Vertiv (VRT) Q2 2024 earnings summary

Executive summary

• Q2 2024 organic sales grew 14% year-over-year, led by strong growth in the Americas and EMEA, with APAC also contributing; organic orders surged 57% year-over-year, and the book-to-bill ratio was 1.4x, reflecting robust demand and backlog.

• Adjusted operating profit rose 52% to $382 million, with margin expanding 510 basis points to 19.6%; operating profit increased 63% to $336 million, and net income more than doubled to $178.1 million.

• Adjusted free cash flow was $333 million, up $106 million year-over-year, driven by higher profit and working capital improvements.

• The company raised full-year guidance across all financial metrics, reflecting strong first-half performance and robust demand pipeline, especially in data centers and AI infrastructure.

• Major capacity expansions and investments in innovation are underway to support AI-driven demand, with service business and technology partnerships highlighted as key differentiators.

Financial highlights

• Q2 2024 net sales reached $1,953 million, up 12.6% year-over-year; organic growth was 14%.

• Adjusted diluted EPS was $0.67, up $0.21 year-over-year; net income for Q2 2024 was $178.1 million.

• Adjusted free cash flow was $333 million, over $100 million better than last year.

• Net leverage at quarter-end was 1.8x, within the 1x–2x target range; liquidity stood at $1.2 billion.

• Interest expense reduced by repricing $2.1 billion term loan, saving ~$13 million annually.

Outlook and guidance

• Full-year 2024 net sales guidance raised to $7,665 million at midpoint, $50 million above prior guidance.

• Adjusted operating profit guidance increased to $1,435 million at midpoint, with margin guidance at 18.7%.

• Adjusted diluted EPS projected at $2.47–$2.53, over 40% higher than 2023.

• Adjusted free cash flow guidance raised to $875 million at midpoint.

• Q3 2024 net sales expected between $1,935M–$1,985M; adjusted operating profit $375M–$395M.