nVent Electric (NVT) 28 Jul 232023 Q2 Earnings call transcript

Good day and welcome to the nVent Electric Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mr. Tony Riter, Vice President of Investor Relations. Please go ahead, sir.

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

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

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

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

We for after remarks. questions our time will prepared have

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

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

on execute products, on high-growth acquisitions growth our verticals, to continue with We new and for strategy a focus geographic expansion.

adjusted quarter, In sales, an up EPS and XX%. delivered impressive the XX% we second up record

expansion acquisition flow. solutions and grounding electrical Our strong of connection our cash margin expanding include another execution Industries, power free robust portfolio. in for of ECM the resulted Highlights quarter quarter the and

Planet with strong sales are our around our highlighted which are first-half performance significant EPS very our year pleased ESG on our also We XXXX we published full adjusted People, and Products Overall, our guidance. goals and and raising pillars. report progress

summary infrastructure. verticals organically ago, second up led a by XX% our Now performance. top the in were on growing, for year with of quarter all X% quarter Sales Slide of X on to a

X launch to and launched the XX to added welcome approximately QX, to overall and year-over-year, products first grew XX%. income sales year. points with contributed in generated up was a for are return acquisition sales to ECM sales We Segment Adjusted XX% to on We've excited XX-plus full of new New ECM accretive In of products nVent. XXX track an flow, basis to year up half the points on We team the nVent XX% the on on and margins. growth. cash free X ago. XX% are EPS grew $XX million top points. closed impressive

on are another year. for strong We track

top a our am for This recent data at work providing forefront want nVent XX is and CIO center share of named data very results I some being our solutions awards Applications done the in I of proud recognition year a highlight this. to row. second nVent great for was provider to and and recognition team. the the by solutions companies transforming businesses. by

long-term community, award Large this Year. manufacturing the to boardrooms. enhance We is Award for innovative And Minneapolis inclusive Directors. DE&I Inclusion our contributions and our governance, Based and and of boards regional the value Diversity, of workplaces innovation of Corporate Paul mid-cap named to Journal on and power build XXXX Manufacturer recognizes National X the finalists Association excellence. award the by the and and leverage of the in XXXX Equity that by as This their category create forward-thinking the also were the economy X Business recognized performance, St. nVent

was up Industrial Solutions low also and over each commercial key and digits at grew across single way, Power growing digits and XX%, Looking in up quarter. and the grew the sales Utilities performance verticals, XX%. Infrastructure resi organic Data all our led including positive. double Energy

Turning to organic geography. sales by

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

Lastly, a year orders single organic in ago. QX growth high-teens top orders grew on digits low year-over-year of

we in supply improving inventories QX, saw with lead and times. distributors adjusting expected, As their chains

sell-through. we Importantly, to continue see positive distributor

ahead, for TEXA acquisition they announced Everything. am just both the position and which acquisition Looking we I ECM how excited the with of further nVent and Electrification

strong guidance, our We are the full acquisitions. raising of addition and year our reflecting first X our half

sustainability We demand. to digitalization drive expect and electrification,

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

We soft. continue commercial/resi expect to be to vertical the

results investments cooling am our Sara, very solutions, intelligence execute liquid XXXX. increase is the strong shareholders. back our nVent growth business. future proud and over demand ahead. and in artificial our to deliver our half year customers to Solutions I another I now to on turn leading call continue our We're and outlook Sara updated the we of for drive our how please quarter will us for driving team and year. for in for some Overall, on Lastly, track second go for detail Data the of to

robust Beth. cash free you, a flow. expansion had strong Thank We margin second quarter with and

