nVent Electric PLC (NVT) 2023 Q3 法說會逐字稿

Hello, and welcome to the nVent Electric Third Quarter 2023 Earnings Call. (Operator Instructions) Please note, today's event is being recorded. I would now like to turn the conference over to Tony Riter, Vice President of Investor Relations. Please go ahead, sir.

您好，歡迎參加 nVent Electric 2023 年第三季財報電話會議。 （操作員說明）請注意，今天的活動正在錄製中。我現在想將會議交給投資者關係副總裁 Tony Riter。請繼續，先生。

Thank you, and welcome to nVent's Third 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 third quarter performance, provides outlook for the fourth quarter and an update to our full year 2023 outlook. Before we begin, let remind you that any statements made about the company's anticipated financial results are forward-looking statements subject to 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 年第三季財報電話會議。與我通話的有我們的董事長兼執行長貝絲‧沃茲尼亞克 (Beth Wozniak)；以及我們的財務長 Sara Zawoyski。他們將提供有關我們第三季業績的詳細資訊、第四季度的展望以及我們 2023 年全年展望的更新。在我們開始之前，請提醒您，有關公司預期財務業績的任何陳述均為前瞻性陳述，會受到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，本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有重大差異。

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 turn to Slide 3, and I'll now turn the call over to Beth.

今天的網路廣播附有演示文稿，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簡報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。接下來，請翻到投影片 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 record third quarter results. I'm very pleased with our execution in the quarter. We had exceptionally strong income growth, ROS expansion and robust free cash flow. We continue to execute on our strategy, focused on high-growth verticals, new products, acquisitions and geographic expansion. We believe we are well positioned with the electrification of everything.

謝謝你，托尼，大家早安。很高興今天能與您分享我們創紀錄的第三季業績。我對本季的執行情況感到非常滿意。我們的營收成長異常強勁，ROS 擴張，自由現金流強勁。我們繼續執行我們的策略，重點關注高成長的垂直行業、新產品、收購和地理擴張。我們相信，我們在萬物電氣化方面處於有利地位。

In the third quarter, we had record sales up 15% with the addition of ECM and TEXA Industries. Adjusted EPS was up an impressive 27%. The acquisitions performed well and are great additions to nVent. Overall, we are very pleased with our Q3 performance, we had strong execution despite a mixed environment, which I will comment on shortly.

第三季度，隨著 ECM 和 TEXA Industries 的加入，我們的銷售額成長了 15%，創歷史新高。調整後每股收益成長了 27%，令人印象深刻。這些收購表現良好，是 nVent 的重要補充。總的來說，我們對第三季的表現非常滿意，儘管環境複雜，但我們的執行力很強，我很快就會對此發表評論。

Now on to Slide 4 for a summary of our third quarter performance. Organic sales in the quarter were up slightly on top of 20% a year ago. We continue to see channel inventory adjustments resulting in lower-than-expected organic sales. Organic orders were positive in the quarter, growing low single digits. Segment income was up 40% year-over-year, and return on sales up an impressive 420 basis points. Adjusted EPS grew 27% on top of 25% a year ago, and we generated $136 million of free cash flow, up 8%.

現在轉到投影片 4，總結我們第三季的業績。該季度的有機銷售額比一年前略有成長 20%。我們繼續看到渠道庫存調整導致有機銷售額低於預期。本季有機訂單呈正成長，增幅較低個位數。部門營收年增 40%，銷售報酬率大幅成長 420 個基點。調整後每股盈餘比一年前的 25% 成長了 27%，我們產生了 1.36 億美元的自由現金流，成長了 8%。

Let me touch on a few highlights for the quarter. New products contributed approximately 2 points to sales growth, and we are well ahead of our goal of launching over 50 new products for the year. Turning to acquisitions. We're excited to have the ECM and TEXA team as part of nVent. These acquisitions have strong product portfolios which we believe further position us with the electrification of everything in high-growth verticals globally. In Q3, they added 14 points to sales and delivered better-than-expected income.

讓我談談本季的一些亮點。新產品對銷售成長貢獻了約2個百分點，遠遠超出了全年推出50多種新產品的目標。轉向收購。我們很高興 ECM 和 TEXA 團隊成為 nVent 的一部分。這些收購擁有強大的產品組合，我們相信這些產品組合將進一步幫助我們在全球高成長垂直產業的電氣化領域中佔有一席之地。第三季度，他們的銷售額增加了 14 個百分點，收入也比預期好。

With ECM, we are executing on our plan to globalize its portfolio. In particular, we are working on the certifications to expand the ILSCO power connection offering for Europe and Asia Pacific. We are making progress with our distribution partners to expand coverage. In addition, we are working on pulling our nVent products through some of the ECM channels.

透過 ECM，我們正在執行其產品組合全球化的計劃。特別是，我們正在進行認證工作，以擴大 ILSCO 電源連接在歐洲和亞太地區的產品範圍。我們正在與分銷合作夥伴共同努力擴大覆蓋範圍。此外，我們正在努力透過一些 ECM 管道拉動我們的 nVent 產品。

With TEXA, we are executing on our plan to position its industrial cooling portfolio alongside our enclosures through our European distribution channels. Similarly, we are executing on the product road map to expand the portfolio to North America. We believe there is significant potential for global growth and expansion with both acquisitions starting next year. I would also like to share a couple of awards that we recently received. nVent was named as one of Fortune's best workplaces in manufacturing and production. We were also named as one of Newsweek's America's Greenest companies. Finally, we were awarded the IMARK Supplier of the Year for ILSCO, part of ECM which highlights the strength of that product portfolio.

我們正在與 TEXA 一起執行計劃，透過我們的歐洲分銷管道將其工業冷卻產品組合與我們的機櫃一起定位。同樣，我們正在執行產品路線圖，將產品組合擴展到北美。我們相信，從明年開始的這兩項收購將帶來巨大的全球成長和擴張潛力。我還想分享我們最近獲得的一些獎項。 nVent 被《財星》雜誌評為製造和生產領域最佳工作場所之一。我們也被《新聞週刊》評為美國最環保公司之一。最後，我們的 ILSCO 榮獲 IMARK 年度供應商獎，ILSCO 是 ECM 的一部分，這突顯了該產品組合的實力。

Looking at our vertical performance in the quarter. Overall, we saw a mixed environment. Organic sales were led by industrial and commercial resi each growing low single digits in the quarter. While industrial is growing, the rate of growth is slowing. In commercial, we saw pockets of growth. Infrastructure declined low single digits, largely in electrical and fastening solutions due to customers and channel partners adjusting their inventories as our supply chain improved.

看看我們本季的垂直業績。總的來說，我們看到了一個混合的環境。有機銷售由工業和商業房地產帶動，本季均以低個位數成長。雖然工業在成長，但成長速度正在放緩。在商業領域，我們看到了一些成長。基礎設施下降了低個位數，主要是由於客戶和通路合作夥伴隨著我們供應鏈的改善而調整庫存，導致電氣和緊固解決方案下降。

Data Solutions continued to grow double digits. We are making good progress on expanding our footprint and capacity to meet growing demand for liquid cooling driven by the acceleration of AI. We remain confident in the growth of the infrastructure vertical with the electrification of everything and legislative funding expected to ramp in 2024. Finally, energy was flat in the quarter, but with the energy transition, we are seeing positive order trends.

數據解決方案持續實現兩位數成長。我們在擴大業務範圍和產能方面取得了良好進展，以滿足人工智慧加速推動的液體冷卻不斷增長的需求。我們對基礎設施垂直領域的成長充滿信心，隨著一切電氣化，立法資金預計將在 2024 年增加。最後，本季能源表現平穩，但隨著能源轉型，我們看到了積極的訂單趨勢。

Turning to organic sales by geography. We continue to see growth led by North America, up low single digits. Europe declined low single digits, primarily due to our wind down in Russia and Asia Pacific declined primarily due to China. Looking ahead, we are updating our sales expectations and raising our full year adjusted EPS guidance. This reflects our view on a continued mix environment. Importantly, it also reflects our confidence in our ability to execute, either acquisitions, new products, pricing, productivity and cash, we believe are all strengths for us. We expect electrification, sustainability and digitalization to continue to drive demand. Specifically, we expect strength in infrastructure in data solutions in industrial with the trends of automation and onshoring and in energy with the energy transition. We continue to expect the commercial resi vertical to have pockets of strength.

