nVent Electric plcNVT
nVent Electric plc Segments Disclosure
Segment Information
Our continuing operations are comprised of two reporting segments, based primarily on types of products offered and markets served:
•Systems Protection—The Systems Protection segment provides innovative solutions to help protect electronics, systems and data in mission critical applications, including data centers, that improve resiliency and energy efficiency. Our standard and custom protective enclosures, cooling solutions, both liquid and air, control buildings, switchgear systems and power distribution solutions help manage protect operating environments for mission critical applications in infrastructure, industrial and commercial verticals.
•Electrical Connections—The Electrical Connections segment provides innovative solutions that connect power and data infrastructure. Our offerings enhance end-user safety, reduce installation time and provide resiliency for critical systems. Our bus systems, cable management, electrical connections and solutions, and power connections help make electrical systems safe, efficient and resilient, and are used across commercial and residential, infrastructure and industrial verticals.
"Enterprise and other" activity primarily consists of enterprise expenses not allocated to the segments, including certain executive office, board of directors, and centrally-managed enterprise functional or shared service costs related to finance, human resources, legal, supply chain, digital and corporate development. These activities do not meet the criteria for a stand-alone reporting segment under ASC 280.
The accounting policies of our reporting segments are the same as those described in the summary of significant accounting policies. The Company's primary measure of segment profitability is reportable segment income. Reportable segment income represents operating income, which includes certain corporate overhead allocations, and is exclusive of intangible amortization, acquisition related costs, costs of restructuring activities, "mark-to-market" gain/loss for pension and other post-retirement plans, impairments and other unusual non-operating items.
nVent's chief operating decision maker ("CODM") is our chief executive officer. This presentation is consistent with how the CODM evaluates the results of operations and makes strategic decisions about the business. The CODM uses reportable segment income for purposes of evaluating performance, allocating resources, setting incentive compensation targets, as well as internal forecasting of future period financial results. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented.
Net sales and significant expense categories to arrive at our measure of segment profitability by reportable segment for the years ended December 31 were as follows:
| 2025 | |||||||||||
| In millions | Systems Protection | Electrical Connections | Total | ||||||||
| Net sales | $ | 2,592.9 | $ | 1,300.2 | $ | 3,893.1 | |||||
Cost of goods sold(1) | 1,686.5 | 721.0 | |||||||||
Selling, general and administrative(1) | 320.1 | 184.8 | |||||||||
Research and development(1) | 49.3 | 21.8 | |||||||||
| Reportable segment income | $ | 537.0 | $ | 372.6 | $ | 909.6 | |||||
| 2024 | |||||||||||
| In millions | Systems Protection | Electrical Connections | Total | ||||||||
| Net sales | $ | 1,823.3 | $ | 1,182.8 | $ | 3,006.1 | |||||
Cost of goods sold(1) | 1,143.4 | 637.1 | |||||||||
Selling, general and administrative(1) | 239.1 | 167.5 | |||||||||
Research and development(1) | 37.7 | 23.7 | |||||||||
| Reportable segment income | $ | 403.1 | $ | 354.5 | $ | 757.6 | |||||
| 2023 | |||||||||||
| In millions | Systems Protection | Electrical Connections | Total | ||||||||
| Net sales | $ | 1,605.9 | $ | 1,063.0 | $ | 2,668.9 | |||||
Cost of goods sold(1) | 1,011.6 | 549.5 | |||||||||
Selling, general and administrative(1) | 218.0 | 163.1 | |||||||||
Research and development(1) | 29.7 | 19.8 | |||||||||
| Reportable segment income | $ | 346.6 | $ | 330.6 | $ | 677.2 | |||||
(1) These costs exclude certain expenses reported in the Consolidated Statements of Operations and Comprehensive Income that are reflected in 'Enterprise and other', as well as the costs that are excluded from reportable segment income as discussed above.
One customer within our Systems Protection segment represented approximately 11% of consolidated net sales for the year ended December 31, 2025. No customer accounted for more than 10% of net sales in 2024 or 2023.
The following table presents a reconciliation of reportable segment income to consolidated income before income taxes for the years ended December 31:
| In millions | 2025 | 2024 | 2023 | ||||||||
| Systems Protection | $ | 537.0 | $ | 403.1 | $ | 346.6 | |||||
| Electrical Connections | 372.6 | 354.5 | 330.6 | ||||||||
| Reportable segment income | 909.6 | 757.6 | 677.2 | ||||||||
| Enterprise and other | (123.8) | (105.6) | (110.6) | ||||||||
| Impairment of equity investments | — | (8.8) | — | ||||||||
| Restructuring and other | (7.5) | (7.5) | (3.9) | ||||||||
| Intangible amortization | (147.1) | (94.7) | (69.5) | ||||||||
| Pension and other post-retirement mark-to-market gain (loss) | 12.9 | 0.1 | (13.4) | ||||||||
| Acquisition transaction and integration costs | (14.4) | (13.9) | (12.8) | ||||||||
| Inventory step-up amortization | — | — | (17.7) | ||||||||
| Gain on sale of investment | — | — | 10.3 | ||||||||
| Interest expense, net | (75.0) | (106.0) | (79.4) | ||||||||
| Other income (expense) | (4.7) | 8.0 | (4.9) | ||||||||
| Income before income taxes | $ | 550.0 | $ | 429.2 | $ | 375.3 | |||||
Identifiable assets(1) | Depreciation(2) | |||||||||||||||||||
| In millions | 2025 | 2024 | 2025 | 2024 | 2023 | |||||||||||||||
| Systems Protection | $ | 3,342.2 | $ | 2,129.3 | $ | 31.9 | $ | 25.7 | $ | 22.4 | ||||||||||
| Electrical Connections | 3,281.0 | 3,154.7 | 24.1 | 21.8 | 16.3 | |||||||||||||||
| Total for reportable segments | 6,623.2 | 5,284.0 | 56.0 | 47.5 | 38.7 | |||||||||||||||
| Enterprise and other | 228.7 | 1,450.9 | 4.7 | 3.8 | 5.0 | |||||||||||||||
| Consolidated | $ | 6,851.9 | $ | 6,734.9 | $ | 60.7 | $ | 51.3 | $ | 43.7 | ||||||||||
(1) Identifiable assets for 'Enterprise and other' includes total assets held for sale attributable to the Company's Thermal Management business of $1,276.1 million as of December 31, 2024. See Note 6 for further information on the Company's sale of the Thermal Management business.
(2) These amounts of depreciation disclosed by reportable segment are included within the significant expense categories above, such as cost of goods sold and selling, general and administrative expenses.
| Capital expenditures | |||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||
| Systems Protection | $ | 66.8 | $ | 45.9 | $ | 38.1 | |||||
| Electrical Connections | 19.7 | 23.2 | 20.7 | ||||||||
| Total for reportable segments | 86.5 | 69.1 | 58.8 | ||||||||
| Enterprise and other | 6.8 | 4.9 | 6.8 | ||||||||
| Consolidated | $ | 93.3 | $ | 74.0 | $ | 65.6 | |||||
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.