nVent Electric (NVT) 2026年第3四半期決算説明会：売上高は44%急増、業績予想を上方修正

要点

• nVentエレクトリックが発表した2026年第3四半期の売上高は15億1,500万ドルで、前年同期比44%増となりました。堅調なデータセンター需要に牽引され、報告ベースおよびオーガニックベースの双方で成長しました。
• 調整後営業利益は57%増の3億3,500万ドルとなり、調整後営業利益率は190ベーシスポイント拡大して22.1%となりました。調整後EPSは67%増の1.52ドルに増加しました。
• オーガニック受注は、前年同期の65%増に対し10%台前半の増加となりました。受注残高は前四半期比で増加し、26億ドルに達したほか、経営陣は10月の受注も引き続き非常に好調であったと述べています。
• システム・プロテクション部門のオーガニック売上高は54%増加し、うちインフラ向けは約90%増となりました。エレクトリカル・コネクションズ部門のオーガニック売上高は23%増加し、すべての垂直市場および地域で2桁成長を達成しました。
• nVentは2026年の業績予想を引き上げ、報告ベースの売上高成長率を48%〜49%、オーガニック売上高成長率を38%〜39%、調整後EPSを5.36ドル〜5.39ドルとしました。
• 同社は10月1日にマーベリック・パワーの買収を完了しました。経営陣は、本事業によりnVentのデータセンターにおける市場機会がメガワットあたり約200万ドルへと拡大し、今後も好調な2桁成長をもたらすと見込んでいます。

主要財務データ

事業および営業業績

インフラ分野は引き続きnVentの主要な成長ドライバーとなりました。同分野のオーガニック売上高は70%を超えて増加し、主にデータセンターがけん引しました。産業向け売上高は10%台後半の伸びとなり、商業・住宅向け売上高は10%台半ばの増加となりました。

すべての地域で2桁のオーガニック成長を達成しました。米州は約50%増加し、欧州は10%台前半の増加、アジア太平洋地域も2桁成長を記録しました。

新製品は売上高成長に約30パーセントポイント寄与し、nVentは当四半期中に24製品を投入しました。経営陣は、製品開発が電力、冷却、電気接続、データセンター、電力ユーティリティなどの高成長分野に引き続き集中していると述べました。

システム・プロテクション

システム・プロテクションの売上高は10億9,800万ドルに達し、前年同期比53%増となり、オーガニック売上高は54%増となりました。インフラ向け売上高はデータセンターに牽引され約90%増加しました。

セグメント利益は73%増の2億5,300万ドルに増加しました。セグメント利益率は260ベーシスポイント拡大して23.0%となり、販売量、価格設定、生産性の向上を反映しています。

エレクトリカル・コネクションズ

エレクトリカル・コネクションズ部門の売上高は4億1700万ドルで、オーガニック成長率は23%でした。インフラ向けおよび産業向けの売上高はいずれも堅調な2桁増を記録し、商業向けおよび住宅向け売上高は10%台後半の増加となりました。

セグメント利益は16%増の1億1800万ドルとなりました。利益率は180ベーシスポイント低下の28.2%となりました。これはインフレ、成長投資、事業ミックスによる影響であり、販売数量、価格設定、生産性向上によって一部相殺されました。経営陣は利益率が前四半期比で改善したと述べています。

マベリック・パワーと生産能力の拡張

マベリック・パワーは、低圧・中圧の開閉装置、配電盤、統合モジュールソリューションおよびサービスをnVentの製品ポートフォリオに追加します。同事業は1,000人以上の従業員と、約150万平方フィートの製造スペースを擁し、主にテキサス州とアリゾナ州に拠点を置いています。

経営陣は、成長支援のための投資を含め、マベリックの第4四半期営業利益率は10%台半ばになると見込んでいます。売上高の拡大と工場の稼働率向上に伴い、2027年以降は利益率が改善する見通しです。

nVentはまた、エンジニアリング建築ソリューション向けの新たな400,000平方フィートのアリゾナ施設を発表しました。生産開始は2027年半ばを予定しています。また、2027年上半期中には液冷能力の追加増設分も稼働を開始する予定です。

経営陣の業績予想

2026年第4四半期について、経営陣は報告ベースの売上高成長率を 45%-48%と予想しています、およびオーガニック売上高成長率は 26%〜29%となる見込みです。Maverick Powerは約 19ポイント、報告ベースの売上高成長率に寄与し、買収資金調達に伴う利息費用の増加を含めても調整後EPSを数セント押し上げると予想されています。

第4四半期の調整後EPSは 1.30ドル〜1.33ドルと予想されており、純利息費用は約 3900万ドルとなる見通しです。経営陣は、ガイダンスの中央値において営業利益率が前年同期比で約 60ベーシスポイント改善すると見込んでいます。Maverickを除いた限界利益率は20%台半ばを維持する見通しですが、Maverickへの投資を含めた場合は20%台前半になると予想されています。

経営陣は、インフラストラクチャー部門が2026年に過去最高の2桁のオーガニック成長を達成し、2027年も力強い成長を続けると予想しています。また、産業市場および商業・住宅市場の双方における通期オーガニック成長率見通しを、従来の1桁台半ばから1桁台後半へと引き上げました。