轉向按地理位置劃分的有機銷售。我們繼續看到以北美為主導的成長，成長率為低個位數。歐洲下降了低個位數，主要是由於我們在俄羅斯的減少，而亞太地區的下降主要是由於中國。展望未來，我們正在更新銷售預期並提高全年調整後每股收益指引。這反映了我們對持續混合環境的看法。重要的是，這也反映了我們對自己執行能力的信心，無論是收購、新產品、定價、生產力或現金，我們相信都是我們的優勢。我們預計電氣化、永續發展和數位化將繼續推動需求。具體來說，我們預計工業數據解決方案的基礎設施將隨著自動化和離岸外包的趨勢而增強，能源領域的基礎設施將隨著能源轉型而增強。我們繼續預計商業樹脂垂直領域將擁有強大的實力。

Overall, I'm very proud of our nVent team and our execution. I will now turn the call over to Sara for some detail on our third quarter results and our updated outlook for 2023. Sara, please go ahead.

總的來說，我對我們的 nVent 團隊和我們的執行力感到非常自豪。我現在將把電話轉給 Sara，以了解有關我們第三季業績和 2023 年最新展望的一些詳細資訊。Sara，請繼續。

Thank you, Beth. We had a solid quarter with robust margin expansion and free cash flow. Let's turn to Slide 5 to review our third quarter results. Sales of $859 million were up 15% relative to last year. Organically, sales were up slightly with price contributing 4 points to growth and volumes down 3 points. Acquisitions added a meaningful $104 million in sales or 14 points to growth. Third quarter segment income was $202 million, up 40%. Return on sales was an impressive 23.5%, up 420 basis points year-over-year. Our strong performance was driven by continued productivity improvements and accretive return on sales from the ECM acquisition.

謝謝你，貝絲。我們的季度表現穩健，利潤率強勁成長，自由現金流也強勁。讓我們轉向幻燈片 5 來回顧我們第三季的業績。銷售額達 8.59 億美元，較去年成長 15%。從有機角度來看，銷售額略有成長，其中價格對成長的貢獻為 4 個百分點，而銷售量則下降了 3 個百分點。收購使銷售額增加了 1.04 億美元，即成長了 14 個百分點。第三季部門營收為 2.02 億美元，成長 40%。銷售回報率高達 23.5%，較去年同期成長 420 個基點。我們強勁的業績得益於生產力的持續提高以及 ECM 收購帶來的銷售回報的增加。

In addition, price more than offset the impact from inflation of just over $20 million. Q3 adjusted EPS was $0.84, and up 27% and above the high end of the guidance range. This included a better-than-expected $0.08 contribution from the ECM acquisition. We generated robust free cash flow in the quarter of $136 million, up 8%. This included higher CapEx investments for growth and capacity.

此外，價格超過 2000 萬美元，足以抵消通貨膨脹的影響。第三季調整後每股收益為 0.84 美元，成長 27%，高於指導範圍的高端。其中包括 ECM 收購帶來的高於預期的 0.08 美元貢獻。我們在本季產生了強勁的自由現金流，達到 1.36 億美元，成長 8%。這包括用於成長和產能的更高資本支出投資。

Now please turn to Slide 6 for a discussion of our third quarter segment performance. Starting with Enclosures, sales of $413 million increased 6%. The TEXA acquisition contributed 1.5 points to sales. Organically, sales were up 4% with solid price and volumes slightly down. Commercial resi was up low double digits with strength in North America. Infrastructure and Industrial were each up with continued strength in data solutions and positive growth in industrial automation. Geographically, North America led up mid-single digits, while Europe was flat and China was down.

現在請轉到投影片 6，討論我們第三季的部門業績。從機櫃開始，銷售額達到 4.13 億美元，成長了 6%。收購 TEXA 為銷售額貢獻了 1.5 個百分點。總體而言，銷售額成長了 4%，但價格穩定，銷量略有下降。北美地區商業儲油價格上漲兩位數，表現強勁。基礎設施和工業在數據解決方案方面持續強勁，在工業自動化方面也取得了積極成長。從地理上看，北美的增幅為中個位數，而歐洲則持平，中國則有所下降。

Enclosures, third quarter segment income was $89 million, up 24% and Return on sales of 21.7% increased 320 basis points year-over-year, driven by price cost and productivity. This includes our increased investments in our data solutions business and expect this to ramp in Q4 and into 2024.

受價格成本和生產力的推動，第三季外殼業務收入為 8,900 萬美元，成長 24%，銷售回報率為 21.7%，年成長 320 個基點。這包括我們增加對數據解決方案業務的投資，預計這項投資將在第四季和 2024 年增加。

Moving to Electrical & Fastening. Sales of $302 million increased 45%. The ECM acquisition contributed 47 points to sales growth further scaling our highest margin segment. Organic growth declined 4%, mainly driven by infrastructure that stemmed from channel and customer inventory reductions. This was partially offset by low single-digit organic growth in commercial resi, which has grown each quarter this year. Geographically, sales growth declined low single digits in North America and mid-single digits in Europe. Notably, orders were up low single digits. Electrical & Fastening segment income was $98 million, up 61%. Return on sales was a notable 32.3%, up 320 basis points relative to last year, on solid price/cost, favorable mix and productivity.

轉向電氣和緊固。銷售額達 3.02 億美元，成長 45%。 ECM 收購為銷售成長貢獻了 47 個百分點，進一步擴大了我們利潤率最高的細分市場。有機成長下降 4%，主要是由於通路和客戶庫存減少而產生的基礎設施所推動的。這部分被商業房地產的低個位數有機成長所抵消，商業房地產今年每季都在成長。從地理上看，北美的銷售成長下降了低個位數，歐洲的銷售成長下降了中個位數。值得注意的是，訂單僅出現低個位數成長。電氣與緊固部門營收為 9,800 萬美元，成長 61%。由於穩定的價格/成本、有利的產品組合和生產力，銷售回報率高達 32.3%，比去年提高了 320 個基點。

Turning to Thermal Management. Sales of $144 million were down 3% organically. Price contributed 3 points to growth, while volumes were negative. The decline was driven by commercial resi down low double digits, partially offset by energy. Industrial MRO demand remained solid. Geographically, North America was up low single digits, China grew double digits, while Europe declined, including our wind down in Russia. Notably, orders were up mid-teens, driven by energy transition projects and backlog grew year-over-year and sequentially. Thermal Management segment income of $35 million was down 3%. Return on sales of 24.2% was flat year-over-year due to lower volumes and mix.

轉向熱管理。銷售額為 1.44 億美元，有機下降 3%。價格對成長貢獻了 3 個百分點，而銷售量卻為負值。下降的原因是商業儲備金下降了兩位數，但部分被能源所抵消。工業 MRO 需求依然強勁。從地理上看，北美成長了低個位數，中國成長了兩位數，而歐洲則下降了，包括我們在俄羅斯的下滑。值得注意的是，在能源轉型項目和積壓訂單年增率和季比成長的推動下，訂單量增加了十幾歲。熱管理部門收入為 3,500 萬美元，下降 3%。由於銷量和產品組合下降，銷售回報率為 24.2%，與去年同期持平。

On Slide 7, titled Balance Sheet and Cash Flow. We ended the quarter with $113 million of cash on hand and $600 million available on our revolver. We believe our healthy balance sheet provides us with ample capacity to invest in the business and execute on our growth strategy. As you can see on the slide, we have invested nearly $50 million in CapEx year-to-date, up nearly 60% versus a year ago.

第 7 張投影片，標題為「資產負債表和現金流量」。本季結束時，我們手頭現金為 1.13 億美元，左輪手槍可用現金為 6 億美元。我們相信，健康的資產負債表為我們提供了充足的能力投資於業務並執行我們的成長策略。正如您在幻燈片中看到的那樣，我們今年迄今已在資本支出上投資了近 5000 萬美元，比一年前增長了近 60%。

Turning to Slide 8, where we 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 a strong free cash flow in the quarter and year-to-date, growing 46% compared to a year ago. We exited Q3 with a net debt to adjusted EBITDA ratio of 2.4x, back within our targeted range of 2 to 2.5x, well ahead of our expectations after the ECM acquisition. This is a testament to our strong cash flow generation and ECM performance. Year-to-date, we have returned $103 million to shareholders, including dividends and share repurchases.

轉向幻燈片 8，我們概述了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產生能力使我們處於有利地位，能夠繼續投資於成長、向股東返還現金並帶來豐厚的回報。本季和年初至今，我們擁有強勁的自由現金流，與去年同期相比成長了 46%。第三季結束時，我們的淨負債與調整後 EBITDA 比率為 2.4 倍，回到了 2 至 2.5 倍的目標範圍內，遠遠超出了我們收購 ECM 後的預期。這證明了我們強大的現金流產生和 ECM 績效。今年迄今為止，我們已向股東返還 1.03 億美元，包括股息和股票回購。

Moving to Slide 9 for our updated full year outlook. We are updating our reported and organic sales forecast to reflect the mixed environment and expected channel inventory adjustment. Reported sales growth is now expected to be in the range of 12% to 13% and versus our prior guidance of 13% to 15%. This reflects full year organic growth of 3% to 4% versus our prior guidance of 4% to 6%. We continue to expect acquisitions to contribute approximately 9 points to sales growth. We are raising our adjusted EPS guidance to a range of $3.01 to $3.03, up 25% to 26% versus our prior guidance of $2.85 to $2.91. This new guidance reflects our year-to-date performance, continued strong execution and better acquisition performance. We now expect acquisitions to contribute approximately $0.15 to adjusted EPS versus our previous expectation of $0.08 to $0.10.

