nVent Electric (NVT) 3 May 242024 Q1 Earnings call transcript

Good day, and welcome to the nVent Electric First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Tony Riter, Vice President of Investor Relations. Please go ahead.

Thank you, and welcome to nVent's First Quarter 2024 Earnings Call.

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

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

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

Tony, morning, today results. everyone. you to with first be our share to had good you, another great We and I'm quarter. pleased Thank quarter

execute to verticals, products, had growth expansion strategy, on focused new robust We margin on impressive flow. and high-growth acquisitions. expansion growth, our global volume and continue cash We free

demand We our continue Data see AI for to accelerate Solutions offerings.

on are significant adjusted are We including new and Sustainability we full also year XXXX recently the Overall, our the with pleased EPS ESG goals, progress strong our our which highlights Report two goals. start raising year guidance. published adding to

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

of year regions. with basis, an sales growth were across sales grew X% X% On quarter geographic First top ago, on all XX%. a growth organic up

adjustments. From the launched has partners the sales X our grew had Enclosures sales inventory points distribution quarter a key through completed strong quarter. products XX Solutions. low remained in by Orders to largely we believe growth distribution positive. our New products channel digits segment single sellout in standpoint, driven contributed and the new their and Data growth, over We

was with inventory to sequentially, Solutions continued growth Fastening & is Infrastructure to down Electrical the and decline channel expected, of believe we rest year. in for a due positioned and As the normalization. Thermal improve Management customer

at key teens low Infrastructure with way, down, Looking single Solutions from up. digits. grew low the Russia year strong low led was with double single finally, grew verticals, And our all Industrial up digits. Commercial/Resi ago. impacted growing Data digits also energy our by a exit segments

by Turning geography. to organic sales

digits, grew see digits, We growth Asia Europe continue led Pacific and growth to grew digits low North high single broad-based in mid-single up single America, by solid China. with

income basis Lastly, points. up with XX% year-over-year. year-over-year grew cash a XX% year flow sales top free grew XXX return impressive XX% segment an on on of and EPS Adjusted grew ago, XX%

and we guidance, our year. range, year full adjusted our sales for ahead, outlook to the our EPS reflecting Looking raising maintaining are strong start

We and growth, digitalization electrification have track drive for to great demand. We're to a sustainability benefiting expect year. From infrastructure the perspective, and digitalization vertical another to we strongest the expect electrification, from continue trends. on

deliver go In Sara, Data LNG, energy, team first outlook energy of call expect our driven growth on anticipate in and growth we please capture soft. residential for cooling particularly acceleration our the strong further continued Solutions, how over to in expect for In impressive liquid the fuels, of will Sara commercial, being given We AI. the and we nVent results, and to our hydrogen. turn transition, continue I'm ahead. by growth particular, carbon and with XXXX. now Overall, our results. I proud quarter solutions perform modest updated detail we clean

Beth. you, Thank

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

were Acquisitions up was to added X to $XX to growth are points and growth. X% guidance execution EPS to $XXX adjusted price up year relative growth. sales strong. and Organic We year. X-point XX% exceeded points million last and added off were to XX the to start organically. million or Sales a or great Volumes of sales

flat. was exchange roughly Foreign

segment of million, up of incrementals XX%. more up income sales and with year-over-year. total was offset plus XX%, $XXX on was quarter Return points Price million. than investments XX%, XXX First $XX roughly productivity inflation basis

the As range. adjusted the generated above our quarter. to $X.XX, Acquisitions $XX free cash return flow robust $X.XX ECM expected, a of QX performance. of contributed ago, strong operational million the XX% was reflecting up our acquisition a sales. was year guidance compared end and on accretive high EPS strong up in XX% to We

for to digits. This growth million, XX%. please with increased included increased The of points Solutions, Enclosures, a teens, X single-digit single positive North Data and Return strong of on Enclosures America year up added first Starting fantastic to team acquisition driven high delivered by the price. growth income growth execution, XX of a by digits. XX%. $XX a and Infrastructure quarter each sales we Sales XX% our discussion million Texa to up $XXX growth of followed Now mid-single points Commercial/Resi ago. Slide by Geographically, X Organically, increased sales. top up XX% on turn segment grew year-over-year, investments. grew and performance. volume quarter. led but sales quarter strong segment Europe continue was digits, double Industrial low make low basis first significant led XX.X%

