nVent Electric Shares Rise on Q4 Earnings and Revenue Beat

nVent Electric NVT shares have gained 2% since the company reported its fourth-quarter 2025 earnings on Feb. 6. The rise was driven by the strength in data center demand, infrastructure growth, backlog strength and cooling adoption.

The company reported fourth-quarter 2025 adjusted earnings of 90 cents per share, which beat the Zacks Consensus Estimate by 1.8%. The figure jumped 52.5% year over year.

Net sales increased 35% year over year to $1.1 billion, surpassing the Zacks Consensus Estimate by 6.32%. Net sales increased 42% year over year, including acquisitions and forex exchange. NVT’s revenues increased 24% year over year.

NVT Q4 Segmental Details

Systems Protection net sales were $737 million, up 58% year over year, driven by a robust organic growth of 34%. Infrastructure grew approximately 70%, Industrial increased by high single digits, and Commercial/Resi grew by low single digits.

nVent Electric PLC Price, Consensus and EPS Surprise

nVent Electric PLC price-consensus-eps-surprise-chart | nVent Electric PLC Quote

The Return on Sales (“ROS”) was 20.3%, down 120 basis points year over year, reflecting the impact of inflation, recent acquisitions and continued growth investments.

Electrical Connections’ net sales were $330 million, up 15% year over year. Organic sales increased 8%. The infrastructure vertical rose 25%, the industrial grew by mid-single digits, and Commercial/Resi increased by low single digits.

The ROS was 27.6%, down 180 basis points year over year, primarily due to inflationary pressures.

NVT Q4 Operating Details

GAAP gross margin declined 330 basis points year over year to 36.5%.

Selling, General and Administrative expenses totaled $203.8 million, up 23.4% year over year. As a percentage of revenues, SG&A decreased 290 basis points year over year to 19.1%.

Research and development (R&D) expenses increased to $21.3 million, up 23.8% year over year. As a percentage of revenues, R&D expenses were 2.0%, down 30 basis points year over year.

nVent Electric reported an adjusted operating income of $210.3 million, representing a 33% increase from $158.3 million in the year-ago quarter. Adjusted operating margin was 19.7% compared with 21.0% in the prior-year period.

NVT’s Balance Sheet Details

As of Dec. 31, 2025, NVent had cash and cash equivalents of $237.5 million compared with $126.9 million as of Sept. 30, 2025.

nVent Electric had net cash provided by operating activities of continuing operations of $222.4 million in the fourth quarter compared with $272 million in the third quarter of 2025. Free cash flow generated was $189 million in the fourth quarter.

nVent Electric Initiates Q1 and 2026 Guidance

For the first quarter of 2026, NVT expects net sales to be between 34% and 36%, suggesting organic growth in the band of 17-19%. The Zacks Consensus Estimate for nVent Electric’s first-quarter 2026 revenues is pegged at $1.1 billion, indicating year-over-year growth of 35.65%.

NVT’s adjusted earnings are expected to be between 90 cents and 93 cents. The Zacks Consensus Estimate for nVent Electric’s first-quarter 2026 earnings is pegged at 92 cents per share, indicating year-over-year growth of 40.3%.

nVent Electric projects the reported sales for 2026 to be in the range of 15% to 18%, suggesting the organic sales growth between 10% and 13%.

The company now expects 2026 adjusted EPS to be in the range of $4-$4.15. The Zacks Consensus Estimate for nVent Electric’s 2026 earnings is pegged at $4.08, indicating year-over-year growth of 21.8%.

Zacks Rank and Stocks to Consider

Currently, NVT carries a Zacks Rank #3 (Hold).

Amphenol APH, Broadcom AVGO and BILL Holdings, Inc. BILL are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol, Broadcom and BILL Holdings sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Amphenol’s earnings for 2026 has been revised downwards by 7 cents to $4.32 per share over the past seven days and suggests a year-over-year increase of 29.3%. Amphenol shares have jumped 16.8% in the past six months.

The Zacks Consensus Estimate for Broadcom’s projected fiscal 2026 earnings is pegged at $14.06 per share, up from the prior estimate of $13.91 per share over the past 30 days, calling for a year-over-year surge of 37.6%. Broadcom shares have returned 0.2% in the past six months.

The Zacks Consensus Estimate for BILL Holdings’ fiscal 2026 earnings has remained unchanged at $2.22 per share over the past 60 days, suggesting year-over-year growth of 0.5%. BILL Holdings shares have declined 2% in the past six months.

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