LONDON, U.K. — nVent Electric plc (“nVent”) announced financial results for the fourth quarter and full-year 2023 and provided guidance for the first quarter and full-year 2024.
“2023 was another year of strong performance for nVent, and I’m proud of all that our team accomplished. Fourth quarter sales grew double-digits and all segments expanded margins. For the full year, we had strong growth and execution resulting in record sales, margins and cash flow. We launched 95 new products, our Data Solutions business grew over 20 percent and we completed two acquisitions, adding over $400 million in annualized sales. I’m very pleased with all the awards and recognition we’ve received, including a gold sustainability rating from EcoVadis for our ESG efforts, placing us in the top 3 percent of companies assessed in our industry,” said Beth Wozniak, nVent’s chair and chief executive officer.
“The electrification of everything, sustainability and digitalization are driving demand for our products and solutions. We are well positioned for another year of strong sales and profit growth. We are particularly excited about the acceleration of AI and scaling our liquid cooling solutions, our momentum in innovation and new products, and our combined strength with the new acquisitions. Our future is bright at nVent.”
Fourth quarter 2023 sales of $861 million were up 16 percent relative to the fourth quarter 2022 and increased 2 percent organically, which excludes the impact from acquisitions and currency fluctuations. Fourth quarter 2023 earnings per diluted share (“EPS”) were $1.51, up 61 percent from $0.94 in the prior year quarter, while on an adjusted basis, the company had EPS of $0.78, up 18 percent from $0.66. Full-year 2023 sales of $3.3 billion were up 12 percent relative to full-year 2022 and increased 3 percent organically. Full-year 2023 EPS were $3.37, up 42 percent from $2.38 in the prior year, while on an adjusted basis, the company had EPS of $3.06, up 28 percent from $2.40 in the prior year. Segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.
Fourth quarter 2023 operating income was $160 million, up 28 percent, compared to $125 million in the fourth quarter of 2022. On an adjusted basis, segment income was $189 million, up 31 percent, compared to $144 million in the fourth quarter of 2022. Full-year 2023 operating income was $587 million, up 33 percent, compared to $440 million in 2022. On an adjusted basis, segment income was $721 million, up 38 percent, compared to $524 million in full-year 2022.
nVent had net cash provided by operating activities of $237 million in the fourth quarter of 2023 and free cash flow of $215 million. Full-year net cash provided by operating activities was $528 million and free cash flow was $465 million.
GUIDANCE FOR FULL-YEAR AND FIRST QUARTER 2024
The company introduces 2024 sales guidance of up 8 to 10 percent, which represents a range of a 3 to 5 percent increase in organic sales versus the prior year. The company expects full-year 2024 EPS on a GAAP basis of $2.73 to $2.83 and $3.17 to $3.27 on an adjusted basis, which both include an approximate $0.11 negative impact due to changes in global tax standards.
In addition, the company estimates reported sales for the first quarter of 2024 to be in the range of up 16 to 18 percent, which represents a 2 to 4 percent increase on an organic basis. The company estimates first quarter 2024 EPS on a GAAP basis of $0.61 to $0.63 and adjusted EPS of $0.72 to $0.74, which both include an approximate $0.03 negative impact due to changes in global tax standards.
DIVIDENDS
nVent previously announced on September 26, 2023 that its Board of Directors approved a regular cash dividend of $0.175 per ordinary share, which was paid during the fourth quarter on November 3, 2023. The company also announced on December 12, 2023 that its Board of Directors approved a regular cash dividend of $0.19 per ordinary share, paid during the first quarter on February 2, 2024.
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