Cash conversion lagged in 2026Q2 with OCF/NI of 0.85, but FCF rebounded to $162.0M (11.0% margin) after working capital consumed $93.8M.
nVent Electric plc (NVT) cash flow statement — 11-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Cash from Operations | 690.6M | 465.2M | 643.1M | 528.1M | 394.6M | 373.3M | 344M | 336.3M | 343.5M | 409.7M | 364M | 343.9M |
| Operating CF Margin % | - | 11.95% | 21.39% | 19.79% | 17.19% | 15.16% | 17.21% | 15.26% | 15.52% | 19.53% | 17.2% | 19.01% |
| Operating CF Growth % | 1228.47% | -27.66% | 21.78% | 33.83% | 5.71% | 8.52% | 2.29% | -2.1% | -16.16% | 12.55% | 5.84% | - |
| Net Income | 596.6M | 710.2M | 240.8M | 459.7M | 293.1M | 272.9M | -47.2M | 222.7M | 230.8M | 361.7M | 259.1M | 210.1M |
| Depreciation & Amortization | 84.8M | 60.7M | 146M | 113.2M | 86.4M | 108.4M | 102.6M | 96.8M | 97.1M | 97.9M | 95.2M | 62.9M |
| Stock-Based Compensation | 40.5M | 37.5M | 27.3M | 21.8M | 23.3M | 16.6M | 13.9M | 16.1M | 12.8M | 14.6M | 13.4M | 13.3M |
| Deferred Taxes | 10.5M | 11.1M | 85.3M | -165.9M | -11.4M | -18.8M | -2.9M | -24.6M | -23.6M | -158M | -1.7M | -14.6M |
| Other Non-Cash Items | -228.2M | -330.8M | 141.3M | 114.3M | 59.2M | -800K | 230.9M | 30.7M | 8.2M | 24M | 36.4M | 2.5M |
| Working Capital Changes | -88.7M | -23.5M | 2.4M | -15M | -56M | -5M | 46.7M | -5.4M | 18.2M | 69.5M | -38.4M | 69.7M |
| Change in Receivables | -239.5M | -112.1M | 38.6M | -22.4M | -42.1M | -104.2M | 28.3M | 26.6M | -1.3M | -18.2M | 6.1M | -4.2M |
| Change in Inventory | -111.7M | -78.7M | -600K | 21.9M | -20.9M | -74M | 18.3M | 900K | -12M | -8.9M | 400K | 41.9M |
| Change in Payables | 180M | 57.2M | 1.5M | 7.5M | -5.4M | 73.7M | -18.6M | -7.9M | 13.4M | 17M | 15M | 400K |
| Cash from Investing | -111.7M | 520.8M | -758.4M | -1.16B | -52.5M | -274M | -65M | -160.3M | -39.1M | -41.2M | -68.6M | -1.96B |
| Capital Expenditures | -112.9M | -93.3M | -74M | -65.6M | -40.5M | -39.5M | -40M | -38.8M | -39.5M | -31.8M | -74.5M | -47.4M |
| CapEx % of Revenue | 2.34% | 2.4% | 2.46% | 2.46% | 1.76% | 1.6% | 2% | 1.76% | 1.78% | 1.52% | 3.52% | 2.62% |
| Acquisitions | -4.1M | -975.7M | -677.7M | -1.12B | -8.6M | -235.1M | -27M | -127.8M | -2M | -13.6M | 0 | -1.91B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 5.3M | 1.59B | -7.1M | 2.1M | -3.4M | 600K | 2M | 6.3M | 2.4M | 4.2M | 5.9M | 600K |
| Cash from Financing | -450.9M | -968.4M | 146.2M | 516.7M | -82.1M | -166.8M | -272.5M | -226.4M | -166.6M | -359.5M | -308.9M | 1.61B |
| Debt Issued (Net) | -275.4M | -600.3M | 373.5M | 698.9M | 83.3M | 38.2M | -117.5M | 120.5M | 947.2M | 0 | 0 | 0 |
| Equity Issued (Net) | -42.6M | -237.7M | -96.6M | -58.7M | -58.4M | -91.5M | -36M | -226.2M | -47.4M | 0 | 0 | 0 |
| Dividends Paid | -132.9M | -130.4M | -126.8M | -116.8M | -117M | -117.7M | -119M | -120.7M | -62.9M | 0 | 0 | 0 |
| Share Repurchases | -50.4M | -253.1M | -100M | -60.8M | -65.9M | -111.5M | -43.2M | -235.7M | -56M | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -3.9M | -6.7M | 10M | 4.2M | 0 | 0 | -1B | -359.5M | -308.9M | 1.61B |
| Net Change in Cash | 130.2M | 106.3M | -48.4M | -117.9M | 248M | -73M | 16.1M | -52.6M | 132.1M | 5.4M | -1.2M | 22.7M |
| Free Cash Flow | 577.7M | 371.9M | 569.1M | 462.5M | 348.7M | 333.8M | 304M | 297.5M | 304M | 377.9M | 289.5M | 296.5M |
| FCF Margin % | 11.95% | 9.55% | 18.93% | 17.33% | 15.19% | 13.56% | 15.21% | 13.5% | 13.73% | 18.01% | 13.68% | 16.39% |
| FCF Growth % | 49.9% | -34.65% | 23.05% | 32.64% | 4.46% | 9.8% | 2.18% | -2.14% | -19.56% | 30.54% | -2.36% | - |
| FCF per Share | 3.52 | 2.26 | 3.38 | 2.75 | 2.07 | 1.97 | 1.79 | 1.72 | 1.68 | 2.12 | 1.62 | 1.66 |
| FCF Conversion (FCF/Net Income) | 0.97x | 0.66x | 1.94x | 0.93x | 0.99x | 1.37x | -7.29x | 1.51x | 1.49x | 1.13x | 1.40x | 1.64x |
| Interest Paid | 0 | 0 | 134.8M | 103.2M | 49.2M | 43M | 47.1M | 52.3M | 34.7M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 120.2M | 112.4M | 87.3M | 61.3M | 39.2M | 60.8M | 57.4M | 0 | 0 | 0 |
Quick answers to the most common questions about buying NVT stock.
