nVent Electric PLC (NVT) 2023 Q2 法說會逐字稿

Good day, and welcome to the nVent Electric Second Quarter 2023 Earnings Conference Call. (Operator Instructions). After today's presentation, there will be an opportunity to ask questions. (Operator Instructions).

美好的一天，歡迎參加 nVent Electric 2023 年第二季度收益電話會議。 （操作員說明）。今天的演講結束後，將有機會提問。 （操作員說明）。

Please note this event is being recorded. I would now like to turn the conference over to Mr. Tony Riter, Vice President of Investor Relations. Please go ahead, sir.

請注意此事件正在被記錄。我現在將會議交給投資者關係副總裁托尼·里特先生主持。請繼續，先生。

Thank you, and welcome to nVent's Second Quarter 2023 Earnings Call. On the call with me are Beth Wozniak, our Chair and Chief Executive Officer; and Sara Zawoyski, our Chief Financial Officer. They will provide details on our second quarter performance, provide an outlook for the third quarter and an update to our full year 2023 outlook. Before we begin, let me remind you that any statements made about the company's anticipated financial results are forward-looking statements subject to the future risks and uncertainties, such as the risks outlined in today's press release and nVent's filings with the Securities and Exchange Commission. Forward-looking statements are made as of today, and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.

謝謝，歡迎參加 nVent 的 2023 年第二季度財報電話會議。與我通話的有我們的董事長兼首席執行官貝絲·沃茲尼亞克 (Beth Wozniak)；以及我們的首席財務官 Sara Zawoyski。他們將提供有關我們第二季度業績的詳細信息、第三季度的展望以及我們 2023 年全年展望的最新信息。在開始之前，請允許我提醒您，有關公司預期財務業績的任何陳述均為前瞻性陳述，受未來風險和不確定性的影響，例如今天的新聞稿和nVent 向美國證券交易委員會提交的文件中概述的風險。前瞻性陳述截至今日作出，公司沒有義務公開更新此類陳述以反映後續事件或情況。實際結果可能與預期結果存在重大差異。

Today's webcast is accompanied by a presentation, which you can find in the Investors section of nVent's website. References to non-GAAP financials are reconciled in the appendix of the presentation. We'll have time for questions after our prepared remarks. With that, please just turn to Slide 3, and I will now turn the call over to Beth.

今天的網絡廣播附有演示文稿，您可以在 nVent 網站的投資者部分找到該演示文稿。對非公認會計準則財務數據的引用在演示文稿的附錄中進行了調整。在我們準備好的發言之後，我們將有時間提問。現在，請翻到幻燈片 3，我現在將把電話轉給 Beth。

Thank you, Tony, and good morning, everyone. It's great to be with you today to share our strong second quarter results. We continue to execute on our strategy for growth with a focus on high-growth verticals, new products, acquisitions and geographic expansion. In the second quarter, we delivered record sales, up 10% and adjusted EPS up an impressive 35%. Our strong execution resulted in another quarter of robust margin expansion and free cash flow. Highlights for the quarter include the acquisition of ECM Industries expanding our electrical power connection and grounding solutions portfolio, we also published our 2022 ESG report, which highlighted significant progress on our goals around our people, products and planet pillars. Overall, we are very pleased with our strong first half performance and are raising our full year sales and adjusted EPS guidance.

謝謝你，托尼，大家早上好。很高興今天能與您分享我們強勁的第二季度業績。我們繼續執行增長戰略，重點關注高增長垂直行業、新產品、收購和地域擴張。第二季度，我們的銷售額創歷史新高，增長了 10%，調整後每股收益增長了 35%，令人印象深刻。我們強大的執行力帶來了又一個季度的利潤率強勁擴張和自由現金流。本季度的亮點包括收購 ECM Industries，擴大了我們的電力連接和接地解決方案組合，我們還發布了 2022 年 ESG 報告，其中強調了我們在人員、產品和地球支柱方面的目標取得的重大進展。總體而言，我們對上半年的強勁表現感到非常滿意，並提高了全年銷售額和調整後的每股收益指導。

Now on to Slide 4 for a summary of our second quarter performance. Sales in the quarter were up 4% organically on top of 21% a year ago, with all verticals growing led by infrastructure. New products contributed approximately 3 points to sales growth. We've launched 33 new products in the first half and are on track to launch 50-plus for the full year. We closed on the ECM acquisition and are excited to welcome the team to nVent. In Q2, ECM added 7 points to sales and was accretive to overall nVent margins. Segment income grew 45% year-over-year with return on sales up an impressive 540 basis points. Adjusted EPS grew 35% on top of 14% a year ago. We generated $62 million of free cash flow, up 29%. We are on track for another strong year. I am very proud of our results and the great work being done by our nVent team. I want to share some recent awards and recognition to highlight this. nVent was named a Top 10 data solutions provider by CIO applications for the second year in a row. This recognition is for companies at the forefront of providing data center solutions and transforming businesses.

現在轉到幻燈片 4，總結我們第二季度的業績。本季度銷售額較上年同期增長 21%，有機增長 4%，基礎設施帶動所有垂直行業增長。新產品對銷售增長貢獻約3個百分點。上半年我們推出了 33 款新產品，全年有望推出 50 多種新產品。我們完成了對 ECM 的收購，並很高興歡迎該團隊加入 nVent。第二季度，ECM 的銷售額增加了 7 個百分點，並增加了 nVent 的整體利潤率。部門收入同比增長 45%，銷售回報率大幅增長 540 個基點。調整後每股收益比一年前的 14% 增長了 35%。我們產生了 6200 萬美元的自由現金流，增長了 29%。我們有望迎來又一個強勁的一年。我對我們的成果以及 nVent 團隊所做的出色工作感到非常自豪。我想分享一些最近的獎項和認可來強調這一點。 nVent 連續第二年被 CIO 應用程序評為十大數據解決方案提供商。這一認可是針對那些處於提供數據中心解決方案和業務轉型前沿的公司的。

We also were named by the Minneapolis St. Paul Business Journal as the 2023 large Manufacturer of the Year based on our contributions to the regional economy and community. This award recognized our performance, innovation and manufacturing excellence. And nVent is 1 of 4 finalists in the mid-cap category for the 2023 Diversity Equity and Inclusion Award by the National Association of Corporate Directors. This award recognizes forward-thinking boards that leverage the power of DE&I to enhance their governance, create long-term value and build innovative and inclusive workplaces and boardrooms.

基於我們對地區經濟和社區的貢獻，我們還被明尼阿波利斯聖保羅商業雜誌評為 2023 年度大型製造商。該獎項認可了我們的表現、創新和卓越製造。 nVent 是美國企業董事協會頒發的 2023 年多元化股權和包容性獎中型股類別的 4 家入圍企業之一。該獎項旨在表彰那些具有前瞻性思維的董事會，他們利用 DE&I 的力量來加強治理、創造長期價值並建立創新和包容性的工作場所和董事會。

Looking at performance across our key verticals, all grew organic sales in the quarter. Infrastructure led the way up 10%, including Data Solutions growing double digits and power utilities up over 40%. Industrial and energy each grew low single digits and commercial and resi was also positive. Turning to organic sales by geography, we continue to see broad-based growth in North America, up high single digits. Europe declined low single digits, primarily due to our wind down in Russia and Asia Pacific declined due to a slow recovery in China. Lastly, organic orders in Q2 grew low single digits year-over-year on top of high teens orders growth a year ago.

從我們關鍵垂直行業的表現來看，本季度所有行業的有機銷售額均有所增長。基礎設施引領增長 10%，其中數據解決方案增長兩位數，電力公用事業增長超過 40%。工業和能源均以低個位數增長，商業和房地產也呈正增長。就按地域劃分的有機銷售額而言，我們繼續看到北美地區的廣泛增長，增幅高達個位數。歐洲下降了低個位數，主要是由於我們在俄羅斯和亞太地區的業務因中國緩慢復甦而下降。最後，第二季度的有機訂單同比增長較低的個位數，而一年前的青少年訂單增長較高。

As expected, we saw distributors adjusting their inventories in Q2 with improving supply chains and lead times. Importantly, we continue to see positive distributor sell-through. Looking ahead, I am excited for both the ECM acquisition and TEXA acquisition, which we just announced and how they further position nVent with the electrification of everything. We are raising our full year guidance, reflecting our strong first half and the addition of our 2 acquisitions. We expect electrification, sustainability and digitalization to drive demand. Specifically, we expect continued strength in infrastructure, including data solutions, power utilities and renewables in industrial with the trends of automation in onshoring and in energy with the energy transition. We continue to expect the commercial resi vertical to be soft.

