Vertiv Holdings Co Q1 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Vertiv reported strong Q1 2024 results, showing continued momentum in data center demand, particularly AI‑driven projects.
  • Sales grew 8% year-over-year, with high single‑digit increases across all regions.
  • Orders surged 60% year-over-year and 4% sequentially. Management emphasized this growth is not a new long‑term baseline, as Q1 2023 was an easy comparison (orders were down 33% YoY in Q1 2023).
  • Book-to-bill was a strong 1.5x, pushing backlog up by about $800 million. Many new orders are for delivery in 2025 and beyond, driven by large, long‑lead AI projects.
  • Adjusted operating profit reached $249 million (up $73 million YoY) with a 15.2% margin, 370 bps higher than last year’s Q1.
  • Adjusted free cash flow was $101 million, an improvement of $76 million from last year.
  • Vertiv repurchased $600 million of shares (9.1 million shares, average price $66), including shares purchased from Platinum Advisers as they exited their position.

Guidance Updates

  • Full-year 2024 organic sales growth raised to 12% (from prior midpoint of 10%).
  • Adjusted operating profit raised to a midpoint of $1.35 billion (from $1.3 billion).
  • Full-year operating margin raised to 17.7%, progressing toward long‑term 20%+ target.
  • Adjusted EPS guidance midpoint remains $2.32 (up 30% YoY).

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Operator: Good morning. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to Vertiv's First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this call is being recorded. I'd now like to turn the program over to your host for today's conference call, Lynne Maxeiner, Vice President of Investor Relations. Lynne Maxeiner: Great. Thank you, Jordan, and good morning and welcome to Vertiv's First Quarter 2024 Earnings Conference Call. Joining me today are Vertiv's Executive Chairman, Dave Cote; Chief Executive Officer, Gio Albertazzi; and Chief Financial Officer, David Fallon. Before we begin, I'd like to point out that during the course of this call, we will make forward-looking statements regarding future events, including the future financial and operating performance of Vertiv. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. We refer you to the cautionary language included in today's earnings release, and you can learn more about these risks in our annual and quarterly reports and other filings made with the SEC. Any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events. During this call, we will al

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