ECM or to growth. review X contributed more points $XX in were up X to to volumes X% were of Slide million our X turn sales, and up XX% points. to second X million Sales relative points Let's added last than or organically. down results. quarter $XXX growth year, Price to

sales XX.X%, income segment basis million, XXX year-over-year. XX%. on points was was quarter up Second $XXX Return up

million. productivity roughly was in performance continued by inflation improvements the mix more costs, strong quarter. and Our the favorable Price price of offset from than driven $XX impact

free up the quarter ECM contribution $X.XX, high guidance up addition, XX%. on to was of our quarter a $X.XX and ECM end acquisition. return EPS included contributed for range. This growth adjusted million, the in CapEx capacity. XX% and and from sales. includes nVent overall QX We generated robust the of to This the $XX higher cash above In investments was accretive flow meaningfully

in also of X% organically, and Industrial for discussion in a price a performance. with both X of was automation. contributor, Slide year-over-year, $XXX Geographically, XX%. our Enclosures. high Enclosures segment impressive income driven basis increased up second price by on to solid quarter volume increased with million, contributing. points the turn digits. quarter by please strength XXX America led sales segment and continued an million second single Data up with Infrastructure Return of was led North $XX Now Sales Solutions. driven trends Starting XX.X% cost productivity.

OpEx business future second and our expanding orders up the growth. investments CapEx in are to Solutions in support half and our We and strong rapidly Data stepping

driven All verticals was by notable growth the increased strength North Solutions. XXX to America points Moving growth income Power low Fastening in Infrastructure Electrical was XX.X%, to Electrical double on grew, led was strong with favorable & ECM Commercial/resi basis grew digits. digits, mid-single contributing sales to segment and Utilities $XX was relative XX by million, XX%, up last up price. up led & X%, Sales and on $XXX Geographically, a million points of acquisition by Europe. Data sales. Fastening. with and cost price XX%. sales year Return mix. Organic

income with in Industrial X% backlog remains was negative. points partially demand X% Industrial and of down of single growth, declining up $XX segment Turning were flat Russia. execution. mid-single grew were basis and to points Notably, sales including digits Thermal Geographically, orders on in down up Thermal million return year-over-year volumes XX% on was declines wind Management North X was China digits, while million organically. to solid. decline sequentially. high both America energy. infrastructure by MRO sales commercial/resi was and driven Europe, Price of contributed our offset by and and Management; strong The $XXX were up XXX

X, added with in Cash our sheet to ECM approximately and Flow, $XXX million hand titled $XXX debt the to of our Slide Sheet On We balance we $XXX the ended cash Balance acquisition. and million in quarter revolver. on finance available on the million quarter

year we capital to first allocation Slide a cash with and X, balance shareholders cash more strong approximately Turning We to strong our get us We return position year, range including X.Xx. deliver to growing on we've generation priorities. XXX% our to growth, targeted continue track robust compared had to a to cash We outline in adjusted EBITDA cash the of the first ago. returned generation, are repurchases. invest X.Xx. $XX our and debt where great with sheet In free of in Xx flow share shareholders, QX we will net a quarter, to half to the believe With returns. exited we believe in than the to strong back flow puts million of to and ratio half dividends our

of growth XX% raising guidance half is the So EPS to XX% performance sales of our strong of are versus acquisitions. in range be to to year now reflecting X%. Reported the impact and Slide expected full we X% and sales first our adjusted moving guidance, reported prior to X;

organic expect to sales to X%. grow to continue X% We

$X.XX XX% guidance our range expect We Data adjusted $X.XX This acquisitions. Solutions now of $X.XX our strong versus to new the $X.XX EPS and $X.XX, to be to half, to for $X.XX. first up guidance investments reflects in to original of increased XX% in

modeling assumptions note. A to couple of

approximately to year. are acquisitions First, growth X expected to points add sales the in

expected to depreciation approximately expense $XX acquisitions, $XXX approximately and with full be and million net to are is million. be Second, year interest amortization now expected

$XX $XX are million to now expectations rate the we raising for business. million and versus and the Data mix capacity we ECM our be impact XX.X% acquisition. lastly, tax to $XX a geographical CapEx million Third, range reflect of expand to to to expect investments XX.X% of of acquisitions due our And Solutions to our

on at third outlook Looking quarter Slide our XX.

to XX%, expected are sales. sales up sales We to to X%. acquisitions Organic XX to grow expect contributing to points approximately reported XX% be with X%

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

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

Thank you, Sara.

