Vertiv Reports Strong Fourth Quarter 2024 Results
Vertiv (VRT) reported strong Q4 2024 results with net sales of $2,346 million, up 26% from Q4 2023. The company achieved diluted EPS of $0.38 and adjusted diluted EPS of $0.99, representing a 77% increase year-over-year. Operating profit reached $457 million, up 60%, while adjusted operating profit hit $504 million, up 53% from Q4 2023.
The company's trailing twelve-month organic orders grew approximately 30% compared to the prior year, with Americas showing exceptional growth of over 50%. Adjusted operating margin expanded to 21.5%, up 380 basis points. Operating cash flow was $425 million with adjusted free cash flow of $362 million.
Looking ahead, Vertiv expects full year 2025 net sales of $9,125-$9,275 million with organic sales growth of 16%. The company projects 2025 diluted EPS of $2.93-$3.03 and adjusted diluted EPS of $3.50-$3.60, representing a 25% increase at the midpoint compared to 2024.
Vertiv (VRT) ha riportato risultati solidi per il Q4 2024, con vendite nette di 2.346 milioni di dollari, in aumento del 26% rispetto al Q4 2023. L'azienda ha registrato un utile per azione diluito di 0,38 dollari e un utile per azione diluito rettificato di 0,99 dollari, con un incremento del 77% rispetto all'anno precedente. L'utile operativo ha raggiunto i 457 milioni di dollari, in crescita del 60%, mentre l'utile operativo rettificato ha toccato i 504 milioni di dollari, in aumento del 53% rispetto al Q4 2023.
Gli ordini organici degli ultimi dodici mesi dell'azienda sono cresciuti di circa il 30% rispetto all'anno precedente, con le Americhe che mostrano una crescita eccezionale di oltre il 50%. Il margine operativo rettificato è aumentato al 21,5%, con un incremento di 380 punti base. Il flusso di cassa operativo è stato di 425 milioni di dollari, con un flusso di cassa libero rettificato di 362 milioni di dollari.
Guardando al futuro, Vertiv prevede vendite nette per l'intero anno 2025 comprese tra 9.125 e 9.275 milioni di dollari, con una crescita delle vendite organiche del 16%. L'azienda prevede un utile per azione diluito per il 2025 compreso tra 2,93 e 3,03 dollari e un utile per azione diluito rettificato compreso tra 3,50 e 3,60 dollari, rappresentando un incremento del 25% al punto medio rispetto al 2024.
Vertiv (VRT) informó resultados sólidos para el Q4 2024, con ventas netas de 2,346 millones de dólares, un aumento del 26% en comparación con el Q4 2023. La compañía logró un EPS diluido de 0,38 dólares y un EPS diluido ajustado de 0,99 dólares, lo que representa un aumento del 77% interanual. La utilidad operativa alcanzó los 457 millones de dólares, un incremento del 60%, mientras que la utilidad operativa ajustada llegó a 504 millones de dólares, un aumento del 53% respecto al Q4 2023.
Los pedidos orgánicos de la compañía en los últimos doce meses crecieron aproximadamente un 30% en comparación con el año anterior, con las Américas mostrando un crecimiento excepcional de más del 50%. El margen operativo ajustado se amplió al 21,5%, un aumento de 380 puntos básicos. El flujo de caja operativo fue de 425 millones de dólares, con un flujo de caja libre ajustado de 362 millones de dólares.
De cara al futuro, Vertiv espera ventas netas para todo el año 2025 de entre 9,125 y 9,275 millones de dólares, con un crecimiento de ventas orgánicas del 16%. La compañía proyecta un EPS diluido para 2025 de entre 2,93 y 3,03 dólares y un EPS diluido ajustado de entre 3,50 y 3,60 dólares, lo que representa un aumento del 25% en el punto medio en comparación con 2024.
Vertiv (VRT)는 2024년 4분기 강력한 실적을 보고했으며, 순매출은 23억 4,600만 달러로 2023년 4분기 대비 26% 증가했습니다. 회사는 희석 주당 순이익(EPS) 0.38달러와 조정된 희석 EPS 0.99달러를 기록하여 전년 대비 77% 증가했습니다. 운영 이익은 4억 5,700만 달러에 도달하여 60% 증가했으며, 조정된 운영 이익은 5억 4백만 달러로 53% 증가했습니다.
회사의 최근 12개월 동안의 유기적 주문은 전년 대비 약 30% 증가했으며, 미주 지역은 50% 이상의 뛰어난 성장을 보였습니다. 조정된 운영 마진은 21.5%로 380bp 증가했습니다. 운영 현금 흐름은 4억 2,500만 달러였으며, 조정된 자유 현금 흐름은 3억 6,200만 달러였습니다.
앞으로 Vertiv는 2025년 전체 연간 순매출을 91억 2,500만 달러에서 92억 7,500만 달러로 예상하며, 유기적 판매 성장은 16%에 이를 것으로 보입니다. 회사는 2025년 희석 EPS를 2.93달러에서 3.03달러, 조정된 희석 EPS를 3.50달러에서 3.60달러로 예상하며, 이는 2024년 대비 중간값에서 25% 증가한 수치입니다.
Vertiv (VRT) a annoncé de solides résultats pour le Q4 2024, avec un chiffre d'affaires net de 2,346 millions de dollars, en hausse de 26 % par rapport au Q4 2023. L'entreprise a réalisé un bénéfice par action dilué de 0,38 dollar et un bénéfice par action dilué ajusté de 0,99 dollar, représentant une augmentation de 77 % d'une année sur l'autre. Le bénéfice d'exploitation a atteint 457 millions de dollars, en hausse de 60 %, tandis que le bénéfice d'exploitation ajusté a atteint 504 millions de dollars, en hausse de 53 % par rapport au Q4 2023.
Les commandes organiques de l'entreprise au cours des douze derniers mois ont augmenté d'environ 30 % par rapport à l'année précédente, les Amériques affichant une croissance exceptionnelle de plus de 50 %. La marge opérationnelle ajustée a été élargie à 21,5 %, soit une augmentation de 380 points de base. Le flux de trésorerie opérationnel s'élevait à 425 millions de dollars, avec un flux de trésorerie libre ajusté de 362 millions de dollars.
En regardant vers l'avenir, Vertiv s'attend à un chiffre d'affaires net pour l'année 2025 compris entre 9,125 et 9,275 millions de dollars, avec une croissance des ventes organiques de 16 %. L'entreprise prévoit un bénéfice par action dilué pour 2025 compris entre 2,93 et 3,03 dollars et un bénéfice par action dilué ajusté entre 3,50 et 3,60 dollars, représentant une augmentation de 25 % au point médian par rapport à 2024.
