nvt-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-38265

nVent Electric plc

(Exact name of Registrant as specified in its charter)

Ireland

98-1391970

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification number)

The Mille, 1000 Great West Road, 8th Floor (East), London, TW8 9DW, United Kingdom

(Address of principal executive offices)

Registrant's telephone number, including area code: 44-20-3966-0279

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Ordinary Shares, nominal value $0.01 per share	NVT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting
company

☐

Emerging growth
company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

On March 31, 2024, 166,019,014 shares of the registrant's common stock were outstanding.

nVent Electric plc


		Page

PART I FINANCIAL INFORMATION

ITEM 1.	Financial Statements (unaudited)

	Condensed Consolidated Statements of Income and Comprehensive Income	3

	Condensed Consolidated Balance Sheets	4

	Condensed Consolidated Statements of Cash Flows	5

	Condensed Consolidated Statements of Changes in Equity	6

	Notes to Condensed Consolidated Financial Statements	7

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	30

ITEM 4.	Controls and Procedures	31

PART II OTHER INFORMATION

ITEM 1.	Legal Proceedings	32

ITEM 1A.	Risk Factors	32

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

ITEM 5.	Other Information	32

ITEM 6.	Exhibits	33

	Signatures	34

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

nVent Electric plc

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)


	Three months ended
In millions, except per share data	March 31, 2024		March 31, 2023
Net sales	$	874.6	$	740.6
Cost of goods sold	519.1		437.4
Gross profit	355.5		303.2
Selling, general and administrative	175.5		162.4
Research and development	20.8		16.7

Operating income	159.2		124.1



Net interest expense	22.2		7.8


Other expense	1.2		1.2
Income before income taxes	135.8		115.1
Provision for income taxes	30.7		21.3



Net income	$	105.1	$	93.8


Comprehensive income, net of tax
Net income	$	105.1	$	93.8
Changes in cumulative translation adjustment	(12.0)		4.2

Changes in market value of derivative financial instruments, net of tax	3.4		(0.6)
Comprehensive income	$	96.5	$	97.4


Earnings per ordinary share



Basic	$	0.64	$	0.57



Diluted	$	0.62	$	0.56
Weighted average ordinary shares outstanding
Basic	165.5		165.3
Diluted	168.5		168.0
Cash dividends paid per ordinary share	$	0.19	$	0.175

See accompanying notes to condensed consolidated financial statements.

nVent Electric plc

Condensed Consolidated Balance Sheets (Unaudited)


	March 31, 2024		December 31, 2023
In millions, except per share data
Assets
Current assets
Cash and cash equivalents	$	211.4	$	185.1
Accounts and notes receivable, net of allowances of $15.7 and $15.0, respectively	591.5		589.5
Inventories	441.1		441.3
Other current assets	129.9		120.2

Total current assets	1,373.9		1,336.1
Property, plant and equipment, net	383.5		390.0
Other assets
Goodwill	2,571.2		2,571.1
Intangibles, net	1,489.6		1,517.0
Other non-current assets	351.5		347.5

Total other assets	4,412.3		4,435.6
Total assets	$	6,169.7	$	6,161.7
Liabilities and Equity
Current liabilities
Current maturities of long-term debt and short-term borrowings	$	33.8	$	31.9
Accounts payable	263.2		275.7
Employee compensation and benefits	95.3		122.2
Other current liabilities	298.0		303.8

Total current liabilities	690.3		733.6
Other liabilities
Long-term debt	1,739.8		1,748.8
Pension and other post-retirement compensation and benefits	149.1		153.0
Deferred tax liabilities	202.3		204.4
Other non-current liabilities	175.9		179.8

Total liabilities	2,957.4		3,019.6
Equity

Ordinary shares $0.01 par value, 400.0 million authorized, 166.0 million and 165.1 million issued at March 31, 2024 and December 31, 2023, respectively	1.7		1.7
Additional paid-in capital	2,344.9		2,339.1
Retained earnings	978.3		905.3
Accumulated other comprehensive loss	(112.6)		(104.0)


Total equity	3,212.3		3,142.1
Total liabilities and equity	$	6,169.7	$	6,161.7

See accompanying notes to condensed consolidated financial statements.

nVent Electric plc

Condensed Consolidated Statements of Cash Flows (Unaudited)


	Three months ended
In millions	March 31, 2024		March 31, 2023
Operating activities
Net income	$	105.1	$	93.8


Adjustments to reconcile net income to net cash provided by (used for) operating activities

Depreciation	14.4		11.1
Amortization	25.2		17.6
Deferred income taxes	(0.2)		0.6
Share-based compensation	6.6		5.7