XX. few nVent. share Slide to on highlights I to would a like Turning

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win last Solutions year, growing X Our $XXX the and in outgrow we years the are was business believe million to last XX% we industry. a position and Data

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been back for offerings cooling developed both have major going We data with for partnering pre-spin solutions. and range many greenfield years, some high-quality and of broad have provide center We players a retrofit.

channels. is distribution believe demand, We are portfolio in Data serve million. products to significant a standard the half year capacity. to making of year scale, through increasing broader out back operations well our investments and Solutions to expand next adoption business over the way of access $XXX To its drive We on the building and and our we're

published on to continue the a our nVent. the recognition in meaningful develop, population of Moving are X to on for People, Place highest again and culture Work Slide report and certified progress support we've We in People of our programs our Last we XX. by ESG recognize Planet. build people XX/XX goals representation pillars believe proud our Boards. as we employees. to our our We In diverse Women received and a month, and Products our were to Great our on differentiator our employee and I'm and pillar, latest increased made

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XX. Slide to Turning

on our growth for deals now which acquisitions have completed X We continue spin. execute since and includes to strategy

a strong a expect these future opportunities. lot of have and creation from value acquisitions of We to continue pipeline

in this that start. great power test a management. starts connections a to high-growth invest acquisition framework. TEXA in Our aligned to good ability is products ECM growth. tools and off is leader ECM May to with and squarely The closed solutions, framework fit with verticals finding have acquisitions and scale the and ECM companies and for cable instruments and grounding

We integration leading our team have execute to a our dedicated playbook. efforts

acquisition creation Everything. weeks our industrial significant value Eldon expand enclosure to that much ensure loads, innovative ability fit storage. in segment. a portfolio conditioners automation such are product to our With believe in with are critical performance demanding now solutions portfolio. Both We and uptime. Enclosures to distribution increasing expertise the long-term an expanding potential excited a TEXA plan have our acquisitions the is few air of TEXA cooling closed of environments TEXA cooling, heat our and Connect cooling as for which and an chillers. liquid with Electrification acquisition is nVent, they ago provide like innovative part growth Combined and XXXX, TEXA, channels and global and in our inside Protect and We provides industrial strengthens our through has for energy globally. we great

Wrapping We XX. on our quarter up ESG had record and progress Slide We sales completed acquisitions significant adjusted goals. X and made on with have EPS. strong another

electrification, raising We growth. our another the expect we believe are strong sustainability year of are positioned We EPS and trends. well sales and and digitalization guidance with

Our is bright. future

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

the Mitchell first Julian And Instructions] will [Operator come with question from Barclays.

and a Thanks Maybe everyone. much of and and question trends morning, channel what very seeing partner orders, the in around kind behavior. good distributor you're just first

in QX. you think orders low-single-digit said were up I So

how for characterize comes you're wondered you it quarter levels it versus expecting right But and sit comfort out? sort distributors. the destocking sort episodic? Just And of inventories in sell-through vast Every realize now? in on the intake. you how the order your state third terms of today. assess across would of a the you do I aggregate the of then few set And of state of array yes, where inventories? months, what Is

expected first, Julian, expected when that to I Well, to of we is sell-through, positive continue things we as X adjustments look occur. points at want to we're inventory of distributor we is QX, the Okay. that, X positive. say And the in

think QX. we some And actions that in those so of place took

And continue QX. some will think, actions, I in

of As other growth in as growth Reduction areas. the think we to we're see renewables bill respect that and Inflation going A go and infrastructure is forward, we Act with such to utilities infrastructure. those going drive to lot and areas

seen with So Data I other see the we that for solutions our we to accelerating. that think cooling orders and is positive. for very that Solutions, outlook And the comment orders in would we've respect particularly just is increasing liquid make

understand in quarter, thinking That's think you're volumes. just about sort was helpful. I little X. X, second -- trying the price bit up a between would sales then follow-up was and split to of down be better, how organic my second the price half, And In and volume

sort of down sort we second or and points of flat about that territory? volumes thinking X in staying price of year are at X So exiting to in your guide, terms half the

Yes.

