Q1 2023 nVent Electric plc Earnings Call
Speaker 1: We had a strong start to the year. We continued to advance our strategy with our focus on high-growth verticals, new products, and geographic expansion. We delivered record first-quarter sales, growing 7% with adjusted EPS up 34%.
Speaker 1: We had impressive year-over-year margin expansion and robust free cash flow.
Speaker 1: Our enclosures and electrical and fastening segment sales grew double digits with the trends in the electrification of everything.
Speaker 1: In addition, we're excited to expand our Connect and Protect portfolio with the announcement to acquire ECM Industries.
Speaker 1: Overall, we are pleased with the strong start to the year and are raising our full year sales and adjusted EPS guidance.
Speaker 1: Now, on to slide 4 for a summary of our first quarter performance.
Speaker 1: First quarter sales were up 8% organically with all verticals growing. New products contributed approximately 3 points to our sales growth and we launched 17 new products in the quarter.
Speaker 1: Segment income grew 34% year over year with return on sales up an impressive 410 basis points.
Speaker 1: Adjusted EPS grew 34% and we generated $52 million of free cash flow compared to a $3 million usage a year ago. We're on track for another strong year.
Speaker 1: With our focus on the electrification of everything, we continue to have significant wins in our portfolio.
Speaker 1: In Data Solutions, we recently won a large contract with a semiconductor company for a new liquid cooling system for their data center. We also won a multimillion dollar contract for a cable management solution with a hyperscale modular data center provider.
Speaker 1: On e-mobility, our Airflex connections have been specified by your European OEM leader in power solutions for EV chargers.
Speaker 1: And with the energy transition, we continue to have wins in LNG, clean fuels, and carbon capture. We recently won several multimillion dollar contracts for our heat tracing systems, providing reliability and optimization.
Speaker 1: Looking at our key verticals, all grew organically in the quarter. Infrastructure led the way up mid-teens, including data solutions growing 20% and power utilities up over 30%.
Speaker 1: Industrial grew high single digits with broad base growth.
Speaker 1: Energy performed well up mid-teens.
Speaker 1: finally, commercial and residential grew low single digits.
Speaker 1: Turning to organic sales by geography, we continue to see broad base growth in North America up low double digits, Europe grew high single digits, and Asia Pacific declined primarily due to a slow recovery in China.
Speaker 1: Lastly, orders in Q1 were flat year over year. Recall a year ago we had 28% order growth in the first quarter. As we said in our investor date, orders were positive through February , however March orders declined with our toughest monthly comparison from a year ago.
Speaker 1: In addition, our distribution partners were adjusting their inventories and de-stocking with improved supply chains. We expect this to continue into Q2.
Speaker 1: Importantly, customer demand and distributor sell-through remain strong.
Speaker 1: Looking ahead, we are raising our full year guidance, reflecting our strong start to the year. We expect electrification, sustainability and digitalization to drive demand.
Speaker 1: Specifically, we expect continued strength in infrastructure, including data solutions, power utilities, and renewables.
Speaker 1: In industrial with the trends of automation and on-shoring, and in energy with the energy transition.
Speaker 1: We expect commercial reZi to slow.
Speaker 1: While our outlook is positive, we remain cautious due to the macroeconomic environment.
Speaker 1: Overall, I'm proud of our InvenTeam and how we continue to perform and deliver impressive results. We are on track for another strong year.
Speaker 1: I will now turn the call over to Sarah for some detail on our first quarter results and our updated outlook for 2023. Sarah, please go ahead. Thank you, Beth. Let's begin on slide 5 with our first quarter results. We are off to a strong start to the year with outstanding margin performance and robust free cash flow.
Speaker 1: Sales of $741 million were up 7% relative to last year, or 8% organically. Volumes were up modestly compared to last year, on top of 13% a year ago, and price added 8 points to growth.
Speaker 1: For an exchange with a 2.1 headwind.
Speaker 1: First quarter segment income was $148 million, up 34%. Return on sales was 20%, up 410 basis points year-over-year. Their price cost and positive productivity drove the outperformance versus our expectations.
Speaker 1: Price more than offset the impact from inflation of roughly $30 million.
Speaker 1: Our supply chain continued to improve, resulting in sequential and year-over-year productivity improvement.
Speaker 1: Q1 adjusted EPS was $0.67, up 34%, and above the high end of our guidance range.
Speaker 1: We generated robust free cash on the quarter of $52 million compared to a usage of $3 million a year ago, reflecting our strong operational performance.
