nVent Electric (NVT) 1 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to the nVent Electric Third 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 Third Quarter 2021 Earnings Call.

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

prior As of has results business this as announced operations and the agreement Thermal XXXX sell the periods. of a business, the the all results XXXX result reclassified for and Management company previously to is reporting discontinued

guidance this continued addition, referenced unless continuing presented operations basis. a In stated. is on presentation now All otherwise results operations throughout a on basis,

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

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

and our turn have time one X, for turn the remarks. We Beth. and will your call to questions prepared I'll to please limit Slide to one after over questions Please follow that,, up. With

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

quarter, and were and on basis. expand operations we up expected global make expansion. total to on Total business. continuing for we with in Solutions than third focus and verticals, strong, on our and adjusted high-growth new strategy our We better the sales a products flows to earnings Data X%, delivered continue record execute investments cash coming growth continue to both In a

of the and close the Management Our sale announced of Thermal XXXX. the expect portfolio transformation we by is early underway sale business business with the to

double most nVent is believe Our great a connection nVent platform to further strong and new a digits and is and the make growing sustainability sales, moves leader with and We electrification, focused protection digitalization trends. more Trachte, acquisition, electrical a [indiscernible] will nVent. recent and off positions these portfolio good start, for

Now sales organically, Sales new summary on led XXX points operating on for and the We're to Slide income a products. over our another new of contributed $XXX grew growth, down quarter X launched basis Year-to-date, X% flow, we've up products infrastructure. investments up and $X.XX. generated year. were XX strong points due for track We third Adjusted mix. free sales Adjusted to have EPS million year-over-year XX%. on was to X% by X performance. over impressive quarter with return of cash in an

verticals. our declined Looking market growing at solutions was the led data resi Infrastructure digits with end double commercial way down key across double softness. Industrial single sales digits, up organically, low continued low performance with mid-single digits digits,

broad-based strong North by and had digits. Turning low America to single was low Asia Europe growth. sales digits geography. up Pacific declined organic single

year-over-year. QX organic digits grew in orders Lastly, mid-single

resi Looking growth, to data particularly ahead to to a expect we and power vertical utilities. Industrial flat QX is infrastructure have the solutions be from perspective, commercial strongest remain expected soft. to

quarter detail to please XXXX. our our ahead. Sara, Sara shareholders for on and the how customers execute for overall, -- we portfolio. managing call third our results interest proud inventory. and of which Overall, our In team continue rates, nVent I'm remains very of proud another nVent for track I'm team the We're for now while very turn the transforming on strong updated will go has distributors elections addition, uncertainty to some and and further macro upcoming and deliver our year. I outlook with how over cautiously

Thank you, better-than-expected quarter had record and flow. a both growing Beth. third performance with earnings We cash segments strong

a X% on X X% which, Volumes expected. Slide year review results. than million our sales to are points reminder, or Acquisitions million to and all added up X was better relative were approximately turn a organically. X last Sales points $XX to contributed continuing Let's price up essentially growth or to as growth of operations $XXX to flat. basis. to

was neutral. Foreign exchange impact

in down million, Third cash points quarter XXX adjusted due year-over-year. flow operating quarter. adjusted year. taxes was XX.X%, generated This X%. this performance. was year XX% sales and down reflected capital quarter of & Return up higher prior strong working investments Fastening Electrical In basis in was mix or roughly income comps XX% and interest up was corporate $XXX as QX costs tough and on higher EPS expected. million, X% We sales, of the $XX the to million free reflecting $X.XX, in outstanding $XXX [indiscernible]

third infrastructure, quarter. Fastening offset Geographically, $XXX grew Return sales sales execution. a $XXX a & of excellent XX%. million products and Industrial commercial organically. new a strong declined. XX% great year-over-year, increased income Slide was growth please investments. Electrical both well, sales. America off with growing, From Pacific data solutions of by power of vertical Play the a impressive from for up quarter. our team XX start. up utilities inflation digits segment very backlog. Sales increased grew Now double down. Enclosures was power each an X% and The the and a and single million double margins XX.X% versus mid-teens, increased year and to was low including infrastructure Growth perspective, Enclosures, digits by with X single X% sales in Trachte in Acquisitions to ago added higher strength is points robust with XX another $XXX cooling. up to points high digits on million, led strong integration discussion North turn led performance. in quarter The to Productivity of returned helped quarter Sales performed Asia delivered fund Starting organically. acquisition than up Europe segment basis third more and digits. resi driven and