正如預期的那樣，我們看到分銷商在第二季度調整庫存，改善供應鍊和交貨時間。重要的是，我們繼續看到經銷商的積極銷售。展望未來，我對我們剛剛宣布的 ECM 收購和 TEXA 收購以及它們如何進一步定位 nVent 與一切電氣化感到興奮。我們正在上調全年指引，反映出我們上半年的強勁表現以及新增的兩項收購。我們預計電氣化、可持續發展和數字化將推動需求。具體來說，我們預計基礎設施領域將繼續保持強勁勢頭，包括數據解決方案、電力公用事業和工業領域的可再生能源，以及隨著能源轉型而出現的離岸自動化趨勢和能源領域的趨勢。我們繼續預計商業樹脂垂直市場將疲軟。

Lastly, artificial intelligence is driving demand for our liquid cooling solutions, leading us to increase investments in the back half of the year to drive future growth in our Data Solutions business. Overall, I am very proud of our nVent team and how we continue to execute and deliver for our customers and shareholders. We're on track for another strong year. I will now turn the call over to Sara for some detail on our second quarter results and our updated outlook for 2023. Sara, please go ahead.

最後，人工智能正在推動對我們液體冷卻解決方案的需求，促使我們在下半年增加投資，以推動數據解決方案業務的未來增長。總的來說，我對我們的 nVent 團隊以及我們如何繼續為客戶和股東執行和交付感到非常自豪。我們有望迎來又一個強勁的一年。我現在將電話轉給 Sara，了解有關我們第二季度業績和 2023 年最新展望的一些詳細信息。Sara，請繼續。

Thank you, Beth. We had a strong second quarter with robust margin expansion and free cash flow. Let's turn to Slide 5 to review our second quarter results. Sales of $803 million were up 10% relative to last year or up 4% organically. Price contributed more than 5 points to growth and volumes were down 2 points. ECM added $50 million in sales or 7 points to growth. Second quarter segment income was $181 million, up 45%. Return on sales was 22.6%, up 540 basis points year-over-year. Our strong performance was driven by price costs, continued productivity improvements and favorable mix in the quarter. Price more than offset the impact from inflation of roughly $25 million. In addition, ECM contributed meaningfully to the quarter and was accretive to overall nVent return on sales. Q2 adjusted EPS was $0.77, up 35% and above the high end of our guidance range. This included a $0.02 contribution from the ECM acquisition. We generated robust free cash flow in the quarter of $62 million, up 29%. This includes higher CapEx investments for growth and capacity.

謝謝你，貝絲。我們的第二季度表現強勁，利潤率大幅擴張，自由現金流也強勁。讓我們轉向幻燈片 5 來回顧我們第二季度的業績。銷售額為 8.03 億美元，較去年增長 10%，有機增長 4%。價格對增長的貢獻超過 5 個百分點，銷量下降 2 個百分點。 ECM 銷售額增加 5,000 萬美元，增長 7 個百分點。第二季度部門收入為 1.81 億美元，增長 45%。銷售回報率為22.6%，同比增長540個基點。我們強勁的業績得益於本季度的價格成本、生產力的持續提高和有利的組合。價格足以抵消大約 2500 萬美元的通貨膨脹影響。此外，ECM 對本季度做出了重大貢獻，並增加了 nVent 的整體銷售回報。第二季度調整後每股收益為 0.77 美元，增長 35%，高於我們指導範圍的上限。其中包括來自 ECM 收購的 0.02 美元捐款。我們在本季度創造了強勁的自由現金流，達到 6200 萬美元，增長 29%。這包括用於增長和產能的更高資本支出投資。

Now please turn to Slide 6 for a discussion of our second quarter segment performance. Starting with Enclosures. Sales of $400 million increased 5% organically, with both price and volume contributing. Infrastructure led with continued strength in Data Solutions. Industrial was also a solid contributor, driven by the trends in automation. Geographically, North America led up high single digits. Enclosures second quarter segment income was $90 million, up 46%. Return on sales of 22.5% increased an impressive 630 basis points year-over-year, driven by price cost and productivity. We are expanding our Data Solutions business rapidly and stepping up investments in CapEx and OpEx in the second half to support our strong orders and future growth.

現在請轉到幻燈片 6，討論我們第二季度的部門業績。從外殼開始。在價格和銷量的共同推動下，銷售額達到 4 億美元，有機增長 5%。基礎設施以數據解決方案的持續優勢為主導。在自動化趨勢的推動下，工業也是一個重要的貢獻者。從地域上看，北美的增幅居高個位數。機櫃第二季度收入為 9000 萬美元，增長 46%。在價格成本和生產力的推動下，銷售回報率為 22.5%，同比增長 630 個基點，令人印象深刻。我們正在快速擴展數據解決方案業務，並在下半年加大資本支出和運營支出的投資，以支持我們強勁的訂單和未來的增長。

Moving to Electrical & Fastening. Sales of $267 million increased 33%, with the ECM acquisition contributing 25 points to sales. Organic growth was 8%, driven by strong price. All verticals grew, led by Infrastructure up low double digits, with strength in Power Utilities and Data Solutions. Commercial/Resi grew mid-single digits. Geographically, sales growth was led by North America and Europe. Electrical & Fastening segment income was $86 million, up 47%. Return on sales was a notable 32.4%, up 310 basis points relative to last year on price cost and favorable mix.

轉向電氣和緊固。銷售額達 2.67 億美元，增長 33%，其中 ECM 收購為銷售額貢獻了 25 個百分點。在強勁的價格推動下，有機增長率為 8%。所有垂直行業均實現增長，其中基礎設施行業增長兩位數，電力公用事業和數據解決方案實力強勁。商業/Resi 增長中個位數。從地域上看，銷售增長以北美和歐洲為主導。電氣與緊固部門收入為 8600 萬美元，增長 47%。由於價格成本和有利的組合，銷售回報率高達 32.4%，較去年上升 310 個基點。

Turning to Thermal Management. Sales of $136 million were down 5% organically. Price contributed 4 points to growth, while volumes were negative. The decline was driven by Commercial/Resi and Industrial both declining high single digits, partially offset by infrastructure and energy. Industrial MRO demand remains solid. Geographically, North America was flat with declines in China and Europe, including our wind down in Russia. Notably, orders were up mid-single digits and backlog grew sequentially. Thermal Management segment income of $29 million was up 1%, and return on sales of 21% was up 160 basis points year-over-year on strong execution.

轉向熱管理。銷售額為 1.36 億美元，有機下降 5%。價格對增長貢獻了 4 個百分點，而銷量卻為負值。下降的原因是商業/Resi和工業均出現高個位數下降，但部分被基礎設施和能源所抵消。工業 MRO 需求依然強勁。從地域上看，北美地區持平，而中國和歐洲地區則出現下滑，其中包括俄羅斯地區的下滑。值得注意的是，訂單增長了中個位數，積壓訂單也環比增長。憑藉強勁的執行力，熱管理部門收入達到 2900 萬美元，增長 1%，銷售回報率為 21%，同比增長 160 個基點。

On Slide 7, titled Balance Sheet and Cash Flow, we ended the quarter with $139 million of cash on hand and $500 million available on our revolver. We added approximately $900 million in debt to our balance sheet in the quarter to finance the ECM acquisition.

在標題為“資產負債表和現金流”的幻燈片 7 中，本季度結束時，我們手頭現金為 1.39 億美元，左輪可用現金為 5 億美元。本季度我們的資產負債表中增加了約 9 億美元的債務，為 ECM 收購提供資金。

Turning to Slide 8, where we will outline our capital allocation priorities. We believe our robust balance sheet and cash generation puts us in a strong position to continue to invest in growth, return cash to shareholders and deliver great returns. We had strong free cash flow in the quarter, with the first half growing more than 150% compared to a year ago. We exited Q2 with a net debt to adjusted EBITDA ratio of 2.8x. With our strong cash flow generation, we believe we are on track to get back to our targeted range of 2x to 2.5x. In the first half of the year, we've returned approximately $73 million to shareholders, including dividends and share repurchases.