Speaker 1: This also includes significant capex investments for growth and capacity.
Speaker 1: Please turn to slide 6 for discussion of our first quarter segment performance.
Speaker 1: Starting with enclosures, sales of $391 million increased 11 percent organically, with both price and volume contributing.
Speaker 1: Sales growth was broad-based with all verticals growing.
Speaker 1: Industrial led, driven by continued trends in automation.
Speaker 1: Infrastructure was also a standout contributor with continued strength in data solutions up 20%.
Speaker 1: Geographically, North America led up double digits followed by Europe .
Speaker 1: Enclosure's first quarter segment income was $82 million, up 64%.
Speaker 1: Return on sales of 21.1% increased an impressive 710 basis points year-over-year, driven by strong execution.
Speaker 1: We also continue to see margin improvements from our simplification efforts.
Speaker 1: We are investing in added capacity and expansion of our data solutions business and expect this to ramp in Q2 and second half.
Speaker 1: Moving to electrical and fastening, sales of $206 million increased 11% organically, driven by strong price.
Speaker 1: All verticals grew with commercial upmodestly and infrastructure up over 20% organically with strength in power utilities and data solutions.
Speaker 1: Geographically, sales growth was led by North America and Europe .
Speaker 1: Electrical and fastening segment income was $61 million, up 30%.
Speaker 1: Return on sales was a notable 29.8%, up 470 basis points relative to last year on strong execution. Turning to thermal management, sales of $144 million were flat organically.
Speaker 1: Price contributed four points to growth, while volumes were negative. Energy and infrastructure both grew double digits organically, with a solid pipeline of energy transition projects in LNG, biofuels, hydrogen, and carbon capture.
Speaker 1: industrial MRO demand remained strong.
Speaker 1: Commercial and residential declined with residential down double digits.
Speaker 1: Geographically, growth was led by North America with declines in China.
Speaker 1: Thermal management segment income of $31 million was down 5%. The return on sales of 21.5% was down 40 basis points year-over-year primarily due to mix.
Speaker 1: On slide 7, titled Balance Sheet and Cash Flow, we ended the quarter with $303 million cash on hand and $600 million available on our revolver.
Speaker 1: This week, we announced our financing for the pending ECM Ministry's acquisition, including pricing $500 million of 10-year senior notes and a new, prepayable $300 million term loan facility. The balance will be funded through a combination of cash on hand and our existing revolver.
Speaker 1: Turning to slide 8 where we will outline our capital allocation priorities.
Speaker 1: We believe our robust balance sheet and cash generation puts us in a great position to continue to invest in growth, return cash to shareholders, and deliver great returns.
Speaker 1: We exited Q1 with a net debt to adjusted EBITDA ratio of 1.3 times. On a pro forma basis, we forecast our net debt to adjusted EBITDA to now be 2.7 times at the closing of the ECM acquisition.
Speaker 1: With our strong cash flow generation, we plan to de-lever quickly and be within our targeted range of 2 to 2.5 times within the next 12 to 18 months.
Speaker 1: In the quarter, we returned approximately $44 million to shareholders, including dividends and $15 million of share repurchases.
Speaker 1: Moving to slide 9, we are raising our full year guidance reflecting our strong performance. We continue to expect organic sales to grow 4-6%.
Speaker 1: We now expect adjusted EPS to be in the range of $2.65 to $2.73 up 10 to 14%. Versus our original guidance of $2.51 to $2.61.
Speaker 1: This new guidance reflects the strong start to the year, solid price-cost execution, and better productivity. It also continues to reflect the uncertainties in the second half.
Speaker 1: It's important to note that our guidance does not yet include the impact of ECM industries.
Speaker 1: We expect ECM's adjusted EBITDA margins of 25% to be accretive to overall Inven margin. And we expect cost synergies of $10 to $15 million by year 3 with benefits starting in 2024. And if you want to make severe43 different Lifelike reflections you can head over toNarrator.com such as pulling prices plus travelling on location on long-term.
Speaker 1: We continue to expect the deal to be accretive to adjusted EPS in 2023, excluding purchase price accounting and one-time deal-related costs.
Speaker 1: A couple of modeling assumptions to note. First, foreign exchange is expected to have a neutral impact to sales versus a previous one-point headwind. And second, we now expect our tax rate to be approximately 18.5%.
Speaker 1: Looking at our second quarter outlook on slide 10, we expect organic sales to be up 3 to 5 percent. We expect our distribution partners to continue to adjust their inventories and de-stock with improved supply chains.