Vertiv (VRT) hat starke Ergebnisse für das Q4 2024 gemeldet, mit Nettoumsätzen von 2.346 Millionen Dollar, was einem Anstieg von 26% im Vergleich zum Q4 2023 entspricht. Das Unternehmen erzielte einen verwässerten Gewinn pro Aktie (EPS) von 0,38 Dollar und einen bereinigten verwässerten EPS von 0,99 Dollar, was einem Anstieg von 77% im Jahresvergleich entspricht. Der operative Gewinn erreichte 457 Millionen Dollar, ein Anstieg von 60%, während der bereinigte operative Gewinn 504 Millionen Dollar erreichte, was einem Anstieg von 53% gegenüber dem Q4 2023 entspricht.
Die organischen Aufträge des Unternehmens in den letzten zwölf Monaten wuchsen im Vergleich zum Vorjahr um etwa 30%, wobei die Amerikas ein außergewöhnliches Wachstum von über 50% zeigten. Die bereinigte operative Marge erweiterte sich auf 21,5%, ein Anstieg um 380 Basispunkte. Der operative Cashflow betrug 425 Millionen Dollar, mit einem bereinigten freien Cashflow von 362 Millionen Dollar.
Für die Zukunft erwartet Vertiv für das gesamte Jahr 2025 Nettoumsätze von 9.125 bis 9.275 Millionen Dollar mit einem organischen Umsatzwachstum von 16%. Das Unternehmen prognostiziert für 2025 einen verwässerten EPS von 2,93 bis 3,03 Dollar und einen bereinigten verwässerten EPS von 3,50 bis 3,60 Dollar, was einem Anstieg von 25% im Mittelwert im Vergleich zu 2024 entspricht.
- Q4 net sales increased 26% to $2,346 million
- Adjusted diluted EPS grew 77% to $0.99
- Operating profit up 60% to $457 million
- TTM organic orders increased ~30% year-over-year
- Adjusted operating margin expanded 380 basis points to 21.5%
- Strong liquidity of $2.0 billion with net leverage of ~1.0x
- Projected 16% organic sales growth for 2025
- Increased working capital requirements to support growth
- $43 million increase in cash taxes due to higher profitability
- 4.8 million share dilution from warrant exercises
Insights
Vertiv's Q4 2024 results reveal a company firing on all cylinders, with exceptional execution across key metrics. The 26% revenue growth to
The company's robust free cash flow of
Most notably, the ~30% increase in trailing twelve-month organic orders and particularly strong ~50%+ growth in Americas orders signal sustained demand momentum. The company's 2025 guidance projecting
The strategic focus on data center infrastructure positions Vertiv ideally to capitalize on the AI computing boom. With hyperscale and colocation customers driving demand, and increased pipeline activity, the company's market leadership in critical digital infrastructure appears set to strengthen further.
-
Fourth quarter diluted EPS of
$0.38 $0.99 77% from fourth quarter 2023 -
Net sales of
$2,346 million 26% higher than fourth quarter 2023. Operating profit of$457 million 60% from fourth quarter 2023, and adjusted operating profit(1) of$504 million 53% from fourth quarter 2023. -
Strong fourth quarter trailing twelve-month (TTM) organic orders up ~
30% compared to prior year TTM period; Americas TTM organic orders up ~50% + with strong growth across all market verticals. -
Adjusted operating margin(1) of
21.5% , up 380 basis points compared to fourth quarter 2023 -
Operating cash flow of
$425 million $362 million -
Expect full year 2025 diluted EPS of
$2.93 $3.03 $3.50 $3.60 25% (at the midpoint) compared to full year 2024 and consistent with guidance provided at the November investor event -
Expect full year 2025 net sales of
$9,125 $9,275 million ~ (at the midpoint) higher than the 2025 sales guidance provided in November, despite an FX headwind of$75 million ~ . Full year 2025 organic sales expected to increase$125 million 16% compared to full year 2024, which ended~ higher than anticipated in November.$200 million -
Expect operating profit of
$1,730 $1,780 million $1,910 $1,960 million 25% increase at the midpoint compared to full year 2024
Fourth quarter 2024 operating profit of
“Data centers are crucial for meeting the world’s digital demands,” said Giordano Albertazzi, Vertiv’s Chief Executive Officer. “Vertiv’s commitment to customer collaboration and innovation is setting the pace for what’s possible. But there’s still more to be done. Efficiency of compute has always been core to the industry. As technology advances to unlock the full potential of AI applications, it becomes more broadly accessible to everyone. With that accessibility comes a broader, more pervasive use of AI technology which we believe would generate more data and therefore require more data centers. As a result, I am confident in the growth trajectory of Vertiv, and we are reaffirming the five-year financial framework we presented at our investor event last November. In an increasingly advanced and efficient data center industry, we continue to bring the critical digital infrastructure technology, speed and scale needed to support this rapidly growing market.”
Dave Cote, Vertiv’s Executive Chairman, added: “Strong 2024 results are a testament to Vertiv’s intense industry focus, innovative technologies and robust portfolio. The results are the realization of Vertiv’s potential I’ve been excited about for many years. Vertiv is prioritizing innovation and sustainable growth and is well positioned to seize new opportunities created by the digital revolution underway, positioning it to be at the forefront of the industry for years to come.”
Adjusted Free Cash Flow(1) and Liquidity
Net cash generated by operating activities in the fourth quarter was
Liquidity remained strong at
In the fourth quarter 2024, all remaining private warrants were exercised, as anticipated, given the February 2025 warrant expiration and resulted in an increase of 4.8 million shares of the outstanding Class A common stock.
Updated Full Year and First Quarter 2025 Guidance
The data center market continues to be strong as evidenced by our increase in pipeline activity. Combining our market leadership with our extensive technology portfolio and service offerings, we are well-positioned for another robust year of growth in 2025. We will continue to invest in ER&D and capacity expansion to support the growing needs of the industry. Our capital expenditure forecast for 2025 is
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First Quarter 2025 Guidance(1) |
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Adjusted diluted EPS(2) |
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Full Year 2025 Guidance(1) |
Net sales |
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Organic net sales growth(3) |
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Adjusted operating profit(2) |
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Adjusted operating margin(3) |
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Adjusted diluted EPS(2) |
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Adjusted free cash flow(3) |
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(1) |
Our guidance does not reflect potential impacts from recent policy changes or considerations by the new |
(2) |
This release contains certain non-GAAP metrics. For reconciliations to the relevant GAAP measures and an explanation of the non-GAAP measures and reasons for their use, please refer to sections of this release entitled “Non-GAAP Financial Measures” and “Reconciliation of GAAP and non-GAAP Financial Measures.” |
(3) |
This is a forward-looking non-GAAP financial measure that cannot be reconciled for those reasons set forth under “Non-GAAP Financial Measures” of this release. |
Fourth Quarter 2024 Earnings Conference Call
Vertiv’s management team will discuss the Company’s results during a conference call on Wednesday, February 12, starting at 11 a.m. Eastern Time. The call will contain forward-looking statements and other material information regarding Vertiv’s financial and operating results. A webcast of the live conference call will be available for interested parties to listen to by going to the Investor Relations section of the Company’s website at investors.vertiv.com. A slide presentation will be available before the call and will be posted to the website, also at investors.vertiv.com. A replay of the conference call will also be available for 30 days following the webcast.
