Cash conversion efficiency remains inconsistent, with the operating cash flow to net income ratio dropping to 0.63 in 2026Q1 amid significant capital deployment for acquisitions.
| Cash from Operations | 494.9M | 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 % | -62.44% | -27.66% | 21.78% | 33.83% | 5.71% | 8.52% | 2.29% | -2.1% | -16.16% | 12.55% | 5.84% | - |
| Net Income | 491.9M | 710.2M | 240.8M | 459.7M | 293.1M | 272.9M | -47.2M | 222.7M | 230.8M | 361.7M | 259.1M | 210.1M |
| Depreciation & Amortization | 19.8M | 60.7M | 146M | 113.2M | 86.4M | 108.4M | 102.6M | 96.8M | 97.1M | 97.9M | 95.2M | 62.9M |
| Stock-Based Compensation | 38.7M | 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 | -387.2M | -330.8M | 141.3M | 114.3M | 59.2M | -800K | 230.9M | 30.7M | 8.2M | 24M | 36.4M | 2.5M |
| Working Capital Changes | 50.5M | -23.5M | 2.4M | -15M | -56M | -5M | 46.7M | -5.4M | 18.2M | 69.5M | -38.4M | 69.7M |
| Change in Receivables | -36.2M | -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 | -110.7M | -78.7M | -600K | 21.9M | -20.9M | -74M | 18.3M | 900K | -12M | -8.9M | 400K | 41.9M |
| Change in Payables | 116.4M | 57.2M | 1.5M | 7.5M | -5.4M | 73.7M | -18.6M | -7.9M | 13.4M | 17M | 15M | 400K |
| Cash from Investing | -1.08B | 520.8M | -758.4M | -1.16B | -52.5M | -274M | -65M | -160.3M | -39.1M | -41.2M | -68.6M | -1.96B |
| Capital Expenditures | -108.3M | -93.3M | -74M | -65.6M | -40.5M | -39.5M | -40M | -38.8M | -39.5M | -31.8M | -74.5M | -47.4M |
| CapEx % of Revenue | 2.5% | 2.4% | 2.46% | 2.46% | 1.76% | 1.6% | 2% | 1.76% | 1.78% | 1.52% | 3.52% | 2.62% |
| Acquisitions | -975.9M | -975.7M | -677.7M | -1.12B | -8.6M | -235.1M | -27M | -127.8M | -2M | -13.6M | 0 | -1.91B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 3.2M | 1.59B | -7.1M | 2.1M | -3.4M | 600K | 2M | 6.3M | 2.4M | 4.2M | 5.9M | 600K |
| Cash from Financing | -584M | -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) | -207.8M | -600.3M | 373.5M | 698.9M | 83.3M | 38.2M | -117.5M | 120.5M | 947.2M | 0 | 0 | 0 |
| Equity Issued (Net) | -180M | -237.7M | -96.6M | -58.7M | -58.4M | -91.5M | -36M | -226.2M | -47.4M | 0 | 0 | 0 |
| Dividends Paid | -131.2M | -130.4M | -126.8M | -116.8M | -117M | -117.7M | -119M | -120.7M | -62.9M | 0 | 0 | 0 |
| Share Repurchases | -200M | -253.1M | -100M | -60.8M | -65.9M | -111.5M | -43.2M | -235.7M | -56M | 0 | 0 | 0 |
| Other Financing | -65M | 0 | -3.9M | -6.7M | 10M | 4.2M | 0 | 0 | -1B | -359.5M | -308.9M | 1.61B |
| Net Change in Cash | -1.15B | 106.3M | -48.4M | -117.9M | 248M | -73M | 16.1M | -52.6M | 132.1M | 5.4M | -1.2M | 22.7M |
| Free Cash Flow | 386.6M | 371.9M | 569.1M | 462.5M | 348.7M | 333.8M | 304M | 297.5M | 304M | 377.9M | 289.5M | 296.5M |
| FCF Margin % | 8.94% | 9.55% | 18.93% | 17.33% | 15.19% | 13.56% | 15.21% | 13.5% | 13.73% | 18.01% | 13.68% | 16.39% |
| FCF Growth % | -27.54% | -34.65% | 23.05% | 32.64% | 4.46% | 9.8% | 2.18% | -2.14% | -19.56% | 30.54% | -2.36% | - |
| FCF per Share | 2.36 | 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) | 0.79x | 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 |
Working capital volatility
As reported in recent financial statements, nVent's operating cash flow to net income ratio fluctuated significantly, reaching a low of 0.63 in 2026Q1, which suggests that accounting earnings are not consistently translating into cash generation at the same pace as historical periods of operational stability.
The divergence between net income and operating cash flow warrants further investigation into the timing of revenue recognition and accrual adjustments. Investors should monitor whether this trend reflects a structural shift in earnings quality or merely temporary timing differences in the collection of receivables.
Based on the company's reported figures, free cash flow margins have exhibited extreme volatility, swinging from a negative 3.5% in 2025Q2 to a peak of 26.3% in 2024Q4, indicating that the company's ability to generate surplus cash is highly sensitive to periodic capital allocation decisions.
This erratic trajectory suggests that nVent's cash flow profile is heavily influenced by lumpy acquisition activity and working capital swings rather than steady-state operational performance. The lack of a consistent FCF margin trend complicates the assessment of the company's long-term cash-generating capacity.
According to quarterly filings, working capital changes have been a major source of cash flow instability, with a notable $87.8M inflow in 2025Q3 followed by significant outflows in other periods, suggesting that inventory and receivables management remains a primary driver of short-term cash flow variance.
The frequent shifts in working capital appear to be tied to the company's project-based revenue model and integration of recent acquisitions. Analysts should interpret these swings as a potential risk to liquidity if the company fails to optimize its cash conversion cycle during periods of rapid growth.
As indicated by the cash flow statement, nVent has utilized significant capital for acquisitions, including a $975.4M outlay in 2025Q2, which appears to be the primary factor suppressing free cash flow and limiting the company's ability to return excess cash to shareholders through buybacks.
The aggressive pursuit of inorganic growth suggests management is prioritizing market share expansion over immediate cash return. While this may enhance long-term competitive positioning, it creates a reliance on successful integration to justify the substantial cash outflows observed in recent periods.
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.