Speaker 1: We expect adjusted EPS to be between 66 and 68 cents, which at the midpoint reflects 18% growth relative to last year.
Speaker 1: Wrapping up, I'm pleased with our first quarter performance. We delivered strong margins, robust cash flow, and a rough position for another great year. This concludes my remarks and I will now turn the call back over to Beth.
Speaker 1: Thank you Sarah. Turning to slide 11, since we became a new company we put in place a strategy that has been working.
Speaker 1: We continue to execute on the core elements focusing on high-growth verticals, new products, global expansion, and acquisitions.
Speaker 1: We recently announced an agreement to acquire ECM Industries.
Speaker 1: We've had great success with the four acquisitions we've done, totaling approximately $300 million of revenue last year and growing faster than overall invent.
Speaker 1: Each deal exceeded the weighted average cost of capital within two to three years of closing our primary financial deal metric. We believe we will create great value with ECM Industries.
Speaker 2: Turning to slide 12.
Speaker 2: ECM is a great strategic fit with tremendous growth potential.
Speaker 2: ECM complements and vents electrical power connection and grounding solutions portfolio within our electrical and fastening segment.
Speaker 2: It will extend our cable management offerings with complementary labor-saving solutions and will add tools and testing instruments to our portfolio.
Speaker 2: In addition, ECM further positions InVent with the electrification of everything in high-growth verticals such as commercial solutions, power utilities, data centers, and renewables.
Speaker 2: Overall, we believe ECM's complimentary portfolio, strong brands, and longstanding customer and channel relationships will be a great combination with Invent. ECM is expected to add over $400 million in sales and be margin accretive to Invent. We expect to close the transaction in Q2.
Speaker 2: and are working our detailed integration plan with a dedicated team.
Speaker 2: We have received a lot of positive comments on the potential of the combined companies from employees, customers, and partners.
Speaker 2: We look forward to welcoming the ECM team to Inven. Wrapping up on slide 13, we're off to a strong start to the year and have increased our full year guidance. We're well positioned with the electrification of everything, sustainability, and digitalization trends. We're excited to add ECM Industries to our portfolio.
Speaker 3: If you are using a speakerphone, we do ask that you please pick up your handset prior to pressing the keys.
Speaker 3: To withdraw your questions, you may press star and 2.
Speaker 3: Once again, that is Star and then 1 to ask a question. We'll pause momentarily to assemble the roster.
Speaker 3: And our first question today comes from Dean Dre from RBC Capital Markets. Please go ahead with your question.
Speaker 3: question today comes from Dean Dre from RBC Capital Markets. Please go ahead with your question. Thank you. Good morning everyone. Good morning.
Speaker 4: Morning, Dean.
Speaker 3: Hello? Ladies and gentlemen, once again, if you would like to ask a question, please press star and then one. To withdraw your questions, you may press star and two.
Speaker 3: Again, that is star and then one to ask a question.
Speaker 3: And we have a question from Julian Mitchell from Barclays. Please go ahead with your question. Hi, good morning everyone. Good morning. Good morning. I just wanted to start off with, you know, I think you said the orders for first quarter were flattish year on year.
Speaker 3: and largely tied to tough comps in March and some de-stocking. I just wondered if you could give a little bit more detail, you know, anything noteworthy on end markets or geographies that weighed there in the orders and any color at all on April . I know it's a sort of feeble month in the context of Q2 in aggregate, but anything you've seen that's
Speaker 3: you know, how does this month compare with March, for example? Thank you.
Speaker 2: Yes, so as I said in our prepared remarks, we had a really tough orders comp in March, but we also started getting indications from our distribution partners. I had the opportunity to talk with several of them over the last several months that they felt very confident in.
Speaker 2: supply chain lead times and as a result they were starting to bring down some of their inventory levels. So from March it was you know both on a per day basis it looked very much like February , but it had a really tough comp and I would say as we go into April we're continuing to see orders down.
Speaker 2: And when we look at orders, I mean, that's through our big distribution partners. I would say one area for us that has been slow, as I mentioned, also is, you know, in
Speaker 2: That's very helpful, thank you. Oh, but Julian, I want to make the point that even though orders are down, we see good sell-through of our product and good demand from our end customers. So what we're largely seeing through the distribution channels, it's just the right sizing by their inventory.