year up strong up. acquisition. and sales due Pacific America the Electrical was down organic while the comparison. basis Fastening points, a Electrical decline by XX.X% XX%. sales Industrial lower $XX and than reflecting in and due and mainly volumes & prior Europe to quarter. Sales were to to XX and North to price X%, each infrastructure sales Asia was sales Moving was income of and XX% Geographically, The down Commercial/Resi contributed growth. on declined was inventory Return normalization $XXX segment year-over-year. grew channel the & XX lower customer and points Organic a ECM in impact volumes. more positive of offset ECM Fastening. increased in acquisition million, This million

Turning down with digits to was improve were MRO Management. growth. positive of Commercial/Resi and $XXX Sales price. X remained million Notably, organically. single to approximately Volumes to The low sequentially, down points can Russia sales industrial continue X% Thermal impact strong. were

our grew transition energy income addition, Asia was led of XX or basis strong America to balance mix. On with flow. $XX revolver. ample our ended capacity and and us Slide million balance sheet provides project on growth favorable million represents $XXX X, up of $XXX Thermal year-over-year on and and year-over-year Return believe invest Geographically, quarter by was execution X/X on and the to business over growth hand Pacific In with points segment XX.X% and We sheet North due the backlog. X%. of backlog declined. cash the million available Management of cash up in our was titled on sales execute Europe healthy We strategy.

So outline priorities. turning we allocation X, capital our to Slide where

growth We to growing approach the had a and balanced cash capital continue disciplined flow great and prioritize deliver XX% in We returns. to to execute quarter, year-over-year. allocation strong free

exited we a ratio with adjusted QX result, net EBITDA to debt of a As X.Xx.

for in increased to are As previously well dividend positioned deployment returning believe We shareholders. announced, our XXXX. quarterly $XX million we capital X%,

and X year to Moving our Slide outlook. full

includes in to contribute reported growth are to of volume with for strong year. the X We growth. positive This the growth sales X% to approximately points price growth continue expected X%. expect range organic and XX%, And of X% to to acquisitions

previously. other year $X.XX, full year raised X% of to $X.XX our guidance income This raising are our original X% to to up remain XX% $X.XX. now full the EPS versus $X.XX adjusted modeling range X% XX% unchanged. expect to All to start grow XX% to versus the year. year to for the We strong to guidance segment the reflects assumptions We for

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

Enclosures turn Electrical growth, & expect segment high to we to sales Management Fastening similar growth, Thermal with to positive. organic to QX lead For be and single-digit

midpoint Beth. remarks, between $X.XX growth concludes adjusted positioned a growth, will and delivered are expansion am $X.XX, X% call We year. Wrapping and I quarter last turn over for robust the reflects and first the another cash my expect strong our be margin We well to EPS back pleased year. This and I great which to up, with now flow relative performance. at to

you, Thank Sara.

business. on and Solutions in AI, like all rising densities growth drivers Slide an offerings. consumption, Turning to of heat Data greater of XX. are data provide computing update Solutions to I edge would acceleration The Data demand our our for

portfolio the infrastructure only we significant of and a innovative cable acceleration smart cooled. broad cabinets power includes positioned and by grow the data solutions. investments leak X% that liquid AI. Today, distribution, centers to We management, We liquid are and detection center and have with are well data cooling, of enclosures, racks driven sensing believe

shift the new imperative. technology chips, an to is the liquid With cooling AI

cooling in provide liquid liquid are this liquid and air represent savings We air able of liquid range of cooling to provide up believe than can In to we data reduce We addition, faster space a are for retrofit. to XXXX. to liquid air, XX% a liquid be greenfield or grow power and solutions, cooling energy to estimate it and consumption. XX% both by conventional Xx and broad roughly center cooling will leader

liquid cooling have starting years in industrial We applications. offered for solutions over XX