So couple is positive we I a do of would price expect that each -- things. One quarter. say

continuing QX just that's wind we on It's but Russia that Thermal I important, I big reflective do continue to there a down of to In Management XXXX organic in the And piece of as fact Management, guide as inflationary that the acute price. that commercial/resi as time back adjustments QX we Thermal half see in that some into of is and X-point having is relation embedded predominantly business to that the softness in given Thermal third go as roughly that Russia some inventory-level in frame. we to winds think in environment. and in roughly specifically an impact of up that there that see also those to the And QX, down X%, Management. that more X well quarter a X% think of sales happen XXXX.

going from I contributor say and things the growth ramp be -- expect bit a to see in to focused from and standpoint. solutions in little we're that volume Beth about funnel is we order of biggest perspective, And just what a QX do would there a And the QX we the building, that to really and that capture on those making QX book data talked building a growth. here investments bit the space. overall opportunities

question next The RBC Capital Dray will come with from Deane Markets.

start-ups. report what cooling. whole like advantage find the such I'd a of the market. liquid first-mover this with we to quarter stick your direct-to-ship a deep is We dive And And are in competition nVent that did if I fascinating remarkably, on cooling most could. has

other So you new Do this efficient. Do to seeing to many in and you what's perspective, you're exchanges expectation your From side? like consolidation? this. space? expect less probably in I competitively heat add the see capacity so in any technologies our with start-ups immersion adding need rear-door are

So But how and I in in would need you industry see just of you rather how capacity terms do you and either the out or space? do playing add to where direct-to-ship. the consolidation technologies see in

you thank the question. Deane, for Well,

test that and are test industrial in with and providers. that And takes as about it we cooling. done excited new data seeing the fact, growth. been relationships spun as very for And well that build cycle great so years as order and years have takes accelerating liquid doing and several with that scaling to manufacturing quality the the time in are And feel we out. now have, customers requirements many you have would center And even over say before developed you we cooling we it liquid And I know, some applications. in we time. have The

addition expertise things we One is loop. of our that understand cooling is manufacturing that say the I in to would

also various greenfield who you to themselves. on they sometimes, the And want have technologies, some retrofitting provider are technologies and different whether is, those of there's or depending so

well I a portfolio is think partnerships the ourselves. of across those -- strong various good news as have areas product we that as

data That's mentioned, are at centers kind only today. I As cooling by X%. roughly of where liquid cooled we're

think And including to more adoption so us well continue more room and you're strengthen I I offerings see as broader of growth. for our standard there's can partnerships have we of build think So portfolio, going a set to many customers. plenty as out end and product

consolidation for see now. there's So because technologies cooling think have while before a various right may all growth. take of role plenty opportunity some there's And I a it and they we

follow-up, of of morning data Utilities provided the as Power you And share That's computing there? really more X what helpful. that up comp benefit so X and just note from and issue? you I XX%. us a Is could benefit cooling that's points edge also being and storage just on the along that a with forth. was going this that on with areas energy Could than should liquid

So on Power what's in going Utilities?

Utilities, really portfolio. the Power our in just is of I Well, the think it infrastructure in build-out strength

growth not we We And issue. last so -- year. comp a had there strong

in execution the will our the future. in that We or storage think play as the continue forward, go we cooling, solutions we part role come And I with by strength area. to how the has there. new think energy around and battery a to part products about management, in we liquid that's And especially overall, those just into add play chains. to are infrastructure see of supply team into our build-out that But

Hammond from The Jeff Capital question come next with KeyBanc will Markets.

margin our Enclosures seasonally And that? ECM in of thought. So and the into It kind It maybe down how step to a more stepped just we speak by the the into plays you Maybe given looks wanted seems margin up. steps point. just like can particularly Thermal of EFS margin than down cover kind to have would sustainability second like math, really half. I

Yes.

from one. expansion well expect segment out take things management me let would is cost as of Jeff, productivity. perspective. couple standpoint. year-over-year from I in say, we point an really margin continued QX of another start quarter as a And to maybe again, A good I'll So overall that first, from that a price ROS reflective of perspective.