Speaker 3: cents per quarter number. I think you were there in Q4, there in Q1, guided for that in Q2, and the fully a guide embeds you staying at that sort of 67, 68 cents a quarter, I think through the back half. Just wondered if I'm thinking about it the right way for sort of the split between Q3 and Q4 having.
Speaker 3: similar EPS sequentially. And also it's unusual for invent and industrial companies in general to have the same earnings and sales quarter after quarter things tend to break down or up before too long. So just wanted...
Speaker 1: I would say it's fair to say that from a normal seasonality perspective for InvenT, we would typically see slightly more EPS in the back half versus the first half. But I would say consistent with the assumptions coming into this year and for the guidance that we gave in February .
Speaker 1: was that our EPS was a little bit more first half versus second half. And I think a couple of those things that we pointed out and we continue to point out here would be one, we would expect more positive price cost here in the first half in part due to the carryover of a lot of the pricing actions that we took in 2022.
Speaker 1: in February to where we sit here today. I think it's just early in the year, and we'll see how that unfolds, you know, but our view is that there's nothing that's been more meaningfully positive or negative, and we're balancing all the other smaller puts and takes to it to have that back half of the year remain relatively unchanged.
Speaker 1: to where we sit here today. I think it's just early in the year and we'll see how that unfolds, but our view is that there's nothing that's been more meaningfully positive or negative, and we're balancing all the other smaller puts and takes to it to have that back half of the year remain relatively unchanged. Great, thanks for the color.
Speaker 5: And our next question does come from Dean Dre from RBC Capital Markets. Mr. Dre, please go ahead with your question.
Speaker 6: Thank you. Good morning everyone. You hear me okay this time? Yeah.
Speaker 6: All right, good. All right. Well, I just also want to start off with that you guys have been on such a tear for the last month between the analyst meeting, you see them in the positive preannouncement. I don't think Tony's had a chance to catch his breath.
Speaker 7: Thank you.
Speaker 6: All right, so first question is just maybe you could just give us some further color on enclosures margins You know up 710 basis points. I know you said it was execution that that's kind of obvious But can you break out for us? You know how much was price?
Speaker 6: any particular kind of lifts, anything one time, that would have exaggerated that move and how sustainable is that.
Speaker 1: Yes, I would say, Dean, nothing to call out in terms of kind of one time in nature. I would say we're very pleased with the enclosure's margin performance and we began to see that really in Q4. I think from a year-over-year perspective, just remember that that business had a slower start in terms of kind of that price cost and productivity equation and they were really...
Speaker 1: working hard, ramping volume up like 13 points. So there was a lot of costs involved last year to be able to deliver, you know, for our customers against a big, you know, backdrop of supply chain challenges. So I would say in the context of Q1, you know, their price was nine points and really pleased to see volume just over two points. So they had a nice contribution of both prices.
Speaker 1: supply chain improvement. We still see a very tight labor market, but we do see it getting better overall. So that margin performance really has a better price-cost equation to it and some good productivity. In terms of how we think about that in Q2 in the back half...
We see it easing a bit, you know, that 21.1% is a great, you know, absolute return on sales for a couple different reasons. One of which I pointed out in my prepared remarks, we are expecting, you know, to increase some investments there. We've talked about, you know, the new capacity coming online.
Some of that has some pay-go expense to that, but also building out our data solutions business as well. I think the other thing is just wage inflation will more broadly, you know, drop into our Q2 numbers here and into the back half.
I want to follow up on Beth's comment regarding the de-stocking that you're seeing. We're seeing this across the sector and our thought here is this is all part of the normalization of the supply chain. is just
You know, lead times are getting shorter and so there's not as much buffer stock needed. Just kind of take us through the dynamics there because you also said that the sell through has remained strong so that the stocking should not be viewed as a negative. But just kind of, you know, can you quantify this? How long do you think it runs?
and any kind of color from the distributors would be really helpful. Thanks. Okay. Dean, I think you said it. It really is that. As we've come into this year, we've seen it ourselves, and our distribution partners have seen it from many of their other suppliers as well, that the supply chain is in much better shape.
Therefore, they don't have the need to carry as much inventory because they have the confidence in their suppliers, including us. And so, you know, they're simply, you know, counting on our lead times, right, that they're taking actions to reduce their inventory. And we started to see that in Q1, and, you know, we're seeing that through Q2, and that's really the Google Azanan. OK.
YouTube performance.
Great, that's exactly what I was looking for. Yeah, and just the point as I made to Julian is, but what we're really pleased with is when we look at their sell-through and our results of our sales through them, it's strong customer demand.