we manufacturing are and center developed Today, major chain players. and We application capabilities. partnering technical have with supply expertise data

with solutions, to growing positions ability rapidly scale in at to along space. Our our innovative win this manufacture us

the liquid drive broader We our through XX% location, portfolio expand center that our to and Solutions view products scale of business. In building of the Data space We a our move to to distribution be now a cooling channels. in bring up we up first fastest-growing areas, make which also Minnesota quarter, completed are new power on to capacity. of standard adoption cooling distribution and the

us this QX We online ability give capacity fourfold. in to come new space the expect expand to and

be electrified over Data titled Slide to million building Sustainability continue we Report. year. Please our world. are At a business Solutions more sustainable to XX, we Lastly, nVent and turn expect this XXXX to $XXX

published to how Products sustainability pillars. and we Last is measurable we our improve XXXX. and highlights the impact Planet to progress People, made commitment our that Our in took sustainability across month, integral significant our steps we report to we've latest operate,

making employee management of and leadership. global total pillar integrity. X XXXX, is work. by Our we percentage recordable nVent place on women engagement, People a incident than we improved focuses by key We XXXX, culture increased diversity efforts and people XX%. of are a inclusion, Safety and to in employees of in And representation points on our diversity, our safety differentiator, great more rate improving believe focused In are our a our priority.

are safety Products in a Our that innovative had developing and In future. track solutions products we positive ESG focuses we're new efficiency, XXXX. XXXX. build consumption, creating a New solutions, to Through from to funnel to of sustainable helping XX% our eliminate packaging highly resource Introduction electrified innovative Product a XXXX, customers on product We and world. get single-use our by goal greater reduced a on and more XX% plastics sustainable impact set products deliver our than by pillar our more and

which to example, grounding For connections include power systems. electrical solutions, critical and add connection resiliency our electrical

Our higher easier installation, of increasingly material bending include than complex allow busbars enables that savings. energy applications. meet demand benefits space Alongside solutions of density utility which cable, flexible customers radius much the and the smaller with of renewable and these current conductors to

water the Ethisphere. the to of the America's by List. management Our Best awarded XXXX. And & to assessed. steps in and and water top Manufacturing the Rating Gold we've companies Fortune reduce energy recognized we by environmental help Production also consumption to emissions Workplaces We and stewardship, were named set World's lighting We was Sustainability of a and recognized as the And Planet Ethical were most to us Greenest assessed further facilities XX%. our pillar percentile recognized in industry X% LED increased commitment Companies X% gas for to In increased Newsweek. goal demonstrate focuses proud by a in Companies measurable in as by XXXX, from all that been EcoVadis, resources. companies our for total were efforts. XX% on XXrd XX% very new protect nVent our reduced natural I'm responsible energy-efficient we X first waste greenhouse by in energy, our X recently, of Most of our We renewable and are consumption to placing time to These

and Our have everything on key our XX. are Slide and of are accomplished how up we sustainability operate. journey I'm proud strategy to efforts we on. Wrapping very the we

are start to record sales We year EPS. and with the strong to a adjusted off QX

goals. I the ESG we our with on progress electrification significant made have We performance. everything, we are believe And of am of and sustainability our digitalization positioned proud team's well trends.

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

from comes question Dray [Operator RBC Instructions] Our Deane first with Capital.

Nice start positioning and here Lots cooling points liquid new of XX data year. capacity. your Slide to the on regarding

talking question I is the had thinking that's capacity. about in expansion your first it been Xx. and Xx was that So

you so of bigger much spoken of -- end how visibility this a much here. the have obviously, the year, your this terms and on plant, demand. So of of already the you rate run is identified, this new Where sight so by in but of for Xx -- capacity line is capacity

So utilization. maybe of a sense

expect the start back come some capacity grow And that's to to through of this we the I into Well, half to of continue mean online XXXX. year. going to

at some space. the to capacity, Xx that So when of we talk

of We in have example, to build out to those lines. some our continue labs, for

And takes with year and we'll on on think, and certainly, configurations -- 'XX, process Deane, the that enables done that, we us that various test that some some beyond where recall XXXX. the believe we're working customers, to. And But Xx, we're things. takes visibility have that, just us we 'XX, So that capacity supports couple into us that while. some and see of and testing we to anticipating growth we've see this it through gets I comment a

some First, Minnesota in of we facility lines our because to Mexico. capacity we expanded moved out