請前往投影片 9，了解我們最新的全年展望。我們正在更新我們的報告和有機銷售預測，以反映混合環境和預期的通路庫存調整。目前報告的銷售成長預計在 12% 至 13% 之間，而我們先前的指引為 13% 至 15%。這反映了全年有機成長 3% 至 4%，而我們先前的指引為 4% 至 6%。我們仍預期收購將為銷售成長貢獻約 9 個百分點。我們將調整後每股盈餘指引上調至 3.01 美元至 3.03 美元，較先前 2.85 美元至 2.91 美元的指引上漲 25% 至 26%。這項新的指導反映了我們今年迄今的業績、持續強勁的執行力和更好的收購業績。我們現在預計收購將為調整後每股收益貢獻約 0.15 美元，而我們先前的預期為 0.08 至 0.10 美元。

Looking at our fourth quarter outlook on Slide 10, we expect reported sales to grow 15% to 17% with acquisitions contributing approximately 13 points to sales. Organic sales were expected to be up 1% to 3%. We expect adjusted EPS to be between $0.73 and $0.75 which, at the midpoint, reflects 12% growth relative to last year. Wrapping up, we delivered another quarter of robust margin expansion and cash flow and are well positioned for another great year.

從我們對投影片 10 的第四季展望來看，我們預計報告銷售額將成長 15% 至 17%，其中收購對銷售額貢獻約 13 個百分點。有機銷售額預計將成長 1% 至 3%。我們預計調整後每股收益將在 0.73 美元至 0.75 美元之間，中間值較去年增長 12%。總結起來，我們又一個季度實現了強勁的利潤成長和現金流，並為另一個偉大的一年做好了準備。

This concludes my remarks, and I will now turn the call back over to Beth.

我的發言到此結束，現在我將把電話轉回給貝絲。

Thank you, Sara. Please turn to Slide 11. At nVent, we are building a more sustainable and electrified world. The trends in electrification, digitalization and sustainability are driving secular demand for our products and solutions. I'm confident about the future, given the macro trends and our strategy with our focus on high-growth verticals, new products and acquisitions.

謝謝你，薩拉。請參閱幻燈片 11。在 nVent，我們正在建立一個更永續和電氣化的世界。電氣化、數位化和永續發展的趨勢正在推動對我們產品和解決方案的長期需求。考慮到宏觀趨勢和我們專注於高成長垂直產業、新產品和收購的策略，我對未來充滿信心。

Starting with macro trends, we believe the $1.3 trillion in U.S. and European legislative funding for infrastructure has the potential to add between $250 million to $500 million in nVent sales over the next 5-plus years. Looking at the trend of digitalization, artificial intelligence is driving demand for our liquid cooling solutions, leading us to increase investments to expand our product portfolio and capacity to drive future growth. Looking at sustainability, we are seeing the energy transition gain traction. Notably, our third quarter project orders were up double digits in our Thermal Management segment.

從宏觀趨勢開始，我們認為美國和歐洲用於基礎設施的 1.3 兆美元立法資金有可能在未來 5 年多的時間裡為 nVent 銷售額增加 2.5 億至 5 億美元。縱觀數位化趨勢，人工智慧正在推動我們對液冷解決方案的需求，促使我們加強投資，擴大產品組合和產能，推動未來成長。著眼於永續性，我們看到能源轉型越來越受到關注。值得注意的是，我們第三季熱管理領域的項目訂單成長了兩位數。

Next is our focus on high-growth verticals and new products. As we shared at our Investor Day, more than 60% of our sales are exposed to secular trends. Some of the high-growth verticals we are focused on include industrial automation, data solutions, power utilities, renewables and the energy transition. For example, we expect our Data Solutions business to continue to grow double digits and reach over $500 million in sales next year. By the way, we look forward to hosting investors at the Supercompute trade show in Denver next month, where we will showcase our innovative portfolio, including our liquid cooling solutions.

接下來是我們對高成長垂直產業和新產品的關注。正如我們在投資者日分享的那樣，我們 60% 以上的銷售額都受到長期趨勢的影響。我們關注的一些高成長垂直產業包括工業自動化、數據解決方案、電力公用事業、再生能源和能源轉型。例如，我們預期數據解決方案業務明年將持續兩位數成長，銷售額達到 5 億美元以上。順便說一句，我們期待下個月在丹佛舉行的超級計算貿易展上接待投資者，屆時我們將展示我們的創新產品組合，包括我們的液體冷卻解決方案。

Turning to new products, we have seen significant growth. We have improved our new product introduction process, increasing velocity and time to revenue. Year-to-date, new products have contributed 3 points to sales growth, and we have launched 64 new products way ahead of our expectations.

談到新產品，我們看到了顯著的成長。我們改進了新產品推出流程，提高了速度並縮短了創收時間。年初至今，新產品為銷售成長貢獻了3個百分點，我們已推出64款新產品，遠遠超出我們的預期。

Lastly on acquisitions. We play in a highly fragmented $75 billion space. We see tremendous opportunities to continue to grow and expand with our acquisition framework. Recall, we look for differentiated product portfolios in high-growth verticals that we can invest in and scale to strengthen our position with the electrification of everything. This year, we expect the ECM and TEXA acquisitions to add approximately 9 points to sales. We have a strong track record of deals exceeding our weighted average cost of capital in 2 to 3 years. In summary, we expect to continue to execute on value-creating deals with our active funnel and strong balance sheet. We are excited about the electrification of everything.

最後是關於收購。我們在一個價值 750 億美元的高度分散的空間中開展業務。我們看到了透過收購框架繼續發展和擴張的巨大機會。回想一下，我們在高成長的垂直領域尋找差異化的產品組合，我們可以投資這些產品組合併擴大規模，以加強我們在一切電氣化方面的地位。今年，我們預計 ECM 和 TEXA 收購將為銷售額增加約 9 個百分點。我們擁有在 2 至 3 年內超過我們加權平均資本成本的交易記錄。總之，我們希望繼續利用我們活躍的管道和強大的資產負債表來執行創造價值的交易。我們對一切的電氣化感到興奮。

Wrapping up on Slide 12. We had a strong quarter with record sales and adjusted EPS. We expect 2023 to be another year of double-digit sales and adjusted EPS growth. While the current environment is mixed, our execution has been strong. We are driving growth with new products. We are executing well on acquisitions. We are expanding margins with price and productivity and we are delivering robust cash flow. We are within our target leverage ratio in less than 2 quarters after completing our largest acquisition ever.

投影片 12 即將結束。我們的季度表現強勁，銷售額和調整後每股收益均創歷史新高。我們預計 2023 年銷售額和調整後每股盈餘將再次達到兩位數成長。儘管目前的環境好壞參半，但我們的執行力一直很強。我們透過新產品推動成長。我們在收購方面執行得很好。我們正在透過價格和生產力擴大利潤，並提供強勁的現金流。在完成有史以來最大的收購後，我們在不到兩個季度的時間內就達到了目標槓桿率。

The ECM and TEXA acquisitions have been meaningful additions to nVent and are performing well. We are excited about the growth and scale of our combined portfolios. I'm very proud of how well our team is performing. Looking ahead to 2024, we believe we are well positioned with the electrification, sustainability and digitalization trends. We believe the legislative funding and investments in infrastructure will start to [flow]. We expect to see the continued acceleration of artificial intelligence and the energy transition, and we expect the sales synergies from our acquisitions to begin to layer in. We are excited for our future, our future is bright.

ECM 和 TEXA 的收購對 nVent 來說是有意義的補充，並且表現良好。我們對合併後的投資組合的成長和規模感到興奮。我對我們團隊的表現感到非常自豪。展望 2024 年，我們相信我們已經做好了應對電氣化、永續發展和數位化趨勢的準備。我們相信立法資金和基礎設施投資將開始[流動]。我們期望看到人工智慧和能源轉型的持續加速，我們預期收購帶來的銷售綜效將開始分層。我們對我們的未來感到興奮，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) Today's first question comes from Jeff Sprague with Vertical Research.

