nVent Electric's third-quarter results came in above the company's own guidance with strong performance across all its major sectors.
The company — which makes electrical connections and enclosures that protect sensitive and critical equipment — earned $74.3 million, or 44 cents a share. Revenue was up 26% to $643 million.
"We see the electrification of everything driving more demand for our products and solutions " Beth Wozniak, nVent's chief executive, said to analysts on the earnings call.
The infrastructure needed for more electric vehicles, 5G rollout, more data centers and increased internet connectivity are megatrends that all require the sorts of protection solutions and products that nVent provides.
Earnings rebounded from a year ago when the company — which is headquartered in London but managed from St. Louis Park — lost $138.7 million, or 82 cents a share. Adjusted earnings per share for the current quarter were 53 cents a share, up 18% from adjusted EPS of 45 cents in the third quarter of 2020.
The company also got a lift from a $200 million acquisition it completed in June for CIS Global, a provider of intelligent rack power distribution and server slides products, and an April acquisition of Vynckier Enclosures Systems Inc.
"Our third quarter results are a testament to the strong execution of our nVent team during a challenging supply-chain environment," Wozniak, nVent's chief executive, said Thursday in the company's earnings release.
Wozniak and Chief Financial Officer Sara Zawoyski told analysts on the earnings call they were not immune from supply-chain challenges that industrial and manufacturing companies are facing.
Zawoyski said the firm saw constraints from labor, longer lead times for raw materials and increased transportation costs. But she said nVent's yearslong strategy to build supply-chain resiliency and their region manufacturing strategy have given them the flexibility to mitigate most challenges.
The company increased its guidance, estimating sales for all of 2021 will be up 19 to 20% after previously saying annual revenue would increase 15 to 18%.
Shares in nVent on Thursday closed at $34.45, up 7%.