リスクおよび注視事項

• サプライチェーンの供給能力： nVentとそのサプライヤーは、データセンターおよび電力インフラの需要ペースに対応するため生産能力を増強しています。経営陣は現在の供給制約を第4四半期のガイダンスに織り込みました。
• インフレと関税： 第3四半期のインフレ影響は合計でほぼ 6000万ドルに達し、うち約 2000万ドルが関税の影響でした。通期の関税影響の見通しは 1億500万ドルに増加しました。
• Maverickへの投資費用： 生産能力および成長への投資により第4四半期の限界利益率は押し下げられる見込みですが、経営陣は2027年初めからの改善を見込んでいます。
• 受注時期： nVentのポートフォリオがより長期サイクルのプロジェクトへシフトしているため、経営陣は受注時期に波があると説明しました。同社はMaverickの統合後、受注残高がさらに拡大すると予想しています。
• 第4四半期の季節要因： 経営陣は、第4四半期のオーガニック売上高見通しに織り込まれている前四半期比での伸びの鈍化は、通常の季節要因によるものだと説明しました。

アナリスト質疑応答のハイライト

• データセンター需要： 経営陣は、データセンター顧客の緊急性が低下している様子は見られないと述べました。顧客との協議は引き続き、出力向上、納期の加速、リードタイムの短縮に重点が置かれています。
• 受注モメンタム： 前年同期の比較ハードルが高かったにもかかわらず、第3四半期のオーガニック受注は10%台前半の成長となりました。経営陣は10月の受注が非常に堅調であったとし、2年間の累計受注成長率の強さを強調しました。
• Maverickの成長性： 同社はMaverickの2027年に関する具体的なガイダンスを示さなかったものの、力強い2桁成長を見込んでいます。取得した受注残高は健全であると説明されました。
• 液冷技術： nVentはすでにモジュール式液冷製品の受注を開始しています。経営陣は、同プラットフォームが広範なデータセンター顧客から関心を集めていると述べました。
• 800ボルトDCアーキテクチャ： Maverickの800ボルトDCパワーラックは、電力変換、保護、制御を統合しており、施設全体の電力再設計を必要とせずに高密度AIコンピューティングをサポートします。経営陣は電力と冷却を、システムレベルで補完し合う機会と捉えています。
• サービス事業： nVentは液冷製品に関する設置、コミッショニング（試運転）、継続的なサポートの体制を構築しています。Maverickは自社の配電ポートフォリオに関連するサービス機能を追加します。
• 資本配分： 年初来で、nVentは 2億200万ドルを株主に還元しました。これには 1億ドルの自社株買いが含まれ、四半期配当を 5%引き上げました。。経営陣は、期末のレバレッジ比率が 目標レンジの2.0〜2.5倍（Maverickを 含む）以内に維持されると予想しています。

決算説明会トランスクリプト 全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Good day, and welcome to the nVent Electric Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Tony Reiter, Vice President of Investor Relations. Please go ahead.

Tony Riter

Thank you, and welcome to nVent's Third Quarter 2026 Earnings Call. On the call with me are Beth Wozniak, our Chair and Chief Executive Officer; and Gary Corona, our Chief Financial Officer. Today will provide details on our third quarter performance and outlook for the fourth quarter and an update to our full year outlook. All results referenced throughout this presentation are on a continuing operation basis unless otherwise stated. Before we begin, let me 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. 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 will now turn the call over to Beth.

Beth Wozniak

Good morning, everyone. I'm pleased to share with you our outstanding third quarter results and cover some key business highlights. We had another tremendous quarter with record sales, orders and earnings well ahead of our guidance. The better-than-expected sales were broad-based with double-digit growth across all verticals and geographies. In Q3, for total invent, we continue to have strong orders and backlog. Organic orders grew low double digits on top of 65% growth a year ago. In addition, backlog remained healthy and grew sequentially to $2.6 billion. We also closed on the Maverick Power acquisition on October 1. Maverick brings to nVent a new power distribution platform and increases our offerings in data centers. We are raising our full year sales and EPS guidance to reflect our outstanding third quarter performance and continued broad-based growth led by data centers. . Our guidance also incorporates the Maverick Power acquisition.

Now on to Slide 4 for a summary of our third quarter performance. Sales were up 44%, both on a reported and organic basis, led by the infrastructure vertical. New products contributed approximately 30 points to our sales growth and we launched 24 new products in the quarter. Adjusted operating income grew 57% year-over-year, with return on sales up 190 basis points, adjusted EPS grew 67%, and we had robust free cash flow. Sales grew double digits across all verticals. Infrastructure led the way with organic sales up over 70%, primarily driven by outstanding growth in data centers. Industrial grew in the high teens and commercial resi grew mid-teens.

Turning to organic sales by geography. All geographies grew double digits led by the Americas growing approximately 50%. Europe was up low-double digits and Asia Pacific grew double digits. Infrastructure represents our largest long-term growth opportunity, driven by the powerful secular trends of electrification, sustainability and digitalization. We expect the infrastructure vertical to deliver record double-digit organic growth this year with data center expansion and the need for power. We also forecast continued strong growth in 2027. We have been investing in new capacity for liquid cooling, engineered building solutions, power connections and cable management. This week, we announced a new 400,000 square foot facility in Arizona for engineered buildings that will expand our capacity to support growing demand in data centers and power utilities with production expected to begin in mid-2027.

