second quarter of 2026
Filed Jul 31, 2026nVent Delivers Record Sales and EPS in Q2 2026 Significantly raising full-year sales and EPS guidance
Reported sales rose 53%, organic sales grew 47%, reported operating income rose 92%, reported EPS rose 103%, and the company significantly raised full-year sales and EPS guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $ 1,471.3 | – | 53% |
| Organic sales growthother | 47% | – | – |
| Cost of goods soldGAAP | 913.3 | – | – |
| Gross profitGAAP | 558.0 | – | – |
| Gross marginGAAP | 37.9 % | – | – |
| Selling, general and administrativeGAAP | 232.8 | – | – |
| Selling, general and administrative as a percentage of net salesGAAP | 15.8 % | – | – |
| Research and developmentGAAP | 24.5 | – | – |
| Research and development as a percentage of net salesGAAP | 1.7 % | – | – |
| Operating incomeGAAP | $301 million | – | 92% |
| Reported ROSGAAP | 20.4% | – | 410 bps |
| Adjusted operating incomenon-GAAP | $323 million | – | 61% |
| Adjusted ROSnon-GAAP | 21.9% | – | 110 bps |
| Net interest expenseGAAP | 17.4 | – | – |
| Other expenseGAAP | 1.3 | – | – |
| Income before income taxesGAAP | 282.0 | – | – |
| Provision for income taxesGAAP | 66.2 | – | – |
| Effective tax rateGAAP | 23.5 % | – | – |
| Net income from continuing operationsGAAP | 215.8 | – | – |
| Income from discontinued operations, net of taxGAAP | 0.1 | – | – |
| Net incomeGAAP | $ 215.9 | – | – |
| Diluted earnings per ordinary share, continuing operationsGAAP | $ 1.32 | – | 103% |
| Diluted earnings per ordinary shareGAAP | $ 1.32 | – | – |
| Adjusted EPSnon-GAAP | $1.45 | – | 69% |
| Weighted average ordinary shares outstanding, basicother | 161.8 | – | – |
| Weighted average ordinary shares outstanding, dilutedother | 164.1 | – | – |
| Net cash provided by operating activitiesGAAP | $189 million | – | 107% |
| Free cash flownon-GAAP | $167 million | – | 125% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Systems ProtectionOrganic 62%; Adjusted ROS 23.2% compared to 21.7%, 150 bps. | $1,072 | – | 70% |
| Electrical ConnectionsOrganic 18%; Adjusted ROS 27.3% compared to 28.7%, -140 bps. | $399 | – | 21% |
full-year and third quarter 2026 outlook
- RevenueFull-year 2026 reported sales growth of 37 to 39 percent
- NoteFull-year 2026 organic sales growth of 32 to 34 percent.
- NoteFull-year 2026 EPS of $4.29 to $4.39 on a GAAP basis.
- NoteFull-year 2026 adjusted EPS of $5.00 to $5.10.
- NoteThird quarter 2026 reported sales growth of 32 to 35 percent.
- NoteThird quarter 2026 organic sales growth of 32 to 35 percent.
- NoteThird quarter 2026 EPS on a GAAP basis of $1.18 to $1.21.
- NoteThird quarter 2026 adjusted EPS of $1.35 to $1.38.
Capital returns
- Cash dividends paid per ordinary share: $ 0.21 for the three months ended June 30, 2026, compared to $ 0.20 for the three months ended June 30, 2025.
- The Board of Directors approved a regular cash dividend of $0.21 per share, payable during the third quarter on August 7, 2026.
What drove it
- Significant data center growth.
- New products contributed more than 30 points to sales growth.
- Portfolio transformation continued to drive performance.
- The company announced another manufacturing expansion for liquid cooling to meet continued data center demand.
- Systems Protection net sales increased 70% and organic sales increased 62%.
- Electrical Connections net sales increased 21% and organic sales increased 18%.
Concerns
- Gross margin was 37.9 % compared to 38.6 % in the second quarter of 2025.
- Electrical Connections Adjusted ROS was 27.3% compared to 28.7%, a -140 bps change.
- The release identifies risks from tariffs, currency exchange rates, interest rates, commodity prices, material and labor cost inflation, supply chain inputs, competition and pricing pressures.
- The company identifies risks related to completing and integrating acquisitions, including the Electrical Products Group acquisition.
What to watch
- Third quarter 2026 reported and organic sales growth guidance of 32 to 35 percent.
