Vertiv Beats Expectations with $2.35 Billion in Revenue for Q4 2024

Vertiv Holdings Co (NYSE: VRT) demonstrated a strong performance in the fourth quarter of 2024, showcasing significant growth across several financial metrics. The company reported a diluted EPS of $0.38, with an adjusted diluted EPS reaching $0.99, marking a 77% increase compared to the same period in 2023.

This impressive rise in earnings per share reflects Vertiv’s strategic advancements and operational efficiency. Net sales for the quarter totaled $2,346 million, which represents a 26% increase from the previous year, driven by robust demand in the data center market.

Operating profit for the quarter was $457 million, up 60% from the prior year, while adjusted operating profit rose to $504 million, indicating a 53% increase. The adjusted operating margin expanded by 380 basis points to 21.5%, underscoring the company’s effective commercial execution and productivity improvements in manufacturing and procurement. Vertiv’s operating cash flow stood at $425 million, with an adjusted free cash flow of $362 million, highlighting the company’s strong financial health and ability to generate cash efficiently.

The company’s market presence in the Americas was particularly noteworthy, with trailing twelve-month organic orders up over 50%. This growth was propelled 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 emphasizes the ongoing strength in data center projects, positioning Vertiv favorably 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.

Join our Telegram group and never miss a breaking digital asset story.

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%.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.