nVent Electric's Q2 2025: Unpacking Contradictions in Tariff Impact, Backlog Growth, and Sales Confidence

Impact of tariffs on pricing and volume, backlog and order growth, impact of tariffs on guidance, backlog and sales growth expectations, and confidence in second-half organic sales outlook are the key contradictions discussed in nVent Electric's latest 2025Q2 earnings call.



Strong Financial Performance:
- nVent Electric plc reported sales of $963 million for Q2 2025, up 30% year-over-year, with organic sales growth of 9%.
- The increase was driven by record orders and backlog growth, particularly in the data solutions business.

Data Center and Infrastructure Growth:
- The infrastructure vertical, led by data centers, saw organic sales grow by more than 20%, with strong performance across power utilities and data centers.
- Growth was attributed to the AI build-out and strategic acquisitions like Trachte and Electrical Products Group (EPG).

Backlog and Capacity Expansion:
- Backlog increased significantly, up more than fourfold year-over-year, with strong visibility into orders through 2026 and beyond.
- The company is expanding capacity, particularly in data solutions and acquisitions, to meet the increased demand.

Profitability and Margin Management:
- Adjusted EPS grew 28%, driven by a record second-quarter adjusted operating income increase of 18%.
- Margin management was successful despite inflationary pressures, with price increases and productivity offsets.