to cost largest the QX be And to again in in and margin it's that And year-over-year that of to driver while right Electrical ECM, expect expected, expansion improvement Enclosures out expect point EFS on do is overall it productivity. we Fastening. nVent, to that margin accretive dilutive margin. as underlying price & We you're

you're going QX continue margin a full Bit to to good part be that's what from bit on Thermal, that of work So as a else more performance anything in what's cost top seeing. line more to actions work expect as expansion flattish they cost reflective we well the versus perspective. in overall just price year. the that but for actions to margin

is Maybe just would QX. X Data one, sequential other from a things standpoint, in are incrementally investing QX we in out I Jeff, point Solutions and

we in, overall, the as I the So if just that think kind the at will, nVent price cost when year. that you're This to you something point coming is to that well that to you And margins Enclosures seeing fold margins other narrowing. overall QX would is as new. into of look out This I is expected nothing QX. thing

strategy. seeing in based in at And first-half a So our positions specifically half back versus in half. in a just where of favorable on QX lock metals, uptick the we're those do first from we're sequential play we out bit expect that

helpful, Sara, Very thanks. Okay.

been ton Just getting you are. a questions, back we've cooling, of on I'm liquid as sure

kind at growth if What size mix. in put XX% margin point speak relative then capacity. Data Data then Just the to of of growing overall. within impacts how of investments has on Solutions. just it you looking business maybe specific you're in finer at that terms wondering the business today to the that And Solutions could a the And been

million $XXX XX% that of and sales parts talked Investor our certainly, our Solutions fastest-growing business. liquid being of business our the that at X power. And and cooling cooling Data being is we back of Well, in Day, about business

had we We're way. why on strong chart is that this well so million is And growth. on business. X be a to we've the $XXX And takeaway double-digit expect our over

we of continue we in think of going significant the a piece become do acceleration overall what I it's to to invest orders, and Data as more we in see Solutions. expansion So

to add. maybe And just

a on our margin. I we think question, Enclosures -- be It's overall it that you in going that Jeff, line can generally with asked We something forward. margin. see improve

half, of side in significantly I here in terms in the the here the on back that's CapEx in that investments on back the impacting going around the we going kind think as great the half. of of to as as as as as just OpEx and returns equation, see well to But what's invest terms the well line the margin of we top make we're deliver the drop-through. what's

And moving you then stuff the capacity. just I you and to around CapEx that? speak think investments, were some some just Can creating

Yes.

other facility products this core initial we is optimize Anoka which X Enclosures there Phase a of -- expanded some in of our Mexico our So so our manufacturing new facility our we opened some really that and of just could those the Minneapolis, facilities of capability, here cooling capacity, also capability. across so of could were some is that outside expanding of that There's our offerings. engineering core U.S. lab expand some we product for our liquid

is the the helping to So accelerates. new really as invest customers of can market so really further and the support us requirements, addition testing the scale CapEx accelerate we

from The next will Ritchie with Joe Goldman question come Sachs.

a on get on maybe destocking. to little wanted the bit Julian's just clarification more I question

businesses about maybe where put talk most mouth. the impacting you're confidence quarter, like words it just but your resi was side clearly in it's get -- so So don't the it across like and commercial bit in then little I had that And think, I'm quarter. today really it on this your seems quarter, mentioned just of and Beth, upcoming more want through seeing you it broadly business. like been then your last I you'll your guys a that to

distributors the we you and to second, think I supply said, at take has distributors to challenges. inventories just our emphasize positive. chain want lead One, And just times a were reasons. again, been X Well, adjusting in coming their I as for look sell-through

we commercial/resi, to some take strength well. And infrastructure. place we as we where so to with there improved distributors. now, even this softer where is of But of the we're going take see And seen supply their as at our been again, where to confident areas that's very more expected. chain areas because as adjustments of out -- as like saw so where positive continues And be adjustments we're seeing say we sell-through or feel see play I the that start you think have And those would has some industrial, place. very that we've

