Vertiv Holdings Co Reports 19% Revenue Growth, 87.7% Net Income Increase in Q3 2024

Vertiv Holdings Co reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved net sales of $2,073.5 million, marking a 19.0% increase from $1,742.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, net sales reached $5,665.4 million, up 13.4% from $4,997.8 million in the prior year.

Operating profit for the third quarter was $371.6 million, a substantial increase of 48.1% compared to $250.9 million in Q3 2023. Net income also saw a remarkable rise, reaching $176.6 million, up 87.7% from $94.1 million in the same period last year. This growth translated to earnings per share of $0.47 for the quarter, compared to $0.25 in Q3 2023.

The company's gross profit for Q3 2024 was $756.4 million, representing 36.5% of sales, an increase from 36.0% in the previous year. Cost of sales rose to $1,317.1 million, reflecting an 18.1% increase, while selling, general, and administrative (SG&A) expenses increased by 2.3% to $334.6 million, with SG&A as a percentage of sales decreasing to 16.1%.

Vertiv's revenue growth was driven by strong performance across its segments. The Americas segment reported net sales of $1,198.6 million, a 19.5% increase, while the Europe, Middle East & Africa segment saw a 26.1% rise to $442.5 million. The Asia Pacific segment also contributed with a net sales increase of 11.3% to $432.4 million.

The company has been actively investing in capacity expansion, particularly in manufacturing capabilities for switchgear and integrated solutions, following its acquisition of E&I in late 2021. New facilities in Pune, India, and Pelzer, South Carolina, are expected to enhance production of modular solutions and thermal management products.

In terms of financial position, total assets increased to $8,891.4 million as of September 30, 2024, up from $7,998.5 million at the end of 2023. However, total liabilities also rose to $7,077.7 million, leading to a decrease in total equity to $1,813.7 million. The accumulated deficit improved to $(371.2) million from $(691.9) million at the end of 2023.

The company continues to navigate challenges, including a derivative lawsuit filed against it and certain directors for alleged breaches of fiduciary duty. Additionally, Vertiv is addressing a customs tax audit issue in Mexico, which has resulted in a payment of approximately $10.1 million.

Overall, Vertiv's strategic investments and operational efficiencies have positioned it for continued growth in the critical digital infrastructure market.