In our high-growth areas within infrastructure, our suppliers are working to keep pace with our growth and are also investing in capacity expansions. It is a lot of work to increase volumes with the velocity required. We are partnering closely with our suppliers to help ensure we are scaling rapidly together.

Turning to industrial and commercial resi. We expect each to grow organic sales high-single digits for the year versus mid-single digits previously. We see industrial growth as broad-based and see improving demand trends across our short-cycle portfolio. I want to thank our invented team for focusing on our customers and achieving record performance levels. This wraps up my opening remarks. I will now turn the call over to Gary for further details on our third quarter results as well as our updated outlook. Gary, please go ahead.

Gary Corona

Thank you, Beth. We had another excellent quarter, exceeding our guidance with record sales and adjusted EPS. Let's turn to Slide 5 to review our results. Sales of $1.515 billion were up 44%, both on a reported and organic basis as compared to last year. This was well ahead of our guidance. driven by broad-based growth, led by very strong data center sales. Adjusted operating income was $335 million, up 57%. Return on sales came in ahead of expectations at 22.1%, up 190 basis points versus last year. Price plus productivity offset inflation of nearly $60 million including approximately $20 million in tariff impact. We also continue to make investments for growth in data centers and power utilities. We had record adjusted earnings well ahead of the high end of our guidance driven by exceptional sales growth and execution by the team. Adjusted EPS grew 67% year-over-year to $1.52.

We generated robust free cash flow of $268 million. Now please turn to Slide 6 for a discussion on the third quarter segment performance. Starting with Systems Protection. Sales of $1.098 billion increased 53%. Organic sales grew 54%. Sales growth was broad-based with double-digit increases across all verticals and geographies. Infrastructure led the way, growing approximately 90%, driven by continued strength in data centers. Industrial and commercial resi each grew in the teens. Geographically, the Americas delivered very strong double-digit growth, while Europe grew low-double digits. Asia Pacific also delivered double-digit growth in the quarter. Third quarter segment income was $253 million, up 73%. Return on sales of 23% increased 260 basis points year-over-year on strong volume, price and productivity.

Moving on to electrical connections. Growth exceeded expectations, reflecting continued momentum on our growth initiatives in infrastructure and industrial and stronger demand in commercial resi. Sales of $417 million increased 23% on an organic basis. Growth was broad-based across all verticals and geographies, all growing double digits. From a vertical perspective, infrastructure and industrial each grew strong double digits. Commercial resi was up high teens. Geographically, Americas grew strong double digits while Europe was up mid-teens, Asia Pacific also grew double digits in the quarter.

Segment income was $118 million, up 16% versus last year. Return on sales of 28.2% was down 180 basis points year-over-year. The margin performance was impacted by inflation and investments for growth. partially offset by strong volume, price and productivity. Importantly, margins improved sequentially as expected.

Turning to the balance sheet and cash flow on Slide 7. In addition to our strong free cash flow in the quarter, we issued $800 million of 10-year senior notes near quarter end to help fund the Maverick Power acquisition. As a result, we ended the quarter with more than $1.1 billion in cash on hand and total debt of $2.2 billion. We also had $600 million available on our revolver. Including the Maverick Power acquisition, we expect our leverage to be well within our target range of 2 to 2.5x by the end of the year. Our healthy balance sheet and strong liquidity provides financial flexibility to support our disciplined capital allocation strategy.

Turning to Slide 8 on capital allocation, where we outlined how we deploy capital to drive growth and sustain financial outperformance. Our framework has been consistent and is centered on disciplined growth investments and rigorous execution of our M&A strategy while maintaining the balance sheet flexibility to consistently return capital to shareholders. Our capital allocation priority is growth. This starts with reinvesting in the business by funding capacity expansion, innovation and the capabilities required to win in high-growth verticals. We -- this year, we expect to invest approximately $140 million in CapEx, up 50%, inclusive of the Maverick Power acquisition. We have spent $95 million year-to-date. Most of this increased investment is for new capacity to support growth in data centers, power utilities and supply chain resiliency.

Year-to-date, we returned $202 million to shareholders, including share repurchases of $100 million, and we have increased our quarterly dividend by 5% compared to last year. Overall, our disciplined capital allocation approach positions us to prioritize growth and create long-term shareholder value.

Moving to Slide 9. as Beth shared earlier, we are significantly raising our full year sales and EPS guidance again. Due to our strong performance in Q3, momentum across our portfolio and the addition of Maverick Power. Now forecast reported sales growth of 48% to 49%, up from 37% to 39% previously. We are increasing our organic sales growth guidance. We now expect to grow 38% to 39% versus our prior guidance of 32% to 34%. We are raising our full year adjusted EPS range to $5.36 to $5.39 versus our prior guidance of $5 to $5.10. At the midpoint, adjusted EPS is expected to grow 60% versus last year.

