nVent Electric's $2.6B backlog drives raised 2026 outlook

nVent Electric reported a record $2.6 billion backlog at the end of Q1 2026, driven by AI data center demand that pushed organic orders up 40 percent.

"The backlog gives the company good visibility for the rest of 2026, and most of the backlog extends beyond the next 12 months, providing visibility into 2027," management said.

Even excluding data centers, organic orders grew at a mid-teens rate, reflecting broad-based demand across liquid cooling, engineered buildings, enclosures, power distribution units, cable management and power connections. nVent plans about $130 million in capital expenditures this year, including a new facility in Blaine, Minnesota, that started production in the first quarter. The company is expanding manufacturing capacity for liquid cooling products and engineered building solutions across several locations.

The strong order book gave management confidence to raise its full-year outlook. nVent now expects 2026 revenue growth of 26 percent to 28 percent, up from a prior forecast of 15 percent to 18 percent. Adjusted earnings per share are expected between $4.45 and $4.55, compared with an earlier range of $4.00 to $4.15. The Zacks consensus estimate implies revenue growth of 28 percent and EPS growth of 36 percent for the year.

nVent competes with Vertiv and Amphenol in the electrical equipment and data center markets. Vertiv continues to benefit from rising data center power and thermal needs as AI deployments drive higher infrastructure density, while Amphenol reported first-quarter orders of $9.4 billion with a book-to-bill of 1.24, reflecting broad-based demand across end markets.

Shares of nVent have surged 48.8 percent year to date. The stock trades at a forward price-to-sales ratio of 4.53 times, above the industry average of 3.76 times.

The guidance raise suggests management expects AI-related infrastructure demand to accelerate. Investors will watch upcoming quarterly results for further updates on segment margins and capacity conversion.

This article is for informational purposes only and does not constitute investment advice.