轉向幻燈片 8，我們將概述我們的資本配置優先事項。我們相信，穩健的資產負債表和現金生成能力使我們處於有利地位，能夠繼續投資於增長、向股東返還現金並帶來豐厚的回報。本季度我們擁有強勁的自由現金流，上半年同比增長超過 150%。第二季度結束時，我們的淨債務與調整後 EBITDA 的比率為 2.8 倍。憑藉我們強勁的現金流產生，我們相信我們有望回到 2 倍至 2.5 倍的目標範圍。今年上半年，我們向股東返還了約 7300 萬美元，包括股息和股票回購。

So moving to Slide 9. We are raising full year reported sales and adjusted EPS guidance, reflecting our strong first half performance and the impact of acquisitions. Reported sales growth is now expected to be in the range of 13% to 15% versus our prior guidance of 4% to 6%. We continue to expect organic sales to grow 4% to 6%.

現在轉向幻燈片 9。我們正在提高全年報告的銷售額和調整後的每股收益指導，反映了我們上半年的強勁業績和收購的影響。目前報告的銷售增長預計為 13% 至 15%，而我們之前的指導為 4% 至 6%。我們繼續預計有機銷售額將增長 4% 至 6%。

We now expect adjusted EPS to be in the range of $2.85 to $2.91, up 19% to 21% versus our original guidance of $2.65 to $2.73. This new guidance reflects our strong first half, increased investments in Data Solutions and $0.08 to $0.10 for acquisitions.

我們現在預計調整後每股收益將在 2.85 美元至 2.91 美元之間，比我們最初的指導值 2.65 美元至 2.73 美元增長 19% 至 21%。這一新的指導反映了我們上半年的強勁表現，增加了對數據解決方案的投資以及 0.08 至 0.10 美元的收購。

A couple of modeling assumptions to note. First, acquisitions are expected to add approximately 9 points to sales growth in the year. Second, with acquisitions, full year net interest expense is now expected to be approximately $80 million, and depreciation and amortization are expected to be approximately $140 million. Third, we now expect our tax rate to be 19.5% versus 18.5% due to geographical mix and the ECM acquisition. And lastly, we are raising our CapEx expectations of $15 million to a range of $70 million to $75 million to reflect the impact of acquisitions and investments to expand capacity for our Data Solutions business.

需要注意的幾個建模假設。首先，收購預計將為今年的銷售增長帶來約 9 個百分點的增長。其次，通過收購，全年淨利息支出預計約為 8000 萬美元，折舊和攤銷預計約為 1.4 億美元。第三，由於地域組合和 ECM 收購，我們現在預計稅率為 19.5%，而現在為 18.5%。最後，我們將資本支出預期從 1500 萬美元提高到 7000 萬至 7500 萬美元，以反映收購和投資對擴大我們數據解決方案業務能力的影響。

Looking at our third quarter outlook on Slide 10. We expect reported sales to grow 16% to 18%, with acquisitions contributing approximately 14 points to sales. Organic sales are expected to be up 1% to 3%. We expect adjusted EPS to be between $0.72 and $0.74, which at the midpoint, reflects 11% growth relative to last year.

看看我們對幻燈片 10 的第三季度展望。我們預計報告銷售額將增長 16% 至 18%，其中收購對銷售額貢獻約 14 個百分點。有機銷售額預計將增長 1% 至 3%。我們預計調整後每股收益將在 0.72 美元至 0.74 美元之間，其中值較去年增長 11%。

Wrapping up, I am pleased with our second quarter performance. We delivered robust margins and cash flow, and are well positioned for another great year. This concludes my remarks, and I will now turn the call over to Beth.

總結一下，我對我們第二季度的表現感到滿意。我們實現了強勁的利潤率和現金流，並為下一個偉大的一年做好了準備。我的發言到此結束，現在我將把電話轉給貝絲。

Thank you, Sara. Turning to Slide 11. I would like to share a few highlights on nVent. First, I would like to talk about our opportunity for Data Solutions. The acceleration of AI, greater data consumption, rising heat densities and growth in edge computing are all drivers of demand for our Data Solutions offerings, including liquid cooling. We view the total opportunity in Data Solutions to be approximately $10 billion, growing at roughly 10%. Our Data Solutions business was $375 million last year, growing 30% the last 2 years, and we believe we are in a position to win and outgrow the industry.

謝謝你，薩拉。轉向幻燈片 11。我想分享 nVent 的一些亮點。首先，我想談談我們在數據解決方案方面的機會。人工智能的加速、數據消耗的增加、熱密度的增加以及邊緣計算的增長都是對我們的數據解決方案產品（包括液體冷卻）需求的驅動力。我們認為數據解決方案的總機會約為 100 億美元，增長率約為 10%。我們的數據解決方案業務去年達到 3.75 億美元，在過去兩年中增長了 30%，我們相信我們有能力贏得併超越該行業。

Today, only about 5% of data centers are liquid-cooled. When compared to conventional cooling, we believe liquid cooling is growing 3x faster and providing up to a 50% savings in energy. What differentiates us is our leading technical expertise, our innovative designs and our ability to manufacture at scale. We have been partnering with major data center players for many years, some going back pre-spin and have developed high-quality solutions. We provide a broad range of cooling offerings for both greenfield and retrofit. We are building out a portfolio of standard products to drive scale, broader adoption and access through distribution channels. To serve the increasing demand, we're making significant investments in the back half of the year and next year to expand our operations and capacity. We believe our Data Solutions business is well on its way to over $500 million.

如今，只有約 5% 的數據中心採用液冷。與傳統冷卻相比，我們相信液體冷卻的增長速度快了 3 倍，並且可節省高達 50% 的能源。我們的與眾不同之處在於我們領先的技術專長、創新設計和大規模製造的能力。我們多年來一直與主要數據中心廠商合作，其中一些廠商在前期就已經合作並開發出了高質量的解決方案。我們為新建和改造提供廣泛的冷卻產品。我們正在構建標準產品組合，以通過分銷渠道推動規模、更廣泛的採用和訪問。為了滿足不斷增長的需求，我們將在今年下半年和明年進行大量投資，以擴大我們的業務和產能。我們相信我們的數據解決方案業務有望突破 5 億美元。

Moving to Slide 12. Last month, we published our latest ESG report, and I'm proud of the meaningful progress we've made on our goals in our 3 pillars of People, Products and Planet. In our People pillar, we increased diverse representation in our employee population and continue to build on our programs to develop, recognize and support our employees. We believe our culture and our people are a differentiator for nVent. We were certified again as a Great Place to Work and received the highest recognition by 50-50 women on Boards.

轉到幻燈片 12。上個月，我們發布了最新的 ESG 報告，我為我們在人員、產品和地球三大支柱的目標方面取得的有意義的進展感到自豪。在我們的人才支柱中，我們增加了員工群體的多元化代表性，並繼續發展我們的計劃來發展、認可和支持我們的員工。我們相信我們的文化和員工是 nVent 的差異化因素。我們再次獲得“最佳工作場所”認證，並獲得董事會 50-50 名女性的最高認可。

In our Products pillar, we continue to build on our efforts to deliver innovative products that make a positive ESG impact in 1 or more of our 3 ESG categories: eco-friendly materials; eco-friendly designs; and end user safety. 76% of the products in our new product pipeline at the end of 2022 met at least one of these criteria. In our Planet pillar, we reduced our Scope 1 and Scope 2 greenhouse gas emissions and increased our renewable energy consumption to 13%. We remain focused on environmental stewardship, achieving our planet goals, investing in renewable energy, reducing water consumption and reducing and diverting waste. We will continue to build on the progress we've made across our People, Products and Planet pillars. At nVent, we are building a more sustainable and electrified world.

