nVent Electric plc Ordinary Shares

and welcome to the INVENT Third Quarter 2025 Earnings 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. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Tony Reiter, Vice President of Investor Relations. Please go ahead.

Thank you, and welcome to Advent's third quarter 2025 earnings call. On the call with me are Beth Wisnack, our Chair and Chief Executive Officer, and Gary Corona, our Chief Financial Officer. Today we'll provide details on our third quarter performance, an outlook for the fourth quarter, and an update to our full year outlook. As a reminder, all results referenced throughout this presentation are on a continuing operation basis unless otherwise stated. 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, such as the risks outlined in today's press release and advanced 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 in the investor section of MVEN'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 results. Our portfolio transformation to become a more focused, higher growth electrical connection and protection company is delivering results and accelerating our growth. We had record sales and adjusted EPS in the third quarter. For the first time, quarterly sales were more than $1 billion. Adjusted EPS was 91 cents. Both sales and EPS exceeded our guidance. We also had record orders and backlog in the quarter. Organic orders were up approximately 65%, primarily driven by large orders for the AI data center build-out. Excluding data centers, organic orders grew high single digits. With the record orders growth, our backlog grew strong double digits sequentially. We had very strong cash flow in the quarter, and our balance sheet is healthy. Our first priority for capital allocation remains the same, invest in growth. We are investing in new products, commercial capabilities, and expanding four of our facilities to add capacity for data center and power utility growth. Now onto slide four for a summary of our third quarter performance. Sales were up 35% and 16% organically, led by the infrastructure vertical. New products contributed over five points to sales growth year to date, and we have launched 66 new products so far this year. Adjusted operating income grew 27% year over year, with return on sales of 20.2%. Adjusted EPS grew 44%. Looking at our key verticals, infrastructure led the way, with organic sales up over 40%, with strength in both data centers and power utilities. Industrial and commercial resi sales were each up low single digits. Turning to organic sales by geography, both Americas and Europe were strong. Americas grew high teens, while Europe was up approximately 10%, and Asia Pacific was down low single digits. Looking ahead, we continue to expect infrastructure to have strong sales growth across both data centers and power utilities. we expect industrial sales to grow low single digits and commercial resi to be flattish for the year. For guidance, we are again raising our full year sales and adjusted EPS guidance to reflect our outstanding third quarter results and stronger performance in data centers. Our organic growth and recent acquisitions are expected to more than offset the EPS impact from the thermal management business we divested in the first quarter. Importantly, we cannot accomplish these results without the dedication of our InvenTeam. Transforming our portfolio and accelerating to become a higher growth company takes a lot of effort and teamwork. I am very proud and appreciative of all the hard work by our InvenTeam to support our customers and deliver this outstanding performance. I will now turn the call over to Gary for further details on our third quarter results and our updated outlook for 2025. Gary, please go ahead.