About Vertiv Holdings Co
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers’ vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today’s data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in
Category: Financial News
Non-GAAP Financial Measures
Financial information included in this release has been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). Vertiv has included certain non-GAAP financial measures in this news release, as indicated above, that may not be directly comparable to other similarly titled measures used by other companies and therefore may not be comparable among companies. These non-GAAP financial measures include organic net sales growth (including on a segment basis), adjusted operating profit, adjusted operating margin, adjusted diluted EPS and adjusted free cash flow, which management believes provides investors with useful supplemental information to evaluate the Company’s ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. Pursuant to the requirements of Regulation G, Vertiv has provided reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to first quarter and full-year 2025 guidance, including organic net sales growth, adjusted free cash flow and adjusted operating margin, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For those reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
See “Reconciliation of GAAP and Non-GAAP Financial Measures” in this release for Vertiv’s reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Cautionary Note Concerning Forward-Looking Statements
This news release, and other statements that Vertiv may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv’s future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, statements regarding Vertiv’s financial position, capital structure, indebtedness, business strategy and plans and objectives of Vertiv management for future operations, as well as statements regarding growth, anticipated demand for our products and services and our business prospects during 2025, as well as expected impacts from our pricing actions, and our guidance for first quarter and full year 2025. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Vertiv cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this release are based on current expectations and beliefs concerning future developments and their potential effects on Vertiv. There can be no assurance that future developments affecting Vertiv will be those that Vertiv has anticipated. Vertiv undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Vertiv’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Vertiv has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports, including those set forth in the Vertiv 2023 Annual Report on Form 10-K filed with the SEC on February 23, 2024. These risk factors and those identified elsewhere in this release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: risks relating to the continued growth of our customers’ markets; long sales cycles for certain Vertiv products and solutions as well as unpredictable placing or cancelling of customer orders; failure to realize sales expected from our backlog of orders and contracts; disruption of our customer’s orders or the markets; less favorable contractual terms with large customers; risks associated with governmental contracts; failure to mitigate risks associated with long-term fixed price contracts; competition in the industry in which we operate; failure to obtain performance and other guarantees from financial institutions; failure to properly manage supply chain, difficulties with third-party manufacturers and increases in costs of material, freight and/or labor, and changes in the costs of production; competition in the infrastructure technologies; risks associated with information technology disruption or cyber-security incidents; risks associated with the implementation and enhancement of information systems; failure to realize the expected benefit from any rationalization, restructuring and improvement efforts; disruption of, or changes in, Vertiv’s independent sales representatives, distributors and original equipment manufacturers; increase of variability in our effective tax rate costs or liabilities associated with product liability due to global operations subjecting us to income and other taxes in the
Forward-looking statements included in this news release speak only as of the date of this news release or any earlier date specified for such statements. All subsequent written or oral forward-looking statements attributable to Vertiv or persons acting on Vertiv’s behalf may be qualified in their entirety by this Cautionary Note Concerning Forward-Looking Statements.
Vertiv Holdings Co |
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CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (Unaudited) |
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(Dollars in millions except for per share data) |
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Three months ended
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Three months ended
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Year ended
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Year ended
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Net sales |
|
|
|
|
|
|
|
|||||||
Net sales - products |
$ |
1,914.3 |
|
$ |
1,477.9 |
|
|
$ |
6,393.5 |
|
|
$ |
5,406.1 |
|
Net sales - services |
|
432.1 |
|
|
387.5 |
|
|
|
1,618.3 |
|
|
|
1,457.1 |
|
Net sales |
|
2,346.4 |
|
|
1,865.4 |
|
|
|
8,011.8 |
|
|
|
6,863.2 |
|
Costs and expenses |
|
|
|
|
|
|
|
|||||||
Cost of sales - products |
|
1,223.8 |
|
|
949.1 |
|
|
|
4,099.4 |
|
|
|
3,575.7 |
|
Cost of sales - services |
|
252.4 |
|
|
232.9 |
|
|
|
978.2 |
|
|
|
887.0 |
|
Cost of sales |
|
1,476.2 |
|
|
1,182.0 |
|
|
|
5,077.6 |
|
|
|
4,462.7 |
|
Operating expenses |
|
|
|
|
|
|
|
|||||||
Selling, general and administrative expenses |
|
361.6 |
|
|
348.8 |
|
|
|
1,374.0 |
|
|
|
1,312.3 |
|
Amortization of intangibles |
|
47.1 |
|
|
45.2 |
|
|
|
184.2 |
|
|
|
181.3 |
|
Restructuring costs |
|
1.2 |
|
|
5.1 |
|
|
|
5.3 |
|
|
|
28.6 |
|
Foreign currency (gain) loss, net |
|
0.6 |
|
|
2.7 |
|
|
|
9.3 |
|
|
|
16.0 |
|
Other operating expense (income) |
|
2.5 |
|
|
(3.6 |
) |
|
|
(6.0 |
) |
|
|
(9.9 |
) |
Operating profit (loss) |
|
457.2 |
|
|
285.2 |
|
|
|
1,367.4 |
|
|
|
872.2 |
|
Interest expense, net |
|
30.7 |
|
|
42.9 |
|
|
|
150.4 |
|
|
|
180.1 |
|
Loss on extinguishment of debt |
|
1.3 |
|
|
0.5 |
|
|
|
2.4 |
|
|
|
0.5 |
|
Change in fair value of warrant liabilities |
|
180.0 |
|
|
54.5 |
|
|
|
449.2 |
|
|
|
157.9 |
|
Income (loss) before income taxes |
|
245.2 |
|
|
187.3 |
|
|
|
765.4 |
|
|
|
533.7 |
|
Income tax expense (benefit) |
|
98.2 |
|
|
(45.3 |
) |
|
|
269.6 |
|
|
|
73.5 |
|
Net income (loss) |
$ |
147.0 |
|
$ |
232.6 |
|
|
$ |
495.8 |
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|
$ |
460.2 |
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|
|
|
|
|
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Earnings (loss) per share: |
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|
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Basic |
$ |
0.39 |
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$ |
0.61 |
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|
$ |
1.32 |
|
|
$ |
1.21 |
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Diluted |
$ |
0.38 |
|
$ |
0.60 |
|
|
$ |
1.28 |
|
|
$ |
1.19 |
|
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|||||||
Basic |
|
376,614,304 |
|
|
381,562,642 |
|
|
|
376,418,933 |
|
|
|
380,144,059 |
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Diluted |
|
386,473,586 |
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|
390,499,535 |
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|
|
386,325,058 |
