nVent Electric plc Ordinary Shares

Good day and thanks for your standby. Welcome to the Invent First Quarter Earnings Conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. Please be advised that today's call is being recorded. I would now like to hand the call over to Tony Ritter, Vice President, Investor Relations. Please go ahead, sir.

Thank you, Charlie. Welcome to Invent's first quarter 2022 earnings call. I'm Tony Ryder, Vice President of Investor Relations. On the call with me are Beth Wozniak, our Chief Executive Officer, and Sarah Zawoisky, our Chief Financial Officer. Today we'll provide details on our first quarter performance, provide an outlook for the second quarter, and an update to our full year 2022 outlook. Before we begin, I remind you that any statements made about the company's anticipated financial results are forward-looking statements subject to future risks and uncertainties, such as the risks outlined in today's press release and Envance filings with the Security and Exchange Commission. Forward-looking statements are made as of today, and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results. Today's webcast is accompanied by a presentation, which you can find on the investors section of NVEN's website. References to non-GAAP financials are reconciled in the appendix of the presentation. We'll have time for questions after our prepared remarks. With that, please turn to slide three, and I'll now turn the call over to Beth.

Thank you, Tony, and good morning, everyone. It's great to be with you today to share our outstanding first quarter results. Our first quarter performance exceeded our guidance on sales and earnings. Our strategy to focus on high growth verticals, new products, and global expansion combined with strong execution were key to our success. We delivered record sales in Q1, growing 27%, with strong growth across all segments. Orders grew 28% in the quarter, higher than sales. Adjusted earnings per share of 50 cents was up 16% year over year. Overall, we are pleased with these results to start the year and are raising our full year sales and adjusted EPS guidance. Now on to slide four for a summary of our first quarter performance. Sales in the quarter were broad-based, up 24% organically, with each segment up greater than 20%. This was well ahead of our Q1 guidance, primarily driven by strong volume of 13 points, coupled with 11 points of price. Our results show we are winning and executing well. New products added approximately two points to our growth rate, and we're on track to deliver 50 new products again this year. We are focused on growth, serving our customers, and delivering long-term value creation. We continue to have significant wins with the electrification of everything. For example, in enclosures in the data solutions vertical, we had several wins from our CIS acquisition with our leading intelligent power distribution unit offering. We won a large program for a social media provider for their new hyperscale data center and are now a preferred partner. With the rollouts of 5G and fiber to the home, in electrical and fastening, our easy-to-install Hammerlock ground rod connection has been specked in by multiple telecommunication companies. We've seen good adoption with large North American utilities, resulting in a seven-fold increase in orders year over year. And in thermal management, we recently converted an account valued at over $5 million with a large chemical producer. We won with our heat tracing systems, including our advanced controls that enable longer circuit lengths, lowering costs and labor hours. providing benefits to both the project and the end user. In addition to these business wins, we received numerous awards and recognitions from our top distribution partners. Our electrical and fastening team recently received platinum recognition, highlighting our strong level of support and partnership. Our thermal management team was awarded the Above and Beyond Service Excellence Award for their unprecedented support. And our enclosures team earned the Operational and Technological Excellence Award in recognition of their innovative, state-of-the-art business practices and quality services. These recognitions are a testament to the great work of our InvenTeams serving our customers and partners each and every day. I now want to comment on the verticals that we serve. We continue to see broad-based growth with all verticals growing more than 20% year-over-year. Industrial led the way with continued growth in automotive, food and beverage, and material handling. Infrastructure continued its strong growth led by strength in data solutions and power utilities. Commercial and residential continued its trend of double-digit growth driven by North America and Europe. And finally, in energy, we continue to see a nice recovery, particularly in MRO. A driving factor in our strong results is our focus on higher growth verticals around the electrification of everything, where we believe we are one of the best positioned companies to grow with this mega trend. I will touch on these in more detail in a few minutes. Looking at our geographical sales performance, we continue to see the strongest growth in North America, up over 30%. europe was up low double digits and developing regions grew low single digits looking ahead we are raising our full year guidance reflecting our strong start to the year while our outlook is positive we remain cautious given the impacts of the russia ukraine conflict covid lockdowns in china and ongoing supply chain challenges i'm very proud of our team and how we continue to perform and deliver outstanding results I remain confident in our ability to manage through these challenges and deliver for our customers and shareholders. I will now turn the call over to Sarah for some detail on our first quarter results and our updated outlook for 2022. Sarah, please go ahead. Thank you, Beth.