our Pacific In due remains double $XX titled grew on addition, Return Geographically, year-over-year. down soft. digits. Commercial was industrial Sheet a while Electrical comps tough and million, was X% mid-single Europe sales XXX North down Fastening basis points, flat digits, solid mix. On sales income mainly grew X, in & was Asia America resi segment organic to Balance exceptionally XX.X% down. $XXX year versus were Slide our from ago. and Year-to-date improvements Cash expect We million with the on the we $XXX Flow. free in The flow and quarter million quarter. cash historically cash strong fourth quarter, flow quarter ended available flow hand capital. continued and Free on a nearly of $XXX million working was XX% revolver. cash of up was highest in cash is

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

approach backlog. platform, and our acquisition our million in and and to balanced share strong have support our Growth of will footprint to to remains we the We shareholders, the increase Xx million a the to returns. capital capability including quarter, our We returned a first to priority, we continue year-to-date In $XXX deliver inorganic. take new allocation growing liquid and expanded both quarter. completed growth disciplined $XXX Trachte organic providing cooling in third repurchases

and with to have a further generation. the expect strong business significant we cash thermal deployment management ahead, sale capital flow for of the Looking optionality

Slide full a X and our to year on outlook continuing Moving operations basis.

and quarter to to discontinued guidance our the updating the year business go. thermal to narrowing moving reflect management operations with are We range X full

reported XX%, expected expected roughly to neutral. growth year, approximately are full be up the to and sales XX is organically X%. to For are expected to sales grow contribute Acquisitions points approximately FX

or items year. $X.XX for EPS $X.XX, adjusted outlook impact global to important standards. A X%. for percentage tax to X to in note to X% of is related an full $X.XX year the includes EPS few Our changes represents negative growth to point which the This

and adjusted and grow and income digital are inflation, in This reflects capacity, XX% investments expect in operating new addition, we to to accelerate growth First, XX%. making productivity productivity. offsetting we to price products

are on track flow free over to well XXX%. cash of million with we the of to generate in Second, XX% range conversion $XXX

costs Management shares $XX be is approximately million, to to million. CapEx and business. includes $XXX approximately interest a costs. A costs $XX of these tax expense $XXX include underway $XXX Third, assumptions Work million. expected of XX%, rate net approximately million already of approximately additional now are to allocated million XXXX This Thermal approximately corporate few approximately the previously indirect address of of

cash We year full expect of and strong flow. to XXXX profit sales, be another year

Slide XX and outlook. our to fourth Moving quarter

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

Beth. well $X.XX concludes expect I with pleased am third year-on-year. over we adjusted my between the X% quarter and believe will into Wrapping to and up, EPS positioned X% turn performance to to back call heading and $X.XX be We I our XXXX. This remarks, are up

you, Thank Sara.

Turning to Slide XX.

in you give our update liquid data particular. on business me and Let solutions an cooling

solutions a are many years in As we data you been centers liquid the for and offering leader for cooling cooling know, continuum. across have

Our based differentiation and designs. deep application on is our innovative our multigenerational expertise

We serve and to product hyperscale, continue partners. portfolio multi-tenant to data customers distribution center our our expand across enterprise,

includes portfolio distribution rack various coolant row and cooling liquid and high-density Our units manifolds.

solutions are performance to helping and to optimal designed manage Our of longevity. drive substantial output heat specifically advanced cooling cutting-edge infrastructure, the AI

capabilities, positioned well to high-performance driving efficiency computing support innovation environments. expansion of the are AI and We in

its currently liquid products, meet We follow-on for the engaged that of and design NVIDIA with needs the are platforms. and in NVLXX solutions architectures the cooling GBXXX next-generation

weeks. design reference showcasing solutions at be few super compute will We a NVIDIA in our

engaged other chip manufacturers actively cooling understand with requirements. also to are We future

can to our and ensure investing our they and facilities, addition expanding out products, capacity suppliers testing are in in advanced partnering In with with our lab building new us. capabilities to scale rapidly we

data sales see positioned in We are expect turn Slide our we to to demand exceed solutions management rapidly believe million. $XXX XXXX high power continue We and Solutions Data XX. products cooling, win cable to for this now well in space. Please to growing and

we adjusted income robust working share. the delivering execution, per few Over sales growth years, our and earnings with strategy and have demonstrated last strong is operating

Over a are ahead we next portfolio believe sustainability of grow a and our connection digitalization. Infrastructure make secular which is most our portfolio transformation, XXXX, us exposed undergoing of to portfolio approximately Looking represents the more company. and we to trends X/X higher now focused, the expected protection is growth to electrical and electrification, XX% of will year.

positioned are in solutions backlogs. and robust utilities We with well data power

is industrial positive. for commercial and outlook resi more Our

to are our again, key driver growth. expected products, a New of be

nearly strong a project including billion M&A and we to summary, year. Wrapping flow. management had flow to as have be quarter In Finally, XX. deploy expect the capital of transformation, operational performance, part healthy up generation. robust available cash of Slide another XXXX portfolio from free in our We growth sale $X and very record we strong a cash pipeline thermal our on

Our portfolio underway. transformation is

the turn that, I the sustainability over bright. With our is positioned to electrification well start Q&A. now grow We and to are will future call to with and trends digitalization the operator

[Operator Instructions].

with Barclays. Mitchell Julian from comes question First

first Maybe around the margin outlook. just question the

it So may looks in I so like bps down wise be or XXX margins operating sequentially think QX.

headwind Just unallocated you wanted into worked when check margins to year, normalize broadly million big And spend should in now that down, year? thinking that's indirect have quickly And of the please? $XX this half. correct. we're second next how into investment roughly right Does to more that get about next costs

think a Okay. that Julian, was question. I X-part

one. let the So first start me with

it's that In seasonal seasonal. downtick from QX, more just that terms margin of on QX to

historically, If perspective at right you in lighter that. Ross QX with and strongest QX the EFS tends in QX from and to is sales and commensurate be look and a QX

some have of things. from QX a So to QX sales return aspect you do on standpoint seasonality from

walking been second are particularly to future I of that products question is very growth, investments. think mean, we've around regard explicit this investments kind solutions. data important your to I fuel new into in year

some seen expect I online cooling And capability in think capacity new that have bringing that we of just QX data should here QX. can diminish those here up to solution us over ramp-up of product accelerate But some that that We time the into in online. back to those as investments on commercial continue half, related liquid XXXX. you costs in walk and bringing

third question I indirect around think was your costs.

there into that to So get essentially some indirect thermal essentially, allocated, thermal that as if costs don't of will, management discops, are now you going part management.

be will, piece accelerating million. One, already in corporate our some there's you bucket. that is work some That's management costs. business say within process underway. And and that really of I to things. fits that X that driving on is we've And roughly off focused We're I business being underway targeted Now negotiating the of of reducing would $XX work would that it efficiencies, thermal divested, if say cost transformation second of of have we more falling really with actions, those that terms efforts but contracts, cetera. et underway got already got

would I those indirect throughout so costs expect really XXXX. And to reduce

sales And be on maybe organic simpler question outlook. That's super just then would the helpful. very simple a second

quarter X% the So the I and in you commercial industrial to sort year-on-year. current for, X% you're res think about Beth, in say, sounded growing enthused outlook more of 'XX.

it reasonable far 'XX, X that your you're sort medium-term off to to based as growth things So comments is that perhaps year? off that of about X in not you assume talked of placeholder today, look last too

As different, right? said as it And these I and portfolio can verticals. we looks my go around higher XXXX, the been infrastructure, comments, growth into look, backlog so look at our and repositioning in we we've

of to think on I remains channel. through And lot go as got those our up we've where forward. cautious portfolio is coming this is inventory. us set trends. distribution so up, today, uncertainty. We've just we at. And And distribution seen sit And we the I now think rates partners a macro going be an exposed our as think that sold recall, that is here there we election interest they're portfolio to

So XXXX, the there we get the end as as we expect outlook is positive into well. market outlook more and

And next question Sprague from with comes Jeffrey Vertical the Research.

you Maybe by ] missed release something. here. did name partner I ecosystem [ mentioned it, the they or NVIDIA collaboration name on press Just but this that

hear Just wondering that any compute. going to maybe we're color there? But super

a say be and to collaboration our lot about And supercompute. we products showcasing efforts I that. will More come. How yes, at of

or in In just booth. their booth your

Jeff. booth, will products too well. But will we want our say see there, products will give In cooling you don't other around show. have our away booths I supercompute as other much showcase invent to in I the and

the was mix what mentioned? And in that you negative Okay. effect EFS

they mix based in on positive outsized Their didn't were return of kind lot those north and the XX%. sales of to forward. we that mix was A Yes. prior of that QX in quarters, we we year continue just as that, particularly impact those expect called last an quarters And Jeff, on getting sales and QX. from go year, in of out was