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|
|
386,226,267 |
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Vertiv Holdings Co |
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CONSOLIDATED BALANCE SHEETS (Unaudited) |
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(Dollars in millions) |
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December 31, 2024 |
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December 31, 2023 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
1,227.6 |
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|
$ |
780.4 |
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Accounts receivable, less allowances of |
|
2,362.7 |
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|
|
2,118.1 |
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Inventories |
|
1,244.4 |
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|
|
884.3 |
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Other current assets |
|
267.1 |
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|
|
218.7 |
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Total current assets |
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5,101.8 |
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|
|
4,001.5 |
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Property, plant and equipment, net |
|
625.1 |
|
|
|
560.1 |
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Other assets: |
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|
|
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Goodwill |
|
1,321.1 |
|
|
|
1,330.3 |
|
Other intangible assets, net |
|
1,487.1 |
|
|
|
1,672.9 |
|
Deferred income taxes |
|
303.3 |
|
|
|
159.8 |
|
Right-of-use assets, net |
|
202.1 |
|
|
|
173.5 |
|
Other |
|
92.0 |
|
|
|
100.4 |
|
Total other assets |
|
3,405.6 |
|
|
|
3,436.9 |
|
Total assets |
$ |
9,132.5 |
|
|
$ |
7,998.5 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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|
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Current portion of long-term debt |
$ |
21.0 |
|
|
$ |
21.8 |
|
Accounts payable |
|
1,316.4 |
|
|
|
986.4 |
|
Deferred revenue |
|
1,063.3 |
|
|
|
638.9 |
|
Accrued expenses and other liabilities |
|
612.6 |
|
|
|
611.8 |
|
Income taxes |
|
83.7 |
|
|
|
46.5 |
|
Total current liabilities |
|
3,097.0 |
|
|
|
2,305.4 |
|
Long-term debt, net |
|
2,907.2 |
|
|
|
2,919.1 |
|
Deferred income taxes |
|
240.3 |
|
|
|
159.5 |
|
Warrant liabilities |
|
— |
|
|
|
195.0 |
|
Long-term lease liabilities |
|
171.4 |
|
|
|
142.6 |
|
Other long-term liabilities |
|
282.3 |
|
|
|
262.0 |
|
Total liabilities |
|
6,698.2 |
|
|
|
5,983.6 |
|
Equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
2,821.4 |
|
|
|
2,711.3 |
|
Accumulated deficit |
|
(238.3 |
) |
|
|
(691.9 |
) |
Accumulated other comprehensive (loss) income |
|
(148.8 |
) |
|
|
(4.5 |
) |
Total equity |
|
2,434.3 |
|
|
|
2,014.9 |
|
Total liabilities and equity |
$ |
9,132.5 |
|
|
$ |
7,998.5 |
|
Vertiv Holdings Co |
|||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) |
|||||||||||||||
(Dollars in millions) |
|||||||||||||||
|
Three months ended
|
|
Three months ended
|
|
Year ended
|
|
Year ended
|
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
147.0 |
|
|
$ |
232.6 |
|
|
$ |
495.8 |
|
|
$ |
460.2 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation |
|
20.9 |
|
|
|
19.7 |
|
|
|
81.6 |
|
|
|
74.3 |
|
Amortization |
|
50.1 |
|
|
|
49.2 |
|
|
|
195.4 |
|
|
|
196.7 |
|
Deferred income taxes |
|
(1.4 |
) |
|
|
(130.9 |
) |
|
|
(54.5 |
) |
|
|
(131.6 |
) |
Amortization of debt discount and issuance costs |
|
1.5 |
|
|
|
1.6 |
|
|
|
7.0 |
|
|
|
7.9 |
|
Change in fair value of warrant liabilities |
|
180.0 |
|
|
|
54.5 |
|
|
|
449.2 |
|
|
|
157.9 |
|
Stock-based compensation |
|
8.8 |
|
|
|
6.2 |
|
|
|
34.6 |
|
|
|
25.0 |
|
Changes in operating working capital |
|
44.9 |
|
|
|
84.5 |
|
|
|
114.1 |
|
|
|
66.7 |
|
Other |
|
(26.6 |
) |
|
|
38.8 |
|
|
|
(3.9 |
) |
|
|
43.4 |
|
Net cash provided by (used for) operating activities |
|
425.2 |
|
|
|
356.2 |
|
|
|
1,319.3 |
|
|
|
900.5 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
(60.7 |
) |
|
|
(47.8 |
) |
|
|
(167.0 |
) |
|
|
(127.9 |
) |
Investments in capitalized software |
|
(2.7 |
) |
|
|
(3.3 |
) |
|
|
(17.1 |
) |
|
|
(6.7 |
) |
Proceeds from disposition of property, plant and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12.4 |
|
Acquisition of business |
|
(17.6 |
) |
|
|
(28.8 |
) |
|
|
(17.6 |
) |
|
|
(28.8 |
) |
Proceeds from sale of business |
|
— |
|
|
|
11.9 |
|
|
|
— |
|
|
|
11.9 |
|
Net cash provided by (used for) investing activities |
|
(81.0 |
) |
|
|
(68.0 |
) |
|
|
(201.7 |
) |
|
|
(139.1 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Borrowings from ABL revolving credit facility and short-term borrowings |
|
— |
|
|
|
0.3 |
|
|
|
270.0 |
|
|
|
224.9 |
|
Repayments of ABL revolving credit facility and short-term borrowings |
|
— |
|
|
|
(0.3 |
) |
|
|
(270.0 |
) |
|
|
(459.9 |
) |
Repayment of long-term debt |
|
(5.2 |
) |
|
|
(5.3 |
) |
|
|
(21.1 |
) |
|
|
(27.1 |
) |
Dividend payment |
|
(14.1 |
) |
|
|
(9.5 |
) |
|
|
(42.2 |
) |
|
|
(9.5 |
) |
Repurchase of common shares |
|
— |
|
|
|
— |
|
|
|
(599.9 |
) |
|
|
— |
|
Exercise of employee stock options |
|
8.0 |
|
|
|
4.5 |
|
|
|
33.0 |
|
|
|
27.4 |
|
Employee taxes paid from shares withheld |
|
(0.4 |
) |
|
|
(0.5 |
) |
|
|
(21.9 |
) |
|
|
(3.3 |
) |
Net cash provided by (used for) financing activities |
|
(11.7 |
) |
|
|
(10.8 |
) |
|
|
(652.1 |
) |
|
|
(247.5 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(17.7 |
) |
|
|
6.2 |
|
|
|
(21.9 |
) |
|
|
1.5 |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
314.8 |
|
|
|
283.6 |
|
|
|
443.6 |
|
|
|
515.4 |
|
Beginning cash, cash equivalents and restricted cash |
|
917.4 |
|
|
|
505.0 |
|
|
|
788.6 |
|
|
|
273.2 |
|
Ending cash, cash equivalents and restricted cash |
$ |
1,232.2 |
|
|
$ |
788.6 |
|
|
$ |
1,232.2 |
|
|
$ |
788.6 |
|
Changes in operating working capital |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
$ |
(89.9 |
) |
|
$ |
(133.3 |
) |
|
$ |
(280.3 |
) |
|
$ |
(277.2 |
) |
Inventories |
|
(4.5 |
) |
|
|
47.5 |
|
|
|
(369.3 |
) |
|
|
(54.0 |
) |
Other current assets |
|
(16.6 |
) |
|
|
(31.0 |
) |
|
|
(63.7 |
) |
|
|
4.7 |
|
Accounts payable |
|
84.2 |
|
|
|
27.2 |
|
|
|
343.1 |
|
|
|
(17.7 |
) |
Deferred revenue |
|
62.8 |
|
|
|
89.6 |
|
|
|
434.5 |
|
|
|
274.2 |
|
Accrued expenses and other liabilities |
|
(10.2 |
) |
|
|
46.0 |
|
|
|
7.0 |
|
|
|
91.5 |
|
Income taxes |
|
19.1 |
|
|
|
38.5 |
|
|
|
42.8 |
|
|
|
45.2 |
|
Total changes in operating working capital |
$ |
44.9 |
|
|
$ |
84.5 |
|
|
$ |
114.1 |
|
|
$ |
66.7 |
|
Reconciliation of GAAP and non-GAAP Financial Measures
To supplement this news release, we have included certain non-GAAP financial measures in the format of performance metrics. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company's performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Vertiv’s non-GAAP financial measures include:
- Adjusted operating profit (loss), which represents operating profit (loss), adjusted to exclude amortization of intangibles;
- Adjusted operating margin, which represents adjusted operating profit (loss) divided by net sales;
- Organic net sales growth, which represents the change in net sales adjusted to exclude the impacts of foreign currency exchange rate;
- Adjusted free cash flow, which represents net cash provided by (used for) operating activities adjusted to exclude capital expenditures, investments in capitalized software and include proceeds from disposition of PP&E; and
- Adjusted diluted EPS, which represents diluted earnings per share adjusted to exclude amortization of intangibles and change in warranty liability.
