25 annotations
Better price-cost and positive productivity drove the outperformance versus our expectations. Price more than offset the impact from inflation of roughly $30 million.
whre the beat came from
Transcript
2023 Q1
25 May 23
n verticals, we expect industrials to see continued growth with investments in automation and supply chain resiliency. Infrastructure will benefit from investments with the electrification trends in power utilities, renewables and e-mobility.
We expect continued strong growth with our portfolio and liquid cooling for data centers, given the energy efficiency benefits.
strong growthg data centers
Transcript
2022 Q4
24 Feb 23
For example, data solutions now represents $375 million in sales, and grew over 35% in 2022.
data solutions
Transcript
2022 Q4
24 Feb 23
Looking at our key verticals, all grew in the quarter. Industrial led the way up low double-digits with broad-based growth. Infrastructure had strong double-digit growth led by data solutions and power utilities. Energy performed well, up strong double-digits. And finally, commercial and residential grew mid single-digits driven by North America.
verticals color -- data solut9ions DD growth
Transcript
2022 Q4
24 Feb 23
And so, what I would point to here is more from a -- if you look at CIS Global and WBT, these acquisitions have been focused on data solutions, data centers, so one of that infrastructure areas. When I look at our Vynckier acquisition, it's been focused on renewables and places like solar.
acquisitionw in dara crner area
Transcript
2022 Q3
14 Nov 22
nd our view is we're so broad-based in terms of the different types of buildings, warehouses, data centers, et cetera, that we support with our products and offerings. And they also, particularly with our EFS portfolio, a lot of what we're driving our labor saving solutions and power and data infrastructure is where we play.
non resi colour
Transcript
2022 Q3
14 Nov 22
I wanted to maybe drill down a little bit further into the impact of higher commercial loan rates and let's say your commercial buildings market, which is a pretty big market for you guys.
comm resi
Transcript
2022 Q3
14 Nov 22
Yeah. So, on that $74 million, you've got roughly $55 million of that is going to be inflationary pressures.
So that means you've got roughly $19 million, $20 million related to investments and productivity. M
the 74m increase in costs
Transcript
2022 Q3
14 Nov 22
I think the thing to keep in mind is that even if we see some material price easing, we've got inflation in so many other areas.
We have inflation in labor.
We have inflation in freight.
We have inflation in energy costs.
So, on balance, as I mentioned, we think next year is an inflationary environment and we're going to continue to manage that price/cost equation as we go into next year.
inflationary environment next year
Transcript
2022 Q3
14 Nov 22
that price plus productivity is going to more than offset right inflation.
And so, I think we've managed that well over the last couple of years. Productivity has been more of a headwind in the current environment, given some of the supply chain challenges. But we would expect that to continue to gradually improve. I mean, I think, we saw a modest improvement from Q2 to Q3.
We expect that to continue into Q4.
I think timing of when kind of that overall supply chain environment will get back to more normal? I can't say that we have a particular view on that. What I would say is that we're really focused on doing something differently than what we've done before in terms of onboarding,
noncommitsal on when supply chain normalizes
Transcript
2022 Q3
14 Nov 22
What we're seeing in North America is a very strong growth in industrial MRO. We've talked about that for six consecutive quarters being very, very strong. And that's continuing. We've seen a lot of focus on things like clean energy and biofuels and carbon recapture, so some -- energy transition areas. But we think that the project orders and activity both in Europe and North America is strong
us industrial mro, energy transition etc
Transcript
2022 Q3
14 Nov 22
e would expect Enclosures to be the largest driver of that year-on-year margin improvement and see more kind of modest margin performance to platinum EFS and thermal. I mean, it's really more of a function of the strength of that margin performance of a year ago than anything else.
margin colour across segmentds for q4, enclousures lead the way
Transcript
2022 Q3
14 Nov 22
As we look at industrial, we see that we have a really strong backlog there, particularly in our Enclosures business. And there's a lot of focus on industrial, automation and reassuring or just the fact that everyone has had so many labor constraints and challenges.
And so, we think going into next year with our backlogs, we believe we'll have some strength there.
I think on the commercial and residential, residential is not a big piece of our portfolio and certainly, we've seen that slower.
On the commercial side, if you look at where we have -- the most of our business in our Electrical & Fastening solutions, a lot of what we do in commercial is related to power and data infrastructure.
So anytime that you are retrofitting a building or looking to have more content, you think of the hotel room and all the different outlets and plugs and things like that, it drives for more of our solutions.
ind automation strong, not really expposed to resi
Transcript
2022 Q3
14 Nov 22
There is some concern that non-residential investment activity is going to follow residential, doesn't seem like you're seeing the signs of that across your portfolio.
noresi to follow resi?
Transcript
2022 Q3
14 Nov 22
. We've strengthened our portfolio in data solutions, industrial automation, and renewables. We've added more than $200 million in annual revenue since spin. These acquisitions have grown 30% year-to-date, outperforming and growing faster than overall nVent.
acquisition led growth
Transcript
2022 Q3
14 Nov 22
Our data center liquid cooling solutions are more energy efficient when compared with traditional air cooling. They can remove heat at the source more effectively and improve the power usage effectiveness by up to 30%. When it comes to electrical connections, our nVent air flex FleXbus can reduce the installation time and cost up to 50% and 20%, respectively. It is safer and easier to use, more reliable and customizable.
product colour
Transcript
2022 Q3
14 Nov 22
As the world moves through the energy transition, we see investments being made in infrastructure, renewables, energy storage, and electric transportation.
energy transition
Transcript
2022 Q3
14 Nov 22
For free cash flow, we now expect conversion to be approximately 90% at the low end of our prior range due to higher working capital to support our strong sales growth. A few other full year call outs, we now expect a four point FX headwind to the top line. Corporate cost expectations have moved up slightly to roughly $85 million and we now expect CapEx of approximately $50 million at the low end of our prior range.
fcf conversuiion low end of guide due to wc adjustjents to support growty
Transcript
2022 Q3
14 Nov 22
We ended the third quarter with a net debt to adjusted EBITDA ratio of 1.7 times, just below the low end of our target range of 2 to 2.5.Year-to-date, we have returned $96 million to shareholders, including a competitive dividend and share purchases. We believe our strong liquidity and robust cash flow position us well to continue to invest, execute on M&A and deliver attractive shareholder returns.
good debt/net ebitda ratio
Transcript
2022 Q3
14 Nov 22
Thermal Management, s
thermal management
Transcript
2022 Q3
14 Nov 22