在我們的產品支柱中，我們繼續努力提供創新產品，對我們 3 個 ESG 類別中的 1 個或多個類別產生積極的 ESG 影響：環保材料；環保設計；和最終用戶的安全。截至 2022 年底，我們新產品線中 76% 的產品至少滿足其中一項標準。在我們的地球支柱中，我們減少了範圍 1 和範圍 2 溫室氣體排放，並將可再生能源消耗增加到 13%。我們仍然專注於環境管理、實現我們的地球目標、投資可再生能源、減少水消耗以及減少和轉移廢物。我們將繼續鞏固我們在人員、產品和地球支柱方面取得的進展。在 nVent，我們正在建設一個更加可持續和電氣化的世界。

Turning to Slide 13. We continue to execute on our strategy for growth, which includes acquisitions, and have now completed 6 deals since spin. We expect a lot of future value creation from these acquisitions and continue to have a strong pipeline of opportunities. Our acquisition framework starts with finding companies that have great products aligned to high-growth verticals with the ability to scale and invest for growth. The ECM and TEXA acquisitions squarely fit this framework. ECM is a leader in power connections and grounding solutions, tools and test instruments and cable management. ECM closed in May and is off to a good start. We have a dedicated team leading our efforts to execute our integration playbook.

轉向幻燈片 13。我們繼續執行增長戰略，其中包括收購，自分拆以來現已完成 6 筆交易。我們預計這些收購將在未來創造大量價值，並繼續擁有大量機會。我們的收購框架首先是尋找擁有與高增長垂直行業相一致的優質產品、有能力擴大規模和投資增長的公司。 ECM 和 TEXA 的收購完全符合這一框架。 ECM 是電源連接和接地解決方案、工具和測試儀器以及電纜管理領域的領導者。 ECM 於 5 月關閉，並取得了良好的開端。我們有一個專門的團隊來領導我們執行我們的集成策略。

We are excited for the TEXA acquisition that closed a few weeks ago and is now part of our Enclosures segment. TEXA, much like our Eldon acquisition in 2019, has an innovative product portfolio which we plan to expand through our distribution channels and globally. TEXA provides innovative industrial air conditioners and chillers. With increasing heat loads, cooling is critical inside an enclosure to ensure performance and uptime. Combined with our expertise in liquid cooling, TEXA strengthens our ability to provide global cooling solutions in demanding environments such as industrial automation and energy storage.

我們對幾週前完成的 TEXA 收購感到興奮，該收購現已成為我們外殼部門的一部分。 TEXA 與我們 2019 年收購的 Eldon 非常相似，擁有創新的產品組合，我們計劃通過我們的分銷渠道在全球範圍內進行擴展。 TEXA 提供創新的工業空調和冷水機。隨著熱負荷的增加，機櫃內部的冷卻對於確保性能和正常運行時間至關重要。結合我們在液體冷卻方面的專業知識，TEXA 增強了我們在工業自動化和能源存儲等苛刻環境中提供全球冷卻解決方案的能力。

Both acquisitions are a great fit for nVent, expanding our Connect and Protect portfolio. We believe they have significant growth potential and long-term value creation with the Electrification of Everything.

這兩項收購非常適合 nVent，擴大了我們的連接和保護產品組合。我們相信，隨著萬物電氣化，它們具有巨大的增長潛力和長期價值創造。

Wrapping up on Slide 14. We had another strong quarter with record sales and adjusted EPS. We completed 2 acquisitions and have made significant progress on our ESG goals. We are raising our guidance and expect another year of strong sales and EPS growth. We believe we are well positioned with the electrification, sustainability and digitalization trends. Our future is bright.

幻燈片 14 結束了。我們又經歷了一個強勁的季度，銷售額和調整後的每股收益都創下了紀錄。我們完成了 2 項收購，並在 ESG 目標方面取得了重大進展。我們正在提高我們的指導，並預計新的一年銷售和每股收益將強勁增長。我們相信，我們在電氣化、可持續發展和數字化趨勢中處於有利地位。我們的未來是光明的。

With that, I will now turn the call over to the operator to start Q&A.

現在，我將把電話轉給接線員以開始問答。

(Operator Instructions)

（操作員說明）

And the first question will come from Julian Mitchell with Barclays.

第一個問題將由巴克萊銀行的朱利安·米切爾提出。

Thanks very much, and good morning, everyone. Maybe just a first question around the orders, trends and what you're seeing in kind of distributor and channel partner behavior. So I think you said orders were up low-single-digit in Q2. Just wondered what you're expecting for the third quarter in terms of the order intake. And how would you characterize the state of the destocking right now? Is it sort of episodic? Every few months, it comes in and out? And then how do you assess the aggregate state of sort of inventories? I realize you set across a vast array of distributors. But yes, your comfort levels on where inventories sit versus sell-through today.

非常感謝，大家早上好。也許只是關於訂單、趨勢以及您在分銷商和渠道合作夥伴行為中看到的第一個問題。所以我認為你說第二季度訂單增長了低個位數。只是想知道您對第三季度的訂單量有何預期。您如何描述目前去庫存的狀況？這是一種情景式的嗎？每隔幾個月，它就進進出出？那麼您如何評估各類庫存的總體狀態？我知道您遇到了大量的經銷商。但是，是的，您對庫存狀況與今天的銷售情況的舒適程度。

Okay. Well, Julian, first, one of the things I want to say is that, as we expected in Q2, we expected inventory adjustments to occur. And one of the positive points is that when we continue to look at distributor sell-through, we're positive. And so we think that some of those actions took place in Q2. And some actions, I think, will continue in Q3. As we go forward, we think that we're going to see growth with respect to infrastructure. A lot of the infrastructure bill and Inflation Reduction Act is going to drive growth in areas such as utilities and renewables and those other areas. So we think the outlook for that is very positive. And the other comment I would just make with respect to orders is that we've seen increasing orders in Data Solutions, particularly for our liquid cooling solutions, and we see that accelerating.

好的。好吧，朱利安，首先，我想說的一件事是，正如我們在第二季度所預期的那樣，我們預計會發生庫存調整。積極的一點是，當我們繼續觀察經銷商的銷售情況時，我們是持樂觀態度的。因此，我們認為其中一些行動發生在第二季度。我認為，一些行動將在第三季度繼續。隨著我們的前進，我們認為我們將看到基礎設施方面的增長。許多基礎設施法案和通貨膨脹削減法案將推動公用事業、可再生能源和其他領域的增長。所以我們認為前景非常樂觀。我想就訂單發表的另一條評論是，我們看到數據解決方案的訂單不斷增加，特別是我們的液體冷卻解決方案，而且我們看到這種趨勢正在加速。

That's helpful. And then just my follow-up would be -- trying to understand a little bit better, how you're thinking about the second half, sort of split in organic sales between price and volumes. In the second quarter, volume was down 2, I think, and price was up 5. So in terms of your second half guide, are we thinking about sort of price exiting the year at 1 or 2 points and volumes staying in that sort of flat to down territory?

這很有幫助。然後我的後續行動是——試圖更好地理解你對下半年的看法，即價格和銷量之間有機銷售的分配。我認為，第二季度成交量下降了2 倍，而價格上漲了5 倍。因此，就您的下半年指南而言，我們是否正在考慮以1 或2 個點的價格退出今年，而成交量則保持在這種水平平坦到下降的領土？

Yes. So I would say that -- a couple of things. One is we do expect positive price each quarter. I think that's important, given the fact that we continue to see 2023 as an inflationary environment. In Q3, embedded in that organic guide of up 1% to 3%, we do see that predominantly price. And I think a big piece of that is just reflective of some of those inventory-level adjustments continuing to happen in the third quarter as well as Thermal Management. And Thermal Management, specifically in relation to some of that commercial/resi softness, but also the wind down in that Russia business is more acute there in that Q3 and Q4 time frame. It's having roughly a 4-point impact on Thermal Management there in the back half, and that winds that down to roughly 0 Russia sales as we go into 2024.