Regional Segment Results
|
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||||||||||||||||||||||
|
2024 |
|
2023 |
|
Δ |
|
Δ% |
|
Organic Δ %(2) |
|
2024 |
|
2023 |
|
Δ |
|
Δ% |
|
Organic Δ %(2) |
||||||||||||||||
Net Sales(1): |
|||||||||||||||||||||||||||||||||||
|
$ |
1,255.9 |
|
|
$ |
1,019.6 |
|
|
$ |
236.3 |
|
|
23.2 |
% |
|
24.7 |
% |
|
$ |
4,500.6 |
|
|
$ |
3,844.5 |
|
|
$ |
656.1 |
|
|
17.1 |
% |
|
17.8 |
% |
APAC |
|
544.0 |
|
|
|
430.4 |
|
|
|
113.6 |
|
|
26.4 |
% |
|
27.1 |
% |
|
|
1,717.8 |
|
|
|
1,527.8 |
|
|
|
190.0 |
|
|
12.4 |
% |
|
13.6 |
% |
EMEA |
|
546.5 |
|
|
|
415.4 |
|
|
|
131.1 |
|
|
31.6 |
% |
|
32.8 |
% |
|
|
1,793.4 |
|
|
|
1,490.9 |
|
|
|
302.5 |
|
|
20.3 |
% |
|
20.8 |
% |
|
$ |
2,346.4 |
|
|
$ |
1,865.4 |
|
|
$ |
481.0 |
|
|
25.8 |
% |
|
27.1 |
% |
|
$ |
8,011.8 |
|
|
$ |
6,863.2 |
|
|
$ |
1,148.6 |
|
|
16.7 |
% |
|
17.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted operating profit (loss)(3): |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
$ |
321.5 |
|
|
$ |
218.4 |
|
|
$ |
103.1 |
|
|
47.2 |
% |
|
|
|
$ |
1,097.8 |
|
|
$ |
762.4 |
|
|
$ |
335.4 |
|
|
44.0 |
% |
|
|
||
APAC |
|
68.4 |
|
|
|
42.9 |
|
|
|
25.5 |
|
|
59.4 |
% |
|
|
|
|
175.2 |
|
|
|
147.4 |
|
|
|
27.8 |
|
|
18.9 |
% |
|
|
||
EMEA |
|
145.2 |
|
|
|
95.0 |
|
|
|
50.2 |
|
|
52.8 |
% |
|
|
|
|
439.4 |
|
|
|
297.7 |
|
|
|
141.7 |
|
|
47.6 |
% |
|
|
||
Corporate(4) |
|
(30.8 |
) |
|
|
(25.9 |
) |
|
|
(4.9 |
) |
|
18.9 |
% |
|
|
|
|
(160.8 |
) |
|
|
(154.0 |
) |
|
|
(6.8 |
) |
|
4.4 |
% |
|
|
||
|
$ |
504.3 |
|
|
$ |
330.4 |
|
|
$ |
173.9 |
|
|
52.6 |
% |
|
|
|
$ |
1,551.6 |
|
|
$ |
1,053.5 |
|
|
$ |
498.1 |
|
|
47.3 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted operating margins(5): |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
25.6 |
% |
|
|
21.4 |
% |
|
|
4.2 |
% |
|
|
|
|
|
|
24.4 |
% |
|
|
19.8 |
% |
|
|
4.6 |
% |
|
|
|
|
||||
APAC |
|
12.6 |
% |
|
|
10.0 |
% |
|
|
2.6 |
% |
|
|
|
|
|
|
10.2 |
% |
|
|
9.6 |
% |
|
|
0.6 |
% |
|
|
|
|
||||
EMEA |
|
26.6 |
% |
|
|
22.9 |
% |
|
|
3.7 |
% |
|
|
|
|
|
|
24.5 |
% |
|
|
20.0 |
% |
|
|
4.5 |
% |
|
|
|
|
||||
Vertiv |
|
21.5 |
% |
|
|
17.7 |
% |
|
|
3.8 |
% |
|
|
|
|
|
|
19.4 |
% |
|
|
15.3 |
% |
|
|
4.1 |
% |
|
|
|
|
||||
(1) |
Segment net sales are presented excluding intercompany sales. |
(2) |
Organic basis is adjusted to exclude foreign currency exchange rate impact and the change in acquisition and divestiture sales. |
(3) |
Adjusted operating profit (loss) is only adjusted at the Corporate segment. There are no adjustments at the reportable segment level between operating profit (loss) and adjusted operating profit (loss). |
(4) |
Corporate costs consist of headquarters management costs, asset impairments, and costs that support centralized global functions including Finance, Treasury, Risk Management, Strategy & Marketing, and Legal. |
(5) |
Adjusted operating margins calculated as adjusted operating profit (loss) divided by net sales. |
Sales by Product and Service Offering
|
Three months ended December 31, |
|||||||||
|
2024 |
|
2023 |
|
Δ |
|
Δ % |
|||
|
|
|
|
|
|
|
|
|||
Products(1) |
$ |
1,013.9 |
|
$ |
798.8 |
|
$ |
215.1 |
|
|
Services & spares |
|
242.0 |
|
|
220.8 |
|
|
21.2 |
|
|
|
$ |
1,255.9 |
|
$ |
1,019.6 |
|
$ |
236.3 |
|
|
|
|
|
|
|
|
|
|
|||
Products(1) |
$ |
417.5 |
|
$ |
318.0 |
|
$ |
99.5 |
|
|
Services & spares |
|
126.5 |
|
|
112.4 |
|
|
14.1 |
|
|
|
$ |
544.0 |
|
$ |
430.4 |
|
$ |
113.6 |
|
|
|
|
|
|
|
|
|
|
|||
Products(1) |
$ |
443.5 |
|
$ |
324.7 |
|
$ |
118.8 |
|
|
Services & spares |
|
103.0 |
|
|
90.7 |
|
|
12.3 |
|
|
|
$ |
546.5 |
|
$ |
415.4 |
|
$ |
131.1 |
|
|
Total: |
|
|
|
|
|
|
|
|||
Products(1) |
$ |
1,874.9 |
|
$ |
1,441.5 |
|
$ |
433.4 |
|
|
Services & spares |
|
471.5 |
|
|
423.9 |
|
|
47.6 |
|
|
|
$ |
2,346.4 |
|
$ |
1,865.4 |
|
$ |
481.0 |
|
|
(1) |
Refer to Exhibit 99.2 to Vertiv’s current report on Form 8-K filed on February 21, 2024, for a fiscal year 2023 summary of changes made to conform with the current year presentation of sales by product and service offering. |
|
Year ended December 31, |
|||||||||
|
2024 |
|
2023 |
|
Δ |
|
Δ % |
|||
|
|
|
|
|
|
|
|
|||
Products(1) |
$ |
3,579.1 |
|
$ |
3,021.2 |
|
$ |
557.9 |
|
|
Services & spares |
|
921.5 |
|
|
823.3 |
|
|
98.2 |
|
|
|
$ |
4,500.6 |
|
$ |
3,844.5 |
|
$ |
656.1 |
|
|
|
|
|
|
|
|
|
|
|||
Products(1) |
$ |
1,248.5 |
|
$ |
1,098.1 |
|
$ |
150.4 |
|
|
Services & spares |
|
469.3 |
|
|
429.7 |
|
|
39.6 |
|
|
|
$ |
1,717.8 |
|
$ |
1,527.8 |
|
$ |
190.0 |
|
|
|
|
|
|
|
|
|
|
|||
Products(1) |
$ |