nVent Electric plc (NVT) generated $465.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
nVent Electric plc (NVT) generated $371.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
nVent Electric plc (NVT) spent $93.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, nVent Electric plc (NVT) returned $130.4M to shareholders via cash dividends and spent $253.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Working capital swings
Metrics are mathematically derived from official filings.
Earnings Quality Marred by Working Capital
In 2026Q2, NVT's operating cash flow of $183.5M fell short of net income of $215.9M, yielding an OCF/NI ratio of 0.85, as reported in the latest quarterly filing.
The persistent gap between net income and operating cash flow appears driven by aggressive working capital absorption, with working capital changes consuming $93.8M in 2026Q2 and $124.6M in 2026Q1. This suggests that reported earnings are not being fully converted into cash, potentially due to inventory build-up or slower collections amid rapid growth. Investors should monitor whether this is a temporary phenomenon or a structural shift in cash conversion.
FCF Volatility Masks Underlying Strength
Free cash flow swung from $200.9M in 2025Q3 to -$33.8M in 2025Q2, but rebounded to $162.0M in 2026Q2, reflecting a 11.0% FCF margin, per financial statements.
The erratic FCF trajectory appears tied to working capital swings and acquisition activity, with 2025Q2 hit by a $975.4M acquisition outflow. Excluding that quarter, FCF margins have ranged from 4% to 26%, indicating operational cash generation is solid but lumpy. The recent improvement in 2026Q2 suggests momentum, yet the low OCF/NI ratio warrants caution about sustainability.
Working Capital Drag Intensifies
Working capital changes consumed $93.8M in 2026Q2 and $124.6M in 2026Q1, after contributing $41.9M in 2025Q4, as per the cash flow statement.
The negative working capital swings in the last two quarters appear to reflect rapid revenue growth, likely requiring increased inventory and receivables. This pattern suggests that NVT's growth is consuming cash, which may pressure near-term liquidity despite strong profitability. If this persists, it could signal inefficiencies in supply chain or collections that need addressing.
Acquisitions and Buybacks Shape Cash Use
NVT deployed $975.4M on acquisitions in 2025Q2 and $677.7M in 2024Q3, while buybacks totaled $200M in 2025Q2 and $50.4M in 2026Q1, per reported cash flows.
Capital deployment appears heavily skewed toward M&A, with significant outflows for acquisitions in recent quarters, likely to bolster data center capabilities. Dividends remain steady at around $32-34M per quarter, indicating a stable return to shareholders. The low debt levels suggest ample capacity for further deals, but investors should watch for integration risks and potential overpayment.
Cumulative Cash Lags Reported Earnings
Over the last ten quarters, cumulative net income of $1.4B exceeds cumulative operating cash flow of $1.38B, a narrow gap, but working capital swings have caused wide quarterly divergences.
The cumulative gap between net income and operating cash flow is relatively small, suggesting that earnings are broadly backed by cash over time. However, the quarterly volatility in OCF/NI, ranging from -0.15 to 20.99, indicates that timing differences in working capital and one-time items can distort short-term comparisons. This implies that while long-term conversion is adequate, quarterly cash flow is not a reliable indicator of profitability.
SBC and Acquisitions Obscure Cash Flow
Stock-based compensation averaged $8.7M per quarter, while acquisition-related outflows totaled over $1.6B in the past two years, as per cash flow statements.
The cash flow statement reveals that SBC is a modest but recurring non-cash expense, while acquisitions have been a major use of cash, potentially masking organic cash generation. The large acquisition outflows in 2025Q2 and 2024Q3 suggest that reported FCF may understate the company's operational cash generation. Investors should adjust for these items to assess the underlying cash flow quality.