nVent Electric plc Ordinary Shares

Good morning, and welcome to the NFAN Electric third quarter 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now like to turn the conference over to Tony Reiter, Vice President of Investor Relations. Please go ahead.

Thank you, Jason. Welcome to Invent's third quarter 2022 earnings call. On the call with me are Beth Wozniak, our Chief Executive Officer, and Sarah Zawoisky, our Chief Financial Officer. Today we will provide details on our third quarter performance, an outlook for the fourth quarter, and an update to our full year 2022 outlook. Before we begin, let me remind you that any statements made about the company's anticipated financial results are forward-looking statements, subject to future risks and uncertainties. Securities 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 in the investor section of M-BEN'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 will 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 third quarter performance. Our InvenTeam delivered exceptional results by serving our customers, responding to strong demand, and overcoming supply chain challenges. Our strategy to focus on high growth verticals, new products, global expansion, and acquisitions combined with strong execution continues to drive our success. We believe we are well positioned with the electrification of everything Megatrends. Our third quarter performance was a new record for both sales and adjusted EPS, and once again exceeded our guidance. This marked our sixth consecutive quarter with organic sales growth at or above 20%, demonstrating our growth strategy is working. Our return on sales improved both year over year and sequentially. Given our strong third quarter results and expectations for Q4, we are again raising our guidance for full year sales and adjusted earnings per share. Now on to slide four for a summary of our third quarter performance. Sales in the quarter were up 20% organically with double-digit growth in all segments and key verticals. Segment income was up 22% year over year, and return on sales up 90 basis points. Adjusted EPS was up an impressive 25%. We generated $126 million in free cash flow, up 17%. Overall, a great quarter. Orders grew high single digits, on top of 43% orders growth a year ago. We expected order growth to moderate given this comparison. We continue to have a robust backlog of strong double digits year over year that gives us confidence going forward. Let me share a few other highlights. New products added three points to sales growth. Year to date, we've launched 42 new products and expect to deliver 50 again this year. I'm very pleased with the progress we have made. We are launching more new products faster that are innovative and highly valued by our customers. We recently won a showstopper award at the National Electrical Contractors Association for one of our Invencati products. Looking at our key verticals, they all delivered strong double-digit organic growth. Infrastructure continued to lead the way, with strength in data solutions and power utilities. Commercial and residential grew strong double digits, driven by North America and Europe, Industrial continued its broad-based growth, given the strong trends in automation. And finally, energy continued to perform well, particularly in MRO. Looking at our organic sales performance by geography, we continued to see broad-based growth in North America, up 28%. Europe was up double digits in all segments. Developing regions declined high single digits, primarily due to China. In the quarter, we experienced COVID-related lockdowns in Qingdao, where we have our largest China manufacturing plant. Looking ahead, we are raising our full year sales and EPS guidance, reflecting our third quarter performance and expectations for Q4. Our orders and robust backlog give us confidence in Q4 and into next year. We're excited for the future with the electrification of everything. I will now turn the call over to Sarah for detail on our third quarter results and our updated outlook for 2022. Sarah, please go ahead.