1,417.6 |
|
$ |
1,151.9 |
|
$ |
265.7 |
|
|
Services & spares |
|
375.8 |
|
|
339.0 |
|
|
36.8 |
|
|
|
$ |
1,793.4 |
|
$ |
1,490.9 |
|
$ |
302.5 |
|
|
Total: |
|
|
|
|
|
|
|
|||
Products(1) |
$ |
6,245.2 |
|
$ |
5,271.2 |
|
$ |
974.0 |
|
|
Services & spares |
|
1,766.6 |
|
|
1,592.0 |
|
|
174.6 |
|
|
|
$ |
8,011.8 |
|
$ |
6,863.2 |
|
$ |
1,148.6 |
|
|
(1) |
Refer to Exhibit 99.2 to Vertiv’s current report on Form 8-K filed on February 21, 2024, for a fiscal year 2023 summary of changes made to conform with the current year presentation of sales by product and service offering. |
Organic growth by Product and Service Offering
|
Three months ended December 31, 2024 |
|||||||||
|
Net Sales Δ |
|
FX Δ |
|
Organic growth |
|
Organic Δ %(1) |
|||
|
|
|
|
|
|
|
||||
Products |
$ |
215.1 |
|
$ |
13.8 |
|
$ |
228.9 |
|
|
Services & spares |
|
21.2 |
|
|
2.1 |
|
|
23.3 |
|
|
|
$ |
236.3 |
|
$ |
15.9 |
|
$ |
252.2 |
|
|
|
|
|
|
|
|
|
||||
Products |
$ |
99.5 |
|
$ |
1.8 |
|
$ |
101.3 |
|
|
Services & spares |
|
14.1 |
|
|
1.2 |
|
|
15.3 |
|
|
|
$ |
113.6 |
|
$ |
3.0 |
|
$ |
116.6 |
|
|
|
|
|
|
|
|
|
||||
Products |
$ |
118.8 |
|
$ |
5.1 |
|
$ |
123.9 |
|
|
Services & spares |
|
12.3 |
|
|
0.2 |
|
|
12.5 |
|
|
|
$ |
131.1 |
|
$ |
5.3 |
|
$ |
136.4 |
|
|
Total: |
|
|
|
|
|
|
||||
Products |
$ |
433.4 |
|
$ |
20.7 |
|
$ |
454.1 |
|
|
Services & spares |
|
47.6 |
|
|
3.5 |
|
|
51.1 |
|
|
|
$ |
481.0 |
|
$ |
24.2 |
|
$ |
505.2 |
|
|
(1) |
Organic growth percentage change is calculated as organic growth divided by net sales for the three months ended December 31, 2023. |
|
Year ended December 31, 2024 |
||||||||||
|
Net Sales Δ |
|
FX Δ |
|
Organic growth |
|
Organic Δ %(1) |
||||
|
|
|
|
|
|
|
|
||||
Products |
$ |
557.9 |
|
$ |
31.7 |
|
|
$ |
589.6 |
|
|
Services & spares |
|
98.2 |
|
|
(3.5 |
) |
|
|
94.7 |
|
|
|
$ |
656.1 |
|
$ |
28.2 |
|
|
$ |
684.3 |
|
|
|
|
|
|
|
|
|
|
||||
Products |
$ |
150.4 |
|
$ |
11.4 |
|
|
$ |
161.8 |
|
|
Services & spares |
|
39.6 |
|
|
6.7 |
|
|
|
46.3 |
|
|
|
$ |
190.0 |
|
$ |
18.1 |
|
|
$ |
208.1 |
|
|
|
|
|
|
|
|
|
|
||||
Products |
$ |
265.7 |
|
$ |
(1.4 |
) |
|
$ |
264.3 |
|
|
Services & spares |
|
36.8 |
|
|
8.7 |
|
|
|
45.5 |
|
|
|
$ |
302.5 |
|
$ |
7.3 |
|
|
$ |
309.8 |
|
|
Total: |
|
|
|
|
|
|
|
||||
Products |
$ |
974.0 |
|
$ |
41.7 |
|
|
$ |
1,015.7 |
|
|
Services & spares |
|
174.6 |
|
|
11.9 |
|
|
|
186.5 |
|
|
|
$ |
1,148.6 |
|
$ |
53.6 |
|
|
$ |
1,202.2 |
|
|
(1) |
Organic growth percentage change is calculated as organic growth divided by net sales for the year ended December 31, 2023. |
Segment information
Operating profit (loss) |
Three months ended
|
|
Three months ended
|
|
Year ended
|
|
Year ended
|
||||||||
|
$ |
321.5 |
|
|
$ |
218.4 |
|
|
$ |
1,097.8 |
|
|
$ |
762.4 |
|
|
|
68.4 |
|
|
|
42.9 |
|
|
|
175.2 |
|
|
|
147.4 |
|
|
|
145.2 |
|
|
|
95.0 |
|
|
|
439.4 |
|
|
|
297.7 |
|
Total reportable segments |
|
535.1 |
|
|
|
356.3 |
|
|
|
1,712.4 |
|
|
|
1,207.5 |
|
Foreign currency gain (loss) |
|
(0.6 |
) |
|
|
(2.7 |
) |
|
|
(9.3 |
) |
|
|
(16.0 |
) |
Corporate and other |
|
(30.2 |
) |
|
|
(23.2 |
) |
|
|
(151.5 |
) |
|
|
(138.0 |
) |
Total corporate, other and eliminations |
|
(30.8 |
) |
|
|
(25.9 |
) |
|
|
(160.8 |
) |
|
|
(154.0 |
) |
Amortization of intangibles |
|
(47.1 |
) |
|
|
(45.2 |
) |
|
|
(184.2 |
) |
|
|
(181.3 |
) |
Operating profit (loss) |
$ |
457.2 |
|
|
$ |
285.2 |
|
|
$ |
1,367.4 |
|
|
$ |
872.2 |
|
Reconciliation of net cash provided by (used for) operating activities to adjusted free cash flow
|
Three months ended
|
|
Three months ended
|
|
Year ended
|
|
Year ended
|
||||||||
Net cash provided by (used for) operating activities |
$ |
425.2 |
|
|
$ |
356.2 |
|
|
$ |
1,319.3 |
|
|
$ |
900.5 |
|
Capital expenditures |
|
(60.7 |
) |
|
|
(47.8 |
) |
|
|
(167.0 |
) |
|
|
(127.9 |
) |
Investments in capitalized software |
|
(2.7 |
) |
|
|
(3.3 |
) |
|
|
(17.1 |
) |
|
|
(6.7 |
) |
Proceeds from disposition of PP&E |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12.4 |
|
Adjusted free cash flow |
$ |
361.8 |
|
|
$ |
305.1 |
|
|
$ |
1,135.2 |
|
|
$ |
778.3 |
|
Reconciliation from operating profit (loss) to adjusted operating profit (loss)
Three months ended
|
Three months ended
|
Year ended
|
Year ended
|
||||||||
Operating profit (loss) |
$ |
457.2 |
$ |
285.2 |
$ |
1,367.4 |
|
$ |
872.2 |
||
Amortization of intangibles |
|
47.1 |
|
45.2 |
|
184.2 |
|
181.3 |
|||
Adjusted operating profit (loss) |
$ |
504.3 |
$ |
330.4 |
$ |
1,551.6 |
$ |
1,053.5 |
|||
Reconciliation from operating margin to adjusted operating margin
|
