Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 31, 2026 · Beat 5 of last 6 quarters
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nVent's results underscore the accelerating AI data center buildout, with data center sales expected to double to $2B in 2026 and the company adding a third liquid cooling facility to meet demand. The company's ability to grow 47% organically and raise guidance significantly reflects strong secular tailwinds from electrification and digitalization, positioning nVent as a key beneficiary of AI infrastructure investment.
nVent delivered record Q2 results with sales of $1.471B, up 53% (47% organic), driven by infrastructure vertical growth, particularly data centers, which more than doubled organically. Adjusted operating income rose 61% to $323M with return on sales of 21.9%, and adjusted EPS grew 69% to $1.45. Systems Protection posted its first $1B quarter, up 70% (62% organic), while Electrical Connections grew 21% (18% organic) with margins improving sequentially. The EPG acquisition continued to exceed expectations, and the company announced a new liquid cooling facility (Blaine 2) to meet accelerating demand.
Management significantly raised full-year guidance: reported sales growth now 37%-39% (up from 26%-28%), organic sales growth 32%-34% (up from 21%-23%), and adjusted EPS $5.00-$5.10 (up from $4.45-$4.55), implying ~50% EPS growth at the midpoint. Q3 guidance calls for 32%-35% organic growth and adjusted EPS of $1.35-$1.38. Tariff impact is now expected at ~$100M (up from $80M), but management expects to fully offset inflation through pricing and productivity. Capacity expansion continues with the announcement of Blaine 2, a third liquid cooling facility in Minnesota expected to open in H1 2027, and total data center sales are expected to reach $2B in 2026, more than double last year. Management emphasized strong order momentum in early Q3 and expects infrastructure to deliver strong double-digit growth, with data centers as the largest opportunity and Power Utilities also a key growth driver.
“We had another tremendous quarter with record sales and earnings. Well ahead of our guidance.”
on Q2 performance
“We expect our total data center sales to be $2 billion in 2026, more than double last year's sales.”
on Data center outlook
“We are significantly raising our full year sales and EPS guidance to reflect our outstanding second quarter and expected broad based growth.”
on Guidance raise
Can you walk through the industrial short-cycle and Electrical Connections strength? Was there anything unusual or one-time that skewed the organic growth higher?
Beth noted broad-based growth across every vertical and geography, with strong orders through distribution partners driving short-cycle strength. She confirmed there was nothing unusual, just a nice inflection point.
With the strong sequential revenue growth, why does the guide imply a slight sequential decline in Q3/Q4? Is there a supply chain issue?
Gary explained the guidance reflects prudent planning as they ramp new facilities and manage equipment, labor, and supplier capacity. Beth added that Q2 benefited from favorable execution, but they are being careful as they ramp two new facilities.
With backlog at $2.5B, is this the right level going forward? Do you expect it to increase?
Beth said it's around the right level, noting lumpy orders can increase it, but they are focused on executing backlog to maintain good lead times. Gary added that backlog remains mostly 12 months or less.