XX%. looked So tough on as that of gets return sales like basis, We year-over-year north again, It's QX do what this an that that, mix absolute easier on just ago think a based well. on comp a in was that the comp. quarter was comp year

are investments and QX that algorithm think about how inflation, move of And collectively, how you negative forward? do you frail going Obviously ticked into could a and of you thinking we productivity it's price manage kind little XXXX. kind as

-- seen see we Jeff, the things years, I the how -- characterize very outsized volume. past it. stable we've is are would price think price we And in more than in several several

Now of into be price we're seeing as contributions positive we strong go that, will think forward that do volume. XXXX. we But

Nigel Wolfe Coe next the from question with And comes Research.

do it's Sara, bit But how I as between key is for bit influenced So core different because -- the X% X try yes, in sort X. and want guessing think, the than of this of you, think. that's lumpiness and just Solutions perhaps so I like sales, I between I'm feel that to to Cooling XQ sales X% and that to out does the X are segments. well. the XQ XQ seasonality? maybe to understand The not XQ be break so better going perhaps a it kind normal flatter Liquid in to the a little the

terms in kind range. of X% being that first right, that of X% in to one. both take your is Nigel, me guess Let segments

Enclosures growth good from softer commercial If resi QX that. industrial and is again, what prepared well overall. overall, you in bit said segments her informing standpoint, And softness look a good both at EFS, reiterate is what's to it a stronger in saw continue encouraging just as mix, in continued that order Beth we I just vertical growth remarks would infrastructure expect in in

some just I end levels think we of to given those the of is would X the at uncertainties, some expect these the at there caution there distributors year-end. year macro and manage inventory

stronger perspective, pretty is little seasonality is element EFS if biggest QX that front. QX. that's And of In will, seeing that again, historically, that in look, back, going a sales going see consistent EFS. of to sales QX QX QX, from with you I and downtick, And really we're just QX and the you're a think the EFS bit be to I there terms to going seasonality on think

in Anything on the phasing of Solutions? Data shipments

these about building Solutions based are and Beth We what of versus of some in comes No. necessarily. on is capability. Not quarter. the about little our customer more we're that feel talked of Data of and bit first and meaningful building underway about of talked capability kind out and progress testing that talked half really we this half. terms just programs We timing great strong, into good of also where Orders that second a lab last that But making again, backlog. about place. the some

excited million Solutions. And you about have but was a guys Data for what been asking so terms ago. of we looks characterizing expect $XXX now at like, really of So kind that Solutions than Data in the year, number this that year future it higher what of I meaningfully know

then great. on pipeline That's just And of quick development. M&A a one sort the

set larger some X be could or sort opportunities? XXXX lot got this is deploying And But of of the we X of news. think which on do of good to you expect cash to are as series acquisitions? there be Or on M&A? surplus there in be do could buybacks the of bulk you Or sort a deploy, obviously a You've well? capital

is deals. it to as with we've is we you ability integrate our growth, first think pipeline, capital demonstrated at larger said that think as And Well, to our both inorganic. very and look allocation robust organic I our know, we've priority we always our

never deals, can deal. we're into we But that believe I we more we M&A. does go timing ] in you look have sizable pay. again, always say give I disciplined think us but we the a if to pools I a into as But multiple control on to we execute and opportunity of as an opportunity so it that want XXXX do [ XXXX, the good And

And RBC Markets. the from next Capital with comes question Deane Dray

know the can more what I up And did digits, Solutions. as the be with sizing appreciate Data portfolio as said the data center in I but specific in terms of on double snapshots growth? you XX Slide well quarter you

year you specifically. and more at year full perspective. XX% if out that growth continuing that look a we're that's in to book just that just that in was of go break necessarily back year-over-year order excess been look for backlog don't well. that million growth from But the again, And strong last expecting there the I'll I think as has We $XXX where at with

heading about into XXXX. feel So good that

Understood.