So we because moved get fastest do that first we center footprint that online. we expand further expansion up thing that that the distribution that was even was our Then so in the capacity out had. could could this to we

great That's then. visibility

data And point has I at second then for faster your liquid So cooling legacy There's here than The new least. appreciate ramped nimble identifying question. us and another manufacturing -- growing air. Xx a just how up. capacity

been So view, has our legacy air mid-teens. in growing roughly

XX% saying. Is up a had So than the like you looks that a in step versus growth that assessment? been greater fair the

We seen what from think that previously. it has we've increased

Solutions. And a quarter Data with we very so had strong recall,

with Our next question Mitchell comes Julian Barclays. from

price/cost to and wanted dynamics. of margin with gross start just Maybe the sort

was I think you said inflation million headwind in $XX a QX.

million So price/cost in the so was quarter. or first $XX negative maybe

of One how is secondly, should volume balance segment dynamic declined couple your is, playing out price/cost the think the why a that gross year? kind margin income growth? Just of things that of then bridge the on for year-on-year in despite the we that. And about

we offsetting labor material, Yes, else of which fund how said start to consistent I'll -- coming as total with is run those for investments. inflation, a years year, well price going into plus to with business it's this and we've this as productivity that combination, everything be helping includes the and

out And we in We in getting had productivity we those and offsetting QX, how secondly, have we we role said, from that played out positive again, price really all out core investments. think so productivity price we the the here QX how us out say logistics year. three exactly in see play to and I nicely in to expect continue year, we to material this would expected we well. And again, then in it play year inflation and more fund and importantly, to that was also segments play expect would getting QX. this we would year X-wall as a going saw weren't And and we we really and helping said play QX. look, want while a last here course were across productivity and began saw meaningful of the we some perspective, that to that And that

call price out the to nothing you So expect to positive year, the that course price productivity, you think think about continue really And of as of inflation, dynamic specifically full about be for when through to that call price. we half, margins just here is that there's in the to on The is Part impacting the be R&D investments. one going QX in of that's that back I in and half. thing the increased out, side. QX will the back

QX, that up investments it QX. X% in has ROI also which around It where saw in was we from You at well. as these believe we're but capacity, great to

mentioned is inflation? earlier $XX quarter, number inflation million just And that point, the or investment the Sara, on that you plus just in

That's inflation. just

like that to fund help So R&D. those higher to offset the well investments some inflation meaningful as help of productivity that means that was as

follow-up be the my And just Absolutely. EFS division. would on

Is think how maybe Just we out us over at understand some other infrastructure destocking? margins within utilities around about playing year, should that it And kind please? the balance the sort EFS of or of help of vertical? the

EFS, we look utility you when comps. So we part is at where very last weakness that saw high just was infrastructure telecom. And of and this year, had

up were I in XX% think we utility.

only think, times but a channel, softer inventory telecom, as and at and market the at normalize not that's distributors, just I we conditions. lead what is so saw And

just for So margin, Sara drivers. And let on I'll those are key two that. comment the

Yes.

overall margin accretive it's is ECM to EFS to overall an from remember So while that dilutive specifically. just standpoint, invent, more

return sales was here we healthy call benefit because other dilution, amazing an had But we're in on on as do quarter. at absolute QX, in there year ago I mix pretty half QX. ECM still, the would But out where some begin XX% some expect a least some there of we about think basis, those had they I return and margin they to benefiting QX out to And think of at remember, thing on contraction that on lap also return good, guiding just you a EFS that that sales. called in sales.

