nVent Electric plc Ordinary Shares

And welcome to the NVEN Electric fourth quarter 2025 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. 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 that this event is being recorded. I would now like to turn the conference over to Tony Ryder, Vice President of Investor Relations. Please go ahead.

Thank you, and welcome to NBIN's fourth 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 fourth quarter and full year performance in 2026 outlook. unless otherwise noted. 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 events 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 NVEN's website. References to non-GAAP financials are reconciled in the appendix of the presentation. We'll have time for questions after 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 fourth quarter and full year results. 2025 was a record year for sales, EPS, and free cash flow, each growing at or above 30%. Through 2025, organic sales accelerated, resulting in consecutive record sales quarters. It was an important year as we transformed our portfolio with the divestiture of the thermal management business and the acquisition of EPG. These strategic moves increased our exposure to the high-growth infrastructure vertical. Infrastructure now makes up 45% of our annual sales, with data center sales representing approximately $1 billion in 2025. Fourth quarter was our second consecutive quarter with sales of more than $1 billion. Both sales and EPS exceeded our guidance. We also had strong orders and backlog growth. Organic orders were up approximately 30%, primarily driven by large orders for the AI data center buildup. Excluding data centers, organic orders grew low double digits. With the strong orders, we ended the year with $2.3 billion in backlog, triple what it was a year ago. Our free cash flow was very strong in the quarter, and our balance sheet is healthy. In 2026, we expect another year of record performance. Our full-year guidance includes reported sales growth of 15% to 18% and adjusted EPS growth of 20% to 24%. Now, on to slide four for a more detailed summary of our Q4 and full-year performance. Fourth quarter sales were up 42% and 24% organically, led by the infrastructure vertical. Adjusted operating income grew 33% year-over-year, with return on sales at 19.7%. Adjusted EPS grew 53%. And we generated $189 million in free cash flow, up 26%. Looking at our key verticals, infrastructure led the way, with organic sales up over 50%, driven by outstanding growth in data centers. Industrial grew high single digits, and commercial resi sales were up low single digits. Turning to organic sales by geography, both Americas and Europe are strong. America's grew approximately 30% while Europe was up high single digits. Asia Pacific was down. For the full year, we had sales of $3.9 billion, an increase of 30% and 13% organically. Adjusted operating income grew 21% with margins of 20.2%. Adjusted EPS was up 35%. For the full year, we had record-free cash flow of $561 million, growing 31%. Let me share a few strategic and operational highlights. First, we launched 86 new products in 2025, contributing approximately 10 points to our sales growth, and our new product vitality was 27%. Our innovation is delivering growth and solutions for our customers. Second, as I mentioned, the infrastructure vertical now makes up 45% of our sales, led by data centers, which grew over 50% for the year. Third, our organic growth and recent acquisitions 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'm very proud and appreciative of all the hard work by our InvenTeam to support our customers and deliver the outstanding performance in 2025. Looking ahead, we expect 2026 to be another record year of strong growth and value creation. Moving to slide five. Our portfolio transformation to become a more focused, higher growth electrical connection and protection company is showing up in our results. We have increased our exposure to the high growth infrastructure vertical from 12% of sales at spin to 45% last year, and infrastructure is expected to be well over half of our sales in 2026. In addition, we have been aggressively investing in our data center business, which is rapidly growing and accelerating with the AI build-out. In January, we opened a new facility in Blaine, Minnesota, to expand our liquid cooling capacity. Production is online, and we are ramping quickly. Turning to slide six and our outlook for the verticals in 2026. We believe the infrastructure vertical has the highest growth opportunity with the trends of electrification, sustainability, and digitalization. Infrastructure is expected to grow at approximately 20% this year, driven by AI data center CapEx acceleration. In addition, power utilities, renewables, and energy storage are expected to grow with the increasing demand for power. For industrial, we expect mid-single-digit growth with increasing CapEx investment, automation, and reshoring. The commercial resi vertical is expected to grow low single digits. This wraps up my remarks. I will now turn the call over to Gary for further details on our results, as well as our 2026 outlook. Gary, please go ahead.