（操作員說明）今天的第一個問題來自Vertical Research 的Jeff Sprague。

Could we just touch on the channels a little bit more detail than you gave on the call. So we're kind of a year into kind of channel inventory liquidations at this point, right? And just kind of wondering your confidence in parsing what actually is normalization versus maybe just kind of eroding fundamentals underneath the surface kind of deteriorating here as we go.

我們能否比您在電話中提供的內容更詳細地談談管道？所以我們現在已經進入渠道庫存清算一年了，對嗎？只是想知道您是否有信心解析實際上的正常化，而不是表面上基本面的侵蝕，隨著我們的進展，基本面正在惡化。

I think as we started to see some of this activity taking place earlier in the year as supply chains improved. And that continued, and we expected it to continue in Q3. And I would say some of our channel partners have done that and some are still continuing, so it's somewhat mixed. And I think early on, we saw some of the slowness in commercial resi and so we saw some of that activity taking place there. Then we've started to see industrial slowing. I would say sell-through has been slowing as well.

我認為，隨著供應鏈的改善，我們開始看到今年早些時候發生了一些此類活動。這種情況仍在繼續，我們預計這種情況將在第三季繼續。我想說，我們的一些通路合作夥伴已經這樣做了，有些仍在繼續，所以情況有些複雜。我認為很早就，我們看到了商業儲備的一些緩慢，所以我們看到了一些活動在那裡發生。然後我們開始看到工業放緩。我想說的是，銷售量也在放緩。

But I think it is some end markets are choppy, so we're seeing some slowness there. But then we also see some positive in some of the -- we've seen commercial in some places to be very positive. Our nVent CADDY portfolio has seen some nice growth over the last several quarters. I think it's really mixed, Jeff, that was in and what we're seeing. And I do think with supply chain is improving, that's been one of the big drivers of the adjustments.

但我認為一些終端市場波動較大，因此我們看到了一些緩慢的情況。但我們也看到了一些積極的一面——我們在一些地方看到了非常積極的商業廣告。我們的 nVent CADDY 產品組合在過去幾季中出現了一些不錯的成長。我認為，傑夫，我們所看到的和我們看到的情況真的很複雜。我確實認為隨著供應鏈的改善，這是調整的主要驅動力之一。

And you did note orders were positive in EFS and thermal. How did they perform in Enclosures? And is there a particular additional inventory issue that you're working through there?

您確實注意到 EFS 和熱力方面的訂單是正面的。他們在圍場中的表現如何？您正在解決額外的庫存問題嗎？

Yes. On the enclosure side, it's -- they were down, and some of that is what we saw in industrial slowing. But again, puts and takes there, infrastructure data solutions was very strong. So some of it is inventory adjustments and some of it is -- some industrial areas starting to slow.

是的。在封閉方面，它們有所下降，其中一些是我們在工業放緩中看到的。但同樣，基礎設施數據解決方案非常強大。因此，一部分是庫存調整，一部分是——一些工業領域開始放緩。

And maybe just last one. Just your confidence on the continued ability to kind of price in a -- kind of what was called a flat volume environment?

也許只是最後一個。您對在所謂的成交量持平環境中持續定價的能力有信心嗎？

Well, I think you've seen every quarter that we've had strong price, although we said it was going to slow as we progress through the year just because of how we started to lap some of our price increases. We're continuing to do some price increases where we think that makes sense. For example, we've had some price increases in Europe. And I think as we look into next year, we still expect that we will be positive when it comes to price.

嗯，我想你已經看到每個季度我們的價格都很強勁，儘管我們說隨著今年的進展，價格將會放緩，只是因為我們開始消化一些價格上漲。我們將繼續在我們認為合理的情況下提高價格。例如，我們在歐洲的價格有所上漲。我認為，當我們展望明年時，我們仍然預期在價格方面我們會持正面態度。

The next question comes from Nigel Coe with Wolfe Research.

下一個問題來自 Wolfe Research 的 Nigel Coe。

I'm going to start off with a question you're probably not going to answer it, but I just appreciate your thinking about the '24 environment. We've got channel adjustments, some maybe getting stronger, some weakening, but we're certainly quite deep into that process right now. So perhaps you've got some favorable comps coming up on the channel into '24.

我將首先提出一個您可能不會回答的問題，但我很欣賞您對 24 小時環境的思考。我們已經進行了頻道調整，有些可能會變得更強，有些可能會減弱，但我們現在肯定已經深入了這個過程。因此，也許您會在 24 年的頻道中看到一些有利的比較。

But I'm more interested actually in this backlog build of TM and obviously, the data center -- data solutions tailwind, how are you thinking about the growth setup for next year? I mean are you confident, obviously, you're investing in [several other] business, but what kind of environment do you plan for in '24?

但我實際上更感興趣的是 TM 的積壓建設，顯然還有資料中心——資料解決方案順風車，您如何看待明年的成長設定？我的意思是，顯然，您對[其他幾項]業務進行投資是否有信心，但是您計劃在 24 年創造什麼樣的環境？

Well, look, we're confident in 2024 being a solid growth year for us. And when we think about -- as I was saying in some of my concluding remarks, first, you have some of this infrastructure spending starting to actually ramp in 2024. And we can see that because of some things that we're quoting on, so we know that, that money will start to flow and have an impact into 2024.

好吧，我們有信心 2024 年將成為我們穩健成長的一年。當我們想到時——正如我在一些結論性發言中所說的那樣，首先，一些基礎設施支出將在 2024 年開始實際增加。我們可以看到，由於我們引用的一些事情，所以我們知道，資金將開始流動並對2024 年產生影響。

Second, we look at some of the order rates that we have in Data Solutions, which has given us the confidence, right? To make those significant investments and build out more capacity. So in that case, we've got good visibility, especially with some of the hyperscale and where we're involved with this AI, which is driving the demand for liquid cooling.

其次，我們查看了數據解決方案中的一些訂單率，這給了我們信心，對吧？進行這些重大投資並建立更多產能。因此，在這種情況下，我們擁有良好的可見性，特別是在一些超大規模以及我們涉及人工智慧的領域，這正在推動對液體冷卻的需求。

Third, when you take a look at our Thermal Management business, we see those orders increasing. So we talked about double-digit orders growth and in particular, around that energy transition. And we've seen some nice wins whether it's on renewables or carbon capture. So we're seeing funding going into that energy transition.

第三，當您查看我們的熱管理業務時，我們會發現這些訂單正在增加。因此，我們討論了兩位數的訂單成長，特別是圍繞能源轉型。我們已經看到了一些不錯的勝利，無論是在再生能源還是碳捕獲方面。因此，我們看到資金投入能源轉型。

So I think the channel inventory adjustments this year have been one of those things a little bit out of our control, but everything that we've been working on, new products, we will have more new products this year than we've had in the last couple, and that's always been a great driver for growth for us. And I just want to add, of course, we have the two acquisitions and those sales synergies that we've been working on will start to begin in 2024. So all of that, I believe, sets us up for a solid growth year next year.

因此，我認為今年的通路庫存調整是我們有點無法控制的事情之一，但我們一直在努力的一切，新產品，今年我們將推出比去年更多的新產品最後一對，這一直是我們成長的巨大動力。我只想補充一點，當然，我們已經進行了兩次收購，我們一直在努力的銷售協同效應將於 2024 年開始。因此，我相信，所有這些都將為我們明年的穩健成長奠定基礎年。

And maybe one other thing, Nigel, just to add from a modeling standpoint too. This year, at an nVent level, the impact of our wind down of the Russia business was roughly 1 point of headwind on the top line. And while we'll see a little bit of a rollover in that in Q1 in thermal, it will have a negligible impact from a year-over-year perspective going into next year. So we won't have that headwind either.

也許還有另一件事，奈傑爾，也從模型的角度補充。今年，在 nVent 水準上，我們停止俄羅斯業務對營收的影響約為 1 個百分點。雖然我們會在第一季看到熱力方面的一些滾動，但從明年的同比角度來看，它的影響可以忽略不計。所以我們也不會有這種逆風。

So obviously, 4Q embeds a pretty significant step down in margin. So I hope we get into that on the call, but I just want to just dig into the M&A contribution of $0.15 for the year because that's obviously a nice pickup. $0.08 in the quarter, I think it implies maybe [$0.05] in the fourth quarter. You're pointing to some integration and investment spending in the back half of the year. Just wondering maybe some of that pushing out on the right -- I guess the question is, what's driving the upside to the M&A [attrition]?

