Vertiv Holdings Co (VRT, Financial), a global provider of critical digital infrastructure and continuity solutions, released its financial results for the third quarter ended September 30, 2023, on October 25, 2023. The company reported a significant increase in net sales and operating profit, exceeding expectations and prompting an upward revision of the full year 2023 outlook.
Financial Highlights
Vertiv's Q3 net sales stood at $1,743 million, marking an 18% increase compared to the same period in 2022. The company's operating profit for the quarter was $251 million, surpassing the high-end of the guidance range by $36 million. Adjusted operating margin was 17.0%, up 790 basis points compared to last year’s third quarter. The company also reported a net leverage of 2.4x at the end of the third quarter, forecasted to decrease to approximately 2.1x by year-end.
CEO Commentary
“Third quarter results exceeded our expectations, driven by an intense focus on operational execution and robust market demand for Vertiv’s products and services,” said Giordano Albertazzi, Vertiv’s Chief Executive Officer. “As a result, we are again raising our full year 2023 guidance for all financial metrics. Our end markets remain healthy and momentum continues. This sets a great foundation for 2024.”
Full Year and Fourth Quarter 2023 Guidance
Given the strong underlying market demand and healthy sales pipeline activity, Vertiv has increased its full year financial guidance across all metrics. For the fourth quarter of 2023, the company expects net sales to be between $1,828 million and $1,853 million, and adjusted operating profit to be between $295 million and $305 million. For the full year 2023, Vertiv anticipates net sales to be between $6,826 million and $6,851 million, and adjusted operating profit to be between $1,020 million and $1,030 million.
Looking Ahead
Vertiv's strong Q3 performance and positive full year outlook reflect the company's operational efficiency and the robust demand for its products and services. As the industry gears up to meet the growing demand for data center infrastructure, Vertiv is well-positioned to leverage its unique offerings to meet customer needs. The company's focus on operational improvement, customer service, and favorable market trends underpin its strong long-term market demand and potential for long-term value creation.