Wolfe Our Research. next question comes Nigel from with Coe

wanted back X% the we'll XXXX. price. to I in dig the I price into at thought look

got just that. wrong, I clarify to maybe maybe but So that

it's up the about that that how can look but use order three you -- But the you through orders, segments? April? then the wrapped how So just deal single-digit is really, maybe know for year. April And does growth, X% how talk April, across segments orders look? to looked low a good on number I just does by

start maybe side. off I'll price on So the

and that a February we price, call, more is would that talked contribution our volume saying to top lot but be exactly would price overall So line, also that, help a much which about expect volume QX we positive QX we as significant going that played offset well played as And was is price which the said help out. those out. way how to fund investments, in that total in plus productivity inflation

the April look single QX. in in when were up And and mid-single I Electrical Fastening trends, And we Thermal and think at & like low orders order looks digits Enclosures. digits

how helpful. up? which on Okay. quite well, That's going of as in the to there's does you for that cooling, look profile Deane ramp be capacity costs then guessing whatnot. And expansion I mean, I'm margin and covered stock liquid really the cooling lot liquid

start that or does So segment? the way to in measurable meaningful way drag a within

Yes.

to the par So capacity. on bring which Enclosures, some that what Data we pretty largest that's standpoint. it's might costs in you overall Solutions ramp-up some expect, in said cooling that expecting factories -- big in room guidance make are shifts here one QX and impact And QX. business, QX from our largely margin we as within online capacity that to for our we reflected investing of mostly and in a in in gross as roughly liquid just is here sits But capacity, are make QX, but and QX here we that

Or you sorry, So too we think the together take investment don't close the with to want does in still but -- see that think we time, that right here, when do productivity negativity costs for price mean way? do do you potential ramp-up balance? you about inflation some that -- I much buckets

flow in in offset of No. investments plus kind investments. But going productivity you just net in QX those -- that's inflation if bar, at that productivity, are that The and some expect QX. look to in combination where to we of of price

Our Sachs. Joe next question from with Goldman comes Ritchie

step expected, to business better the be about destocking, kind asking that your wouldn't business? quarter continuing see. great think up comp kind talk by organically in we the and as to of some just little XQ? rush it second in to was of about really just fire the I is much rest first growth we no you've the quarter reason the which tough of be of out you've you just than versus performance Solutions how a guess bit driven XQ. And Why then Can is now lapped got turned that Data on I'm

guidance in. some Solutions me I'll Sara we refer very But of -- had is back those and customer the just of Data what in coming quarter, Data QX, of that let Well, significant how I'll from us of Solutions. some that's volume some start But strong in let a -- growth to certainly result again. layered gave with that those growth is and programs

as not to Joe, about quite then in just And at that, think here nicely very we of from QX QX, again, QX. the grow levels perspective, Solutions a expect Data we

QX, And digits to in so that's that fantastic look single XX% expect growth why as like high Enclosures we in a printed QX. more organic here

expecting a for more to expect bit to other on The point we we in and of -- up Europe in a see was Europe. QX. thing would bit I QX, we're just is more us Europe are taking do view here softer cautious a

super that at as it the Yes, running as it are question, makes folks seems just in like -- to market. helpful. end and sense, offerings that as my I obviously, world and can fast see was center they Okay. great that's data possibly guess follow-on

about potentially there data or other using to any center. some that in a in bigger your things guys Is own itself bit that areas get or the sell the outsource. guys M&A thought either As little you do dollars think in-house you CDU around of certain there are that things offering, into certain the I

Global CIS We've them smart to contributed X overall mean, done offering and say I we and our at think, M&A, power a I strategy the basket of X tray distribution. first. and And cable to WBT, Well, about from done. can point our of wire as we to high-growth acquisition look our acquisitions think I management contributed we verticals couple the always Joe, we've

us we as infrastructure in to to I we as data other the verticals. certainly, great And and continue there think for and at products great portfolio look areas. I it strengthen look solutions M&A, at think there's is So opportunities always

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

Jeff, are there? you

hear you Yes. me? Can

hear we Yes, you now. can

Great. Okay.

does Just space? just Or you've moves that expansion, Xx, the plant that a the capacity the a new contemplate clarification as is simply on well? made, creating

