Vertiv Holdings, Llc · NYSE:VRT
Vertiv — Q4 2024 Earnings Presentation
31 slides from Vertiv's earnings presentation, Feb 12, 2025
Slide 1: 4th Quarter 2024 Results
4th Quarter 2024 Results February 12, 2025
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation, and other statements that Vertiv may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv’s future financial
Slide 3: Fourth quarter 2024 key messages
Fourth quarter 2024 key messages Fourth quarter adjusted diluted earnings per share of $0.99, up ~77% from fourth quarter 2023, and full year 2024 adjusted diluted earnings per share of $2.85, up ~61% from prior year – primarily driven by higher adjusted operating profit. Fourth quarter organic net
Slide 4: Customer demand, operations, and procurement update
Customer demand, operations, and procurement update Customer demand Operations and Procurement update • Strong trailing twelve-month (TTM) organic orders growth • Supply chain resiliency continuing to strengthen across of ~30% vs. same prior year period. Book-to-bill ratio of ~1.0x multiple dimensio
Slide 5: Vertiv end-to-end systems and services expertise for power and cooling challenges
VERTIV end-to-end systems and services expertise are well positioned to solve the industry’s increasingly complex power management and cooling challenges Power Train Thermal Chain + Power Management Control Systems & Microgrid Integration + Thermal Management Controls, Monitoring, & Protection Syst
Slide 6: Vertiv power management portfolio and prowess
VERTIV power management portfolio and prowess Covering the end-to-end power train Leveraging key Vertiv differentiators FACILITY POWER CONVERSION & DISTRIBUTION • LOW- AND- MEDIUM-VOLTAGE SWITCHGEAR • GLOBAL SERVICE NETWORK • LOW- AND- MEDIUM VOLTAGE BUSWAY • 3-PHASE UNINTERRUPTIBLE POWER SUPPLY (UP
Slide 7: Vertiv enabling the industry's evolution by addressing complex power management challenges
VERTIV is enabling the industry’s evolution by addressing increasingly complex power management challenges Evolving critical power technology Delivering new-to-market offerings Industry is navigating… Vertiv PowerNexus Growing power demands • Integrates Power Train elements Dynamic AI load profiles
Slide 8: BSE acquisition and balance sheet
BSE acquisition and balance sheet Acquisition of BSE1 in December 2024 Strong balance sheet • Manufacturer of chillers, heat pumps, heat-recovery solutions Adjusted free cash flow and air-handling units based in China • Continued strong adjusted free cash flow of ~$1.1B in 2024 with adjusted free ca
Slide 9: Fourth quarter 2024 financial results
Fourth quarter 2024 financial results $Millions; deltas to midpoint of guidance range . Diluted EPS $0.99 2,346 504 21.5% 362 1,865 17.7% 305 330 $0.56 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 + • • + + • + + • − • − • − Strong fourth quarter results driven by
Slide 10: Fourth quarter 2024 financial results
Fourth quarter 2024 financial results $Millions • • • • • Adjusted operating • profit $218 $322 $43 $68 $95 $145 Q4 2024 Earnings Note: see “Non-GAAP Financial Measures” beginning on slide 18 of the Appendix. 10
Slide 11: Full year 2024 financial results
Full year 2024 financial results $Millions; deltas to midpoint of guidance range . Diluted EPS $2.85 8,012 1,552 19.4% 1,135 6,863 15.3% 1,054 778 $1.77 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 + • • + + • + − • + − • • − Strong 2024 financial performance acros
Slide 12: First quarter 2025 financial guidance
First quarter 2025 financial guidance $Millions; deltas to midpoint of guidance range . Diluted EPS $0.60 1,925 325 16.9% 1,639 15.2% $0.43 249 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 + • • + • • − • • Continued momentum driving expected Q1 organic sales growth and margin exp
Slide 13: Full year 2025 financial guidance
Full year 2025 financial guidance $Millions; deltas to midpoint of guidance range . Diluted EPS $3.55 9,200 1,935 21.0% 1,300 8,012 19.4% 1,135 $2.85 1,552 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 + • • + + • + • + − • • − − − Expecting strong organic growth in
Slide 14: Reconfirm long-term assumptions from Nov investor event
Reconfirm long-term assumptions from Nov investor event $Billions Top Line Growth Margin Expansion Cash Generation • Above-market growth • Operational leverage • Improved profitability • Accelerating offering innovation • Vertiv Operating System (VOS) • Disciplined and focused Capex deployment • Dat
Slide 15: Focus areas for 2025
Focus areas for 2025 Leverage strong customer relationships and continue to invest in portfolio to deliver above-market growth Continue to focus on Vertiv Operating System (VOS) including operational excellence and lean principles to drive execution, efficiency and productivity Commercial execution
Slide 16: Key takeaways
Key takeaways Strong adjusted operating margin of 21.5% in the fourth quarter exceeded profitability expectations Full-year orders up ~30%1 vs. prior year with book-to-bill at ~1.2x. Strong sales pipeline supports 2025+ growth Trend of strong organic sales growth and margin expansion expected to con
Slide 17: Non-GAAP financial reconciliations
Non-GAAP financial reconciliations 17
Slide 18: Non-GAAP financial measures – fourth quarter results
Non-GAAP financial measures – fourth quarter results Reconciliation of segment operating profit (loss) to operating profit (loss) and adjusted Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin operating profit (loss) ($M | 4th QUARTER) 4Q24 4Q23 ($M | 4t
Slide 19: Non-GAAP financial measures – fourth quarter results (cont.)