顯然，第四季的利潤率大幅下降。所以我希望我們能在電話會議上討論這個問題，但我只想深入研究今年 0.15 美元的併購貢獻，因為這顯然是一個不錯的增長。本季度為 0.08 美元，我認為這意味著第四季度可能為 [0.05 美元]。您指的是今年下半年的一些整合和投資支出。只是想知道也許其中一些人在推動右翼——我想問題是，是什麼推動了併購[消耗]的上升？

Yes. I mean, I think it's a couple of things. One, as we bring that ECM into the nVent fold here, I think the team is executing very well from a price cost perspective. I also think that they're executing well from an overall productivity and cost control measures. So I think it's just -- I think the other point I would make too, Nigel, is we also have some mix benefit there. As you look at that business, if you remember, it's largely through distribution, but we also have OEM and retail e-commerce that distribution business is actually growing and growing nicely. So we're getting some positive mix contribution there as well.

是的。我的意思是，我認為有幾件事。第一，當我們將 ECM 引入 nVent 時，我認為從價格成本的角度來看，團隊執行得非常好。我還認為他們在整體生產力和成本控制措施方面執行得很好。所以我認為，奈傑爾，我想我也想指出的另一點是，我們也有一些混合優勢。當你看看這個業務時，如果你還記得的話，它主要是透過分銷來實現的，但我們也有 OEM 和零售電子商務，分銷業務實際上正在成長並且成長良好。所以我們也在那裡得到了一些正面的組合貢獻。

But as we look in Q4 from Q3, there's a couple of things to keep in mind is there. You have some normal seasonality in that business, very similar to the EFS business. And we will begin to ramp on the investment side to be in a good position for those sales synergies that Beth talked about. And that's going to take the form of some digital investments, sales and marketing, engineering investments, et cetera. And we're really excited about what that holds for us next year.

但當我們從第三季看第四季時，有幾件事需要記住。該業務有一些正常的季節性，與 EFS 業務非常相似。我們將開始加強投資力度，以便為貝絲談到的銷售綜效做好準備。這將採取一些數位投資、銷售和行銷、工程投資等形式。我們對明年的前景感到非常興奮。

The next question comes from Deane Dray with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場部的迪恩‧德雷 (Deane Dray)。

I would like to talk a bit here about data solutions investment that you're making. You talked about it last quarter. I was hoping you could size for us, I think you've told us the CapEx, but how much capacity are you adding in liquid cooling and when does that come online? And we'll probably hear more about this at Supercompute. But just give us a sense of your customer concentration. It looks like all the hyperscale guys have once have moved fastest into this space. How broadly do you think the customer base extends and what time frame?

我想在這裡談談您正在進行的數據解決方案投資。你上個季度談到這個問題。我希望您能為我們確定規模，我想您已經告訴了我們資本支出，但是您在液體冷卻方面增加了多少容量以及何時上線？我們可能會在超級計算中聽到更多有關此的信息。但請讓我們了解您的客戶集中度。看起來所有超大規模的公司都曾經以最快的速度進入這個領域。您認為客戶群的範圍有多大以及時間範圍是多少？

Okay. So this has been -- we've been adding capacity. First, opening a new plant in Mexico, so we could expand capacity within our Minnesota campus, if you will, for more liquid cooling. And then we realized that wasn't enough. So we're moving distribution out of that location to a new center to extend more capacity. And I think we're going to double our capacity. Maybe it's more than that. But I mean, that's how we're thinking about it when we look at liquid cooling.

好的。所以我們一直在增加容量。首先，在墨西哥開設一家新工廠，這樣我們就可以擴大明尼蘇達園區的產能（如果您願意的話），以實現更多的液體冷卻。然後我們意識到這還不夠。因此，我們正在將配送從該地點轉移到新的中心，以擴大容量。我認為我們的產能將增加一倍。也許還不止於此。但我的意思是，這就是我們在考慮液體冷卻時的思考方式。

And a couple of things that we've been doing in addition to the hyperscale accounts, we've also been creating some more standard offerings that we can take through some of our distribution channels as well as served, say maybe enterprise accounts where they're looking for -- maybe not a custom solution, but for something ready to go and off the shelf. These are some of the products we'll actually have on display at the Supercompute trade show. So we can give a -- we can overview for those in attendance just all the different breadth of our capability there.

除了超大規模帳戶之外，我們還一直在做一些事情，我們還創建了一些更標準的產品，我們可以透過我們的一些分銷管道提供這些產品並提供服務，例如企業帳戶。我們正在尋找——也許不是客製化解決方案，而是現成的現成解決方案。這些是我們將在超級計算貿易展上實際展示的一些產品。因此，我們可以為與會者提供我們所有不同方面的能力概覽。

So we've often talked about, takes a couple of years to work with an account to get these systems certified. We've been doing that for several years now. So we believe these new customers are starting to come online. That's also part of what's accelerating our growth into next year. And we just see a long runway here that, liquid cooling, just because of the types of chips that are being used and even some of the energy efficiency play there that, that will be the future.

所以我們經常談論，需要幾年的時間來使用一個帳戶來獲得這些系統的認證。我們這樣做已經好幾年了。所以我們相信這些新客戶開始上網。這也是我們明年加速成長的部分原因。我們在這裡看到了一條很長的跑道，液體冷卻，只是因為正在使用的晶片類型，甚至一些能源效率在那裡發揮作用，這將是未來。

Let me go back to a couple of points that Nigel was asking about on ECM. Can you separate for us how much of the cost synergies you've captured so far? And it sounds like most of the revenue synergies are still in front that certification to take the products into Europe and Asia that still happens. But it's unlike some of these enclosures business might be selling some of ECM as well, maybe that time frame is earlier. So where do you stand on cost synergies and time frame for revenue?

讓我回到 Nigel 在 ECM 上詢問的幾點。您能否為我們介紹一下您迄今為止獲得了多少成本綜效？聽起來大部分收入綜效仍然需要通過認證才能將產品帶入歐洲和亞洲，這種情況仍然存在。但與這些外殼企業中的一些可能也出售一些 ECM 不同，也許這個時間框架更早。那麼，您對成本協同效應和收入時間框架有何看法？

Well, I'll start with the cost synergies. So I would say, Deane, we're off to a great start from a cost synergy standpoint. If you recall, we estimated roughly $10 million to $15 million by year 3 and some of that execution in the quarter is really a faster-than-expected realization of some of those cost synergies, whether it's looking at some of our freight parcel rates combining kind of the overall insurance programs, I think the team is doing a nice job of finding those synergies early. And so we're well on track to achieve that $10 million to $15 million of cost synergies.

好吧，我將從成本協同效應開始。所以我想說，迪恩，從成本協同的角度來看，我們有了一個好的開始。如果您還記得的話，我們估計到第三年大約為 1000 萬至 1500 萬美元，本季度的部分執行確實比預期更快地實現了其中一些成本協同效應，無論是考慮我們的一些貨運包裹費率就整體保險計劃而言，我認為團隊在儘早發現這些協同效應方面做得很好。因此，我們預計將實現 1000 萬至 1500 萬美元的成本協同效應。

The other thing I would just point out, too, we talked about this, and it shows up really in our cash flow numbers is we are also on track and seeing the cash tax synergies as well of roughly $6 million to $8 million per year across that 10- to 15-year kind of amortization period. So the cost and the tax synergy is well on track.

我也想指出的另一件事是，我們討論了這一點，它確實體現在我們的現金流數字中，我們也走在正軌上，並看到現金稅協同效應以及每年大約600 萬至800 萬美元10到15年的攤銷期間。因此，成本和稅收協同作用進展順利。

And on the revenue synergies, I would say they're still in front of us, but what we've been working on, we said we're going to expand the ECM products through our distribution channels. And so we've been engaged in those discussions. I mentioned that, and I think we'll start to see that layer in as we go next year.

關於收入協同效應，我想說它們仍然擺在我們面前，但我們一直在努力，我們說我們將透過我們的分銷管道擴展 ECM 產品。所以我們一直在參與這些討論。我提到過這一點，我想我們明年就會開始看到這一層。

Similarly, we've been looking at some of the unique channels that ECM had and what products from our portfolio can we bring through their channels. So again, those discussions are overweight. And I think where we're trying to certify the product, obviously, for global distribution. That takes a little bit longer because you've got to get those certifications. And there are some different modifications we make to the product. So I think going into 2024 is when we start to see those synergies start to layer in.

同樣，我們一直在研究 ECM 擁有的一些獨特管道，以及我們可以透過他們的管道帶來我們產品組合中的哪些產品。再說一次，這些討論是過重的。我認為我們正在努力認證產品，顯然是為了全球分銷。這需要更長的時間，因為您必須獲得這些認證。我們對產品做了一些不同的修改。因此，我認為進入 2024 年，我們將開始看到這些協同效應開始顯現。

The next question comes from Julian Mitchell with Barclays.