it. That And I there. of long and AI just X of sense. is Got topic hot period makes cooling time. a a lot liquid for quick to a guess I know questions be going then

center that's what the I over In missed stepping making, R&D the developments? terms for recent my be And it's in your of time you're of whether a given R&D the second applications? you investments how And how then much -- up content going specifically, changing question, that don't -- are maybe data I your whether out for and it is type there way to maybe year? know, of but remainder parse to then

both I across business first those we're in that all -- Well, that and R&D, across operations we're are just of as just and I we guess I and see board. mean, in the would the say investments in OpEx, CapEx in the making all, functions, investing opportunity. growth investments

what when out distribution. mentioned us building about of we we So standard more we capability to allow products some would R&D I and through were that doing scalable how -- the scale a think and -- is we're specifically portfolio

the standard to of products. current developing new about the it think customers, support testing as we these well customers, solutions, how those that's investments, So sometimes takes required for all these a as year,

solutions. And -- there's various think cooling when that. of again, all as mentioned, really and it's we So we

or developing. -- that So there's whether a it's we're greenfield there's a on or retrofit, whether of working of hyperscale enterprise, suite suite it's products

Jeff The from Vertical come question with next will Sprague Research.

elaborate little seeing are bit resi question a in that just I little you're I on guess obviously, commercial. and if more bit a resi, the you And right? what of commercial. is you not wonder could in kind But really big

just in again part top primarily business. it's the the and down you business. what seeing like line the of Thermal could drill trajectory bit But on kind of Sounds in that if a you're little maybe

business resi Thermal seen our and is that So be and continue. is that to expect softer, right predominantly we've --

On for nVent, positive in is we commercial, commercial in say across we But our softer matter. Thermal. a the commercial I Overall in side, particularly Enclosures. little as EFS Enclosures, all and were positive businesses, of in were would our that bit

that trend as expect go and we commercial positive us. infrastructure, different we driving So demand data very is because which because of think strong, that's for focus around power at our our we construction that EFS and strongest EFS is We business forward, it's in of the products. Enclosures solutions, as right for our And labor-saving look we where applications. our area have to again, more an industrial

just that the then topic printing they're than the alone kind top Because of lines all price. right? more And here, or are not volume, on of mostly even

strong I difference, growth as though, it, 'XX volume look think I guys in the my very you had at didn't. group many in and 'XX and

the to and Obviously, of look drive how talked be and my state is, as of really, comps are here to volume volume kind facilitate wondering economy of into you the CapEx growth the But just we the portfolio. are you I'm is able of looking to across along capacity kind growth 'XX and capacitized the about your the data forward? 'XX different. solutions. ability of assume forward kind question okay, So essence But and clicking

of make supply resilient. them at Jeff, couple more we've years, our Well, over to continued to chains last the look

new the couple done of done some plants. expansions last about And over things. And so we've We've we've of some with couple years. that talked a

latest expanded the Thailand, of we example. areas X also is in for Mexico So but

business invested our also as and automation so have new both for as that could we EFS improve well throughput. new CapEx Enclosures We in

the going. just a cooling mean, And where going of just to strategy. say would so we're of is lot to position. continue investment biggest But That's think part in the to good in I is we're because feel we our I see liquid focus significance going our invest real of the ongoing and a I -- we're automation. an digitization in

of kind talked being range. what maybe to And of points about year to we were maybe, a think X volume. that a of prepared in of in her lapping XX% just in was Jeff, terms growth And remarks, ago I add Beth that that. point

a of ago in Enclosures did top of is a growth too double-digit in volume so add to maybe QX. couple of we And there on points year see volume

is to think we I other growth about the quarter other in talk one as inventory-level mind, be And backdrop to times, the keep with along Where the side the and piece our in equation. we as of supply shows lead of volume of line with those Thermal up that order is lead right, just well. in encouraging Management saw adjustments I on improving top the maybe -- kind going think the chain. thing times

