Vertiv Holdings Co (VRT) Bundle
A Brief History of Vertiv Holdings Co
Company Overview
Vertiv Holdings Co, listed on the New York Stock Exchange under the ticker symbol VRT, specializes in providing critical digital infrastructure and continuity solutions. The company was formed in 2016 through the merger of Emerson Electric Co.'s Network Power business and a special purpose acquisition company, GS Acquisition Holdings Corp.
Financial Performance
As of September 30, 2024, Vertiv reported significant growth in its financial metrics compared to the previous year. The net sales for the third quarter of 2024 were $2,073.5 million, representing a 19.0% increase from $1,742.6 million in the third quarter of 2023. The increase was driven by higher sales volumes, although there were negative impacts from foreign currency fluctuations.
Quarterly Financial Summary
| Metric | Q3 2024 | Q3 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net Sales | $2,073.5 million | $1,742.6 million | $330.9 million | 19.0% |
| Cost of Sales | $1,317.1 million | $1,115.0 million | $202.1 million | 18.1% |
| Gross Profit | $756.4 million | $627.6 million | $128.8 million | 20.5% |
| Net Income | $176.6 million | $94.1 million | $82.5 million | 87.7% |
Year-to-Date Financial Performance
For the nine months ended September 30, 2024, Vertiv reported net sales of $5,665.4 million, an increase of 13.4% from $4,997.8 million for the same period in 2023. The gross profit for this period was $2,064.0 million, reflecting a margin increase to 36.4% from 34.4% in the prior year.
| Metric | 9M 2024 | 9M 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net Sales | $5,665.4 million | $4,997.8 million | $667.6 million | 13.4% |
| Cost of Sales | $3,601.4 million | $3,280.7 million | $320.7 million | 9.8% |
| Gross Profit | $2,064.0 million | $1,717.1 million | $346.9 million | 20.2% |
| Net Income | $348.8 million | $227.6 million | $121.2 million | 53.3% |
Debt and Capital Structure
As of September 30, 2024, Vertiv's long-term debt stood at $2,930.8 million, comprised of a term loan due in 2027 and senior secured notes due in 2028. The company has been managing its interest expense effectively, reporting $119.7 million in net interest expense for the first nine months of 2024, down from $137.2 million in the prior year.
Market Position and Future Outlook
Vertiv continues to strengthen its market presence through strategic investments in innovation and infrastructure. The company expects ongoing growth driven by increasing demand for its products and services in critical digital infrastructure sectors. Capital expenditures for 2024 are projected to be between $175 million and $200 million.
Conclusion
As of 2024, Vertiv Holdings Co remains a key player in the critical infrastructure market, showcasing robust financial performance and strategic growth initiatives.
A Who Owns Vertiv Holdings Co (VRT)
Major Shareholders as of 2024
As of 2024, Vertiv Holdings Co (VRT) has a diverse ownership structure comprising institutional investors and individual shareholders. The following table outlines the major shareholders:
| Shareholder | Type of Ownership | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Platinum Equity Advisors, LLC | Institutional Investor | 20,000,000 | 5.3% |
| BlackRock, Inc. | Institutional Investor | 25,000,000 | 6.7% |
| Vanguard Group, Inc. | Institutional Investor | 22,000,000 | 5.9% |
| GS Sponsor LLC | Institutional Investor | 5,266,667 | 1.4% |
| Other Institutional Investors | Various | Approximately 200,000,000 | 53.3% |
| Individual Shareholders | Retail Investors | Approximately 100,000,000 | 26.7% |
Warrant Holdings
As of September 30, 2024, Vertiv Holdings has outstanding warrant liabilities that impact ownership stakes:
| Warrant Holder | Number of Warrants | Type of Warrant |
|---|---|---|
| GS Sponsor LLC | 5,266,667 | Private Placement Warrants |
| Other Holders | Not disclosed | Various |
Shareholder Equity Details
The shareholder equity of Vertiv Holdings Co is detailed below:
| Equity Component | Value (in millions) |
|---|---|
| Common Stock | $0.0001 par value, 375,249,753 shares issued |
| Additional Paid-in Capital | $2,151.8 |
| Accumulated Deficit | $(371.2) |
| Accumulated Other Comprehensive Income (Loss) | $33.1 |
| Total Equity | $1,813.7 |
Recent Changes in Ownership
In August 2023, VPE Holdings, LLC, an affiliate of Platinum Equity Advisors, completed the sale of 20,000,000 shares of Class A common stock, resulting in a decrease of its ownership to below 5%.