- Third quarter 2026 GAAP EPS guidance of $1.18 to $1.21 and adjusted EPS guidance of $1.35 to $1.38.
- Execution of the manufacturing expansion for liquid cooling to meet continued data center demand.
- Whether Systems Protection growth and Electrical Connections margin performance continue.
- Delivery against raised full-year reported sales growth guidance of 37 to 39 percent and adjusted EPS guidance of $5.00 to $5.10.
Balance sheet and cash flow
- Cash and cash equivalents: $ 256.0 at June 30, 2026, compared to $ 237.5 at December 31, 2025.
- Current maturities of long-term debt and short-term borrowings: $ 13.8 at June 30, 2026, compared to $ 13.8 at December 31, 2025.
- Long-term debt: $ 1,478.6 at June 30, 2026, compared to $ 1,546.0 at December 31, 2025.
- Accounts and notes receivable, net: 969.3 at June 30, 2026, compared to 693.0 at December 31, 2025.
- Inventories: 522.4 at June 30, 2026, compared to 471.9 at December 31, 2025.
- Total assets: $ 7,146.3 at June 30, 2026, compared to $ 6,851.9 at December 31, 2025.
- Total liabilities: 3,159.4 at June 30, 2026, compared to 3,121.7 at December 31, 2025.
- Equity: 3,986.9 at June 30, 2026, compared to 3,730.2 at December 31, 2025.
Analysis
nVent reported a strong second quarter, led by $1,471.3 of net sales, up 53%, and 47% organic sales growth. The company described significant data center growth, while new products contributed more than 30 points to sales growth. Systems Protection was the principal growth engine, with net sales of $1,072, up 70%, including 62% organic growth. Electrical Connections also grew, with net sales of $399 up 21% and organic sales up 18%.
Profitability expanded substantially despite a lower gross margin. Gross margin was 37.9 % versus 38.6 %, but selling, general and administrative expense fell to 15.8 % of net sales from 20.4 %. Reported operating income reached $301 million, up 92%, and reported ROS expanded 410 bps to 20.4%. Adjusted operating income increased to $323 million from $200 million, with adjusted ROS of 21.9%, up 110 bps.
Earnings and cash generation also advanced sharply. Net income from continuing operations was 215.8, compared with 106.7, and diluted earnings per ordinary share from continuing operations were $ 1.32, up 103%. Adjusted EPS was $1.45, up 69%. Net cash provided by operating activities was $189 million compared with $91 million, and free cash flow was $167 million compared with $74 million. Cash and cash equivalents were $ 256.0 at June 30, 2026, while long-term debt was $ 1,478.6.
The segment margin picture was mixed. Systems Protection adjusted ROS rose 150 bps to 23.2%, whereas Electrical Connections adjusted ROS declined 140 bps to 27.3%. The company also cited tariffs, cost inflation, currency, interest rates, commodity prices, supply-chain inputs and acquisition integration among its stated risk factors.
Management significantly raised its full-year outlook. Full-year reported sales growth is now expected at 37 to 39 percent, organic sales growth at 32 to 34 percent, GAAP EPS at $4.29 to $4.39, and adjusted EPS at $5.00 to $5.10. Third-quarter guidance calls for reported and organic sales growth of 32 to 35 percent, GAAP EPS of $1.18 to $1.21, and adjusted EPS of $1.35 to $1.38. The guide places continued emphasis on data center demand, liquid-cooling capacity expansion, and the durability of segment margin performance.
Management, verbatim
Our portfolio transformation continued to drive performance as we had another tremendous quarter, with record sales and earnings per share.
Beth Wozniak, nVent chair and chief executive officer
We saw significant data center growth and new products contributed more than 30 points to sales growth.
Beth Wozniak, nVent chair and chief executive officer
As a result of our strong second-quarter performance and momentum across our portfolio, we are significantly raising our full-year sales and EPS guidance.
Beth Wozniak, nVent chair and chief executive officer
Not in the filing
stated, not guessed- Complete condensed consolidated statements of cash flows, including capital expenditures and cash used for financing and investing activities, were not available because the provided filing text ends at the heading for the cash flow statement.
- Share repurchases were not reported in the provided text.
- Prior-quarter comparisons for reported financial metrics were not reported.
- Adjusted EPS prior-year absolute value was not reported in the provided text.
- Third-quarter and full-year guidance for gross margin, operating expenses and tax rate were not reported.
- A separately provided previous-release outlook section was not provided; therefore no actual-versus-prior-guidance comparison is included.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.