Vertiv (VRT) Q4 2024 earnings summary

Executive summary

• Q4 2024 adjusted diluted EPS was $0.99, up 77% year-over-year, with full-year adjusted EPS at $2.85, up 61%, driven by higher adjusted operating profit and strong sales growth across all regions.

• Organic net sales grew 27% in Q4 2024, with all regions exceeding 20% growth, fueled by strong data center and AI-related demand.

• Transformation efforts, strategic R&D investments, and CapEx are driving sustained outperformance and market leadership in data center infrastructure.

• Management reaffirmed a robust five-year financial framework, citing continued data center demand and innovation focus.

• Net leverage improved to 1.0x at year-end, supporting ample liquidity and capital deployment flexibility.

Financial highlights

• Q4 2024 net sales were $2,346 million, up 27% year-over-year; all regions posted double-digit organic growth: Americas +25%, APAC +27%, EMEA +33%.

• Q4 2024 adjusted operating profit was $504 million (up 53%), with a margin of 21.5% (up 380 bps).

• Q4 2024 adjusted free cash flow was $362 million; full-year 2024 adjusted free cash flow was $1,135 million with 103% conversion.

• Full-year 2024 net sales reached $8,012 million (organic up 18%), adjusted operating profit $1,552 million (up 47%), and adjusted operating margin 19.4% (up 410 bps).

• Year-end liquidity was $2.0 billion, including $1.2 billion cash and $800 million undrawn ABL facility.

Outlook and guidance

• FY 2025 guidance: adjusted diluted EPS $3.50–$3.60 (up 25%), net sales $9,125–$9,275 million (organic up 16%), adjusted operating profit $1,910–$1,960 million, adjusted free cash flow $1,275–$1,325 million.

• Q1 2025 guidance: adjusted diluted EPS $0.57–$0.63, net sales $1,900–$1,950 million, organic growth: Americas low 20s%, APAC mid 20s%, EMEA low teens%.

• Long-term assumptions reaffirmed: 12–14% CAGR top-line growth, margin expansion, and strong cash generation through 2029.

• 2025 capital expenditures forecasted at ~$275 million (~3% of sales).

• Despite ~$125 million FX headwind, 2025 sales guidance is $75 million above prior guidance.