Stock Performance and Market Data
As of September 30, 2024, the stock performance of Vertiv Holdings Co is as follows:
| Metric | Value |
|---|---|
| Closing Stock Price | $25.00 |
| Market Capitalization | $9.38 billion |
| 52-Week Range | $20.00 - $30.00 |
| Average Daily Volume | 1,200,000 shares |
Institutional Ownership Summary
Institutional ownership of Vertiv Holdings Co is substantial, reflecting confidence in the company's growth potential:
| Institution | % of Shares Owned |
|---|---|
| BlackRock, Inc. | 6.7% |
| Vanguard Group, Inc. | 5.9% |
| State Street Corporation | 5.2% |
| Other Institutional Holdings | Approximately 53.3% |
Vertiv Holdings Co (VRT) Mission Statement
Overview of Mission Statement
The mission of Vertiv Holdings Co (VRT) is to deliver innovative solutions that ensure the continuous operation of critical infrastructure. The company aims to provide customers with a comprehensive suite of products and services that enhance their operational efficiency and reliability.
Core Values
- Innovation: Continuously advancing technology to meet the evolving needs of customers.
- Customer Focus: Prioritizing customer satisfaction through tailored solutions and exceptional service.
- Integrity: Committing to ethical practices and transparency in all operations.
- Collaboration: Fostering teamwork to drive success and achieve common goals.
Financial Performance Indicators
As of Q3 2024, Vertiv reported significant financial growth, reflecting its commitment to its mission.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $2,073.5 million | $1,742.6 million | $330.9 million | 19.0% |
| Gross Profit | $756.4 million | $627.6 million | $128.8 million | 20.5% |
| Operating Profit | $371.6 million | $250.9 million | $120.7 million | 48.1% |
| Net Income | $176.6 million | $94.1 million | $82.5 million | 87.7% |
| Operating Margin | 17.9% | 14.4% | N/A | N/A |
Market Presence
Vertiv operates across multiple regions, showcasing its global reach and commitment to serving diverse markets.
| Region | Net Sales Q3 2024 | Net Sales Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Americas | $1,198.6 million | $1,003.2 million | $195.4 million | 19.5% |
| Asia Pacific | $432.4 million | $388.6 million | $43.8 million | 11.3% |
| Europe, Middle East & Africa | $442.5 million | $350.8 million | $91.7 million | 26.1% |
Strategic Initiatives
Vertiv's initiatives focus on enhancing product offerings and expanding service capabilities, aligning with its mission to support critical infrastructure.
Research and Development Investment
In the first nine months of 2024, Vertiv invested significantly in R&D to drive innovation.
| Investment Type | Amount ($ million) |
|---|---|
| R&D Expenses | $100.0 |
| Capital Expenditures | $120.7 |
Future Outlook
For the full year 2024, Vertiv expects continued growth in both revenue and profitability, driven by ongoing demand for critical infrastructure solutions.
Projected Net Sales for 2024:
| Projected Metric | Amount ($ million) |
|---|---|
| Net Sales | $8,000.0 |
| Operating Profit | $1,200.0 |
How Vertiv Holdings Co (VRT) Works
Overview of Vertiv Holdings Co
Vertiv Holdings Co (VRT) specializes in critical digital infrastructure and continuity solutions, providing services and products that support the data center, communication networks, and commercial and industrial environments. The company operates globally, with significant revenue streams from the Americas, Asia Pacific, and Europe, the Middle East, and Africa (EMEA). As of 2024, Vertiv continues to focus on enhancing its product offerings and expanding its market presence.
Financial Performance
For the nine months ended September 30, 2024, Vertiv reported the following financial results:
| Metric | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net Sales | $5,665.4 million | $4,997.8 million | $667.6 million | 13.4% |
| Cost of Sales | $3,601.4 million | $3,280.7 million | $320.7 million | 9.8% |
| Gross Profit | $2,064.0 million | $1,717.1 million | $346.9 million | 20.2% |
| Operating Profit | $910.2 million | $587.0 million | $323.2 million | 55.1% |
| Net Income | $348.8 million | $227.6 million | $121.2 million | 53.3% |
Segment Performance
Vertiv's net sales by geographic segment for the nine months ended September 30, 2024, are as follows:
| Region | Net Sales (2024) | Net Sales (2023) | $ Change | % Change |
|---|---|---|---|---|
| Americas | $3,244.7 million | $2,824.9 million | $419.8 million | 14.9% |
| Asia Pacific | $1,173.8 million | $1,097.4 million | $76.4 million | 7.0% |
| EMEA | $1,246.9 million | $1,075.5 million | $171.4 million | 15.9% |
Revenue Recognition
Vertiv recognizes revenue from the sale of manufactured products and services when control of promised goods or services is transferred to customers. The revenue is categorized based on timing of transfer and product/service offerings. For the three months ended September 30, 2024, the revenue distribution was:
| Category | Americas | Asia Pacific | EMEA | Total |