A few updated assumptions for modeling purposes. Acquisitions are expected to add approximately 10 points to sales growth, now including Maverick Power. Please note, Maverick Power will be reported as part of our Systems Protection segment. Tariff impact is expected to be approximately $105 million, up from $100 million previously. Corporate costs are expected to be approximately $145 million compared to $140 million previously. And adjusted net interest is now expected to be approximately $88 million for the year.

Looking at our fourth quarter outlook on Slide 10. We forecast reported sales growth of 45% to 48%, with Maverick Power contributing approximately 19 points to sales growth, and foreign exchange roughly flat. Organic sales growth is expected to be up 26% to 29%. We continue to see very strong demand, particularly in data centers and power utilities. As Beth mentioned, we are working closely with our suppliers to support the pace of growth and have reflected the current environment in our guidance. Price and productivity are expected to offset the impact of inflation, including tariffs, and we continue to invest for growth, particularly in data centers and power utilities.

We expect Maverick to contribute a few cents to adjusted EPS in the quarter, inclusive of the higher interest expense associated with the financing of the acquisition. For the fourth quarter, we forecast net interest expense of approximately $39 million, at adjusted EPS to be between $1.30 and $1.33 and which, at the midpoint, reflects more than 45% growth versus last year. Overall, we expect a strong finish to an outstanding year. I will now turn the call back over to Beth.

Beth Wozniak

Thank you, Gary. Please turn to Slide 11. Our portfolio transformation to become a more focused, higher growth electrical connection and protection company is showing up in our results. We have intentionally increased our exposure to the high-growth infrastructure vertical through both organic investments and M&A. Infrastructure made up 12% of sales at spin, expanded to 45% last year and is nearly 60% year-to-date. -- including Maverick Power, our 2026 sales are expected to be approximately 3x what they were at spin and nearly 50% higher than last year. Overall, our total opportunity is now over $150 billion.

Turning to Slide 12 and an overview of Maverick Power. Maverick Power is a leading manufacturer of engineered power distribution and infrastructure solutions for data centers. The acquisition broadens our exposure to the high-growth infrastructure vertical and adds a new power distribution platform that is highly complementary to our existing data center offerings. Maverick's portfolio includes low and medium voltage switchgear and switchboards, integrated modular solutions and services. Maverick also brings significant scale and capabilities to invest with more than 1,000 employees with key sites in Texas and Arizona and approximately 1.5 million square feet of manufacturing footprint.

Looking ahead, Maverick's strong engineering capabilities expand our offerings into new power architectures and strengthens our ability to provide more system-level solutions and services for data center customers. We plan to show Maverick's new 800-volt DC power rack as supercomputing next month. Positioned alongside the IT rack, it integrates power conversion, protection and controls to convert existing AC power 800-volt DC supporting high-density AI computing without a facility-wide power redesign. And importantly, Maverick meaningfully expands our offerings in data centers. With Maverick, we estimate Invest's total data center opportunity expands to approximately $2 million per megawatt. We believe a combination of our complementary portfolios engineering capabilities and customer relationships create significant opportunities to grow together and deliver even more value for our data center customers.

Wrapping up, on Slide 13, we had another tremendous quarter with record sales, orders and adjusted EPS. We continue to deliver broad-based growth with infrastructure leading the way. and expect another record year, having significantly raised our full year sales and adjusted EPS guidance. We remain very well positioned for the powerful trends of electrification, sustainability, and digitalization and are excited about the significant growth opportunities ahead. Our future is bright. With that, I will now turn the call over to the operator to start Q&A.

Operator

[Operator Instructions] The first question today comes from Julian Mitchell with JPMorgan.

質疑応答

Julian Mitchell

Maybe -- just wanted to start off on the top line outlook. Maybe just give us a little bit of context around the adding behind the latest capacity addition you've announced and when you might sort of open up the order book for that? And when you're thinking about orders, it was a good result of a very difficult comp is it natural to assume that, that rate accelerates given the demand factor on.

Beth Wozniak

Well, Julian, thank you for the question. So to start, we just announced a new facility in Arizona, which will start to begin production, as I said in my prepared remarks, midway through 2027. And -- we also announced Lane 2, which is another site for liquid cooling and data center solutions. And so again, that also will be into production going into mid first half 2027. So we're looking ahead as we see order rates and some of our backlog as to where we need capacity. And with respect to orders, we are absolutely had a difficult comp that we had to overlap in Q3. But I will say this, starting off Q4 orders are very -- or in October, orders are very strong. .

Julian Mitchell

Got it. That's helpful. And then just my second question would be around the operating margins. So it looks like pegged at about 20% in the fourth quarter in the guidance, so sort of flattish year-on-year. Maybe just unpack that a little bit. Are you seeing maybe bigger cost headwinds. It has something to do with the margin at Maverick. How is coming in at of about $200 million of revenue. Any thoughts around that?