下一個問題來自巴克萊銀行的朱利安·米切爾。

Maybe just a margin question, first off. So it looks like the fourth quarter guide, you're embedding, I think, sort of flattish revenue sequentially at sort of [860-ish] or something. But the operating margin is down 250 to 300 basis points. So I just wondered if that was roughly correct and I understood you often have seasonally down margins in Q4 sequentially, but if there was any particular aspect driving them this time or it's just conservatism?

首先，也許只是保證金問題。所以看起來像第四季度的指南，我認為，你正在嵌入[860-ish]之類的連續收入持平。但營業利益率下降了 250 至 300 個基點。所以我只是想知道這是否大致正確，並且我知道您在第四季度的利潤率經常連續季節性下降，但是這次是否有任何特定方面推動了它們，或者只是保守主義？

If you recall, Julian, there's a seasonality to that Q3 to Q4 margin that has consistently played out historically. So when you think about it, some of it is just going to be the mix of the business in terms of Enclosures and EFS versus Thermal. And I think the other piece I would point to is just the acceleration on the investment front from an EPS perspective. So we talked about that in our prepared remarks. A big piece of that is going to be on the data solutions investment side of things. So nothing in there beyond really that historical seasonal EPS pattern as well.

朱利安，如果你還記得的話，第三季到第四季的利潤率存在季節性，這在歷史上一直存在。因此，當您仔細考慮時，您會發現其中一些只是機櫃和 EFS 與散熱方面的業務組合。我認為我要指出的另一件事是從每股盈餘的角度來看投資方面的加速。所以我們在準備好的發言中討論了這一點。其中很大一部分將集中在數據解決方案投資方面。因此，除了歷史季節性每股收益模式之外，沒有其他內容。

I think the other thing I would point to, just from an EPS perspective, it doesn't necessarily show up on the [wrong] side of the equation because that's overall accretive, it's just going to be ECM. We do believe that ECM will have less of a contribution, still stronger than what we expected initially. But again, that's just that added seasonality element to it.

我想我要指出的另一件事是，僅從 EPS 的角度來看，它不一定會出現在等式的[錯誤]一側，因為這總體上是增值的，它只是 ECM。我們確實相信 ECM 的貢獻會較小，但仍強於我們最初的預期。但同樣，這只是增加了季節性因素。

And then just a second question around the top line. Should we assume that, that orders improvement in EFS translates into sales quickly, say, in Q4, sales growing again in EFS. And more broadly, I heard the comments around destocking, are you seeing any kind of project delays in commercial or industrial and then that's feeding through to distributors selling into those projects starting to pull back on their orders to suppliers such as yourself?

然後是圍繞第一行的第二個問題。我們是否應該假設，EFS 的訂單改善會迅速轉化為銷售額，例如，在第四季度，EFS 的銷售額再次成長。更廣泛地說，我聽到了有關去庫存的評論，您是否看到商業或工業方面有任何類型的項目延遲，然後這會影響到銷售這些項目的分銷商開始減少對像您這樣的供應商的訂單？

Well, maybe one area that I would point to is -- I'll just give you an example, ground rods are used in utilities and telecommunications and construction, et cetera. This was an area where we had really long lead times over the last couple of years, like months. And then we're now in stock, and it's down to like weeks. And so what we saw there was that there was inventory that had been built up at our channel partners and then there was inventory even at end customers. And so that's one of the impacts, as I characterized that we saw for EFS occurring even though we know the future with everything electrifying, this is a category that is going to continue to grow.

好吧，也許我要指出的一個領域是——我只舉一個例子，接地棒用於公用事業、電信和建築等領域。在過去的幾年裡，我們在這個領域的交貨時間非常長，例如幾個月。現在我們的庫存已經減少到幾週了。所以我們看到的是，我們的通路合作夥伴已經建立了庫存，甚至最終客戶也有庫存。這就是影響之一，正如我所描述的，我們看到 EFS 正在發生，儘管我們知道未來一切都會變得電氣化，但這個類別將繼續增長。

And when we tried to understand where the inventory is at, we have -- we know in some accounts, there are some end customers that perhaps they're waiting for other components beyond ground rods that we don't make that have slowed some of those projects. That's one area, but -- that's just one example. But I would say generally, it's just inventory adjustment is mainly what we're seeing. And go ahead, Sara.

當我們試圖了解庫存在哪裡時，我們知道在一些帳戶中，有一些最終客戶可能正在等待我們不生​​產的接地棒之外的其他組件，這已經減緩了一些那些項目。這是一個領域，但是——這只是一個例子。但我想說的是，一般來說，我們看到的主要是庫存調整。繼續吧，薩拉。

Yes. And then just from a Q4 sales perspective, we do expect to see modest growth in EFS in Q4. So if you just take a step back and look at that organic growth of 1% to 3%, we expect enclosures to lead -- expect modest growth in EFS and then expect thermal to continue to be down with some of those trends continuing on commercial resi and that Russia impact. And just to characterize that a little bit, that Russia impact specifically on that thermal management business is roughly 5 points in Q4.

是的。僅從第四季度銷售的角度來看，我們確實預計第四季度 EFS 將出現小幅增長。因此，如果您退後一步，看看 1% 到 3% 的有機增長，我們預計機櫃將處於領先地位——預計 EFS 會適度增長，然後預計散熱將繼續下降，其中一些趨勢將在商業上繼續下去雷西和俄羅斯的影響。為了描述這一點，俄羅斯在第四季對熱管理業務的具體影響約為 5 個百分點。

Your next question comes from Joe Ritchie with Goldman Sachs.

您的下一個問題來自高盛的喬·里奇。

Just maybe can we just start on EFS margins? I know that you've got the acquisition going through there as well. If you kind of think about negative organic growth, the EBITDA margin now north of 30%, north of 32%. How do we think about the trajectory of these margins from here? Fully recognizing that I think is there to step down expected in 4Q.

也許我們可以從 EFS 利潤開始？我知道你們也在那裡進行了收購。如果你考慮一下有機負成長，那麼 EBITDA 利潤率現在超過 30%，超過 32%。我們如何看待這些利潤的軌跡？完全認識到我認為預計將在第四季度下台。

Yes. I think -- here's what I would say is, one, I think the team has done an incredible job of managing that price cost equation. I think we're beginning to see that productivity ramp within the 4 walls as we would have expected kind of heading either into the back half.

是的。我認為——我想說的是，第一，我認為團隊在管理價格成本方程式方面做得非常出色。我認為我們開始看到四面牆內的生產力提升，正如我們預期的那樣，會進入後半區。

I think the other piece that's really showing up in that Q3 number is the mix that I referred to in prepared remarks. And we just had sort of an uneven mix of revenue, if you will, commensurate with what that typically looks like and that's driving some of that [32% plus] return on sales for that quarter.

我認為第三季數字中真正出現的另一部分是我在準備好的評論中提到的組合。如果你願意的話，我們的收入組合有點不平衡，與通常的情況相稱，這推動了該季度銷售回報率的部分[32%以上]。

But if we look -- just going ahead in Electrical & Fastening, and I would argue that this is cut across Enclosures as well, we continue to see strong underlying margin expansion opportunities. And it goes back to -- with volume in new products. Those new products tend to have higher margins because of the value that we're providing to our customers. The supply chain excellence, while we're improving productivity, improving productivity within the 4 walls, we're still not at our normalized levels of productivity, if you will. So there's still plenty of runway there to go. We're also doing things like transportation optimization, lean, automation, simplification of product family. So there's a lot going on there as well, along with just general functional excellence that you do see the leverage we're getting from an SG&A perspective.

但如果我們看看電氣和緊固領域的發展，我認為這也適用於機櫃領域，我們將繼續看到強大的潛在利潤擴張機會。這可以追溯到新產品的數量。由於我們為客戶提供的價值，這些新產品往往具有更高的利潤。卓越的供應鏈，雖然我們正在提高生產力，提高四面牆內的生產力，但如果你願意的話，我們仍然沒有達到正常的生產力水平。所以還有足夠的跑道可以去。我們還在做運輸優化、精實、自動化、產品系列簡化等工作。因此，除了一般功能卓越之外，還有很多事情正在發生，您確實可以從 SG&A 角度看到我們所獲得的優勢。

So there's lots of things that we're doing to drive that ongoing future margin improvement within Electrical & Fastening Solutions as well as the broader segments as well Enclosure and Thermal. The only other thing I would make is, is that Q3 to Q4 too does include the incremental investments, we plan on making within the ECM acquisition as well that will really begin to ramp here in Q4 and into next year.