Changes in assets and liabilities, net of effects of business acquisitions
Accounts and notes receivable	(6.1)		20.8
Inventories	(7.9)		(17.3)
Other current assets	(12.1)		(13.5)
Accounts payable	(5.4)		(7.6)
Employee compensation and benefits	(26.1)		(30.2)
Other current liabilities	(3.3)		(9.3)
Other non-current assets and liabilities	(0.2)		(2.3)


Net cash provided by (used for) operating activities	90.0		69.4
Investing activities
Capital expenditures	(16.1)		(17.1)
Proceeds from sale of property and equipment	0.3		0.2







Net cash provided by (used for) investing activities	(15.8)		(16.9)
Financing activities




Repayments of long-term debt	(7.5)		(3.8)





Dividends paid	(31.9)		(29.3)
Shares issued to employees, net of shares withheld	(0.8)		(2.5)
Repurchases of ordinary shares	—		(15.2)

Net cash provided by (used for) financing activities	(40.2)		(50.8)
Effect of exchange rate changes on cash and cash equivalents	(7.7)		3.9
Change in cash and cash equivalents	26.3		5.6
Cash and cash equivalents, beginning of period	185.1		297.5
Cash and cash equivalents, end of period	$	211.4	$	303.1

See accompanying notes to condensed consolidated financial statements.

nVent Electric plc

Condensed Consolidated Statements of Changes in Equity (Unaudited)


In millions	Ordinary shares			Additional paid-in capital	Retained earnings		Accumulated other comprehensive loss				Total
	Number	Amount
December 31, 2023	165.1	$	1.7		$	2,339.1	$	905.3	$	(104.0)		$	3,142.1
Net income	—	—			—		105.1		—			105.1

Other comprehensive income (loss), net of tax	—	—			—		—		(8.6)			(8.6)

Dividends declared	—	—			—		(32.1)		—			(32.1)




Exercise of options, net of shares tendered for payment	0.5	—			10.0		—		—			10.0
Issuance of restricted shares, net of cancellations	0.6	—			—		—		—			—
Shares surrendered by employees to pay taxes	(0.2)	—			(10.8)		—		—			(10.8)
Share-based compensation	—	—			6.6		—		—			6.6

March 31, 2024	166.0	$	1.7		$	2,344.9	$	978.3	$	(112.6)		$	3,212.3


In millions	Ordinary shares			Additional paid-in capital	Retained earnings		Accumulated other comprehensive loss				Total
	Number	Amount
December 31, 2022	165.3	$	1.7		$	2,372.3	$	457.3	$	(99.6)		$	2,731.7
Net income	—	—			—		93.8		—			93.8

Other comprehensive income (loss), net of tax	—	—			—		—		3.6			3.6

Dividends declared	—	—			—		(29.3)		—			(29.3)


Share repurchases	(0.3)	—			(13.2)		—		—			(13.2)

Exercise of options, net of shares tendered for payment	0.2	—			5.1		—		—			5.1
Issuance of restricted shares, net of cancellations	0.7	—			—		—		—			—
Shares surrendered by employees to pay taxes	(0.2)	—			(7.5)		—		—			(7.5)
Share-based compensation	—	—			5.7		—		—			5.7

March 31, 2023	165.7	$	1.7		$	2,362.4	$	521.8	$	(96.0)		$	2,789.9

See accompanying notes to condensed consolidated financial statements.

nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

1.Basis of Presentation and Responsibility for Interim Financial Statements

Business

nVent Electric plc ("nVent," "we," "us," "our" or the "Company") is a leading global provider of electrical connection and protection solutions. The Company is comprised of three reporting segments: Enclosures, Electrical & Fastening Solutions and Thermal Management.

The Company was incorporated in Ireland on May 30, 2017. Although our jurisdiction of organization is Ireland, we manage our affairs so that we are centrally managed and controlled in the United Kingdom (the "U.K.") and have tax residency in the U.K.

Basis of presentation

The accompanying unaudited condensed consolidated financial statements of nVent have been prepared following the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America ("GAAP") can be condensed or omitted.

We are responsible for the unaudited condensed consolidated financial statements included in this document. The financial statements include all normal recurring adjustments that are considered necessary for the fair presentation of our financial position and operating results. As these are condensed financial statements, one should also read our consolidated financial statements and notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Revenues, expenses, cash flows, assets and liabilities can and do vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be indicative of those for a full year. We may experience changes in customer demand or constrained supply that could materially adversely impact our business, financial condition, results of operations and overall financial performance in future periods.

nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

2.Revenue

Disaggregation of revenue

We disaggregate our revenue from contracts with customers by geographic location and vertical, as we believe these best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Geographic net sales information, based on geographic destination of the sale, was as follows:


	Three months ended March 31, 2024
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
North America (1)	$	312.9	$	241.0	$	86.6	$	640.5
EMEA (2)	103.1		38.8

SEC Form 10-Q filed by nVent Electric plc