nVent Electric plc Ordinary Shares

Good day and welcome to the InVent Electric second 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 then 2. Please note this event is being recorded. I would now like to turn the conference over to Tony Riter, Vice President of Investor Relations. Please go ahead.

Thank you and welcome to Invent's second quarter 2026 earnings call. On the call with me are Beth Wozniak, our Chair and Chief Executive Officer, and Gary Corona, our Chief Financial Officer. Today we'll provide details on our second quarter performance, an outlook for the third quarter, and an update to our full year outlook. All results referenced throughout the 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 Inven's filing with the Security and Exchange Commission. Four looking statements are made as of today and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Action results could differ materially from anticipated results. Today's webcast is accompanied by a presentation, which you can find in the investor section of Nvent's website. References to non-GAAP financials are reconciled in the appendix of the presentation. We'll have time for your questions after prepared remarks. With that, please turn to slide three and I'll turn the call over to Beth.

Good morning, everyone. I am pleased to share with you our outstanding second quarter results and cover some key business highlights. We had another tremendous quarter with record sales and earnings well ahead of our guidance. The better than expected sales were primarily driven by the infrastructure vertical led by data centers, along with stronger demand in our short cycle business. This was our fourth consecutive quarter with sales of more than a billion dollars, including systems protection sales of more than a billion dollars for the first time. Our data center business grew across the portfolio in both the gray and white spaces. We had outstanding growth in liquid cooling, cable management, and engineered buildings. We are winning with a wide range of customers from hyperscalers to neoclouds, multi-tenants, and also through our distribution partners. We have been investing in new products and our supply chain to be able to scale and respond to customer demand. Today, we announced another new location for further capacity expansion, which I will discuss shortly. In Q2 for Total Invent, we continue to have strong orders and backlog. Organic orders growth was broad-based, up low double digits. In addition, backlog remained healthy at $2.5 billion, Giving us visibility through the year and into 2027. As we have previously discussed, data center orders tend to be large and lumpy, impacting growth rates quarter to quarter. In fact, we've had strong data center orders thus far in Q3. Our free cash flow and balance sheet are strong and our disciplined capital allocation is focused on growth and returning cash to shareholders for continued value creation. We are significantly raising our full year sales and EPS guidance to reflect our outstanding second quarter and expected broad-based growth, including continuing momentum in AI data centers. Now onto slide four. For a summary of our second quarter performance, sales were up 53%. and 47% organically, led by the infrastructure verticals. New products contributed over 30 points to our sales growth and we launched 14 new products in the quarter. The EPG acquisition continued to exceed expectations, growing sales strong double digits year over year. Adjusted operating income grew 61% year over year. with return on sales of nearly 22%. Adjusted EPS grew 69% and free cash flow grew 125% year over year. Looking at our key verticals, sales grew across all verticals. Infrastructure led the way with organic sales more than doubling, driven by outstanding growth in data centers and double digit growth in power utilities. Commercial Resi grew high single digits and industrial was up low single digits. Turning to organic sales by geography, all geographies grew, led by the Americas growing very strong double digits. Europe was up mid single digits and Asia Pacific grew double digits. Looking ahead, we believe infrastructure represents our largest long-term growth opportunity. We expect the infrastructure vertical to deliver strong double-digit growth this year, supported by accelerating AI-related data center capital investment. Within infrastructure, data centers remains our most significant growth opportunity. We also see substantial opportunity in power utilities. We're increasing electricity demand, grid modernization, and the growing power requirements of AI data centers are creating meaningful long-term tailwinds. Turning to industrial and commercial resi, we expect each to grow mid-single digits for the year with improving demand trends in our short cycle business. 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, expanded to 45% last year, and was nearly 60% in the first half of this year. 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 Invent team and how hard everyone is working to deliver these results and support our customers. We are 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 second quarter results as well as our updated outlook. Gary, please go ahead.