因此，我們正在做很多事情來推動電氣和緊固解決方案以及更廣泛的細分市場以及外殼和熱學領域未來利潤率的持續改善。我唯一要做的另一件事是，第三季到第四季也確實包括增量投資，我們也計劃在 ECM 收購中進行增量投資，這將在第四季度和明年真正開始增加。

Got it. That's helpful, Sara. And I guess maybe piggybacking on Julian's question around commercial. It's interesting. I mean if you take a look at the [first] data, it's been pretty tough over the last several months. And then you look at the performance of each of your different businesses and depending on the business, commercial resi has been growing or not growing. I'm just -- it's kind of hard to square it all. And so maybe just kind of like give us a little bit more insight as to why potentially commercial resi might be holding up a little bit better in EFS than in Thermal, if there's anything you could add there?

知道了。這很有幫助，薩拉。我想也許是藉用了朱利安關於商業的問題。這真有趣。我的意思是，如果你看一下[第一個]數據，你會發現過去幾個月的情況相當艱難。然後你看看每個不同業務的業績，根據業務的不同，商業房地產是否成長。我只是——很難將這一切統一起來。因此，也許只是讓我們更深入地了解為什麼潛在的商業 Resi 在 EFS 中可能比在 Thermal 中保持得更好一些，如果您可以在那裡添加任何內容？

Yes. I think it has to do with our product portfolio. So if you think of what we do with our nVent CADDY brand, which is all around supporting power and data infrastructure, and you think about it's really applicable to any type of construction or remodel. And we just think everything is getting smarter and there's more power and data required in a building, in a hospital whether it's industrial, construction, new plants, et cetera. And we've done a lot to invest in new products in that product line.

是的。我認為這與我們的產品組合有關。因此，如果您想到我們對 nVent CADDY 品牌所做的事情（該品牌主要圍繞著支援電力和數據基礎設施），並且您認為它確實適用於任何類型的施工或改造。我們只是認為一切都變得更加智能，無論是工業、建築、新工廠等，建築物、醫院都需要更多的電力和數據。我們在該產品線的新產品方面做了很多投資。

So our new product vitality there is approaching 20%. And when we acquired EFS, it was single digits, so seismic, just different things that we're doing that I think that portfolio, ubiquitous and where we are. Our commercial portfolio in Thermal is not as ubiquitous just because we're doing freeze protection or we're doing underfloor heating or we're doing -- maintaining hot water heat tracing within a building so it just -- the applications are a little bit different. And I think that's one of the things that we're seeing the difference there. And maybe one other thing to add here too, the Thermal Management business has more of the resi as well. Impacting that from a growth rate perspective.

所以我們的新產品活力已經接近20%。當我們收購 EFS 時，它只是個位數，如此震撼，只是我們正在做的不同事情，我認為這個投資組合無處不在，而且我們所處的位置。我們在熱能方面的商業產品組合不那麼普遍，只是因為我們正在做防凍保護或我們正在做地板采暖，或者我們正在做 - 維持建築物內的熱水伴熱，所以它只是 - 應用程序有點不同的。我認為這是我們看到的差異之一。也許這裡還需要補充一件事，熱管理業務也有更多的電阻。從增長率的角度來看會產生影響。

Yes. I guess maybe that's very helpful, and I appreciated all that detail. Maybe the follow-up there is, I mean, is there -- should we be reading into the commercial [first] data and ultimately, what that means for your business?

是的。我想這可能非常有幫助，我很欣賞所有這些細節。我的意思是，也許後續行動是——我們應該解讀商業[第一]數據，並最終了解這對您的業務意味著什麼？

Well, this is one where we've got pockets of growth. And I think one thing we're seeing is just construction in general, right, which tends to be a little bit more and then industrial construction is driving growth for some of our products. There's a lot of investment in new battery plants and other things. And sometimes those products with CADDY, we can't tell, but because it may look more commercial even though it's headed to industrial construction, I think that is another area that's driving growth for us.

嗯，這是我們有成長空間的地方。我認為我們看到的一件事是總體上的建築，對吧，建築往往會更多一些，然後工業建築正在推動我們一些產品的成長。新電池廠和其他方面有大量投資。有時，那些帶有 CADDY 的產品，我們無法判斷，但因為它可能看起來更商業化，即使它正在走向工業建築，我認為這是推動我們成長的另一個領域。

The next question comes from Vlad Bystricky with Citi Group.

下一個問題來自花旗集團的 Vlad Bystricky。

So just stepping back, I wanted to ask you, as we've seen increased pressure on interest rates recently. Just what are you hearing from your channel partners in terms of how increased cost of funding their own inventory is influencing sort of how they're approaching this destock cycle and whether you see some risk that destock could be -- they could swing further in the other direction versus recent cycles just given their increased cost of financing.

所以退一步，我想問你，因為我們最近看到利率壓力加大。您從通路合作夥伴那裡聽到了什麼，他們自己的庫存融資成本增加如何影響他們如何接近這個去庫存週期，以及您是否看到去庫存可能帶來的一些風險——他們可能會在這個過程中進一步搖擺。與最近的周期相比，其他方向只是考慮到融資成本的增加。

Well, they don't really -- they're not really that explicit in sharing with us how they're thinking about it. But we know that's certainly one of those considerations. And we think that's what's played out over the course of this year that they've looked at their cost of capital and inventory. And with supply chain improving, it's a multitude of factors, but we certainly think that's what's played out here in 2023.

嗯，他們實際上並沒有那麼明確地與我們分享他們的想法。但我們知道這肯定是考慮因素之一。我們認為，這就是今年他們審視資本和庫存成本所發生的情況。隨著供應鏈的改善，影響因素有很多，但我們當然認為這就是 2023 年的情況。

And then just maybe, you mentioned, I think, in Thermal, China, low double digits growth. So can you just talk about specifically what's driving that in China versus not a great overall backdrop in the region? And how you're thinking about sort of sustainability of good growth in China for Thermal?

然後，我想，您提到的中國熱能產業的成長率可能較低，達到兩位數。那麼，您能否具體談談中國的推動因素以及該地區整體背景不佳的情況？您如何看待熱能在中國實現良好成長的可持續性？

Well, one of the things I would say with our business in China, we've got a lot of project type based business. And so some of that could be on the chemical side or on the energy side. And that's where, over the last little while, we've been working on projects and orders and started to see some of that growth there on that industrial side for us.

嗯，對於我們在中國的業務，我想說的一件事是，我們有很多基於專案類型的業務。因此，其中一些可能是在化學方面或能源方面。在過去的一段時間裡，我們一直致力於專案和訂單，並開始看到工業方面的一些成長。

The next question comes from Jeff Hammond with Keyport Capital Markets.

下一個問題來自 Keyport Capital Markets 的 Jeff Hammond。

Maybe just to go at the organic growth in a different way. It looks like you lowered your guide from 4% to 6%, 3% to 4%. And I'm just wondering if that's simply kind of the destocking effects or if there's anything else that's driving that change?

也許只是為了以不同的方式實現有機成長。看來您將指導值從 4% 降低到了 6%，從 3% 降低到了 4%。我只是想知道這是否只是去庫存效應，或者是否有其他因素推動了這種變化？

That's basically it. As we've noted, some of our channel partners, we think, are through that inventory adjustments and then some have indicated they're going to continue that through Q4. So just in light of that and it's sort of being choppy, we just -- that was our view that we would see improvement from Q3 to Q4, but we did lower it just because that inventory adjustment is going to continue into that fourth quarter.

基本上就是這樣。正如我們所指出的，我們認為我們的一些通路合作夥伴正在進行庫存調整，然後一些通路合作夥伴表示他們將在第四季度繼續進行庫存調整。因此，考慮到這一點，而且情況有點不穩定，我們認為從第三季度到第四季度我們會看到改善，但我們確實降低了它，因為庫存調整將持續到第四季度。

Okay. Great. And then just on liquid cooling. It seems like a lot of other companies are talking about liquid cooling and maybe just update us on competitive landscape, emerging competitors? I don't know if these products are maybe complementary or different or if you're seeing kind of new competition and new capacity investments?

好的。偉大的。然後只是液體冷卻。似乎很多其他公司都在談論液體冷卻，也許只是向我們介紹競爭格局、新興競爭對手的最新情況？我不知道這些產品是否是互補的或不同的，或者您是否看到了新的競爭和新的產能投資？

Well, a couple of things. We've been at this for a long time, even free spend working with some of these big leading customers. And over the course of the last 5 years have developed some solutions that took a while to really optimize the manufacturing supply chain capability and they're really ramping. So as I mentioned, it takes two years to test. So I think for some, it takes time and there are some start-ups and others, but it takes time to get to scale in manufacturing. So I think we're in a good position that we're accelerating. I think there's a lot of interest here, clearly with AI, and we're expanding from what have been more solutions for hyperscalers into solutions that we can sell through distribution channels or to enterprise accounts. And we think that's where over the next several years, we're really going to start to see more scale adoption.

