nVent Electric (NVT) delivered a standout Q2 2024, highlighted by record quarterly sales of $888 million, up 10% year over year and 4% organically. The quarter featured notable margin expansion, with adjusted operating income up 12% and adjusted EPS up 6% to $0.82, aided by meaningful acquisitions and a favorable mix in infrastructure and data solutions. Management signaled a continued shift toward higher-growth verticals as part of a portfolio transformation, notably through the Trachte acquisition (closed July 2024) and the announced sale of Thermal Management for $1.7 billion to redeploy proceeds toward acquisitions and buybacks. The act of divesting Thermal Management is framed as a strategic step toward a more focused, higher-growth electrical connection and protection leader aligned with electrification, sustainability, and digitalization trends.
From a segment perspective, Enclosures benefited from Trachte (added ~2 points to sales) and posted robust quarterly income with a 23.5% segment margin. Electrical & Fastening Solutions grew on strength from ECM and organic momentum but faced a softer volume mix, with ROAS around 30.9% and a dip in year-over-year volumes. Thermal Management delivered solid organic growth (4%), but profitability contracted modestly due to project mix, underpinning management’s plan to move Thermal to discontinued operations later in 2024. Data Solutions remained a core growth lever, with high single-digit to double-digit expansion and July ordering activity underscoring momentum. Management guided to 11%–13% revenue growth for 2024 (up from 8%–10%), with organic growth of 3%–5% and acquisitions contributing roughly 8 percentage points. The company also forecast higher near-term investment in data solutions capacity, signaling a multi-year growth thesis centered on AI, data center cooling, and infrastructural modernization. Overall, the investment narrative is constructive, but the execution risk around Trachte integration and Thermal divestiture timing remains a key factor to monitor.