So -- question brings space. rates and of and you that growth peers market the versus about in share and up stack this how kind up

this about And idea but so the don't challenges, are one talked partners is and in platforms many of you before, you with name. see the and the we've you here net where

it's when how appreciate had. XXXXs people Inside, in started the see share Intel a went and and like the to bit Intel pervasive early to And Intel when that's kind so what of

talk name put you're your on So how able but how in the being in the in different first of way addressing being and your it. what challenges able know of profile a platforms, liquid share? about you've in of here leader, in able but cooling, kind not I have necessarily terms to where you're been to you this are you to it

well understood. Deane, think capability I community is invent that name and and high-compute saying start this I Well, the hyperscale by would known in

especially channels, we're continuing design perhaps that offerings expand the more the through -- think in And more the what's involved we're into So terms capability, on I those are in or high who our and in the many as you this our marketing going are of distribution knowledge learning capability get broadly, to ensuring and development. of who still liquid about cooling just multi-tenant where there's it.

next partners our said be many to with more continue distribution We collaboration going our that We're compute. ramping view there. But our the those designs. about. products. we're will at we to we I can't We're with on of working with customers is generation stay invest we're of new super NVIDIA. There's about speak talked tuned. that in So sharing

from continue us. to fast. our rapid rapidly, just we from perspective, this I The capability to new growth we're capacity So expect my go lab to and to suppliers, a space and making investments need continue to is [indiscernible] for to be evolving think to our

-- next That's the expansion? us that Great. the that's just on the far proof the in us years? Xx capacity the is a manufacturing is does just if how that, give follow-up my labs growing because amount couple is to How take delivers actually I -- how on that sense you your expansion. this of versus market in much that exactly XX%, is of you excess you mean, capacity the test question capacity require. cooling remind And much specs they of partners liquid how really Can have

couple the And Dean, a through this of next that's capacity, we point, refer get capacity. At manufacturing is to change. Xx the can to about years. So we that going that when us think

And so building that out. process of in the we're

as that Our been because of XXXX, supply base all today. they us lab we've of is through I that ensure And but so and what to to scale with the have take that to point way, and that can lab doubles make by you than going our enough, we rapidly expansion more capacity our capability working wanted isn't that have well. also into

perspective make sure areas we So we're investing there's rate continue that see we the at lot more continue end-to-end start some beyond on offer to just, solutions broadly a we're to to can different that as of chips growth say, the AI an from extend and these hyperscalers. that of

Goldman with Ritchie Joe from comes Sachs. question next the And

seems of thread. the it's at point. like that efficient fast could, following it kind productivity just you business probably Maybe specifically. few now trying to not as have data more in liquid I'm run hear in Last and But fully center again, as a offering, right I'm guys that trying to cooling like time sure, just on you weeks. maybe the comment. we'll your we and So And that you were understand saw

understand so And any the the just productivity have and curious that today. you make business around comments just margins around I'm to you can

I'll margins our and sorry, said margins of reflected kind that portfolio -- cooling Data let jump of start our segments. We've Well, that the our in Sara in. there, I'll always liquid Solutions products

do what and of kind liquid cable we margins do margin reflect of management other what around products some around in reflects the we So EFS, that in power and cooling Enclosures. have the we the

there's having costs going Now that, and that. a of to in, lot investment said there's a start-up lot of

do And opportunity drive so we think efficiency. time, that more to some there's over

the she over but know they let Sara are things So we more to get and add will margins that I'll more, good anything today, that as time, and wants. scale that, better

Maybe Yes. delivered just strong productivity new mix good new operating leverage I has the else better of Enclosures I some think seeing is and products, as underlying programs. add only well would as the thing some business some on these

and return we expanded in sales the some bringing with still investments, these these online capacity quarter. even on So the of

productivity underlying well. So strong as there's some there

from year. around isn't Okay. Data hear. kind then, to you've that this I pull next I it and from And the growth year Good heading this out made contribution to just organic year rest growth circling the comments Solutions, and your the growing seems of acquisition into standpoint. business back organic like the an question of If guess,

of outside have to kind so if are business as could an XXXX, inflection follow-on that meet spur just kind you there think that where just a of are of really growth? And Data to Beth, within And your capacity that depressed course. curious, see inflect demand areas are you that, be I'm about there organic able to of to then it were you any constraints Solutions,

things is we've year has commercial/resi soft. Okay. Well, of that this I been one the think said

so And improve in XXXX. expect we that to do

would I point second industrial. The out is to

in our so and seen some we've we've seen EFS, in business. Enclosures And and weakness industrial some strength

