NVent Electric plc has raised its full-year organic sales growth guidance to a range of 32% to 34%. Management stated the guidance increase reflects sustained momentum in AI and data center capital investment.
Organic sales in the infrastructure vertical, specifically regarding AI-related data centers, more than doubled. This growth follows a shift in the company's portfolio, with infrastructure exposure increasing from 12% at the time of spin-off to nearly 60% in the first half of this year.
Projected total data center sales for 2026, more than double the sales from the previous year.
The company projects total data center sales will reach $2 billion in 2026. Liquid cooling currently represents 10% to 15% of data center cooling. To meet demand, nVent Electric opened its Blaine facility within 100 working days.
Business Segments and Acquisitions
The Electrical Connections business grew 18% organically. Management clarified this growth was driven by real underlying demand and balanced sell-in/sell-out at distributors, rather than inventory restocking. The company expects Electrical Connections margins to return to the high 20s as pricing actions take hold, following previous impacts from inflation and mix shifts.
The EPG acquisition is contributing strong double-digit sales growth and expanding the company's reach in electrical protection. Management noted the acquisition continues to exceed internal expectations.
Growth was led by the Americas and supported by 14 new product launches that contributed over 30 points to sales growth. Management described the growth as broad-based across all geographies. Additionally,
Financial Outlook and Operations
NVent Electric's backlog stands at $2.5 billion. Management noted that data center orders are inherently large and lumpy. The company expects to offset approximately $100 million in tariff impacts through pricing, supply chain productivity, and operational mitigating actions.
Capital expenditure (CapEx) is expected to increase 40% to approximately $130 million for the year, primarily dedicated to new capacity for data centers and Power Utilities. The guidance assumes mid-twenties incremental margins in the second half of the year, assuming continued reinvestment in capacity and innovation.
Current net leverage, which remains below the target range of 2 to 2.5x.
The company's net leverage is 1.2x. nVent Electric is also working with partners such as NVIDIA on product roadmaps through 2030 to future-proof cooling solutions.