Coe question Research. next come Wolfe Nigel The will with from

AI time So you all of think I right? comes every the think mentioned a it the stock $X.XX liquid ECM, the higher, half and cooling, you've going, and I quantified that keep of Beth, the year. to So for ticks second so all full $X.XX in year

case. as equal control of changed perspective the And all? the channel between confirm are to and you've then that want just of impressions I talk what XQ XQ? kind just still does has taken at mean, that's opportunities, business. pretty come your the synergies in maybe about I your that on And So

because very as acquisition. said, in start and me pleased out and that the let Well, you at solutions. very -- our look with builds XX we're days portfolio, power it we're we're we grounding connections And ECM when

do distribution our So able some to will through take of those very and we we're that products globalize working we complementary there take what see it. to and channel but strength opportunity on to the it. be time And

would that we every things One day. essential the use that contractors are there's things say, products believe other of I

with tools core CADDY opportunity nVent great channels along specialty are there for a some instruments, of there, test be products. And through some channels and that's fit, believe our the where nVent to pull portfolio. that's and to going an channels us So retail our we

great cost well. very into side and at I as find you But that X that So is you I'll thing challenges. we we're will And about think say we of business, let pleased our have look the can so supplier we we some as that a to Sara there. get team supply is when or growth we addressing learned they those synergies need chain that talk I that a experienced that's something make working capacity that address so that they've and drive on constraints. got But to priority, is growth first really where we've sure through. accelerate just we're And work issues capacity we're our that got

$XX And roughly $X.XX then growth of came expect But we standpoint, QX. to roughly good even the to million EPS From year insurance continue efficiencies teams on on side, QX and the looking XX half by excellent said, just the contribution $XX wins we line here in of balance in $X.XX would synergy the and estimated reasonable do an terms early that EPS and X. being the high from that of even in, EPS as side, in early an this to have QX. cost job million of some through Beth have at to that, assumption here standpoint. And $X.XX bit days for we done a the visibility. the part parcel the cost and kind conviction be we year cost a the synergy program of on here half, a running on really at looking of see rates, that And executing ECM. equation, around

in We for roughly tax related good alluded cash to that amortization XX million of to million the years. line as $X next step-up is to also to to that have synergies XX we well which the sight $X

And right? that's QX, great. that's $X.XX in Okay, QX, not

of being balance that The in correct. QX, really that time in QX, $X.XX QX frame.

positive. right Is positive. kind you about great. area that's sell-through of Obviously, is the talked are mean And conversation And now. for volumes you big volumes I'm Right, sure sell-through a

by more of wonder, I you on just color that great. have on what you're maybe business in Any a So terms quantification bit sell-through. seeing would be

look Well in as we're on -- some supply it adjustments earlier, different based seeing the point, and positive And as I what when chains -- that sell-through, -- really that yes, vertical is areas. -- I when think volume. at is your to we of even mentioned see we recovered or

of around supplier lead first improving. overall was we some saw where chain a adjustments But reflection to see softness and or more of times then started supply and it's So industrial. more commercial/resi again, we inventory

infrastructure expected, to But see things of that some as And saw there we happen lot that of of as to through half QX. strength in we we bill, the and the get ramp expect start in expect to back the a to so as of electrification acceleration still year. QX, occur investments, we

does you on that expansion investing liquid capacity allow on mean, to This one if what, capacity I will your I sell-through any in, you're can. Quick the triple double cooling, expansion great. that or Okay. there it? be quantification

up would Well, I frame it guess way. this I

XX doing maybe we're expect I over and next next X see think terms Phase year, just looking right into is what of of adding we new capacity customers. XX we're that And the we the as to of months probably in seeing. what we'll get the start Phase we I course now need growth that a the X because of at have rates fully to

Wozniak over go conference to This the Beth ahead. to concludes I turn our like for closing back remarks. Ms. Please would question-and-answer session. any

proud performance in Thank today. of QX. you very for joining us I'm our

customers, employees growth continue our shareholders delivering will to executing our for by and strategy. We on focus on

high-performance again ESG Everything, positioned great company digitalization Thanks have joining is electrical goals. for sustainability call. top-tier on progress We the and This of made We trends. well the us. a nVent believe Electrification our for concludes

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

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