Vertiv Holdings announces strong Q2 2023 results with net sales of $1.7bn
Vertiv Holdings Co (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, reported financial results for its second quarter ended June 30, 2023. The company announced second quarter net sales of $1,734 million, an increase of 24% or $335 million, compared to last year’s same period. Despite a negative impact from foreign currency by approximately $18 million, Vertiv witnessed a 25% organic net sales increase.
Operating Profit and Key Drivers
Second quarter operating profit reached $206 million, an increase of $180 million, and adjusted operating profit of $251 million, up $169 million from the prior year’s second quarter. The increases were primarily due to pricing and volume benefits and higher volume from continued operational execution and supply chain improvements.
CEO’s and Executive Chairman’s Insights
“These strong results reflect our relentless focus on operational execution, the strength of the ongoing rebound in the Americas, and our continued progress in building a high-performance culture of excellence,” stated Giordano Albertazzi, Vertiv’s Chief Executive Officer. Giordano Albertazzi further emphasized the growth potential in the industry, particularly in data center infrastructure to meet AI demands, and Vertiv’s strong position in the market.
Dave Cote, Vertiv’s Executive Chairman, commented, “Momentum clearly accelerated in the second quarter as Vertiv continues to strengthen performance and make meaningful progress in improving profitability and – importantly – adjusted free cash flow.”
Adjusted Free Cash Flow and Liquidity Details
The second quarter saw net cash generated by operating activities at $254 million, an increase of $459 million from the prior year, and adjusted free cash flow at $227 million, an increase of $460 million. Liquidity strengthened to $825 million, and net leverage is anticipated to decrease to approximately 2.3x by the end of 2023.
Full Year and Third Quarter 2023 Guidance
Vertiv expressed optimism for the second half of 2023 and emphasized AI as a long-term tailwind for the industry. Financial guidance has been increased across all financial metrics, including an adjusted operating margin range increase to 14.0% and adjusted free cash flow guidance now expected to be $525 million to $575 million for 2023.
The results demonstrate Vertiv’s commitment to growth, operational execution, and service excellence. With the increased guidance and strong performance in Q2 2023, the company continues to solidify its place as a leading player in the global digital infrastructure industry.