嗯，有幾件事。我們已經在這方面投入了很長時間，甚至免費與其中一些大型領先客戶合作。在過去 5 年裡，我們開發了一些解決方案，這些解決方案花了一段時間才真正優化了製造供應鏈能力，而且它們確實在不斷提升。正如我所提到的，測試需要兩年。因此，我認為對於一些企業來說，這需要時間，有一些新創公司和其他企業，但要達到製造規模需要時間。所以我認為我們處於加速發展的有利位置。我認為人們對人工智慧很感興趣，我們正在從針對超大規模企業的更多解決方案擴展到可以透過分銷管道或向企業帳戶銷售的解決方案。我們認為，在接下來的幾年裡，我們將真正開始看到更大規模的採用。

So I feel from the standpoint that we have several partnerships. So whether it's -- we -- actually, from the -- whether it's a [co-play or emerging], we have the manifolds, we're doing the distribution units. We've got solutions that are liquid to air, liquids to liquid. I mean, we've got a variety in our portfolio. So I think it's going to be an area of strong growth, and I think we've got a good start on it.

所以我覺得從角度來看我們有多個合作關係。因此，無論是——我們——實際上，無論是[聯合遊戲還是新興]，我們都有多種形式，我們正在做分配單位。我們擁有液體到空氣、液體到液體的解決方案。我的意思是，我們的產品組合多種多樣。所以我認為這將是一個強勁成長的領域，我認為我們已經有了一個好的開始。

And then just last one on ECM. I think when you announced the deal, I think the margin structure was kind of in line with the overall nVent maybe well below EFS. But it sounds like maybe it's coming in a lot higher and do we need to kind of adjust our expectations for margin contribution from that [EFS]?

然後是 ECM 上的最後一篇文章。我認為當你們宣布這筆交易時，我認為利潤結構與整體 nVent 一致，可能遠低於 EFS。但聽起來可能會更高，我們是否需要調整我們對 [EFS] 利潤貢獻的期望？

Yes. So out of the gate, Jeff, we have said that ECM would be accretive to overall nVent. And just given the margin profile of EFS would be a bit dilutive, they're out of the gate. But I would say that -- I mean, I think that ECM margin profile is a couple of things. Like I said, it's the mix profile that we do believe that as that growth accelerates, it will probably revert back a little bit to the prior kind of margin profile. But two, we're going to continue to execute on our cost synergies, and that should accelerate over time.

是的。 Jeff，我們一開始就說過 ECM 將促進整體 nVent 的成長。考慮到 EFS 的利潤率會有點稀釋，他們就出局了。但我想說的是——我的意思是，我認為 ECM 利潤率狀況是有兩點影響的。就像我說的，我們確實相信，隨著成長加速，它的混合狀況可能會稍微恢復到先前的利潤率狀況。但第二，我們將繼續執行我們的成本協同效應，隨著時間的推移，這種協同效應應該會加速。

And I think the third piece to keep in mind, too, is the investment. So I think what you're seeing right now is great execution by the team, very good price cost management and some early cost synergies. I think what you think -- something to think about as you think about Q4 and into next year is just the increased investment that we plan on making to really ramp the top line even more and capture some of those sales synergies.

我認為第三個要記住的事情是投資。所以我認為你現在看到的是團隊的出色執行力、非常好的價格成本管理和一些早期的成本協同效應。我認為您的想法是，當您考慮第四季度和明年時，需要考慮的是我們計劃增加投資，以真正進一步提高收入並獲得一些銷售協同效應。

The next question comes from Scott Graham with Seaport Research.

下一個問題來自海港研究公司的史考特‧格雷厄姆。

So Beth, just to maybe ask you to elaborate your comment on '24, sorry. When you said growth, do you mean organic or earnings or both?

貝絲，我只是想請你詳細闡述你對《24》的評論，抱歉。當你說成長時，你指的是有機成長還是獲利成長，還是兩者兼具？

Well, I was specifically talking about our overall growth. But I mean both. We expect to grow organically, inorganically, obviously, with these acquisitions and to grow EPS.

嗯，我專門談論了我們的整體成長。但我的意思是兩者都有。我們期望透過這些收購實現有機、無機、明顯的成長，並增加每股收益。

Very good. And one for you, Sara. The drop down in incremental margin in the fourth quarter from the third quarter, is that because the gap in positive price/cost peaks -- has peaked in the third quarter and kind of narrows a little bit in the fourth quarter?

非常好。還有一份給你，薩拉。第四季增量利潤率較第三季有所下降，是否是因為價格/成本正峰值的差距已在第三季達到頂峰，並在第四季略有縮小？

Well, here's what I would say. There's nothing different in terms of price cost on performance first half, second half. We came into the second half, expecting that to narrow. At the same time, though, Scott, I would say the productivity is ramping.

嗯，這就是我要說的。上半年、下半年的價格成本與性能沒有什麼不同。我們進入下半場，預計比數會縮小。但同時，史考特，我想說生產力正在提高。

I think one thing to keep in mind is if you look at the cadence of last year, Q4 was our best return on sales expansion that we had last year, roughly 300 basis points, and that's when it began to kind of turn us on some of our pricing actions were coming into play. And so it's one of our most difficult comps, I think Enclosures expanded return on sales by like over 600 basis points in the quarter.

我認為要記住的一件事是，如果你看看去年的節奏，第四季度是我們去年銷售擴張的最佳回報，大約 300 個基點，從那時起，它開始讓我們開始一些我們的定價行動正在發揮作用。因此，這是我們最困難的比較之一，我認為 Enclosures 在本季將銷售回報率擴大了 600 多個基點。

So I would just come back to, in Q4, if you look at it just from a year-over-year standpoint, despite the difficult comp, we're planning on growing organically. We've got a good line of sight to another quarter of margin expansion across nVent and then you roll in the positive impact of acquisitions, so it's summing up to a really nice kind of year-over-year earnings per share as we end the year.

因此，我想回到第四季度，如果您僅從同比的角度來看，儘管競爭很困難，但我們計劃實現有機成長。我們對 nVent 的另一個季度的利潤率擴張有很好的了解，然後您會考慮收購的積極影響，因此，當我們結束本季度時，每股收益將達到非常不錯的水平。年。

Last one, if you don't mind. Just wanted to understand your capital allocation thinking given the sort of the higher for longer mantra that we continue to hear from the Fed. Does that slow things down for you guys? I know you've got the great opportunity to understand that, get that. Just that are you thinking that maybe you have to pause a little bit here? Or does your criteria gets (inaudible)? What's changing, if anything, in that environment?

最後一張，如果你不介意的話。只是想了解您的資本配置想法，因為我們不斷從聯準會聽到這種「更高、更長期的口號」。這對你們來說會減慢速度嗎？我知道你有很好的機會去理解這一點，並明白這一點。只是您是否認為也許您必須在這裡暫停一下？或是你的標準得到（聽不清楚）嗎？在那種環境下，發生了什麼變化（如果有的話）？

Well, look, I think we've always fundamentally been very strategic and disciplined in how we look at our capital allocation. And we've always said, first, we want to support growth. And so you've seen that in the M&A that we've done and the investments in new products, digital expansion, right for data solutions, pay a competitive dividend and make sure we offset dilution, and I think that still remains our position. And as we look at things like growth, we're always looking for good returns and that we can execute within our framework. So I don't think it's giving us any different perspective in how we think about our priorities.

好吧，我認為我們在如何看待資本配置方面從根本上來說一直非常具有戰略性和紀律性。我們總是說，首先，我們要支持成長。因此，您已經看到，在我們所做的併購以及對新產品、數位擴張、數據解決方案的投資、支付有競爭力的股息並確保我們抵消稀釋方面的投資中，我認為這仍然是我們的立場。當我們考慮成長之類的事情時，我們總是在尋找良好的回報，並且我們可以在我們的框架內執行。所以我認為這並沒有為我們帶來任何不同的視角來思考我們的優先事項。

Thank you and this concludes the question-and-answer session. And now I would like to return the call to Beth Wozniak for any closing comments.

謝謝大家，問答環節到此結束。現在我想回電給貝絲·沃茲尼亞克，徵求任何結束意見。

Thank you for joining us today. I'm very pleased with our performance in Q3. 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。我對我們第三季的表現非常滿意。我們相信 nVent 是一家頂尖高性能電氣公司，在萬物電氣化、永續發展和數位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。

Thank you. Now as I mentioned, the conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines.

謝謝。正如我所提到的，會議現已結束。感謝您參加今天的演示，您現在可以掛斷電話了。