nVent Electric reported Q3 2024 continuing-operations sales of $782 million, up 9% year over year, with organic growth of 1% and acquisitions contributing $59 million to sales. Adjusted operating income rose 4% to $168 million, driving an adjusted EPS of $0.63. Free cash flow was robust at $143 million, marking a 30% year-over-year increase and an 18% of sales cadence. Management credited the quarter to early benefits from portfolio transformation (including the announced thermal management sale expected to close by early 2025) and the Trachte acquisition, which is already contributing strong double-digit sales growth and an expanding backlog. Data Solutions remains a core growth driver, with management guiding that 2024 Data Solutions sales will exceed $575 million, underscoring a multi-year growth trajectory in cooling, power management and cable solutions for data centers.
Looking forward, nVent narrowed its full-year 2024 outlook and confirmed a constructive 2025 path anchored by continued expansion in infrastructure and data solutions, a disciplined M&A program, and higher-growth verticals. The company sees upside from its data-centric strategies and AI-related cooling requirements, while acknowledging macro uncertainty (elections, rate volatility) that could influence distributor inventory management. Management signaled that the incremental investments in capacity, new products, and digital capabilities are intended to accelerate sustainable growth, with expectations of improving core profitability as these investments mature. The combination of a strengthened balance sheet, substantial free cash flow generation, and a robust M&A pipeline supports an elevating long-term growth thesis, albeit with near-term margin headwinds from strategic investments and mix.**