very the we delivered in us performance I'm

top-tier call. Thanks positioned We on a delivering sustainability and electrical for We customers, trends. nVent on Everything, well will and focus believe strategy. our us. our continue joining growth high-performance shareholders concludes digitalization for the again to executing This of employees the is for Electrification company,

you thank do call has today's Ladies a for We of day. presentation. the joining conference and Have great today's gentlemen, concluded. rest

disconnect. now may You