是的。所以我想說——有幾件事。一是我們確實預計每個季度的價格都會呈正值。我認為這一點很重要，因為我們仍將 2023 年視為通脹環境。在第三季度，在上漲 1% 至 3% 的有機指導中，我們確實看到主要是價格。我認為其中很大一部分只是反映了第三季度繼續發生的一些庫存水平調整以及熱管理。熱管理，特別是與商業/熱電聯產的一些疲軟有關，而且俄羅斯業務在第三季度和第四季度的時間範圍內的下滑更為嚴重。它對後半段的熱管理產生了大約 4 個百分點的影響，隨著我們進入 2024 年，俄羅斯的銷售額將下降到大約 0。

I would say that from a Q4 perspective, we do expect things to ramp a bit from a volume and overall growth standpoint. And the biggest contributor there is just going to be the -- what we see in the data solutions space. And Beth talked a little bit about that order book building, the funnel of opportunities building, and we're really focused on making those investments here in Q3 and Q4 to capture that growth.

我想說，從第四季度的角度來看，我們確實預計從數量和整體增長的角度來看，情況會有所上升。最大的貢獻者將是我們在數據解決方案領域看到的。貝絲談到了訂單簿建設、機會建設漏斗，我們真正專注於在第三季度和第四季度進行這些投資，以抓住這種增長。

The next question will come from Deane Dray with RBC Capital Markets.

下一個問題將由加拿大皇家銀行資本市場部的迪恩·德雷 (Deane Dray) 提出。

I'd like to stick with the liquid cooling if we could. We did a deep dive report this quarter on the whole market. And what I find fascinating is that nVent has such a first-mover advantage in direct-to-ship cooling. And remarkably, most of your competition are start-ups. So what's your expectation competitively with so many other start-ups in the space? Do you expect to see consolidation? I like seeing you're adding capacity in this. Do you need to add any new technologies in this side? From our perspective, immersion and rear-door heat exchanges are probably less efficient. So I would rather see you in direct-to-ship. But just how do you see the industry playing out in terms of consolidation and where and how do you need to add either capacity or technologies in the space?

如果可以的話，我想堅持使用液體冷卻。本季度我們對整個市場做了深入的報告。令我著迷的是，nVent 在直接到船冷卻方面具有先發優勢。值得注意的是，您的大多數競爭對手都是初創企業。那麼，與該領域眾多其他初創企業競爭，您的期望是什麼？您預計會出現整合嗎？我喜歡看到你在這方面增加了能力。這方面需要添加什麼新技術嗎？從我們的角度來看，浸入式和後門式熱交換的效率可能較低。所以我寧願看到你直接發貨。但您如何看待該行業在整合方面的表現？您需要在何處以及如何增加該領域的產能或技術？

Well, Deane, thank you for the question. And so we are very excited about liquid cooling. And as you know, we have been doing liquid cooling even before we spun in some industrial applications. And over the years have developed great relationships with data center providers. And I would say it takes time. The test cycle and scaling manufacturing and the quality and the requirements that you have, it takes time to build that out. And we feel that we have done that for several years now, and in fact, are in test with many new customers as well as seeing accelerating order growth.

嗯，迪恩，謝謝你的提問。因此，我們對液體冷卻感到非常興奮。如您所知，甚至在某些工業應用中旋轉之前我們就一直在進行液體冷卻。多年來與數據中心提供商建立了良好的關係。我想說這需要時間。測試週期、規模化製造以及質量和您的要求，需要時間來構建。我們覺得我們已經這樣做了好幾年了，事實上，我們正在接受許多新客戶的測試，並看到訂單增長加速。

One of the things that I would say is in addition to our manufacturing expertise is we understand that cooling loop. And so there's various different technologies, whether you are retrofitting or greenfield, and also depending on who the provider is, sometimes, they want to have some of those technologies themselves. I think the good news is that we have partnerships across various -- of those areas as well as a strong product portfolio ourselves. As I mentioned, data centers are only roughly cooled by liquid cooling 5%. That's kind of where we're at today. So I think there's plenty of room for growth. And I think you're going to see us continue to strengthen and build out our product portfolio, including a standard set of offerings so we can have more broader adoption as well as many more partnerships and end customers. So I think there's plenty of opportunity for growth. And it may take a while before we see some consolidation because there's various cooling technologies, and they all have a role right now.

我想說的一件事是，除了我們的製造專業知識之外，我們還了解冷卻迴路。因此，有各種不同的技術，無論是改造還是新建，也取決於提供商是誰，有時，他們希望自己擁有其中一些技術。我認為好消息是我們在各個領域都有合作夥伴關係，並且我們自己也擁有強大的產品組合。正如我提到的，數據中心僅通過液冷大致冷卻 5%。這就是我們今天所處的情況。所以我認為還有很大的增長空間。我認為您將看到我們繼續加強和構建我們的產品組合，包括一套標準產品，以便我們能夠獲得更廣泛的採用以及更多的合作夥伴和最終客戶。所以我認為有很多增長機會。我們可能需要一段時間才能看到一些整合，因為有多種冷卻技術，而且它們現在都發揮著作用。

That's really helpful. And just as a follow-up, one of the data points you provided this morning on Power Utilities being up more than 40%. Could you just share with us what was going on there? Is that a comp issue? I note that that's also one of the areas that could benefit and should benefit from liquid cooling along with edge computing and energy storage and so forth. So what's going on in Power Utilities?

這真的很有幫助。作為後續行動，您今天早上提供的電力公用事業數據點之一上漲了 40% 以上。您能跟我們分享一下那裡發生了什麼嗎？這是一個補償問題嗎？我注意到，這也是可以並且應該受益於液體冷卻以及邊緣計算和能源存儲等的領域之一。那麼電力公司發生了什麼？

Well, I think in Power Utilities, it really is just the strength of the infrastructure build-out in our portfolio. And so we -- not a comp issue. We had strong growth there last year. We continue to add new products into that area. And as we go forward, we think about how liquid cooling, especially around energy storage or battery management, has a role to play there. And I think those are solutions that will come into play in the future. But overall, we just see that's part of the strength in the infrastructure build-out and in part to the execution by our team with our supply chains.

嗯，我認為在電力公用事業領域，這確實是我們投資組合中基礎設施建設的優勢。所以我們——不是補償問題。去年我們在那裡取得了強勁的增長。我們繼續在該領域添加新產品。隨著我們的前進，我們思考液體冷卻，特別是在能量存儲或電池管理方面，如何在其中發揮作用。我認為這些解決方案將在未來發揮作用。但總的來說，我們只是看到這是基礎設施建設實力的一部分，部分是我們團隊與供應鏈的執行力。

The next question will come from Jeff Hammond with KeyBanc Capital Markets.

下一個問題將由 KeyBanc Capital Markets 的 Jeff Hammond 提出。

So I really wanted to just cover kind of the margin sustainability in Enclosures and EFS into the second half. It looks like by our math, margin stepped down a point. Maybe you can speak to how ECM plays into that? It just seems like the margin step down maybe more than we would have thought. And particularly given Thermal kind of seasonally steps up.

因此，我真的想談談下半年 Enclosures 和 EFS 的利潤可持續性。根據我們的計算，利潤率下降了一個百分點。也許您可以談談 ECM 如何發揮作用？看起來利潤下降幅度可能比我們想像的還要大。特別是考慮到熱能季節性的上升。

Yes. So Jeff, let me take that one. I would say, first, we expect again, another quarter of margin expansion in Q3 from a year-over-year perspective. And that really is reflective of continued good price cost management as well as productivity. A couple of things maybe to point out from an overall ROS perspective. I'll start from a segment standpoint. We expect Enclosures to again be the largest driver of that year-over-year margin improvement on price cost and productivity. And we do expect in Q3 underlying margin expansion in Electrical & Fastening. And you're right to point out that ECM, while it's accretive to overall nVent, as expected, it is dilutive to that EFS margin. So that's in part what you're seeing.

是的。傑夫，讓我拿那個吧。我想說，首先，我們再次預計第三季度的利潤率將同比增長另一個季度。這確實反映了持續良好的價格成本管理以及生產力。從 ROS 的整體角度來看，有幾件事可能需要指出。我將從細分的角度開始。我們預計外殼將再次成為價格成本和生產率同比利潤改善的最大推動力。我們確實預計第三季度電氣和緊固件業務的潛在利潤率會擴大。您正確地指出，ECM 雖然可以增加整體 nVent（如預期），但它會稀釋 EFS 利潤。這就是你所看到的部分情況。

Thermal, we expect that margin performance to be a bit more flattish from a Q3 perspective. Bit more reflective of what's going on in the top line versus anything else, but they continue to work good price cost actions as well as just overall cost actions to work that to margin expansion for the full year.