But Yes. expanding facility, moved capacity. not within a liquid our to that and we new the That that then cooling a did plant. to out we what distribution center that was main location we a area, is are manufacturing new moved attached expanded is

that's remember, Mexico, we distribution So space. the step, -- now expanded location expanding that first in was move a within to we Then that footprint. and new creative that

Great. said clear EFS, Okay. the thermal going is kind know to of about year, then I the And think of line to then behind return is EFS that into you better. And is of those but XQ? kind of growth us sight we on orders for rest just think from the should how here? that orders, destocking were I

start one is our look that sell-through. the we at comments distribution of had when I just we Let channel, made saying there by see was me we -- positive

So and stabilized. think normalized channels the good. we distribution And have largely, that's

utility, very is called like utilities there the we example, EFS year. end XX% And and for of at we channel. for at areas areas, some the comp a are know had last where out inventory big there However, and we recall, that growth in customer

of but I'd say areas. specific stabilized. it's very think, some into overall, QX, we So plays largely that, But

Yes. on EFS. just Jeff, And comment would I

dynamics that half just of things to we And the to mind, expect talked the get But half, be in we about keep you there couple into back the begin like expect would those back EFS, lot easier. that a do of we EFS So quarter. about to QX ease, we for closer year. if as one comps infrastructure inventory Two performance a do think to normalization be we expect Beth for expect full the look do to QX, that in QX to year-over-year QX. grow continue still will, kind because would

would last that I EFS the thereof. on combination well point think think in ECM year. as layer to is thing half will for begin of the as the back sales the out synergies and the We just I

with comes Vertical Our Sprague next Jeff from Research Partners. question

want I capacity you're cooling the exactly addition. know I to to back what Xx kind coming just XXXX, to not $XX but of to it what it going you your Just us directly revenue sales does means. I understand of a believe tell if revenue Is in mean you are, in million kind XXXX? had literally cooling is run liquid you mean million have it correlated in $XXX rate? liquid of

Well, at the we to. no, precisely. this, I look this we're footprint what is referring say not would space, when

us out in so some will of the to we're And because as it testing with well take one solutions the expanding as customers lab build well within under lines capability it time extensive as our some of labs these our our goes is as things situ.

will we So a have -- our unit volume and from capacity expand a the footprint eventually, will that volume.

seeing little the underpin given there. that us, back end to thermal of Understood. there's year on that how and next the activity playing clearly, the going see that with growth behind expect to sure in in of out be return there, on kind And into served would you're maybe even markets then in to the growth. kind would more specific headwind I'm project just thermal, some of a Russia what we bit kind the it return to But you can you

Yes.

growth prepared seeing our thermal see new chemical that see improve We're flowing as to our on in we about see We wins in strong That's continue certainly opportunities. really focused talked in backlog and and sequentially we some business. remarks, seeing up. So an industrial we Pacific energy investment had on, Asia we're Commercial/Resi And we've there. area transition. that we

business generally, of growth that is the that see of the orders, year. is this the the is thermal we We Russia increased remainder exit. quarter see the confident lot "activities." a lapped for -- QX So an last as So we -- We we and increased poised feel for backlog.

next comes DeBlase Bank. question Nicole with Deutsche Our from

organic should in is with can performance sales From through weak. how that growth does guess, pretty of that as like Maybe perspective, business have quarter. know in rest up have the we margin doing we that work down I think once restructuring could you continue sustainable? year? some put What the a the year-on-year incrementals sales with then thermal. into positive? been impressive And Is I -- turn guys look

maybe I'll question. overall just incremental with start the

So we at And incrementals growth to perspective. as side return performance. were believe side. plus managing pleased the more year-over-year benefiting year-over-year overall, of on good perspective. going growth, on top return with at QX overall environment, the that like the expect and Beth then that's managing will a of level XX%. And the that I on QX projects We we terms out with that talked management QX, with mean, which the impact in part projects, that to that our strong was normal of as business expansion that wouldn't really returns think product the continue return done to as pleased ROS in line we the half in here back QX in XX%. incrementals just But in think that structure, sales quite those product proposition because in about, an margins, from look were pointed your value mix would same from going I not excellent saying, on the by and a and to be that comes they margins sales thermal in on of that's the but some team equation some start I sales cost still has favorable good question price I job cost profile,

little just you spoke guys weakness coming maybe kind trends? Very in on saw actually Europe, anticipating clear. you're that you quarter. are guys Europe about it. second the what maybe Or in through how then that being hearing. based something Is you're your bit of a some order Got cautious you on And

our in did America see we Asia softer Europe QX Pacific. order Yes, was definitely trend that that than and through North No.