Some enclosures but distribution inventory power also year, has to to improves also strengthened gets our macro inventory utilities But in talk believe ESS place. But behind year. I of certainly the Again, we portfolio, utilities we elections business interest channels where, earlier about the saw it has Trachte think CapEx things with end the and would we've going us that level and portfolio next is adjustments into do uncertainties investments, some at of our of at have we've and but we do believe, growth taken think in and of -- new with acquisitions products. the the channel. this the even some nice that strengthened because that with tied QX that the looking done XXXX, in with again, acquisition. I distribution power we rates, to that saw customers with

And so and a is as view strong support XXXX go our positive into we backlog going as into year. -- growth

Vladimir next question with Citigroup. And the Bystricky comes from

and you're orders organic X% growth the in but organic So growth about X% guiding maybe on up mid-single-digit had mean following X% to way. revenue just another question I if in think I you XQ. in the --

talk see guess, more of should So when growth level that I about directly we convert higher you to revenue. can orders

and XXXX, we as into see to get inventory. XXXX, When some I to start managing guiding we Well, say, we we ]. uncertainty how correct again, this into of backlog think has, terms for improvements because or we have cycle data see with, get we X% think think causing, to our in. quarter, see And I example, layers in I this macro [ our believe as again, growth that of distributors think at we look X%. but spoken We're yes, -- that And we've short a I orders mix. solutions,

of I we're context and QX. point maybe mean some the at that here. just I add you one year-to-date we've if would to look of where And XXXX given on at kind just

they're growth infrastructure the has some mean et expected the obviously, at been industrial big as right, of and much. the look But where Europe, resi And then that and we not headwinds talked I then flip EFS of it's mixed EFS, were turning around that's you Enclosures, Beth on again, the not year, that off, dynamics this If that's of year, of some far it's And again, the be working side. of mid-single-digit we market even with infrastructure, right? so digits. a terms strong as channel part utility to underlying that end through commercial in enclosures cetera. being the strong headwinds. in inventory we single And from had year, about the dynamics next start And

Got mean, sort start to portfolio it. mentioned moving more it's extend? a far growth, great to just maybe a the have helpful. How for as their to their Can visibility backlog? within then into of visibility that it. about Trachte That's out good I talk you which coming off does double-digit Appreciate minute. just the is with it's And you you hear.

some cases, year visibility. we like that can we see In of get orders a

shorter we are maybe aging electrical used as that into with what are well. have an infrastructure there, data than about and we're a these backlog centers houses Some do next for you control think are as year. good doing well go And we with as renewables if as support that. But upgrade

So outlook. we continued just growth visibility our in strong and have some nicer see there

The DeBlase Bank. Deutsche with next from Nicole question comes

gives more improvement respect have in of coming seen you order orders starting of with and that parts turn dovetailing positive? of that of is about businesses macro some commercial you with for can down kind the to the industrial and guys conviction and expectations dynamics just on Or Maybe XXXX any resi, activity? it sign the rates those and

certainly that about get our it's the interest how way. year. that been I -- and through is that our uncertainty rates stable, just comment. Utility that say has better is that it XXXX. first, and would are distributors view managing does this stable that is fact But in put view make I improved. this good. It's have also how I'd macro But things

And like perspective. from It maybe inventory are you're bit a then, inventory I the back holistically of seeing about helpful. headwinds how I But less characterize talk That's now? a Okay. little you the could kind would according of guess, plan channel guess, going what you of those seems with year. things half in to

bit channel, start little saying the would I and by we've positive actually think I Well, a sell-out is sell-in so the seen weaker. distribution through

and performance. their talked have managing interest that this we -- flow so And is why rates. of believe many they about them cash

think And inventory we that being they're -- cautious. it's so just very that level,

about get end And good. XXXX so we still being because into demand market talk they as

So into -- XXXX. situation we that improve will expect go that we will as

next with the Jeff question Hammond And Markets. Capital from KeyBanc comes

$XXX and Just did -- for buyback around just capital how in and wondering, buyback the the earmark thermal just you quarter, the I wondering, back know is focus just organic to about think any get sale? you allocation. I'm to but I'm million organic,

do some for always our When first but the say intent did growth, sale, both the we inorganic, opportunity priority sale, and buybacks. announced organic is there we to remains the the

to did there opportunity I QX. opportunity always And we that certainly, the never so there's next changed, if go M&A timing like year, of was the into in think as And can no we to buybacks. I do as And world some M&A. you say, control or