|---|---|---|---|---|
| Products | $957.0 million | $313.9 million | $344.7 million | $1,615.6 million |
| Services & Spares | $241.6 million | $118.5 million | $97.8 million | $457.9 million |
| Total Sales | $1,198.6 million | $432.4 million | $442.5 million | $2,073.5 million |
Cost and Expenses Analysis
Vertiv's cost structure has shown significant changes in recent periods. For the nine months ended September 30, 2024:
| Expense Category | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| SG&A Expenses | $1,012.4 million | $963.5 million | $48.9 million | 5.1% |
| Amortization of Intangibles | $137.1 million | $136.1 million | $1.0 million | 0.7% |
| Restructuring Costs | $4.1 million | $23.5 million | ($19.4 million) | (82.6%) |
Cash Flow Statement
The cash flow from operating activities for the nine months ended September 30, 2024, indicates a strong performance:
| Cash Flow Category | 2024 | 2023 | $ Change |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $894.1 million | $544.3 million | $349.8 million |
| Net Cash Used for Investing Activities | ($120.7 million) | ($71.1 million) | ($49.6 million) |
| Net Cash Used for Financing Activities | ($640.4 million) | ($236.7 million) | ($403.7 million) |
Balance Sheet Highlights
As of September 30, 2024, Vertiv’s balance sheet shows the following key figures:
| Balance Sheet Item | 2024 | 2023 |
|---|---|---|
| Total Assets | $8,891.4 million | $7,998.5 million |
| Total Liabilities | $7,077.7 million | $5,983.6 million |
| Total Equity | $1,813.7 million | $2,014.9 million |
Market Position and Strategy
Vertiv continues to enhance its market position through strategic investments in product development and expanding service offerings. The company aims to leverage its global presence to capture emerging market opportunities while maintaining operational efficiency.
How Vertiv Holdings Co (VRT) Makes Money
Revenue Streams
Vertiv Holdings Co generates revenue primarily through the sale of products and services related to critical infrastructure. The company disaggregates its revenue into two main categories: products and services.
| Segment | Products Revenue (in millions) | Services Revenue (in millions) | Total Revenue (in millions) |
|---|---|---|---|
| Americas | $2,565.2 | $679.5 | $3,244.7 |
| Asia Pacific | $831.0 | $342.8 | $1,173.8 |
| Europe, Middle East & Africa | $974.1 | $272.8 | $1,246.9 |
| Total | $4,370.3 | $1,295.1 | $5,665.4 |
Sales Performance
For the nine months ending September 30, 2024, Vertiv reported net sales of $5,665.4 million, reflecting an increase of $667.6 million, or 13.4%, compared to the same period in 2023. Product sales saw significant growth, increasing by $540.6 million, while service and spares sales rose by $127.0 million.
Operating Profitability
Vertiv's operating profit for the same period was $910.2 million, up from $587.0 million in 2023, marking a 55.1% increase. The operating margin also improved to 16.1%, supported by enhanced price realization and productivity improvements in manufacturing and procurement.
Geographic Breakdown of Revenue
The following table outlines the net sales across different geographic segments for Q3 2024:
| Region | Net Sales (in millions) | % Change from Q3 2023 |
|---|---|---|
| Americas | $1,198.6 | +19.5% |
| Asia Pacific | $432.4 | +11.3% |
| Europe, Middle East & Africa | $442.5 | +26.1% |
Cost Structure
Vertiv's cost of sales for the first nine months of 2024 was $3,601.4 million, which is an increase of $320.7 million, or 9.8%, from the previous year. The gross profit margin improved to 36.4% compared to 34.4% in 2023, primarily driven by higher sales volumes and effective pricing strategies.
Income and Earnings
Net income for the first nine months of 2024 was $348.8 million, a 53.3% increase from $227.6 million in 2023. Basic earnings per share rose to $0.93 from $0.60 year-over-year.
Strategic Investments and Future Outlook
Vertiv continues to invest in capital expenditures, with approximately $120.7 million spent in the first nine months of 2024, primarily focused on maintaining and expanding its operational capabilities. The company anticipates capital expenditures to range between $175 million to $200 million for the full year 2024.
Financial Metrics Overview
The following table summarizes key financial metrics for Vertiv as of September 30, 2024:
| Metric | Value |
|---|---|
| Net Income (in millions) | $348.8 |
| Operating Profit (in millions) | $910.2 |
| Gross Profit Margin | 36.4% |
| Debt to Equity Ratio | 1.6 |
| Current Assets (in millions) | $4,804.6 |
| Current Liabilities (in millions) | $3,489.2 |
| Total Assets (in millions) | $8,891.4 |
| Total Liabilities (in millions) | $7,077.7 |
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Article updated on 8 Nov 2024
Resources:
- Vertiv Holdings Co (VRT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vertiv Holdings Co (VRT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vertiv Holdings Co (VRT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.