Gary Corona

Yes, sure. Julian, this is Gary. I'll start by saying we were pleased with the margin performance in the third quarter, margin up almost 200 basis points, incrementals well into the mid-20s. In the fourth quarter, we do expect margins to be up year-on-year, approximately 60 basis points at the midpoint. And you put your finger on a bit of a headwind in the fourth quarter. excluding Maverick, we'll have incrementals well in the mid-20s, which is our target. But Q4 will be an investment quarter for Maverick as we prepare to grow strongly in 2027. And that will put margin incrementals more into the low 20s. So approximately 60% margin -- 60 points of margin growth, basis points of margin growth in the fourth quarter and the core business has nice incrementals. .

Operator

The next question comes from Nigel Coe with Wolfe Research.

Nigel Coe

So Maverick, so the Arizona expansion, is that more Maverick products than co-events -- and then maybe if you could just give us a few more details on Maverick. Can you disclose the backlog acquired with Maverick and this investment spending, how does that profile look through 2027?

Beth Wozniak

Okay. So to start with the new Arizona facility is actually for our engineered building solutions. So recall that is the combination of track -- so this is to create those solutions that support both utilities and data centers and a lot of integration work. So that's what that facility is about. With respect to Maverick we have not included a backlog yet. That is something that we will do, but I will say this, it is very healthy backlog. And some of the investments that are being made is we mentioned that they have 1.5 million square feet. And so they are fitting that out currently as they start to see this nice trajectory as we go into 2027 of growth and the backlog in the orders. So we're investing in that capacity there to bring them up to speed and online.

Nigel Coe

Great. And then Maverick, if you look at some of the competitors, the growth profile is, in many cases, 50% plus and in some cases, as high as 100% for 2027. Is that the kind of growth profile you expect to see for Maverick next year?

Beth Wozniak

Well, we're not -- we're focused on our current integration. I'll just remind you, it's only been 30 days, but we do expect strong double-digit growth in MAVERICK as we go forward. .

Operator

The next question comes from Steve Tusa with Wells Fargo.

Charles Stephen Tusa

The -- just to put a finer point on that, I guess, when you say well into the mid-20s incrementals, I know we're talking about like tens of basis points here sometimes. But that would suggest MAVERICK kind of in the mid-teens from a margin perspective, like an operating margin perspective? .

Gary Corona

That's exactly right, Steve. That's what we're expecting in the fourth quarter for MAVERICK.

Charles Stephen Tusa

Okay. And then just into next year, I know there's a bit of inflation out there to say the least. How are you looking at what was -- what do you expect price to be for this year? And then how do you think about more actions? Do you need more actions to drive price cost next year? .

Gary Corona

Yes. So Steve, in the third quarter, pricing productivity more than offset the $60 million of inflation that we saw in price nearly covered it on its own. Our investments behind capacity and capability were significant. We've had a long track record of leveraging price to offset inflation as well as productivity and the teams are working diligently to ensure that we forecast that's the case for Q4 and next year.

Operator

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

Jeffrey Hammond

So I know we've had a lot of questions on this new modular liquid cooling product, but there seems to be some confusion on when you start taking orders? Did you start taking orders in the third quarter -- or what's the timing around that? And then just kind of the uptake in interest. I know maybe it was initially for distribution, but the initial interest seems to be broader than that.

Beth Wozniak

Yes. So we have been taking orders for our new modular cooling products and platforms. We'll also be showcasing that at super compute. There is a lot of interest in this product. And we have said before, we wanted to make it modular because it allows us to configure it to various types of customers and sell through distribution. But certainly, there is significant interest in this product from all types of data center companies. So it really is a broad-based platform with a lot of flexibility, and we're very excited that it gets to launch here in the back half of the year.

Jeffrey Hammond

Okay. Great. And then you mentioned the Maverick 800-volt DC and I guess we keep hearing, one, extend chips needing more liquid cooling intensity, but also 800-volt TC, having a lot more liquid cooling intensity. So I'm just wondering kind of your approach and what you're seeing from early ops, both with maybe incorporating our liquid cooling in the Maverick and other customers around 800-volt DC and just give us some parameters around that opportunity. .

Beth Wozniak

Okay. So as we know, the chips require more power, more power needs, more heat, more heat means more cooling. So as we think about the future, the demand for liquid cooling is only going to increase. And as we think about these higher voltages, we're positioned well to think about our modular platform, how we can convert it and meet those needs. Similarly, on the power side, now having Maverick in our portfolio. They have an 800-volt DC offering. We're going to showcase that at supercompute. I think as we think about cooling and power now, having that in our portfolio, it gives us more opportunities to provide system solutions and different architectures. So we're excited. We're going to showcase some of this, like I said, it's super compute and we'll be working on the road map, and we'll have more to share in the future.

Operator

The next question comes from Jacob Levinson with Melius. .

Jacob Levinson

Maverick seems like a nice add for you folks. But can you give us a sense of -- are there other assets out there of that scale or maybe -- and maybe said a different way, are there gaps in the portfolio that you're still looking to fill through M&A?

Beth Wozniak

Well, we have -- and we've always said this, we have a very healthy M&A pipeline. And we have a flywheel that we've been very -- that we've had in place for a while because we're very disciplined about this and it is very strategic I never say we have gaps in the portfolio, but more so, we have opportunities to extend what we do. And if you think about our portfolio transformation, we have intentionally focused on infrastructure. So you've seen us do deals in the last little while in the data center space, in power utilities. And I think there are opportunities out there -- we're also very disciplined in how we think about that value creation because we buy companies that we can invest in to grow and scale and then want to ensure that we can get good returns.

