Q2 2024 Vertiv Holdings Co Earnings Call Transcript
Key Points
- Vertiv Holdings Co (VRT) reported a strong first half of 2024 with Q2 organic sales up 14%, led by significant growth in the Americas and EMEA.
- The company saw a 57% year-on-year increase in orders and a 10% sequential increase from Q1, with a high book-to-bill ratio of 1.4x.
- Adjusted operating profit reached $382 million, with operating margins expanding by 110 basis points to 19.6%.
- Adjusted free cash flow was $333 million in Q2, reflecting strong profitability and cash flow performance.
- Vertiv Holdings Co (VRT) raised its full-year guidance across all financial metrics, expecting organic growth of 13%, adjusted operating profit of $1.435 billion, and adjusted free cash flow of $875 million.
- Despite strong performance, the company anticipates a sequential decline in orders in Q3 from the extremely high levels seen in Q2.
- APAC sales growth was modest at 6%, with China slightly down, impacting overall regional performance.
- The company faces challenges in managing elongated customer request dates for large projects, which could affect future revenue timing.
- Inflation remains a concern, and while the company has processes in place to stay price-cost positive, it continues to be a factor.
- There is increased competition in the data center market, which could impact pricing and market share dynamics.
Good morning. My name is Brika, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vertiv's second-quarter 2024 earnings conference call. (Operator Instructions) Please note that this call is being recorded. I would now like to turn the program over to your host for today's conference call, Lynne Maxeiner Vice President of Investor Relations. You may begin.
Great. Thank you, Brika. Good morning, and welcome to Vertiv's second-quarter 2024 earnings conference call. Joining me today are Vertiv's Executive Chairman, Dave Cote; Chief Executive Officer, Giordano Albertazzi; and Chief Financial Officer, David Fallon.
Before we begin, I would 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
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