business you Okay. out had And Is then comps? utility I called function just you single-digit start been a reaccelerate? actually that that kind think growth. Or seeing and of high are think drag, to I of that a

this a XXXX. high we about was EFS business, the we the high half -- had growth and challenge in really in of first talked year, us our for In

lead had line. that extended back were come also and times now We they've in

for very business segment in QX strong. that utility our was So us in EFS

and our believe we also we And Enclosures -- in that so and backlog Trachte that business. have see the we

to we infrastructure our And driver XXXX, so is we key we utility of -- be going into growth. a as look think

just Okay. Great. orders up And last mid-single digits. then one,

largely it I'm really data that solutions? I'm I haven't more think you calling is Or out reacceleration. just than assuming been a that's is And that? so orders, broad-based wondering,

broad-based. actually It's more

and And seen been good. mid-single-digit a has orders we've as And so strong but it's EFS we've in data solutions and mix, enclosures seen well. orders

with Brian question Blair. Drab next from William comes Your

just growing half within us that of wondering and and million? I know we've do well. $XXX what if cooling is to don't could $XXX is And category willing and little was comment at liquid in cooling -- solutions And you're granularity curious on and that talked million give and this I'm you not then past, can power that because then data now or -- more than just whether you the cooling power a the if about what within cooling. maybe I power more as that on then

cooling power always right. XX%. said you're about that and is Yes, We've

cable little more part growing our because XX%, been say than to say management business growth to it's we I that's cooling, continue of expect a certainly, So some would it's around same data as as also but the percentage But all the rate forward. we increase I solution solutions that has of to a like go with rates at liquid overall going that of portfolio.

that timing have you at your predict give at us expect and a cash thermal know to cash. massive interest point that -- going of but way on the rates, the interest I the you'll you amount getting deal the rate that expected can't it's be of least on Okay. you're And an like interest is rate then any you and like update that could there

So XXXX. we XXXX yes, to that And I'll said the by of management the in on our the sale early comment when cash. occur announced let expect sale, business Sara -- we early thermal we

Yes.

in X% could you in the that and on is debt. it range, think some sheet from standpoint interest prepayable even what paying X% at X%. term on earns context what upon a a or and think the that, of depending to our I which of about of looking deposit balance we're sits rate sort

that kind at look of blend the to that, X% about you of can range. in if you think X% So

next comes CL And Silver David question with the King. from

a to wanted Trachte just I on your platform. business comments follow as maybe on the new up serving

couple remarks. you where is that customer more sense off in touches the make did base. the a is My of a when mentioned you good you years. add prepared mean, maybe plans. I the times few sure that But be mentioned then could some markets, heading different just I is platform," maybe had thinking think is a are up? your next to enclosures start. those But the the "a scale mean, think you color some but you end enclosures, third that down some business adding about? a different it your I the it you -- longer-term little this do for what your plans business opportunities in I'm if larger business on I early where differences deal, group? might basis business a -- thoughts something some important? And is breadth there maybe Anyway, are to Or segment? new Is there? it's strategically, of this very road, the know this make the is want could the breadth since a that's best within just managed the it days, form new you about on

of in this and framework, always we Well, products high-growth have this, and published verticals we M&A can think we know, that and as you great in we invest scale.

portfolio. closure today. say here, in it as were are also we like dynamics so segment simplistic we than is And enclosures we products how being the you we a doing invent larger aging very see us, in stronger data I'm And was effectively, of and type what and I of And and in you other that more this to that houses, infrastructure, position center in thought as utilities, that for could the some these control with the an Enclosures about our offering when saw you have an growing a go build-out. see also

more as there's the that with materials, that because and to think a part that could framework, invest us of we felt what we in saw we in extend to Enclosures lot it our it's can scale we're purchase a and this of et segment, centers. And cetera, and believe in in the of point, think data as we of rest to, at grow. how synergies allow going you Enclosures continue position portfolio synergies to per I it invent scaled that within we so our we an this what renewables do expand that in to do we a add us utilities, portfolio opportunity have way And to the for and

the the conference session. question does any like Wozniak over back to turn and would closing comments. Beth I conclude to That answer for

Thank I'm for QX. our us joining very pleased you performance in today. with

We our Thanks by shareholders and growth concludes again I'm call. employees customers, transforming and the portfolio. our for will us. our continue to focus This strategy joining executing on excited for our future. on

Thank you.

presentation. mentioned, conference the has Thank for As attending concluded. today's you

disconnect. may You now