Non-GAAP financial measures – fourth quarter results (cont.) Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Loss on Income Operating profit Interest extinguishment Change in tax expense ($M, except EPS | 4th QUARTER 2024) (loss)
Slide 20: Non-GAAP financial measures – full year results
Non-GAAP financial measures – full year results Reconciliation of segment operating profit (loss) to operating profit (loss) and adjusted Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin operating profit (loss) ($M | FULL YEAR) FY24 FY23 ($M | FULL YEAR
Slide 21: Non-GAAP financial measures – full year results (cont.)
Non-GAAP financial measures – full year results (cont.) Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Loss on Income Operating profit Interest extinguishment Change in tax expense ($M, except EPS | FULL YEAR 2024) (loss) expense
Slide 22: Non-GAAP financial measures – first quarter 2025 guidance
Non-GAAP financial measures – first quarter 2025 guidance1 Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Operating profit Interest Income tax Net income ($M, except EPS | 1st QUARTER 20252) (loss) expense, net expense (loss) Dil
Slide 23: Non-GAAP financial measures – FY 2025 guidance
Non-GAAP financial measures – FY 2025 guidance1 At midpoint of guidance range Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Income Operating profit Interest tax expense ($M, except EPS | FULL YEAR 2025) (loss) expense, net (bene
Slide 24: Non-GAAP financial measures: Q1 2023 – Q4 2024 results
Non-GAAP financial measures: Q1 2023 – Q4 2024 results Net Sales1 ($M) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Americas $862.3 $959.4 $1,003.2 $1,019.6 $3,844.5 $925.0 $1,121.1 $1,198.6 $1,255.9 $4,500.6 Asia Pacific 313.0 395.8 388.6 430.4 1,527.8 332.3 409.1 432.4 544.0 1,717.8 Europe, M
Slide 25: Non-GAAP financial measures: Q1 2023 – Q4 2024 results
Non-GAAP financial measures: Q1 2023 – Q4 2024 results Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin ($M) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Net sales $1,521.1 $1,734.1 $1,742.6 $1,865.4 $6,863.2 $1,639.1 $1,952.8 $2,073.5 $2,346.4 $8,01
Slide 26: Non-GAAP financial measures: Q1 2023 – Q4 2024 results
Non-GAAP financial measures: Q1 2023 – Q4 2024 results Reconciliation of segment operating profit (loss) to operating profit (loss) and adjusted operating profit (loss) ($M) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Americas $145.8 $191.7 $206.5 $218.4 $762.4 $187.8 $285.1 $303.4 $321.5 $1,0
Slide 27: Non-GAAP financial measures – organic net sales growth reconciliation
Non-GAAP financial measures – organic net sales growth reconciliation Reconciliation of change in net sales to organic change in net sales Organic Net Sales Δ FX Δ growth Organic Δ % 1 ($M | 4th QUARTER 2024) Americas: $236.3 $15.9 $252.2 24.7% Asia Pacific: 113.6 3.0 116.6 27.1% Europe, Middle East
Slide 28: Key FX rates and other modeling assumptions
Key FX rates and other modeling assumptions $Millions unless otherwise specified Avg 2024 2025 Plan FY Sales FX Exposure by Currency EUR 10% CNY / USD 7.19 7.29 CNY 10% USD / EUR $1.08 $1.04 GBP 7% USD / GBP $1.28 $1.24 INR 5% INR / USD 83.8 87.6 Other non-USD 13% Total non-USD 45% 1-mo SOFR 4.2% US
Slide 29: Additional 2025 guidance assumptions
Additional 2025 guidance assumptions $Millions SEGMENT EXPECTATIONS1 ADJUSTED FREE CASH FLOW FY 2025 FY 2024 B/(W) Adjusted operating profit $ 1,935 $ 1,552 $ 383 Depreciation & amortization 110 93 17 AMERICAS APAC EMEA Adjusted EBITDA 2,045 1,645 400 NET SALES $5,300 - $5,500 $1,800 - $2,000 $1,800
Slide 30: Additional Tax Information
Additional Tax Information Effective Tax Rate (ETR) Reconciliation • In 4Q24 we recorded an expense of $180M related to exercise of warrants. In the same quarter, we are also reversing the cumulative tax effect of Guidance change in fair value of warrants of $38M recorded in Q1-Q3 of FY24, 4Q24 FY24
Slide 31: Slide 31