熱力方面，我們預計從第三季度的角度來看，利潤率表現將更加平淡。與其他任何事情相比，更多地反映了營收情況，但他們繼續採取良好的價格成本行動以及總體成本行動，以實現全年利潤率的擴張。

Maybe 2 other things I would just point out from a sequential standpoint, Jeff, is one, we are investing incrementally in Data Solutions in Q3 and Q4. So overall, you're seeing that kind of fold in, if you will, to that Enclosures margins as well as to the overall nVent margins when you look at Q2 to Q3. And I think the other thing I would just point out is that price cost narrowing. This is nothing new. This is something that we expected coming into the year. So we're seeing that play out in the back half versus first half. And we do expect a bit of a sequential uptick in metals, specifically in Q3 from where we're at in those favorable first-half positions just based on our lock strategy.

傑夫，也許我想從順序的角度指出另外兩件事，其中之一是我們在第三季度和第四季度逐步投資於數據解決方案。因此，總的來說，當您查看第二季度到第三季度時，您會看到 Enclosures 利潤率以及整體 nVent 利潤率出現這種折疊。我想我要指出的另一件事是價格成本縮小。這不是什麼新鮮事。這是我們預計今年會發生的事情。所以我們看到了下半場和上半場的情況。我們確實預計金屬價格會出現一些連續上漲，特別是在第三季度，基於我們的鎖定策略，我們在上半年的有利位置基礎上。

Okay. Very helpful, Sara, thanks. Just back on liquid cooling, we've been getting a ton of questions, as I'm sure you are. Just wondering if you could put a finer point on kind of the size of the business today within that Data Solutions. What that business has been growing at relative to the 30% growth in Data Solutions overall. And then how it impacts margin mix. And then maybe just speak to the specific investments you're looking at in terms of capacity.

好的。非常有幫助，薩拉，謝謝。回到液體冷卻，我們收到了很多問題，我相信您也是如此。只是想知道您是否可以更詳細地說明該數據解決方案中當今業務的規模。該業務相對於數據解決方案 30% 的整體增長而言一直在增長。然後它如何影響利潤率組合。然後也許只是談談您正在考慮的產能方面的具體投資。

Well, back at our Investor Day, we talked about our Data Solutions business being $375 million in sales and 40% of that being cooling and power. And certainly, our liquid cooling business is one of the fastest-growing parts of that business. And so this is why the takeaway on that 1 chart is we expect to be over a $500 million business. We're well on our way. And we've had strong double-digit growth. So I think as we continue to invest in expansion and we see the acceleration of orders, it's going to become a more significant piece overall of what we do in Data Solutions.

好吧，回到我們的投資者日，我們談到我們的數據解決方案業務銷售額為 3.75 億美元，其中 40% 是冷卻和電力。當然，我們的液體冷卻業務是該業務中增長最快的部分之一。因此，這就是為什麼第一張圖表上的要點是我們預計業務規模將超過 5 億美元。我們一切順利。我們實現了強勁的兩位數增長。因此，我認為，隨著我們繼續投資擴張，並且我們看到訂單的加速增長，它將成為我們在數據解決方案領域所做的整體工作中更重要的一部分。

And maybe just to add. I think you asked a question, Jeff, on margin. We see it generally in line with our overall Enclosures margin. It's something that we can be -- improve that going forward. I think just here in the back half, as we significantly invest around the OpEx as well as what's going on in terms of the CapEx side of the equation, that's what's impacting kind of here in the back half. But we see that as great returns in terms of the investments we're going to make to deliver on the top line as well as the margin and the drop-through.

也許只是補充一下。傑夫，我想你問了一個關於邊緣的問題。我們認為它總體上與我們的整體外殼利潤率一致。這是我們可以做到的——繼續改進。我認為就在後半部分，由於我們圍繞運營支出以及資本支出方面的情況進行了大量投資，這就是後半部分產生影響的因素。但我們認為，就我們為實現營收、利潤率和下降而進行的投資而言，這是巨大的回報。

And then just the CapEx investments, I think you were moving some stuff around and creating some capacity. Can you just speak to that?

然後只是資本支出投資，我認為你正在轉移一些東西並創造一些能力。你能簡單談談嗎？

Yes. So our initial Phase 1 of this is we opened a new manufacturing facility in Mexico and really some of our -- expanded some of our core Enclosures products there so that we could optimize our Anoka facility, which is here just outside of Minneapolis, so that we could expand our liquid cooling capacity, some of our lab capability, engineering capability. There's other facilities across the U.S. that were also expanding for some of those core product offerings. So the CapEx is really helping us invest to further scale and support the testing requirements, the addition of new customers so we can really accelerate as the market accelerates.

是的。因此，我們最初的第一階段是在墨西哥開設一家新的製造工廠，並在那裡擴展了我們的一些核心外殼產品，以便我們可以優化位於明尼阿波利斯郊外的 Anoka 工廠，以便我們可以擴大我們的液體冷卻能力、我們的一些實驗室能力、工程能力。美國各地的其他設施也在擴建，以提供其中一些核心產品。因此，資本支出確實幫助我們進行投資，以進一步擴大規模並支持測試要求，增加新客戶，以便我們能夠隨著市場的加速發展而真正加速。

The next question will come from Joe Ritchie with Goldman Sachs.

下一個問題將由高盛的喬·里奇提出。

I just wanted to maybe get a little bit more clarification on Julian's question on the destocking. So I think, Beth, last quarter, you guys had mentioned that it was really broadly impacting your business. And then this quarter, it seems like it's been a little bit more so on the commercial and resi side, but I clearly don't want to put words in your mouth. I'm just -- maybe just talk about like where you're seeing it across your businesses today, and then like your confidence that you'll get through most of it in the upcoming quarter.

我只是想對朱利安關於去庫存的問題得到更多澄清。所以我認為，貝絲，上個季度，你們提到這確實對你們的業務產生了廣泛的影響。然後這個季度，商業和Resi方面的情況似乎有所改善，但我顯然不想把話放在你嘴裡。我只是 - 也許只是談論一下您今天在業務中看到的情況，然後喜歡您對在下個季度完成大部分工作的信心。

Well, I think as we said, distributors were adjusting their inventories for 2 reasons. One, you just take a look at lead times coming in and supply chain challenges. And second, I just want to emphasize again, our sell-through to the distributors has been positive. And so as we've seen where the supply chain has improved or where areas have been softer like commercial/resi, that's where we saw some of that adjustments take place. But even now, as you start to see more so with industrial, we're seeing some of those adjustments take place there as well. And I would say areas where their strength continues to be infrastructure. And we think this is going to play out as expected. And again, we're very -- we feel very confident because of the positive sell-through that we see at our distributors.

嗯，我認為正如我們所說，經銷商調整庫存有兩個原因。第一，您只需看看即將到來的交貨時間和供應鏈挑戰。其次，我想再次強調，我們對經銷商的銷售是積極的。因此，正如我們所看到的供應鏈有所改善或商業/房地產等領域較為疲軟的地方，我們就看到了一些調整的發生。但即使是現在，當你開始在工業領域看到更多這樣的情況時，我們也看到其中一些調整也在發生。我想說的是，他們的優勢仍然是基礎設施領域。我們認為這將按預期進行。再說一次，我們非常——我們感到非常有信心，因為我們在經銷商處看到了積極的銷售情況。

Got it. That makes a lot of sense. And then I know AI and liquid cooling is going to be a hot topic for a long period of time. I guess just 2 quick questions there. In terms of the R&D investments that you're making, maybe I missed it, but how much are you stepping up R&D for the remainder of the year? And then specifically, in what type of applications? And then my second question, is there a way to maybe parse out your -- I don't know, whether it's your content for data center and whether -- how that's going to be changing over time given recent developments?