Bystricky next Citi. with Vlad Our from comes question

up in So and I of just last question wanted us the incremental of about you to Nicole follow just comment contemplated going in the that in terms on from Can color Europe for year weakening on give potential for forward? what's more guidance rest Europe.

is overall say QX Europe grew we would I were what here's with where QX. the that actually in performance Well, we pleased

think here really it expecting not of trends is to. Europe. reflects And so that alluded suggesting what the Beth I some in we're order that here guide, QX in And we're growth

an then ECM update how Okay. progressing expectations? in on you capture That's And underlying versus of synergy there you're seeing your you're just at can growth what terms on us give helpful. and

channels. Yes. performed what say that I would has similar seen business. When I And very stronger had ECM, they our several have we would to EFS ECM business we've look channel. at different say retail a

as a And But to Sara been on comment as soft. sales think layer lot to and that softer, in, commented little in a be our working to I so on, about synergies. that's we we year. continue start we've the that that resi, retail back expect to of half see expect And our been that's was of the

product network from rep through some bringing and some And so making bring them that into our of products of those is into taking that so well them distribution certified -- that and everything Europe. they're bringing as we as sure can

had for acquired supply business, all that improve underway. And been that things worked and And say they when I and certainly very challenges of that availability of is extends we is encouraging customers, some activity that chain heard is what's acquisition we've portfolio situation. to challenges So of But will power hard the and one this, ECM great improved where a our from our seen see -- connection those orders situation. up think it we that just overall, delivery we solutions. pick us, we've and we've in the

great see years. we for play synergies to the potential several over so next out the And

And cost maybe just synergy quick the side. a add on

well I track. say So just we're on would

growth from to track about procurement, really We're it logistics, year there I million we're we As indirect. material And deliver on mark well that. excited that some $XX seeing also to we $XX by but million acquired synergies, that synergies would say X. cost ECM, see we side, in did were the

we too, that think that synergies, $X.XX expect then that cash the on $XX to $X million the million talked about accretive had I previously year lastly, we to tax XXXX now with discussed. And million closer in we to being versus $X acquisition to $X.XX. EPS and per

contribution QX. $X.XX strong we so here saw a in And

overall contributing very nicely. So

Our question from comes Blair. last William Drab with Brian

slightly think you mean does Just the positive was EFS, of per low sell-through point. year positive. is Does up a you is clarifications digits. said The that in that on point couple sell just that? finer into Can mean the small exactly? at put a I What But channel sell-through single this up year?

more so just low comment our positive Well, digits. was saw single nVent, around all that sell-through, we right, of

All right.

So single positive low means digit?

Yes.

Okay. Got it.

are said sorry, just the business in the in then that only end point you year-over-year it growth the that the improving commercial was that first you things also, first decline in saw or in that Is looking sequentially? mean Or And are I quarter. end was mentioned -- only Okay. quarter? was trouble And energy the within a was that thermal? thermal the market quarter back then in is the energy one mentioned Does things you that market business, first looking better the curious, that and you better, to Commercial Resi.

So for I'm clarification. -- just to just going

impact. And overall, due primarily that for for the So and overall Commercial/Resi down was nVent, energy positive. was to nVent, Russia was

it's the Commercial/Resi most of For the will have impacted by we specifically, more here yet exit. Russia thermal that And the has last with quite seen lap energy because thermal so not to but in for improved one impact. improving, we've And the back certainly, Russia, quarter growth, quarters. QX Russia several been

Chair question-and-answer to concludes the Beth turn and to session. like This over back conference Chief our closing any Officer would Wozniak, for Executive remarks. I

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

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

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

disconnect. You now may