nVent Electric plc (NYSE:NVT) Q2 2023 Earnings Call Transcript

Beth Wozniak: 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.

Nigel Coe: 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.

Beth Wozniak: 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.

Operator: 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.

Beth Wozniak: 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.

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