知道了。這很有意義。然後我知道人工智能和液體冷卻將在很長一段時間內成為熱門話題。我想只有兩個簡單的問題。就你們正在進行的研發投資而言，也許我錯過了，但你們在今年剩餘時間內將加大研發投入多少？那麼具體來說，在什麼類型的應用程序中？然後我的第二個問題，有沒有一種方法可以解析您的 - 我不知道，這是否是您的數據中心內容以及 - 鑑於最近的發展，這將如何隨著時間的推移而變化？

Well, I guess I would say -- first of all, the investments that we're making in CapEx and OpEx, those investments are both in R&D, in operations and just across the board. I mean, we're investing in that business across all functions, just as we see the growth and opportunity. So -- and what we're doing specifically when we think about R&D is we -- I mentioned how we were building out a more standard portfolio that would allow us to scale some of the capability and scalable products through distribution. So that's how we think about all of those investments, to support the current customers, new customers, the testing required for these solutions, sometimes it takes a year, as well as developing these standard products. So it's really all of that.

嗯，我想我會說——首先，我們在資本支出和運營支出方面的投資，這些投資都是在研發、運營和全面方面。我的意思是，正如我們看到的增長和機會一樣，我們正在對所有職能部門的業務進行投資。所以——當我們考慮研發時，我們具體做的是——我提到了我們如何構建一個更標準的產品組合，使我們能夠通過分銷來擴展一些功能和可擴展的產品。這就是我們考慮所有這些投資的方式，支持現有客戶、新客戶、這些解決方案所需的測試（有時需要一年的時間）以及開發這些標準產品。所以這確實是全部。

And when -- and again, as we mentioned, we think there's various cooling solutions. So whether it's greenfield or retrofit, whether it's hyperscale or enterprise, there's a suite of -- there's a suite of products that we're working on developing.

正如我們所提到的，我們認為存在各種冷卻解決方案。因此，無論是新建還是改造，無論是超大規模還是企業，我們正在開發一套產品。

The next question will come from Jeff Sprague with Vertical Research.

下一個問題將由垂直研究公司的傑夫·斯普拉格（Jeff Sprague）提出。

I wonder if you could just elaborate a little bit on kind of what you are seeing in resi and commercial. And obviously, you're really not that big in resi, right? But I guess the question is a little bit more commercial. Sounds like it's primarily in the Thermal business. But maybe if you could again just drill down a little bit on what you're seeing and kind of the top line trajectory in that part of the business.

我想知道您是否可以詳細說明一下您在 Resi 和 Commercial 中看到的內容。顯然，你的抵抗力確實沒那麼強，對吧？但我想這個問題有點商業化。聽起來它主要從事熱能業務。但也許您可以再次深入了解您所看到的情況以及該業務部分的營收軌跡。

So our resi business is predominantly -- is Thermal, and we've seen that be softer, right, and expect that to continue. On the commercial side, commercial is across all of our businesses, a little bit softer in Thermal. But I would say we were positive in our Enclosures. Overall as nVent, we were positive in commercial, particularly in EFS and Enclosures, for that matter.

因此，我們的再生矽業務主要是熱能業務，我們已經看到該業務變得更加疲軟，這是正確的，並且預計這種情況將持續下去。在商業方面，商業涉及我們所有的業務，但熱能業務稍微溫和一些。但我想說，我們對我們的附件持積極態度。總體而言，作為 nVent，我們在商業方面持積極態度，尤其是在 EFS 和外殼方面。

So as we go forward, we think where commercial is strongest in our EFS business because of our labor-saving solutions, because of the focus that we have around more power and data infrastructure, we expect that to trend positive for us. And again, it's different applications. We look at industrial construction as an area that's very strong, right, which is driving demand for our EFS and our Enclosures products.

因此，隨著我們的前進，我們認為，由於我們節省勞動力的解決方案，由於我們關注更多的電力和數據基礎設施，我們的EFS 業務中商業最強的地方，我們預計這對我們來說是積極的趨勢。再說一次，這是不同的應用程序。我們將工業建築視為一個非常強大的領域，這正在推動對我們的 EFS 和外殼產品的需求。

And then just on the kind of the topic of volume, right? You guys are not alone here, printing top lines that are mostly or even more than all price. I think the difference, though, as I look at it, you guys had very strong volume growth in '21 and '22 and many in my group didn't. So the comps are different. But really, the essence of my question is, as we look forward into '24 and '25 and kind of assume the economy is clicking along here okay, how are you capacitized to be able to drive volume growth looking forward? Obviously, you talked about CapEx and data solutions. But I'm just wondering kind of the state of your capacity and the ability to kind of facilitate volume growth across the portfolio.

然後就是關於音量的話題，對嗎？你們並不孤單，打印的頂行大部分甚至超過了所有價格。不過，我認為區別在於，在我看來，你們在 21 年和 22 年的銷量增長非常強勁，而我們團隊中的許多人卻沒有。所以比較是不同的。但實際上，我的問題的本質是，當我們展望 24 和 25 年並假設經濟正在順利發展時，您如何有能力推動未來的銷量增長？顯然，您談到了資本支出和數據解決方案。但我只是想知道你們的能力狀況以及促進整個投資組合銷量增長的能力。

Well, over the last couple of years, Jeff, we've continued to look at our supply chains to make them more resilient. And so we've done a couple of things. We've done some expansions with some new plants. And we've talked about that over the last couple of years. So Mexico is one of the latest areas, but we also expanded in Thailand, for example. We have also invested in new automation and new CapEx for both our EFS business as well as Enclosures so that we could improve throughput. And so we feel we're in a good position. I would say the biggest -- I mean, we're going to continue to invest in digitization and automation. That's just an ongoing part of our strategy. But I think the real focus just because of the significance we're going to see in liquid cooling is where a lot of our investment is going.

好吧，在過去的幾年裡，傑夫，我們一直在關注我們的供應鏈，以使其更具彈性。所以我們做了一些事情。我們對一些新工廠進行了一些擴建。過去幾年我們一直在討論這個問題。墨西哥是最新的地區之一，但我們也在泰國等地區進行了擴張。我們還為 EFS 業務和機櫃投資了新的自動化和新的資本支出，以便提高吞吐量。所以我們覺得我們處於有利的位置。我想說最大的——我的意思是，我們將繼續投資於數字化和自動化。這只是我們戰略的一個持續的部分。但我認為真正的焦點只是因為我們將在液體冷卻中看到的重要性，這是我們大量投資的方向。

And maybe, Jeff, maybe just to add a point to that. And I think Beth talked about in her prepared remarks, kind of what we were lapping in terms of growth of a year ago being in that 21% range. 9 points of that was volume. And so maybe a couple of points there to add too is we did see volume in Enclosures on top of double-digit volume growth of a year ago in Q2. I think the other encouraging piece is we saw Thermal Management order growth in the quarter as well.

傑夫，也許只是想補充一點。我認為貝絲在她準備好的發言中談到了我們對一年前 21% 的增長率所表示的欣喜。其中9分是成交量。因此，也許還有幾點需要補充的是，我們確實看到，在第二季度，除了一年前的兩位數銷量增長之外，外殼銷量也有所增長。我認為另一個令人鼓舞的事情是我們在本季度也看到了熱管理訂單的增長。

And I think maybe one other thing to keep in mind, right, as we talk about kind of those inventory-level adjustments with lead times, our lead times in improving along with just the backdrop of supply chain. Where that shows up and the top line is going to be on the volume side of the equation.

我認為也許還有另一件事需要記住，對吧，當我們談論庫存水平調整和交貨時間時，我們的交貨時間以及供應鏈的背景有所改善。當它出現時，頂線將位於方程的體積一側。

The next question will come from Nigel Coe with Wolfe Research.

下一個問題將由沃爾夫研究中心的奈傑爾·科提出。

So Beth, every time you mentioned AI and liquid cooling, the stock ticks higher, so keep it going, all right? So ECM, I think you've quantified a $0.08 to $0.10 for the full year, and I think all of that comes in the second half of the year. So I just want to confirm that that's still the case. And does that come in pretty equal between 3Q and 4Q? And then maybe just talk about what kind of your impressions are as you've taken control of the business. I mean, has your perspective on the channel opportunities, synergies changed at all?

