nVent Electric Reports Strong Q2 Performance Driven by Data Center Growth
In the second quarter of 2026, nVent Electric (NVT) reported robust performance driven primarily by its infrastructure vertical, particularly in AI-related data centers. Organic sales more than doubled due to a strategic shift increasing exposure from 12% at spin-off to nearly 60%. The company also saw strong growth in Electrical Connections and the EPG acquisition contributed double-digit gains. Looking ahead, nVent raised full-year organic sales guidance to between 32% and 34%, reflecting sustained momentum. A third facility expansion is planned for early 2027 due to high demand for liquid cooling solutions through 2028. The company expects data center sales of $2 billion in 2026, more than double the previous year's figures. Operational risks include inflationary pressures and mix shifts affecting margins; however, management is confident about sequential improvements as pricing actions take effect. Capital expenditures are expected to rise significantly for new capacity investments while maintaining a low net leverage ratio of 1.2x.
Tickers: $NVT
Topics: AI infrastructure data centers organic growth supply chain expansion