Thank you.
And our next question comes from Joe Ritchie from Goldman Sachs. Please go ahead with your question.
Thanks. Good morning, everyone. Good morning.
So I hate to harp on the de-stocking, but I do have one follow-up. I'm curious, are you seeing it broad-based across the portfolio? Is it mostly in EFS and thermal? Like any other color you can give on where you're seeing it would be helpful.
Yeah, I think it's generally very broad-based. We even see it in our enclosure segment as you think about just the overall supply chain. So when these distributors look at where they're carrying inventory, and a year ago they were just trying to get as much inventory as they could to serve customers. So we really do see it.
it seems like volume's probably turned at least modestly negative. I'm just trying to get a sense for the dynamic for price costs as we progress through the year and whether you're anticipating putting through additional pricing from here. Well, Joe, I'd probably start from the standpoint of, you know, we're going to continue to be vigilant, right, managing that price cost equation as we've done over the last, you know, couple years.
in our overall guide, we had anticipated pricing to be roughly three points. We see that probably closer to four points just with a strong, I would say, realization of those pricing actions, and that's allowing us to stay front-footed from a price-cost perspective as well as for the productivity to roll in and to be positive.
I think maybe your question in terms of how we see that flow through the course of the year, we would expect that price cost spread to narrow from Q1 into Q2 and then sequentially there in the back half. So that's really more of a…
as we begin to lap some of those price actions of a year ago, we would expect that pricing contribution to ease and then just really resulting in that narrowing of that price cost equation as we go through the course of the year.
Makes sense. Thank you both.
And our next question comes from Jeff Sprague from Vertical Research. Please go ahead with your question.
Hey thanks, good morning. Morning. Nice on the quick pending close on ECM. I just wonder if you could give us a sense of how much accretion we should expect here in kind of the stub six months of the year. I can I can easily come up with 20 to 25 cents on an annualized basis but I don't know if half of that in the first year when you're digesting is a reasonable way.
all the financing that we put in place here this week, we still feel like that roughly $60 million of interest is the right number. Continue to see the taxes have that roughly one point of impact to invent. I think in the context of the cost synergies, maybe it makes sense to give a bit more color there. I do think that
We're going to begin that more a bit out of the gate in the first kind of 12 months here. So there's some investments that we'll need to make in order to achieve those synergies that we think are going to be ahead of when some of those cost synergies drop in. I think that maybe the other last point I would make is just the seasonality. Q4
Just overall, the seasonality of that business sort of looks a lot like our EFS seasonality. A bit lighter on the Q4 side. Okay. Thanks for that. I guess maybe this comes back to the whole channel, the stocking thing, but just kind of from a...
from a different angle here. When you speak of kind of the strong sell-through, I'm just wondering if you can actually kind of quantify.
in percentage terms, what the sell-through is looking like, and is there volume in the sell-through? So we've got kind of two quarters here in a row of no volume growth, some of it's the comps, I get all that, but are we at a point where if your supply chain is improving, you've actually got the ability to sell-through.
you know to pump more volume through the system and the system is taking it or In some respects do we have you know continued good demand, but in some respects price is kind of crowding out volume, right? And People only have so many dollars to spend right so price. Maybe is crowding out volume in the demand equation
You know, what are they reporting whether it's in the US or Canada or wherever else and then we kind of look at how are We doing and I would say generally, you know, we're doing You know, we're performing to their levels of performance meaning our sales through or matching what they're saying They're you know, their regional sales are and in some cases better So, you know when we look at that we also see volume growth there
Clearly, it's maybe there's more price than there is volume, but we are seeing expansion there. I think our view is we're always pleased when our distributor sales, our sales are matching that through or even exceeding that in some cases.
Got it, thank you. And our next question comes from Nigel Coe from Wolf Research. Please go ahead with your question.
Good morning. So it seems like the de-stocking comments are causing a bit of concern here. So any kind of sense on where channel inventories are right now for your products and how long this process could continue for? And did you comment that this is primary North America or outside North America?
Yeah, it's primarily in, and we didn't, but it's primarily in North America. And, you know, remember, you know, two-thirds of our products go through distribution and, you know, a lot of that isn't within North America. And I would say this, that, you know, we expect this to, you know, it started in the United States.
