A maker of electrical connection and protection products, nVent builds enclosures, cooling systems, busways, and cable management used in data centers, utilities, and industrial sites under brands like HOFFMAN, CADDY, and ERICO. It was born in 2018 when Pentair spun off its electrical business, and its name blends "n" for new with "vent" from "inventive."
nVent's Q2 gross margin rebounded to 37.9% as operating income nearly doubled on 52.8% revenue growth.
reversed a five-quarter decline, rising 2 points from Q1 to 37.9%. rose 52.8% to $1.47 billion and nearly doubled to $300.7 million, driven by organic infrastructure demand and the Electrical Products Group acquisition. The margin recovery suggests pricing and volume are beginning to offset the cost inflation that compressed profitability through 2025.
Key takeaways
rose to 37.9% in Q2, up 2.0 points sequentially from 35.9% in Q1, as volume and productivity gains offset inflationary costs and unfavorable mix that had driven margins to multi-year lows.
rose 52.8% to $1.47 billion, with concentrated in the infrastructure vertical including data centers, while the Electrical Products Group acquisition contributed to the Systems Protection 's 69.6% sales increase.
Section summaries
Management's Discussion and Analysis
Q2 2026 sales surged 53% to $1.47B driven by organic infrastructure growth and the Electrical Products Group acquisition.
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Consolidated rose 52.8% in Q2 and 53.1% in H1 2026, primarily from in the infrastructure vertical, including data centers, and the Electrical Products Group acquisition.
contracted 70 in Q2 to 37.9% due to inflationary costs and unfavorable mix, partially offset by volume and productivity gains.
rose 91.9% to $300.7 million and expanded 4.2 points to 20.4%, as as a percentage of sales improved 4.6 points to 15.8% on organic sales and restructuring savings.
Systems Protection income margin expanded 1.5 points to 23.2%, while Electrical Connections segment income margin fell 1.4 points to 27.3% as inflation and growth investments outweighed the segment's 20.6% sales growth.
from continuing operations was $162.0 million for the quarter, up from negative $33.8 million a year ago, and the company ended the quarter with $256.0 million in cash and $600 million in available .
fell 15.6% to $1.48 billion, continuing the deleveraging that followed the Thermal Management sale and Electrical Products Group acquisition.
What changed
The decline flagged in every prior filing since Q1 2025 showed a clear reversal: after falling to 35.9% in Q1 2026, the lowest since Q4 2020, gross margin rebounded 2.0 points to 37.9% in Q2, the first sequential improvement since Q4 2024.
The Electrical Connections income that had been flagged for multiple quarters continued, falling another 1.4 points to 27.3%, even as the segment posted 20.6% sales growth, suggesting the growth investments and inflation headwinds have not yet scaled.
The 34.4% rate from Q1 2026 did not repeat; the Q2 filing describes organic growth as the primary driver of the 52.8% increase but does not break out a separate organic rate, with the Electrical Products Group acquisition now annualized in the comparison.
The $2.35 billion and 11% customer concentration risk flagged in the FY 2025 10-K were not updated in this 10-Q, and the risk factors section noted no material changes, leaving the conversion and concentration questions open.
What to watch
Whether the Q2 recovery to 37.9% continues in Q3, confirming that pricing and productivity gains have sustainably closed the gap with tariff and raw material inflation, or whether the 35.9% Q1 low recurs.
The Electrical Connections income margin trajectory — now down for multiple consecutive quarters — and whether the growth investments driving the decline begin to show in the second half of 2026.
How the $256.0 million in cash and future are allocated, particularly whether debt reduction continues at the pace that brought down 15.6% , or whether acquisitions or share repurchases accelerate.
Any update on the $2.35 billion conversion and the 11% single-customer concentration, neither of which was addressed in this 10-Q but remain material to the trajectory.
as a percentage of sales improved 460 in Q2 to 15.8%, driven by organic sales and restructuring savings, partially offset by higher intangible from the acquisition.
Systems Protection sales grew 69.6% in Q2 with margin expanding 150 to 23.2%, while Electrical Connections sales grew 20.6% but margin fell 140 bps to 27.3% on inflation and investments.
from continuing operations was $278.7M in H1 2026, and the company had $256.0M in cash with $600M in available capacity as of June 30, 2026.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in our market risk during the quarter ended June 30, 2026. For additional information, refer to our 2025 Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes in our market risk during the quarter ended June 30, 2026. For additional information, refer to our 2025 Annual Report on Form 10-K for the year ended December 31, 2025.
There have been no material developments with respect to the legal proceedings previously disclosed in Item 3 of our 2025 Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material developments with respect to the legal proceedings previously disclosed in Item 3 of our 2025 Annual Report on Form 10-K for the year ended December 31, 2025.
There have been no material changes from the risk factors previously disclosed in our 2025 Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes from the risk factors previously disclosed in our 2025 Annual Report on Form 10-K for the year ended December 31, 2025.