Beth，每次你提到人工智能和液體冷卻時，股價都會上漲，所以繼續下去，好嗎？因此，ECM，我認為您已經量化了全年 0.08 至 0.10 美元，我認為所有這些都將在今年下半年實現。所以我只是想確認情況仍然如此。第三季度和第四季度的情況相當嗎？然後也許只是談談您在掌控業務後的印象。我的意思是，您對渠道機會、協同效應的看法有什麼改變嗎？

Well, let me start because we're very -- we're 60 days in, and we're very pleased with the ECM acquisition. And as we said, when you look at that portfolio, it builds out our power connections and grounding solutions. So very complementary to what we do, and we see opportunity there to be able to take those products through the strength of our distribution channel and globalize it. And that will take some time, but we're working on it.

好吧，讓我開始吧，因為我們已經 60 天了，我們對 ECM 的收購非常滿意。正如我們所說，當您查看該產品組合時，它構建了我們的電源連接和接地解決方案。因此，與我們所做的事情非常互補，我們看到了能夠通過我們的分銷渠道的優勢來獲取這些產品並將其全球化的機會。這需要一些時間，但我們正在努力。

One of the things I would say, there's other products that we believe are essential things that contractors use every day. So that's a great fit, the tools and test instruments, along with our nVent CADDY portfolio. And there are some channels there, specialty channels and retail channels where we believe that's going to be an opportunity for us to pull through some of our core nVent products.

我想說的一件事是，我們認為還有其他產品是承包商每天使用的必需品。因此，工具和測試儀器以及我們的 nVent CADDY 產品組合非常適合。我們相信，在一些渠道、專業渠道和零售渠道中，這將是我們推出一些核心 nVent 產品的機會。

So I think we're very pleased as we look at some of those growth synergies, and I'll let Sara talk about the cost side as well. But one thing I will say that we learned is when you get into a business, you find that they have supply chain challenges. And that is our first priority, is to make sure that we're addressing where they've got supplier issues or capacity constraints. And that's something we just need to work through. But we've got a great experienced team that we're working on that so that we address that so we can really drive capacity and accelerate our growth there.

因此，我認為當我們看到其中一些增長協同效應時，我們感到非常高興，我也會讓薩拉談談成本方面。但我要說的是，我們學到的一件事是，當你進入一家企業時，你會發現他們面臨供應鏈挑戰。這是我們的首要任務，是確保我們解決供應商問題或產能限制。這就是我們需要解決的問題。但我們擁有一支經驗豐富的團隊，我們正在致力於解決這個問題，以便我們能夠真正提高產能並加速我們的增長。

And then just in terms of the EPS and the cost synergy part of the equation, we do continue to see the EPS contribution in this year being $0.08 to $0.10 on the EPS line for ECM. $0.02 of that came a bit early here in Q3. But the balance of that, we would expect that to be a reasonable assumption of that roughly kind of running through half and half, Q3 and Q4. From a cost synergy standpoint, we estimated roughly $10 million to $15 million by year 3. And as Beth said, even on the growth side -- on the cost side, 60 days in, we have high conviction here and good visibility. And the teams have done an excellent job really executing even on some early wins here around looking at parcel rates, looking at efficiencies from an insurance program standpoint. We also have good line of sight to the cash tax synergies that we alluded to as well, which is roughly $6 million to $8 million related to that step-up in amortization for the next 10 to 15 years.

然後就 EPS 和等式中的成本協同部分而言，我們確實繼續看到今年 ECM EPS 線上的 EPS 貢獻為 0.08 美元至 0.10 美元。其中 0.02 美元在第三季度來得有點早。但除此之外，我們預計這是一個合理的假設，大致貫穿第三季度和第四季度的一半。從成本協同的角度來看，我們估計到第三年大約為1000 萬至1500 萬美元。正如Beth 所說，即使在增長方面- 在成本方面，60 天后，我們對此也有很高的信念和良好的可見性。即使在一些早期的勝利中，團隊也做得非常出色，從保險計劃的角度來看包裹費率和效率。我們也對我們提到的現金稅協同效應有很好的了解，大約 600 萬到 800 萬美元與未來 10 到 15 年攤銷的增加有關。

Okay. That's great. And that's $0.02 in Q2, not Q3, right?

好的。那太棒了。那是第二季度的 0.02 美元，而不是第三季度，對吧？

$0.02 in Q2, correct. The balance of that really being in that Q3, Q4 time frame.

第二季度 0.02 美元，正確。真正的平衡在於第三季度、第四季度的時間範圍內。

Right. That's great. Obviously, volumes are a big kind of area for conversation right now. And you talked about the sell-through is positive. And I'm sure you mean volumes sell-through Is positive. So I wonder, maybe just a bit more color in terms of what you're seeing on sell-through. Any quantification you have on that by business would be great.

正確的。那太棒了。顯然，數量是目前討論的一個重要領域。您談到銷售量是積極的。我確信您的意思是銷量為正。所以我想知道，就你所看到的銷售情況而言，也許只是多一點色彩。如果您能按業務對此進行量化，那就太好了。

Well -- and to your point, yes, when we see that sell-through, that is positive volume. And I think as I mentioned earlier, when we look at -- it really -- what we're seeing is adjustments based on -- as different supply chains recovered or even in some of the vertical areas. So where we saw softness first or inventory adjustments was more around commercial/resi and then we started to see some industrial. But again, it's more of a reflection of overall supplier and supply chain lead times improving. And so as expected, we saw that happen in Q2, expect some of that to still occur in Q3. But as we start to see infrastructure bill, acceleration of a lot of the electrification investments, we expect strength there and things to ramp as we get through to the back half of the year.

嗯——就你的觀點而言，是的，當我們看到銷量時，那就是正成交量。我認為正如我之前提到的，當我們看到——實際上——我們看到的是基於不同供應鏈甚至某些垂直領域的複蘇而進行的調整。因此，我們首先看到的疲軟或庫存調整更多地圍繞商業/樹脂，然後我們開始看到一些工業。但同樣，這更多地反映了整體供應商和供應鏈交貨時間的改善。正如預期的那樣，我們在第二季度看到了這種情況，預計其中一些仍會在第三季度發生。但當我們開始看到基礎設施法案和大量電氣化投資的加速時，我們預計隨著下半年的到來，那裡的實力將會增強，事情將會加速。

Okay. Quick one on liquid cooling, if I can. This capacity expansion that you're investing in, does that allow you to what, double your sell-through there or triple it? I mean, any quantification on the capacity expansion will be great.

好的。如果可以的話，快速介紹一下液體冷卻。您投資的產能擴張是否能讓您的銷售額增加一倍或三倍？我的意思是，對產能擴張的任何量化都會很棒。

Well, I guess I would frame it up this way. I think what we're doing right now is Phase 1 in terms of what we see over the course of maybe the next 12 to 18 months of the capacity that we need and adding new customers. And I fully expect as we get into next year, we'll probably have to start looking at a Phase 2 just because of the growth rates that we're seeing.

好吧，我想我會這樣構建它。我認為我們現在正在做的是第一階段，我們可能會在未來 12 到 18 個月內看到我們所需的容量和增加的新客戶。我完全預計，當我們進入明年時，我們可能不得不開始考慮第二階段，因為我們看到了增長率。

This concludes our question-and-answer session. I would like to turn the conference back over to Ms. Beth Wozniak for any closing remarks. Please go ahead.

我們的問答環節到此結束。我想將會議轉交貝絲·沃茲尼亞克女士發表閉幕詞。請繼續。

Thank you for joining us today. I'm very proud of our performance in Q2. We will continue to focus on delivering for our customers, employees and shareholders by executing on our growth strategy. We have made great progress on our ESG goals. We believe nVent is a top-tier high-performance electrical company well positioned for the Electrification of Everything, sustainability and digitalization trends. Thanks again for joining us. This concludes the call.

感謝您今天加入我們。我對我們第二季度的表現感到非常自豪。我們將繼續專注於通過執行我們的增長戰略來為我們的客戶、員工和股東提供服務。我們在 ESG 目標方面取得了巨大進展。我們相信 nVent 是一家頂級高性能電氣公司，在萬物電氣化、可持續發展和數字化趨勢方面處於有利地位。再次感謝您加入我們。通話就此結束。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。