nVent Electric Share Price Dips 3% Despite Strong Q3 Earnings Growth

nVent Electric NVT shares have lost 3.4% since the company reported its third-quarter 2025 earnings on Oct. 31. The decline can be attributed to challenges from inflation, including $30 million in tariff impacts, higher incentive compensation costs, and margin dilution from recent acquisitions.The company reported third-quarter 2025 adjusted earnings of 91 cents per share, which beat the Zacks Consensus Estimate by 3.41%. The figure jumped 44.4% year over year.Net sales increased 35% year over year to $1.05 billion, surpassing the Zacks Consensus Estimate by 4.75%. Net sales on an organic basis increased 16% year over year. Acquisitions added $139 million to sales. FX provided a tailwind of approximately 1 percentage point to sales growth.NVT Q3 Segmental DetailsSystems protection net sales of $716 million were up 50% on a year-over-year basis, beating the Zacks Consensus Estimate by 6.59%. Organically, the metric increased 23% year over year. Infrastructure grew more than 50%, Commercial/Resi increased by low double digits, and Industrial was up by low single digits.  nVent Electric PLC Price, Consensus and EPS Surprise nVent Electric PLC price-consensus-eps-surprise-chart | nVent Electric PLC QuoteThe Return on Sales (“ROS”) was 20.4%, down 150 bps year over year due to inflation, acquisitions and growth investments. Electrical Connections net sales were $338 million, up 11% year over year. The figure missed the Zacks Consensus Estimate by 0.41%. Organically, the metric increased 5% year over year. Infrastructure grew by high teens, Industrial grew by high single digits, and Commercial/Resi remained flat.The ROS was 30%, down 40 bps year over year due to inflation and acquisition.NVT Q3 Operating DetailsThe GAAP gross margin contracted 240 basis points (bps) year over year to 37.4%.Selling, General and Administrative expenses totaled $207.4 million, up 28.4% year over year. As a percentage of revenues, selling, general and administrative expenses decreased 98 basis points (bps) on a year-over-year basis to 19.7%.Research and development (R&D) expenses increased 28% year over year to $20.6 million. As a percentage of revenues, R&D expenses decreased 10 basis points (bps) on a year-over-year basis to 2%.NVent reported an adjusted operating income of $213.30 billion, representing a 26.7% increase from $168.4 million in the year over year basis. Adjusted operating margin was 20.2% compared with 21.5% in the year ago quarter.NVT Balance Sheet DetailsAs of Sept. 30, 2025, NVent had cash and cash equivalents of $126.9 million compared with $125.8 million as of June. 30, 2025.nVent had net cash provided by operating activities of continuing operations of $272 million in the third quarter compared to $91 million in the second quarter of 2025. Free cash flow generated was $253 million in the third quarter compared to second quarter of 2025 $74.1 million.nVent Initiates Q4 and full year 2025 guidanceFor fourth quarter of 2025 NVT expects net sales to be between 31% to 33%, expecting organic growth between 15% to 17%. Adjusted earnings are expected to be between 87 cents and 89 cents.nVent estimates the reported sales for the full year 2025 of 27% to 28% having the organic sales growth of 10% to 11%.The company now expects full-year 2025 adjusted EPS of $3.22 per share and to $3.30 per share.Zacks Rank & Other Stocks to ConsidernVent currently carries a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector are StoneCo STNE, Fair Isaac FICO and Simulations Plus, Inc. SLP, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.StoneCo is set to report third-quarter 2025 results on Nov. 06. StoneCo shares have gained 138.6% year to date.Fair Isaac is slated to report fourth-quarter 2025 results on Nov. 05. Fair Isaac shares have decreased 17% year to date.Simulations Plus is set to report fourth-quarter 2025 results on Dec. 1. Its shares have declined 39.2 % year to date.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simulations Plus, Inc. (SLP): Free Stock Analysis Report Fair Isaac Corporation (FICO): Free Stock Analysis Report nVent Electric PLC (NVT): Free Stock Analysis Report StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks