nVent Electric plc (NVT) Earnings Call Transcript & Summary

Good morning, everyone. Thank you for joining us today. We've got 2 exciting new product launches to come from the ERICO brand today. Real quick before we get into it. If you have any questions or need additional information after the webinar, please put something into the chat. Either myself or Corey will follow up with you after the webinar to go through anything else you guys might have questions under need. So today, we're discussing 2 of our new launches. But before we get into it all the way, like -- just look at our ERICO 6-point Plan of Protection, right, which basically involves one, capturing that lightning strike; two, conveying that energy to the ground; three, dissipating that into the earth, the grounding system; four, binding all those different connections into the grid; five, protecting those AC feeders and then six, protecting below voltage and data telecom circuits. Today, for our 2 products, we'll be looking at Section 3 and Section 5 of our 6-point plan. So the first product that we have up is our [ Global Earth ] new product launch. It mine itself, what is an earth statement. So earth bits, I also have a variety of different names. They're also known as grounding pits, inspection housings, inspection pits, inspection wells or inspection enclosures. And their purpose really is they are designed to be designated enclosure built around an earth in electrode, most commonly a ground rod, cover plate or cover electrode, which is then buried deep into the earth. And what it does is it provides an easy access point to the ground grid for either doing any resistivity measurements or maintenance to the grid post construction. So you've got to come back over a year, take resistivity test to ensure your grounding grid is intact. This is your means to get into there. So there's 4 key components to the earth fit system. One is the earth electrode. Right here, as you can see, #1, in this case, it is the ground rod into the earth. Number 2 is the backfilling of ground has material. In our case, we would recommend GEN 258 or our QF 25 quick fill. And these compounds help to reduce the resistivity of the ground, right? And third is the earth pit itself, which is, like I said before, designated enclosure, surface mount pit with a removable cover to access the grid. And fourth is the wire connection from the grounding conductor onto the grounding electrode. So to accommodate, there's a wide variety of different fits used basically depending on your load class, different rights. So ERICO offers a variety of different earth fits and different material types, different sizes, different load ratings. And really, it's broken down into 2 classes. On the left, we've got our light-duty inspection housings. On the right, we've got -- we offer a series of different more heavy-duty with our highest rating being up to 22,500 pounds. And really, when it comes down to it, the type of earth pit that's going to be used on a project is typically selected to meet codes and standards of that municipality or -- and will be specified by the specifying engineer of the project. So looking at our offering now, we identified that we're only maxing out at 22,500 pounds. So we need something a little beefier, a little more robust to service these markets. And with this, we have our new ERICO PIP 400 series FRP earth pits. So we offer them in 2 different designs, 1 with the through-hole version on top, as you can see, and the chamber or enclosure version on the bottom. But these have a load rating -- a Class C load rating of 33,000 pounds with the inspection the FRP led. And we offer 2 Class D ratings with up to 53,000 pounds with an FRP lid and now a metal lid. So the metal lid is kind of something unique. And it's something we haven't had in the ERICO offering, and we're really excited that we've got this ability to sell this now. Some key features to look at on our new inspection housing, this -- the locking mechanism. Typically, a lot of inspection housings don't, so you can get [ Steve's ] going in there, cutting the copper out, cutting wires, right? We don't want to do want to leave ourselves susceptible to that and having an underground and grounding grid. So you see there's 2 points of contact here with this in a visual indication, whether it's locked or unlocked. So very easy to use and visually noticeable, right? Also with our inspection with this new inspection housing, we have these T rod lifting handles. So a lot of times, other inspection housings, you'll pry it up with the pry bar and stick your fingers under the lid and try and pull it off, which -- that's not safe, right? So with this system, you take these T bars, as you can see in the middle, inserting into the slots on the top, if you look to the right, and then you can easily lift that lid off and place it to the side without damaging it, without hurting yourself hurting the property around you. So it's a very easy, simple design to ensure safety, right? And then we've also got the side knockout walls. And you can see at the bottom left, these are there for -- when you're putting your conductor into the inspection housing, these have been the impression already into the housing, so you're able to drill up to a 3.5-inch diameter if either. I mentioned the metal lids. So we offer FRP lids, you see in the left, in Class C and Class D ratings. And then our metal lid and just the Class D rating. But the lid there were 1 piece design. They resist Boeing. They're very -- they're low profile lid, so they're not sticking up out of the ground. So there's no tripping hazard. They've had the rubber gas get built into the top as you can see in the middle picture. So it's going to be waterproof and dust group with that. Anti-slip patterns on the lid as well. Last thing you want to do is we have someone walking across the table and slip, right? So these groups, these bumps in the left bottom here provide that traction that we're looking for. And everything on the lid is marked with our nVent logo, our part number, size and all applicable codes and standards that the product meets. We also now have the option of risers. So if you're on a site where maybe the grid has changed after you've done new grid and you need to add the riser, you can just buy the individual riser and stack it onto the existing inspection housing that you have on the site. Nothing special, but it does give you that flexibility. And these are waterproof, chemical proof, UV resistant. So a really good design, and they meet the standards that we need for this industry. So just take a second to look at a quick install for anybody that hasn't seen ones go into the earth. There's the bank build, and in this case, it's the gem material. And be installing your pit there, connecting the grounding electrodes to the ground rod. And there's those T loads I mentioned. And there's the locking mechanisms. So a fairly easy install -- installation to make. So really, why the PIP 400 series? Well, it's got those high load ratings that the industry has been asking for. FRP construction is very durable and corrosion-resistant. Tamper proof locking systems, they're very easy to install and maintain. And you've got that flexible lid rise ruptions. So you have the interchangeability on the site so the changes. Really just 1 platform for multiple site requirements. And with that, I will turn it over to Corey Johnson to speak about the next exciting launch.

Thank you, Dan. I'm going to be talking this morning about the new whole home surge device that we're announcing this morning for ERICO. Many of you may be aware that in 2020, NEC changed the code for surge to include residential dwellings, residential service units for single and multi-dwelling homes. And the real key here is that with the NEC 2020, now surge is a requirement in the residential space. And you can see type 1, type 2, but you can see the requirements down below. And so to take advantage of that, we wanted to bring to market a low-priced surge device. And so we're going to be talking a little bit more specifically about the product. But before we do, let's just take a look at where the NEC code 2020 and later is in effect. And so you can see in blue, states that are already using NEC 2020, and then states who have already been, of course, moved up to 2023. Any of the residential requirements in these states would require surge for new installations, but also for upgrades. So any additions to the service panel or any changes to the service panel would require surge to be added in order to satisfy the code. So you can see the states. And so to that, we are announcing this morning the new surge tracker or the newest addition to our surge tracker line. The part number will be ST1 or Surge Tracker 1. So ST-1251 S1 alpha. You can see the codes, all of the specifications on the screen. And again, I just want to stress that this device or this product is really positioned to help take advantage of really satisfying NEC 2020 code and later. So anywhere that code is in effect, this is going to be a low-cost opportunity for us to get and take advantage of that requirement. And so you said, well, what's low cost. Low cost is $35 in the stock price. A couple of requirements. You do have to buy 4 of these at a time or in multiples of 4, not to get into the weeds too much. But again, it is a product that I think is well positioned from a cost perspective to really help us take advantage of satisfying the NEC 2020 and later codes. Just while we're here, I wanted to spend a little bit of time talking about our full residential offering. So as I mentioned, we've got and are announcing today the ST1251S1A, which is going to be at the entry level of our residential options. And then moving to the right on your screen, you would be getting either more protection, more features. And of course, as you go to the right on the screen, you're going to get not only more protection, but also the end to stock price is going to go up a little bit. So $35 on the left, up to around $200, I think, on the right. I will note just 1 thing. As you get past the SES40P, all of these, so the ST2, the ST3 and the ST4s in the Surge Tracker line and then the SCS160 all do give you some additional protection as it relates to lightning because there's filtration in those devices, which the ST1 and the SCS40P do not have. And so again, just really excited to bring the Surge Tracker 1 into the portfolio of our residential surge options. Again, really, the key here is we're targeting the NEC 2020 and later codes and just the ability to have an entry-level option for places where they need to satisfy that requirement. And with that, I am going to say thank you. And I don't know if there are any questions in the chat, but let me stop sharing. All right. No questions in the chat that I can see. If there are any, feel free to put them in. If you do have any questions specifically about anything we shared today, feel free to reach out, and we're happy to answer any questions. Again, this morning, we targeted mainly our Areas 3 and 5 in the ERICO plant protection. And with that, I'm going to say thank you and sign off. So thank you for your time. and look forward to any questions you might have in the future.

Thank you all very much.