nVent(NVT) - 2024 Q3 - Quarterly Report

Financial Performance - Net sales for the three months ended September 30, 2024, were $782.0 million, a 9.4$715.0 million in the same period of 2023[127]. - Gross profit for the same period was $311.1 million, representing a 7.6$289.1 million year-over-year[127]. - Operating income for the three months ended September 30, 2024, was $133.2 million, a 5.5$126.2 million in the prior year[127]. - Net sales for the nine months ended September 30, 2024, increased by 13.9% to $2,253.9 million compared to$1,978.4 million in the same period of 2023[129]. - Gross profit for the nine months ended September 30, 2024, was $909.6 million, reflecting a 13.9$798.7 million in 2023, with a gross profit margin of 40.4%[129]. - Operating income rose by 18.8% to $410.0 million for the nine months ended September 30, 2024, compared to$345.2 million in 2023, representing 18.2% of net sales[129]. - Net income from continuing operations for the nine months ended September 30, 2024, was $257.3 million, a 4.0$247.3 million in 2023[129]. Segment Performance - For the first nine months of 2024, the Enclosures segment represented approximately 60% of total revenues, while the Electrical & Fastening Solutions segment accounted for about 40%[117]. - The Electrical & Fastening Solutions segment reported a 15.7% increase in net sales for the nine months ended September 30, 2024, reaching $896.1 million, up from$774.7 million in 2023[143]. - The Enclosures segment achieved net sales of $1,357.8 million for the nine months ended September 30, 2024, a 12.8$1,203.7 million in 2023[139]. - Electrical & Fastening Solutions net sales increased by 15.7% to $136.3 million due to the ECM Industries acquisition, despite organic sales declines of approximately 2.0$1.1 billion in cash on May 18, 2023[118]. - On July 16, 2024, the company acquired Trachte, LLC for approximately $691.3 million in cash[121]. - The company entered into an agreement to sell its Thermal Management business for a purchase price of$1.7 billion in cash, expected to close by early 2025[122]. - The company experienced a 10.5% contribution to net sales from acquisitions for the nine months ended September 30, 2024[131]. Cash Flow and Financing - Net cash provided by operating activities from continuing operations was $324.1 million in the first nine months of 2024, up from$232.5 million in the same period of 2023[149][150]. - Net cash used for investing activities was $724.7 million in the first nine months of 2024, primarily for the Trachte acquisition of$677.7 million[151]. - Net cash provided by financing activities was $278.1 million in the first nine months of 2024, mainly from long-term debt receipts of$500.0 million[153]. - Free cash flow from continuing operations was $277.1 million for the first nine months of 2024, compared to$187.7 million in the same period of 2023[174]. - Dividends paid during the first nine months of 2024 totaled $95.3 million, or$0.57 per ordinary share, an increase from $87.6 million, or$0.525 per share, in 2023[170]. - As of September 30, 2024, the company had $137.1 million in cash, with$34.7 million held in countries with limited repatriation ability[147]. - The company repurchased 1.5 million ordinary shares for $100.0 million under the 2024 Authorization during the first nine months of 2024[169]. - The company maintained compliance with all financial covenants in its debt agreements as of September 30, 2024[166]. Tax and Inflation - The effective tax rate increased to 22.3$48.9 million for the nine months ended September 30, 2024, compared to $40.2 million in 2023[129]. Accounting and Market Risk - There have been no material changes to critical accounting policies and estimates from the 2023 Annual Report[176]. - No material changes in market risk during the quarter ended September 30, 2024[177].