So I feel we have lots of opportunity there. And we certainly at our Investor Day earlier in the year, said we're going to see acquisitions contribute several points to our growth year-over-year. And I'd expect them to do some deals every year, and we have a good integration playbook. .

Gary Corona

Jacob, I would just add, as I mentioned in my prepared remarks, the balance sheet is healthy, and we expect to end the year within our targeted leverage range. .

Jacob Levinson

Okay. That's helpful. And just on a different topic. It seems like there's been a notable pickup overseas. Is that -- how much of that is just the data center build-out starting to really come through in Europe and Asia? Or is that your more traditional industrial commercial markets recovering from depressed levels?

Beth Wozniak

Well, when we look at Europe and Asia, actually, our growth is very broad-based. Certainly, we see the data center space growing, and those opportunities are increasing there, but we're very pleased to say that industrial and our commercial resi and infrastructure power utilities, we just saw a nice broad-based growth.

Operator

The next question comes from Joe O'Dea with Vertical Research.

Joseph O'Dea

Could you just add a little bit of perspective on the capacity ramps talking about the timing of the production volume ramp at led 1 and to as well as kind of Arizona and what you'll see through the first half of next year, really looking for any detail on the time line to reach scale efficiency -- and then ultimately, what it means for revenue capacity versus your current footprint?

Beth Wozniak

So Joe, we are in production, and it's been ramping up, and we're actually very pleased. And earlier in the year, we said even it was 100 days from when we -- business days to get that factory up and going. And I think that was like a record for us -- and so it's off to a great start and improving and improving efficiencies -- will not come online until about midway through next year. And similarly, this new Arizona safer engineering building solutions that also is mid-2027. And then we expect those take time to ramp up. But when we look at our backlog and opportunity, we plan those investments to allow us to start meeting the capacity demand in 2027.

Joseph O'Dea

And then just on the product launches that you highlighted in the prepared remarks, any common denominators around kind of capabilities or solutions that you're adding in terms of serving particular kind of customer needs. .

Beth Wozniak

Well, when we look at our product opportunities, we actually prioritize all of our new products in those high-growth verticals. So it's an array of things from our Systems Protection group where we're developing new solutions in power and cooling, for example, it's also in our electrical connections group, where we look at some of our power connections and some of our other products aligned to the needs and utilities or data centers. So overall, we always think about how do we differentiate, how do we innovate because new products not only drive growth, but they are always margin accretive as well.

Operator

The next question comes from Vlad Bystricky with Citi.

Vladimir Bystricky

So just sticking with Maverick for a second and maybe a little more broadly, you mentioned that Maverick in addition to their product portfolio brings some service capabilities. So can you talk about your overall service offering for data center customers today and how that's evolving and sort of where you see the service opportunities going in 2027 and beyond?

Beth Wozniak

Yes. So Maverick does have a service capability to support their offerings. We also have been building a service capability around our liquid cooling portfolio. And as we launch our new modular platform, we believe because that will serve a wide array of customers that ability to help install, help in commission, help provide regular support is critical. So we have this opportunity, as I said, that this now expands our service opportunity with Maverick between what we do in liquid cooling and what we have in Maverick, I think we're going to be able to provide further solutions for our data center customers. So we're building out a strong service capability. And I think it's important, especially with more new products and with the breadth of the portfolio. .

Vladimir Bystricky

That's helpful. Appreciate that best. And then -- just on the capacity side, I know you talked about Blaine in Arizona. You mentioned that Maverick was still sort of outfitting or building out there the 1.5 million feet square feet of capacity. So can you just talk about sort of the time line to Maverick's capacity ramp? And when you see that coming more available? .

Beth Wozniak

Well, -- they've opened a lot of facilities over the last little while. And I would say, much like we have with these new facilities, it's ramping and it's going to provide capacity that is needed in 2027. And I think that continues to ramp through the first half of next year. .

Operator

The next question comes from Alexander Virgo with Evercore ISI. .

Alexander Virgo

Yes. Talk a little bit to the new product introductions. Contribution of growth in the quarter was 30% or so. I guess, the lapping tougher comps as we go into Q4. But just wondering if you could give us a sense of that cadence into the end of the year? And then, I guess, thinking about what that does as it wraps around into 2027. I appreciate you haven't given us any guidance for 2027 yet, but obviously, starting to think about the order momentum, the backlog and these new product dynamics sort of building into the model in the 2027 numbers?

Beth Wozniak

Well, 1 of the things that we said at our Investor Day is that we wanted to have our new product vitality at around 30%, and we're effectively at that level. And to be able to do that, it means you have to innovate faster, you have to come up with new things. And certainly, as we focus our portfolio on to these high-growth verticals, we see that ability to do so. And certainly, with data center growth, a lot of our new products are focused there. And so that's where we're seeing that tremendous uplift. And that's what will be our continued focus as we go into 2027. And it's important new products are -- have been a key driver of our growth as we think about our strategy, high-growth verticals, it's new products, it's growing globally and then it's growth through M&A. So I think we've got a good pipeline of what we're working on, some good innovation, and we expect it to be a significant contributor to our overall performance of our portfolio. .

