Vertiv Reports Better-than-Expected Fourth-Quarter Results

Vertiv Holdings Co (NYSE: VRT) demonstrated a strong performance in the fourth quarter of 2024, showcasing significant growth across several financial metrics.

Vertiv Holdings Co (NYSE: VRT) reported strong fourth-quarter results on Monday that topped Wall Street estimates. The company highlighted a significant increase in earnings per share and highlighted strong demand in the data center market. Vertiv also provided optimistic guidance for the full year.

Fourth-Quarter Financial Performance

Vertiv reported a diluted EPS of $0.38 for the recent quarter, versus a loss per share of $0.06 in Q4 of 2023. On an adjusted basis, the company earned $0.99 per share, that marks a 77% annualised increase and came in significantly higher than the Street estimate of $0.81.

Other notable figures in the earnings report include a 26% year-over-year growth in net sales that reached $2,346 million and topped the analysts’ estimate of $2.16 billion. Operating profit also saw a 60% increase to $457 million, while adjusted operating profit rose to $504 million, indicating a 53% year-over-year increase.

Vertiv’s adjusted operating margin expanded by 380 basis points to 21.5%, and the company generated $425 million in operating cash flow. On an adjusted basis, the company reported $362 million in free cash flow.

Market Presence and Demand

The company’s market presence in the Americas was particularly strong, with trailing twelve-month organic orders up over 50%. This growth was driven by the hyperscale and colocation data center market, reflecting Vertiv’s leadership in providing critical digital infrastructure solutions.

The sequential increase in pipeline activity from the third quarter of 2024 further highlighted the ongoing strength in data center projects, positioning Vertiv favourably for future growth.

Vertiv Reports Better than Expected Fourth-Quarter Results

Vertiv’s fourth-quarter results exceeded market expectations, showcasing the company’s ability to outperform its projected targets. The adjusted diluted EPS of $0.99 surpassed the expected EPS of $0.8166, reflecting Vertiv’s strong operational performance and strategic execution.

The company’s net sales of $2,346 million also exceeded the anticipated revenue of $2.16 billion, highlighting Vertiv’s capability to capture market opportunities and drive revenue growth.

This outperformance can be attributed to several factors, including the robust demand in the data center industry and Vertiv’s focus on innovation and customer collaboration. The company’s commitment to enhancing efficiency and scaling its operations to meet the growing digital demands has been pivotal in achieving these results.

Vertiv’s strategic investments in technology and its extensive portfolio of solutions have enabled it to capitalize on the increasing need for digital infrastructure.

The significant increase in operating profit and adjusted operating margin further underscores Vertiv’s success in managing costs and optimizing its operations. The company’s ability to deliver strong financial results in a competitive market environment demonstrates its resilience and adaptability. Vertiv’s performance in the fourth quarter not only reflects its strategic strengths but also sets a positive tone for its future prospects.

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Vertiv Expects Full-Year Diluted EPS Between $2.93 and $3.03

Vertiv has provided optimistic guidance, reflecting its confidence in sustaining growth momentum. The company expects full-year diluted EPS to range between $2.93 and $3.03, with adjusted diluted EPS anticipated to be between $3.50 and $3.60. This represents a 25% increase at the midpoint compared to the full-year 2024 results, aligning with the guidance provided at the November investor event.

The expected net sales for 2025 are projected to be between $9,125 million and $9,275 million, approximately $75 million higher than the previous guidance, despite facing foreign exchange headwinds.

Vertiv’s strategic focus on expanding its capacity and investing in engineering, research, and development is aimed at supporting the growing demands of the data center industry. The company’s capital expenditure forecast for 2025 is approximately $275 million, which is about 3.0% of sales. This investment is expected to enhance Vertiv’s ability to deliver innovative solutions and maintain its competitive edge in the market.

The company’s guidance for the first quarter of 2025 includes net sales between $1,900 million and $1,950 million, with organic net sales growth anticipated to be between 17% and 21%. Adjusted operating profit is expected to range from $315 million to $335 million, with an adjusted operating margin of 16.7% to 17.1%.