Yeah, it doesn't feel like there's a huge amount of imagery in the channel, but yeah, I appreciate that and then just think about Second quarter and you know, I know I know Julian kind went through the play by play by quarter But we just drill down into the margins for second quarter. It seems like we're It seems like if your point was like a 50 base point
decline versus 1Q. Corporate expense was pretty heavy in 1Q. So if that normalizes down to the run rate, that's almost 50 base points. So it looks like you're point about a point of margin compression versus the first quarter. First of all, is my math correct?
Yeah, so I think if you kind of back up to kind of the income and margin profile based on that Q2 guide, I think you'd probably see return on sales, you know, similar, you know, to where we were at in Q1. And I think that, you know, that's clearly on higher sales, right, given the seasonality. We do have that sequential uptick from a sales perspective.
But that similar margin and what I would say similar EPS probably has two things reflected in that from a sequential standpoint. One would just be the wage inflation sort of dropping in, if you will, more broadly here in Q2, as well as some of the investments flowing in that we talked about. And I think the last thing I would just say is just that price cost narrows. But overall, expect again another good quarter of growth in that three to 5% organic and another meaningful growth from an EPS year-over-year perspective overall.
Great and then just a quick one residential headwinds in thermal can you just remind us how much of that business is residential?
Yes, the residential is roughly 10% of the thermal sales, but on an invent level, that translates to roughly 3% of sales as small.
Right, right. Okay, thanks guys. Appreciate it. Thanks. Our next question comes from Jeff Hammond from KeyBank Capital Markets. Please go ahead with your question.
Hey, good morning everyone. Good morning. Just on commercial construction vertical, I guess clearly some kind of heightened concerns around this bank crisis, tightening lending standards, et cetera. Just as you kind of zero in on that vertical, how are you thinking about potential for slowing and risk there, particularly on the new side? I think our view is we look at the same indices that everyone does.
those two could be tied. So yeah, we've called it, I think, at the start of the year and here again that we do expect commercial resi too slow.
Okay, and then I'm not sure you mentioned backlog. Can you just speak to where backlog is and are you starting to kind of, you know, as things normalize, starting to kind of catch up some of the backlog? Yeah, you know, so a couple comments I would make there is, first of all, our EFS business doesn't tend to be a backlog business at all.
So as we had backlogged before, we've been working that down in past dues and things like that. So we've always said that business is generally stock and flow and it turns. In enclosures, I would say two things. As we build more of our data solutions business, that's created some more backlog. So with enclosures, we're still working down backlog on the industrial side, but I would say we're building some backlog on the data solution side as we continue to grow.
and quoting activity for some of these energy transition projects. And so, you know, I think that is a very positive sign of the trends that we're seeing there that, you know, of future growth.
Okay, great color. Thanks Beth. Thank you. Once again, if you would like to ask a question, please press star and one. Our next question comes from Scott Graham from Loop. Please go ahead with your question. What do you mean, but what's your only fiber
So hey, good morning. Another really good print. Obviously, we knew a little previously, but still good to see in writing. The only questions I have are not around the stockings. One is if you'd be kind enough to give the pricing in the other two segments and the second is...
On the data center up 20, is there some new customer capture there? And is that, with the investing that you're doing behind it, is that maybe sustainable this year?
So let me start and then I'll turn it over to Sarah to give you the color on pricing. So as we've talked about with data solutions...
One of the key areas for us where we believe we are differentiated and we're seeing significant growth opportunities and potential is with liquid cooling. So a lot in the news these days is a lot about artificial intelligence and if you look at computing power and some of the new chips that are required.
they need to be liquid cooled. And so it's a requirement to run the data center, it's an energy efficiency play. And so from our standpoint, we see this shift from what was not point, like was more just air cooling and not precision cooling to where liquid cooling is going. And that is a technology shift and trend. And we talked about that in our investor day that we see huge growth potential in front of us as a result.
Just to maybe round up the pricing question, so we talked about enclosures being nine points, electrical and fastening, their price was roughly 11 points, and then we had in our prepared remarks thermal at roughly 4 points. Thank you both.
And ladies and gentlemen, with that, we'll be concluding today's question and answer session. I'd like to turn the floor back over to Beth Wozniak for any closing remarks.
Well thank you for joining us today. I'm very proud of the performance we delivered in the first quarter. We will continue to focus on delivering for our customers, employees, and shareholders by executing on our growth strategy. We believe Invenc is a top-tier high-performance electrical company, well positioned for the electrification of everything, sustainability, and digitalization trends.
Thanks again for joining us. This concludes the call. Ladies and gentlemen, today's conference call has concluded. We do thank you for joining today's presentation. Have a great rest of the day. You may now disconnect.