Operator

The next question comes from Neal Burk with UBS.

Neal Burk

So another question about Maverick. So just trying to think about the implications of Maverick doubling your content and data centers to 2 million per megawatt. I mean this is probably simplistic. But does that mean that over time, your data center revenues could double from what they were before the acquisition? Maverick revenue started around $700 million. So clearly, that isn't the impact right out of the gate, but just trying to think about the growth opportunity over time.

Beth Wozniak

Well, it certainly allows us as we bid on new projects or new data center opportunities, we have more content and more capability -- and not to mention, as I said previously, the ability for us to think about cooling and power and everything that we bring together, we certainly have greater opportunity. And I think it's -- it really for us is about just ensuring that as we see into the future, about 800-volt DC and other needed solutions, having power and cooling, we think, is very complementary. .

Neal Burk

And 1 follow-up on orders. You clearly had a really tough 3Q comp of last year. Orders were very strong. Are those now fully recognized in revenue at this point? I asked because you had 2 quarters now organic sales grew well above orders, which are sort of low double digits. So I'm just trying to understand like conceptually I know you don't like to talk about future orders. But just conceptually, can we continue to see the sort of 30 to 40 plus top line growth that we've been seeing when orders are sort of growing well below that? Or would you expect these to sort of converge over time?

Gary Corona

So this is Gary. I'll take that. And what -- what's important to remember is that we've talked about orders being lumpy and the timing of those orders being lumpy. But I'll look at the 2-year stack of orders for us just this quarter, and it's very strong. And you look at what Beth's comments were about October, as our business continues to evolve to more long cycle, we expect that backlog to build, especially as especially as Maverick Power comes into our portfolio, and we report them with the broader business.

Operator

The next question comes from Varun Govindaraj from Bernstein.

Varun Govindaraj

I wanted to understand how you think about opening new facilities and what you sort of look for before making that decision? Is it more just broader demand trends? Or do you need to see some level of customer commitment before breaking ground?

Beth Wozniak

Well, it's a combination of many things. When we look at a new facility. We look at, in some cases, the orders that we have on hand or orders that we can't fulfill so to speak. We look at just what we see our customers telling us and it's multiple factors there that we then decide to make that investment. So it's very prudent. We have a good set of direction of where the market is headed, what our customers are saying, what the opportunities are. And then we are very disciplined, as you can expect, in terms of how we think about those returns. And I think Gary always likes to say, those returns are very good every time that we've invested in new capacity expansion.

Gary Corona

Yes. Just to build on the discipline, we go back and take a look at our significant investments and ensure that they're delivering the returns that we expected. And many times, they have over-delivered our initial expectations from an ROI perspective. .

Varun Govindaraj

Absolutely. And then just as a quick follow-up. Can you talk about any of the actions you're taking right now on supply chain resilience. Obviously, at this level of growth, your suppliers are probably stretched as well. So anything you can share there would be helpful.

Beth Wozniak

Yes. Certainly, as we see this growth rate and the velocity and the demand and the ability to respond, I mentioned 100 days for us, many of our suppliers are -- they too are having to add capacity -- sometimes that is new line, sometimes that's new facilities. So we're trying to work hand-in-hand with them to ensure that they understand our forecast that we're working through bringing new capacity online together because we're only going to be successful but they're successful with us. So it's a lot of work. We always say that we try to be very prudent when we give our guidance, given that there's a lot going on from our own capacity expansion to our suppliers as well. .

Operator

The next question comes from Nicole DeBlase from Deutsche Bank.

Nicole DeBlase

Just wanted to ask one on 4Q. Gary, the revenue guidance kind of implies flattish total revenue sequentially, which is a bit of a head swatch scratcher just because like Maverick is coming into the mix. And we've obviously seen how strong the backlog and order growth is plus you guys continue to work to add capacity. So just curious if that's like prudence and conservatism, which we've come to expect from nVent or if there's any other reasons we should be thinking about?

Gary Corona

Yes. Thanks, Nicole. Our Q4 organic guide is still quite healthy. and the 2-year stack is still over 50%. So great growth for us. It is a tick down. Some of that is seasonality in our business that we normally see a bit of a step back. And look, in Q4, we could have -- we could maybe have delivered more. But as Beth talked about, we're navigating we're navigating and being prudent with our -- how we manage the supply chain, and that's something that is incorporated into our guidance. I will say we're really pleased with the year. we're going to grow almost $2 billion year-over-year on a revenue basis and $2 of additional EPS. So we feel really good about the growth that we're delivering in '26.

Nicole DeBlase

Understood. And then just coming back on MAVERICK. I think you said in response to a prior question that it's like mid-teens margins in the fourth quarter. Does that incorporate the growth investments that you're making. And I guess the question is, like as you look out over the next several years and integrate Maverick, do you think it has the potential to get to systems protection or invent average margins?