Three months ended
|
|
Three months ended
|
|
Δ |
|
Year ended
|
|
Year ended
|
|
Δ |
||||||||||||
Vertiv net sales |
$ |
2,346.4 |
|
|
$ |
1,865.4 |
|
|
$ |
481.0 |
|
|
$ |
8,011.8 |
|
|
$ |
6,863.2 |
|
|
$ |
1,148.6 |
|
Vertiv operating profit (loss) |
|
457.2 |
|
|
|
285.2 |
|
|
|
172.0 |
|
|
|
1,367.4 |
|
|
|
872.2 |
|
|
|
495.2 |
|
Vertiv operating margin |
|
19.5 |
% |
|
|
15.3 |
% |
|
|
4.2 |
% |
|
|
17.1 |
% |
|
|
12.7 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of intangibles |
$ |
47.1 |
|
|
$ |
45.2 |
|
|
$ |
1.9 |
|
|
$ |
184.2 |
|
|
$ |
181.3 |
|
|
$ |
2.9 |
|
Vertiv adjusted operating profit (loss) |
|
504.3 |
|
|
|
330.4 |
|
|
|
173.9 |
|
|
|
1,551.6 |
|
|
|
1,053.5 |
|
|
|
498.1 |
|
Vertiv adjusted operating margin |
|
21.5 |
% |
|
|
17.7 |
% |
|
|
3.8 |
% |
|
|
19.4 |
% |
|
|
15.3 |
% |
|
|
4.1 |
% |
Reconciliation of Diluted EPS to Non-GAAP Adjusted EPS
Three months ended December 31, 2024 |
||||||||||||||||||||||||
|
Operating profit (loss) |
|
Interest expense, net |
|
Loss on extinguishment of debt |
|
Change in warrant liability |
|
Income tax expense (benefit) |
|
Net income (loss) |
|
Diluted EPS(1) |
|||||||||||
GAAP |
$ |
457.2 |
|
$ |
30.7 |
|
$ |
1.3 |
|
$ |
180.0 |
|
|
$ |
98.2 |
|
|
$ |
147.0 |
|
|
$ |
0.38 |
|
Amortization of intangibles |
|
47.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
47.1 |
|
|
|
0.12 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
— |
|
|
(180.0 |
) |
|
|
(37.5 |
) |
|
|
217.5 |
|
|
|
0.56 |
|
Nonrecurring tax benefit, net(2) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
27.1 |
|
|
|
(27.1 |
) |
|
|
(0.07 |
) |
Non-GAAP Adjusted |
$ |
504.3 |
|
$ |
30.7 |
|
$ |
1.3 |
|
$ |
— |
|
|
$ |
87.8 |
|
|
$ |
384.5 |
|
|
$ |
0.99 |
|
Diluted shares (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
386.5 |
|
|||||||||
(1) |
Diluted EPS and adjusted diluted EPS is based on 386.5 million shares (includes 376.6 million basic shares and 9.9 million potential dilutive stock options, restricted stock units and performance awards converted into RSUs upon achievement of the related performance target). We believe that this presentation is more representative of operating results by removing the impact of warrant liability accounting and the associated impact on diluted share count. |
(2) |
Nonrecurring tax benefit includes |
Three months ended December 31, 2023 |
||||||||||||||||||||||||
|
Operating profit (loss) |
|
Interest expense, net |
|
Loss on extinguishment of debt |
|
Change in warrant liability |
|
Income tax expense (benefit) |
|
Net income (loss) |
|
Diluted EPS(1) |
|||||||||||
GAAP |
$ |
285.2 |
|
$ |
42.9 |
|
$ |
0.5 |
|
$ |
54.5 |
|
|
$ |
(45.3 |
) |
|
$ |
232.6 |
|
|
$ |
0.60 |
|
Amortization of intangibles |
|
45.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
45.2 |
|
|
|
0.12 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
— |
|
|
(54.5 |
) |
|
|
— |
|
|
|
54.5 |
|
|
|
0.14 |
|
Nonrecurring tax benefit, net(2) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
115.0 |
|
|
|
(115.0 |
) |
|
|
(0.30 |
) |
Non-GAAP Adjusted |
$ |
330.4 |
|
$ |
42.9 |
|
$ |
0.5 |
|
$ |
— |
|
|
$ |
69.7 |
|
|
$ |
217.3 |
|
|
$ |
0.56 |
|
Diluted shares (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
390.5 |
|
|||||||||
(1) |
Diluted EPS and adjusted diluted EPS is based on 390.5 million shares (includes 381.6 million basic shares, 8.9 million potential dilutive stock options, restricted stock units and performance awards converted into RSUs upon achievement of the related performance target). We believe that this presentation is more representative of operating results by removing the impact of warrant liability accounting and the associated impact on diluted share count. |
(2) |
Nonrecurring tax benefit includes |
Year ended December 31, 2024 |
|||||||||||||||||||||||
|
Operating profit (loss) |
|
Interest expense, net |
|
Loss on extinguishment of debt |
|
Change in warrant liability |
|
Income tax expense (benefit) |
|
Net income (loss) |
|
Diluted EPS(1) |
||||||||||
GAAP |
$ |
1,367.4 |
|
$ |
150.4 |
|
$ |
2.4 |
|
$ |
449.2 |
|
|
$ |
269.6 |
|
$ |
495.8 |
|
|
$ |
1.28 |
|
Amortization of intangibles |
|
184.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
184.2 |
|
|
|
0.48 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
— |
|
|
(449.2 |
) |
|
|
— |
|
|
449.2 |
|
|
|
1.16 |
|
Nonrecurring tax benefit, net(2) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
27.1 |
|
|
(27.1 |
) |
|
|
(0.07 |
) |
Non-GAAP Adjusted |
$ |
1,551.6 |
|
$ |
150.4 |
|
$ |
2.4 |
|
$ |
— |
|
|
$ |
296.7 |
