Q3 2024 Vertiv Holdings Co Earnings Call Transcript
Key Points
- Vertiv Holdings Co (VRT) reported a strong third quarter with organic sales up 19% and double-digit growth across all regions.
- The company achieved a significant milestone with an adjusted operating margin surpassing 20% for the first time.
- Vertiv Holdings Co (VRT) raised its full-year guidance across all financial metrics, expecting organic growth of 14% and adjusted operating profit of $1.485 billion.
- The company is experiencing robust demand in the data center market, driven by AI and cloud computing, with a strong pipeline and backlog supporting future growth.
- Vertiv Holdings Co (VRT) is rapidly gaining market share in liquid cooling, with growth in this segment exceeding market growth.
- The company acknowledged that continued 60% order increases are unlikely, indicating potential moderation in order growth.
- There is competition in the liquid cooling market, and Vertiv Holdings Co (VRT) does not expect to win 100% of all orders.
- The company is not providing a view on Q4 orders due to the difficulty in forecasting, which may create uncertainty for investors.
- APAC adjusted operating margin declined 260 basis points from the previous year, primarily due to unfavorable mix and a favorable discrete item in last year's third quarter.
- The company faces challenges with inflation and supply chain resilience, which it incorporates into its commercial excellence programs.
Good morning, my name is Nadia and I'll be your conference operator today. At this time. I would like to welcome everyone to Vertiv's third-quarter, 2024 earnings conference call.
(Operator Instructions) Please note 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.
Great. Thank you, Nadia. Good morning and welcome to Vertiv's third-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. Today we have a few additional slides to cover in our presentation.
We will let the Q&A portion of the call go an additional 10 minutes if needed up until 12:10 PM Eastern time. We would kindly request to please limit yourself to one question. And if you have a follow up question, please rejoin the queue before
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