Gary Corona

Yes. Yes, Nicole, exactly. Significant ramp happening in MAVERICK, and we've incorporated those investments into our guide. We expect those margins to improve both from the growth and fully utilizing those facilities that Beth talked about. It's only 30 days. So I'm not ready to strike the exact expectations for MAVERICK margins. But we do expect them to certainly improve as we get into 27 and beyond.

Operator

The next question comes from Luke Junk with Baird.

Luke Junk

Another Maverick question, but I want to take a little different direction in terms of a strategic question just be curious to get your color on initial engagement with customers, either after announcing the deal or now that you've been on it for about a month here, just in terms of walking them into your current relationships and starting to lay the groundwork for selling Thermon Power as a system model solution?

Beth Wozniak

Well, certainly, we had very favorable reaction to the acquisition, both from our event customers and from Maverick's customers because they know that just the capabilities that each company has, there's more that we can bring together. And as we think about the opportunity, certainly, there -- as in anything, we look at these synergies around growth about -- if you think about we have developed over the last several years a very strong commercial organization, which we believe was the MAVERICK offering, we're going to have the opportunity to drive their reach beyond what they had today. overall, I think it's -- these are -- it's a great new platform for us and very complementary to what we do and it kind of follows our flywheel of we find companies that have great products that we can invest in and scale to grow. .

Luke Junk

Got it. And then for my follow-up, I'll ask on electrical connections, not sure if we got the question Q&A. I'm just curious, were you surprised to see the growth a seat sequentially there. I think it's maybe better than expectations and kind of unpacking that any of the upside drivers on that low 20s plus kind of growth rate?

Gary Corona

Luke, you were cutting in and out. We could not understand that question. Not sure if it's on your end or...

Luke Junk

Yes. Let me try it again here. Yes, let's go to Yes, growth accelerating there? I think that was a bit better than your expectations in the low 20 plus range here. Just kind of can you unpack what was better than expected there? And any particular drivers that we should be focused on taking.

Beth Wozniak

And sorry, you met the growth rate for -- compared to what?

Luke Junk

Yes, just electrical connections versus expectations and accelerating sequentially. .

Beth Wozniak

Yes. We had another great quarter for electrical connections. And I think it speaks to our focus on our growth initiatives. So as you know, that has always been a very strong segment focused on commercial. And we've had the product portfolio there, we focused in on infrastructure and industrial as well as some of our commercial actions. So we've seen significant growth opportunities, new products are contributing to this. And I would also say 1 of the things -- and this is not just electrical connections, but the nVent portfolio, we are seeing very strong growth through our distribution channel. And that speaks to the broad-based growth that we're seeing across industrial infrastructure and commercial for that matter. .

Operator

The next question comes from Scott Graham with Seaport Research Partners.

Scott Graham

I wanted to first ask about just 40,000 feet data centers. You see what's going on out there with there's pockets of suppliers saying a little slower, a little pause and what have you. Obviously, you're not seeing that. But I was just wondering your customer conversations, I know it's kind of 2 step, but nevertheless, you get good visibility on sales there reading through to the OEM. I'm just wondering, are you seeing any less urgency in that market? I know for a while there was really having trouble keeping up with things and you're adding capacity, I get all of that, but -- is there a tenor of maybe less urgency for orders in that market?

Beth Wozniak

So Scott, I will say that we also have direct relationships with those end customers. So we get a lot of feedback that way as well. And no, I would say there is a sense of urgency in terms of are we able to do more? I mean that's more -- can we have more output, can we respond faster, bring in lead times. So we're not seeing that slow at all. If anything, it's just -- I talked earlier in my prepared remarks about the pace of growth and the velocity needed, it's a lot of hard work. and that's continuing.

Scott Graham

I appreciate that. I just want to maybe ask a follow-up question about the electrical connections margin, which has been declining for some time. And historically, I remember with Pentair and even in the early days with you spin out that pricing was always one of the strengths of this business. And I'm just wondering, I know acquisitions were a factor last year, but the continued decline in that segment's margins, can you kind of give us some color on what -- where that's coming from, again, another 40,000 footer in that way?

Gary Corona

Yes, Scott. It's Gary, and I appreciate the question. And I'll start with what we're focused on in electrical connections right now, which is growth. And to deliver a couple of quarters in a row around 20%, it is breakthrough growth for that business. And a lot of it has to do with the strategy change. We focus more on industrial and infrastructure, repositioning the portfolio, and that's really driving that nice growth. With that repositioning, we have some mix that is impacting the portfolio. But I will say the team has done a nice job to price away the inflation and we've been very consistent in kind of what we expected from that business, which is sequential improvement in margins. And I'll take that high 20s margin with approximately 20% growth.

So it's been a nice acceleration for that business this year and a bit different than what we had seen in the past.

Operator

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

Beth Wozniak

Thank you for joining us today. We are confident in our strategy and our ability to execute. We have significant growth opportunities ahead and multiple levers to drive continued margin expansion I'm very proud of our outstanding performance in the third quarter and the continued progress we're making across nVent. We remain focused on delivering for our customers, employees and shareholders. nVent is a top-tier high-performance electrical company well positioned to win with the powerful trends of electrification, sustainability and digitalization. We're excited about the opportunities ahead. Thank you again for joining us today. This concludes our call.

Operator

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