Vertiv Holdings Co Q3 2024 Earnings Summary

Vertiv Holdings Co (NYSE:VRT), a leading provider of critical digital infrastructure and continuity solutions, delivered strong Q3 2024 results, highlighted by sales and profit growth.

Key Takeaways

• Sales Growth: 19% increase in organic sales and 37% growth in orders.
• Profitability: Achieved adjusted operating profit of $417 million, with an operating margin of 20.1%.
• Future Guidance: Raised full-year expectations anticipating 14% organic growth and $1 billion in adjusted free cash flow.
• Partnership with NVIDIA: Announced collaboration to co-develop power and cooling solutions.
• Expansion Plans: Aim to boost liquid cooling capacity by 45 times by end of 2023.
• Investor Event: Scheduled for November 18, 2023, in Atlanta, Georgia.

Company Outlook

• Vertiv expects growth in 2025 to exceed that of 2024, driven by demand related to AI.
• The company has a backlog of $7.4 billion, indicating strong future growth potential.

Market Insights

• Organic sales growth was consistent across regions, with EMEA leading at 25%.
• Received a positive response regarding liquid cooling technology, predicting 30% CAGR.
• Minor bearish highlights include modest orders growth compared to previous quarters and slightly increased lead times.

Vertiv's Q3 performance underscores robust demand in the data center market, especially in the Americas and EMEA, with strategic initiatives in liquid cooling and partnerships enhancing its position in the evolving digital infrastructure landscape.

InvestingPro Insights

• Revenue growth at 12.66% year-on-year, with a year-to-date total return of 134.38% showing strong investor confidence.
• EBITDA growth of 53.21% further strengthens its financial position, supporting planned expansions and M&A opportunities.
• PEG ratio of 0.51 indicates potentially undervalued stock relative to earnings growth potential.

Full Transcript Summary

The earnings call featured executives discussing strong sales and operational performance, particularly noting AI's impact on demand and the company's strategic initiatives in liquid cooling. Plans for M&A and capacity expansion were also highlighted, with a focus on maintaining strong profit margins amid rising demand in the data center market. The call concluded with optimism for future growth and an invitation to the upcoming investor event in Atlanta.

• Operator: Thank you for joining us. This concludes today’s earnings call.
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