nVent Electric plc Ordinary Shares

Good day and welcome to the Invent Electrics first quarter 2026 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 and then two. Please note 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 Invent's first quarter 2026 earnings call. On the call with me are Beth Wise, Chair and Chief Executive Officer, and Gary Corona, our Chief Financial Officer. Today we'll provide details on our first quarter performance, an outlook for the second quarter, and an update to our full year outlook. All results referenced throughout this presentation are on a continuing operations 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 in advance 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 Investors section of MVENT's website. References to non-GAAP financials are reconciled in the appendix of the presentation. We will 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.

Good morning, everyone. I am pleased to share with you our outstanding first quarter results and cover some key business highlights. We had a tremendous start to the year with record sales, orders, and backlog exceeding our expectations. This was our third consecutive quarter with sales of more than $1 billion. Both sales and EPS significantly exceeded our guidance driven by strong sales growth in the infrastructure vertical led by data centers. Our data center business grew across the portfolio in both the gray and white spaces. In the gray space, we had strong growth in engineered buildings, enclosures, and power connections. In the white space, we had outstanding growth in liquid cooling, along with strong growth in power distribution units and cable management. We are winning with a wide range of customers, from hyperscalers to neoclouds and multi-tenants, and also through our distribution partners. Our investments in new products and capacity have been key to our ability to scale and respond to customer demand. The tremendous growth in data centers was accomplished by our team working tirelessly to increase and expand capacity in our facilities and across our supply base. Earlier this week, we celebrated the opening of our new Blaine, Minnesota facility that started production in Q1. We expect production to ramp throughout the year. In Q1, for total invent, we had record orders and backlog. Organic orders were up approximately 40%, primarily driven by orders for the AI data center build-out. Excluding data centers, organic orders grew mid-teens. In addition, we continue to see our backlog grow, up low double digits sequentially to $2.6 billion, giving us visibility through the year. Our free cash flow and balance sheet are strong. And our discipline capital allocation is focused on growth and returning cash to shareholders for continued value creation. We are raising our full year sales and EPS guidance to reflect our outstanding first quarter performance and significant momentum in data centers. Now onto slide four for a summary of our first quarter performance. Sales were up 53% and 34% organically, led by the infrastructure vertical. New products contributed over 20 points to our sales growth, and we launched 11 new products in the quarter. The EPG acquisition exceeded expectations, growing sales strong double digits year over year. Adjusted operating income grew 53% year over year, with return on sales of 20%. Adjusted EPS grew 63%. And free cash flow grew 21% year-over-year. Looking at our key verticals, sales grew across all verticals. Infrastructure led the way with organic sales up nearly 80%, driven by outstanding growth in data centers and double-digit growth in power utilities. Both industrial and commercial resi grew mid-single digits. Turning to organic sales by geography, the Americas led, growing over 40%. Europe was up low single digits while Asia Pacific was down. Looking ahead, we believe the infrastructure vertical has the highest growth opportunity with the trends of electrification, sustainability, and digitalization. Infrastructure is expected to grow strong double digits this year, driven by AI data center CapEx accelerations. Our greatest growth opportunity within the infrastructure vertical is data centers. Power utilities is next, with strong secular tailwinds as the demand for electrical grid capacity is increasing, with electrification and the need for power for AI data centers. Our expectations for industrial and commercial resi remain the same. 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. 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 intentionally increased our exposure to the high growth infrastructure vertical through both organic investments and M&A. Infrastructure made up 12% of sales at spin, expanding to 45% last year, and now is over 55% in Q1. We have been significantly investing in our data center and power utilities businesses, which are rapidly growing and more capacity is needed to meet customer demand. Overall, I am proud of our InvenTeam and how we continue to perform and deliver for our customers. We're on track for another strong year. This wraps up my opening remarks. I will now turn the call over to Gary for further details on our first quarter results, as well as our updated outlook. Gary, please go ahead.