|
$ |
1,102.1 |
|
|
$ |
2.85 |
|
Diluted shares (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
386.3 |
|
||||||||
(1) |
Diluted EPS and adjusted diluted EPS is based on 386.3 million shares (includes 376.4 million basic shares and 9.9 million potential dilutive stock options, restricted stock units and performance awards converted into RSUs upon achievement of the related performance target). We believe that this presentation is more representative of operating results by removing the impact of warrant liability accounting and the associated impact on diluted share count. |
(2) |
Nonrecurring tax benefit includes |
Year ended December 31, 2023 |
|||||||||||||||||||||||
|
Operating profit (loss) |
|
Interest expense, net |
|
Loss on extinguishment of debt |
|
Change in warrant liability |
|
Income tax expense (benefit) |
|
Net income (loss) |
|
Diluted EPS(1) |
||||||||||
GAAP |
$ |
872.2 |
|
$ |
180.1 |
|
$ |
0.5 |
|
$ |
157.9 |
|
|
$ |
73.5 |
|
$ |
460.2 |
|
|
$ |
1.19 |
|
Amortization of intangibles |
|
181.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
181.3 |
|
|
|
0.47 |
|
Change in warrant liability |
|
— |
|
|
— |
|
|
— |
|
|
(157.9 |
) |
|
|
— |
|
|
157.9 |
|
|
|
0.41 |
|
Nonrecurring tax benefit, net(2) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
115.0 |
|
|
(115.0 |
) |
|
|
(0.30 |
) |
Non-GAAP Adjusted |
$ |
1,053.5 |
|
$ |
180.1 |
|
$ |
0.5 |
|
$ |
— |
|
|
$ |
188.5 |
|
$ |
684.4 |
|
|
$ |
1.77 |
|
Diluted shares (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
386.2 |
|
||||||||
(1) |
Diluted EPS and adjusted diluted EPS is based on 386.2 million shares (includes 380.1 million basic shares, 6.1 million potential dilutive stock options, restricted stock units and performance awards converted into RSUs upon achievement of the related performance target). We believe that this presentation is more representative of operating results by removing the impact of warrant liability accounting and the associated impact on diluted share count. |
(2) |
Nonrecurring tax benefit includes |
Vertiv Holdings Co
2025 Adjusted Guidance
Reconciliation of GAAP Operating Profit to Non-GAAP Adjusted Financial Performance(1)(2)
First Quarter 2025 |
|||||||||||||||
|
Operating profit (loss) |
|
Interest expense, net |
|
Income tax expense (benefit) |
|
Net income (loss) |
|
Diluted EPS(3) |
||||||
GAAP |
$ |
280.0 |
|
$ |
28.0 |
|
$ |
104.0 |
|
|
$ |
148.0 |
|
$ |
0.38 |
Amortization of intangibles |
|
45.0 |
|
|
— |
|
|
— |
|
|
|
45.0 |
|
|
0.12 |
Non-recurring tax adjustment, net(4) |
|
— |
|
|
— |
|
|
(40.0 |
) |
|
|
40.0 |
|
|
0.10 |
Non-GAAP Adjusted |
$ |
325.0 |
|
$ |
28.0 |
|
$ |
64.0 |
|
|
$ |
233.0 |
|
$ |
0.60 |
Diluted shares (in millions) |
|
|
|
|
|
|
|
|
|
391.0 |
|||||
Full Year 2025 |
|||||||||||||||
|
Operating profit (loss) |
|
Interest expense, net |
|
Income tax expense (benefit) |
|
Net income (loss) |
|
Diluted EPS(5) |
||||||
GAAP |
$ |
1,754.0 |
|
$ |
125.0 |
|
$ |
460.0 |
|
|
$ |
1,169.0 |
|
$ |
2.98 |
Amortization of intangibles |
|
181.0 |
|
|
— |
|
|
— |
|
|
|
181.0 |
|
|
0.47 |
Non-recurring tax adjustment, net(4) |
|
— |
|
|
— |
|
|
(40.0 |
) |
|
|
40.0 |
|
|
0.10 |
Non-GAAP Adjusted |
$ |
1,935.0 |
|
$ |
125.0 |
|
$ |
420.0 |
|
|
$ |
1,390.0 |
|
$ |
3.55 |
Diluted shares (in millions) |
|
|
|
|
|
|
|
|
|
392.0 |
|||||
(1) |
Our guidance does not reflect potential impacts from recent policy changes or considerations by the new |
(2) |
Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to FY 2025 guidance, including organic net sales growth, adjusted operating margin and adjusted free cash flow, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For the same reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results. |
(3) |
Diluted EPS and adjusted diluted EPS based on 391.0 million shares (includes 381.0 million basic shares and a weighted average 10.0 million potential dilutive stock options and restricted stock units). |
(4) |
Nonrecurring tax adjustment of |
| (5) | Diluted EPS and adjusted diluted EPS based on 392.0 million shares (includes 382.0 million basic shares and a weighted average 10.0 million potential dilutive stock options and restricted stock units). |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250211415767/en/
For investor inquiries:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
T +1 614-841-6776
E: lynne.maxeiner@vertiv.com
For media inquiries:
Brianna Rabe
Ruder Finn for Vertiv
E: brianna.rabe@ruderfinn.com
Source: Vertiv Holdings Co
FAQ
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