nVent Electric plc (NVT) saw its shares surge more than 13% on Friday after the company reported a stellar first quarter and raised its full-year outlook, underscoring the booming demand for electrical infrastructure tied to artificial intelligence data centers.
The London-based firm posted first-quarter net sales of $1.242 billion, a 53% jump from the prior year. Organic sales, which exclude acquisitions and currency effects, rose 34%. Adjusted earnings per share climbed 63% to $1.09, easily topping analyst estimates.
Organic orders surged roughly 40%, pushing the company's backlog to a record $2.6 billion. The strong performance was fueled by data-center demand for liquid cooling systems, power distribution units, and cable management solutions that support the power-hungry servers driving AI workloads.
Outlook Raised
nVent now expects full-year reported sales growth of 26% to 28%, up sharply from its prior forecast of 15% to 18%. Organic sales growth is seen at 21% to 23%, versus the earlier 10% to 13% target. The company also lifted its adjusted EPS guidance to $4.45-$4.55 from $4.00-$4.15. For the second quarter, nVent projects reported sales growth of 28% to 30% and adjusted EPS of $1.12 to $1.15.
CEO Beth Wozniak called the quarter a “tremendous start,” highlighting growth across all verticals, with particular strength in data centers. She noted expansion in both “gray” space (power support zones) and “white” space (the server floor), with liquid cooling, power distribution, and cable management all contributing.
Segment Performance
The Systems Protection segment led the way, with sales jumping 76% to $895 million on an organic increase of 50%. Electrical Connections posted a 15% gain to $347 million, with organic sales up 8%, though inflation weighed on its return on sales.
New product offerings contributed more than 20 percentage points to the quarter's sales growth, and the company said its recent Electrical Products Group acquisition is already outperforming expectations. nVent generated $54 million in free cash flow during the quarter.
Broader Context
The results align with a broader trend across the electrical equipment industry. Schneider Electric, a larger peer, also reported record first-quarter revenue, with its Energy Management segment seeing 12.8% organic growth, driven by data centers. Both companies are benefiting from the AI-fueled boom in data center construction, which is driving demand for power and cooling systems.
nVent, headquartered in London with U.S. management based in Minneapolis, manufactures electrical connection and protection gear under brands including CADDY, ERICO, HOFFMAN, ILSCO, SCHROFF, and TRACHTE. Its hardware is used to safeguard sensitive equipment in buildings and critical infrastructure.
Risks Remain
Despite the upbeat outlook, management flagged several risks. Wozniak cautioned that data-center demand “can be lumpy,” while CFO Gary Corona noted that U.S. tariffs remain “highly fluid,” with an estimated $80 million tariff headwind for the year. Other potential headwinds include commodity price volatility, supply-chain costs, pricing pressure, and the challenge of converting the $2.6 billion backlog into shipments while maintaining margins.
nVent shares closed at $161.94, giving the company a market capitalization of approximately $26.5 billion. The stock has gained about 30% year-to-date as investors continue to bet on the infrastructure buildout behind the AI revolution.
