Vertiv(VRT) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter diluted EPS of $0.38 and adjusted diluted EPS of$0.99, up 77% from fourth quarter 2023[5] - Net sales of $2,346 million, 26$457 million, up 60% from fourth quarter 2023[5] - Adjusted operating margin expanded 380 basis points to 21.5% in the fourth quarter 2024 compared to fourth quarter 2023[3] - Operating profit for the year ended December 31, 2024, was $1,367.4 million, a significant increase from$872.2 million in 2023[23] - Net income for the year was $495.8 million, compared to$460.2 million in the previous year, reflecting a 7.9% growth[23] - The diluted EPS for the year ended December 31, 2024, was $1.28, compared to$0.60 in 2023, indicating a significant increase[49] - Adjusted operating profit for the year ended December 31, 2024, was $1,551.6 million, up from$1,053.5 million in 2023, reflecting a 47.3% increase[43] Sales Growth - Strong fourth quarter trailing twelve-month (TTM) organic orders up ~30% compared to prior year TTM period; Americas TTM organic orders up ~50%+[5] - Net sales for Q4 2024 reached $2,346.4 million, a 25.7$1,865.4 million in Q4 2023[23] - Product sales increased to $1,914.3 million, up 29.5$1,477.9 million year-over-year[23] - Service sales rose to $432.1 million, a 11.5$387.5 million in the same quarter last year[23] - For the year ended December 31, 2024, total net sales reached $8,011.8 million, up 16.7$6,863.2 million in 2023[36] - The Americas segment achieved net sales of $1,255.9 million in Q4 2024, a 23.2$1,019.6 million in Q4 2023[31] - Organic net sales growth for the EMEA region was 32.8% in Q4 2024, with net sales of $546.5 million compared to$415.4 million in Q4 2023[31] - The Americas segment generated net sales of $684.3 million, with an organic growth of 17.8$208.1 million, achieving an organic growth of 13.6%[39] - The Europe, Middle East & Africa segment had net sales of $309.8 million, with an organic growth of 20.8$425 million and adjusted free cash flow of $362 million in fourth quarter 2024, both showing increases from fourth quarter 2023[6] - Cash and cash equivalents increased to$1,227.6 million from $780.4 million year-over-year, representing a 57.2$2.0 billion with net leverage of ~1.0x at the end of fourth quarter 2024[7] - The company generated $425.2 million in net cash from operating activities in Q4 2024, compared to$356.2 million in Q4 2023[27] - Adjusted free cash flow for the year ended December 31, 2024, was $1,135.2 million, compared to$778.3 million in 2023, marking a 45.9% increase[42] Guidance and Forecast - Expect full year 2025 diluted EPS of $2.93 to$3.03 and adjusted diluted EPS of $3.50 to$3.60, a 25% increase at the midpoint compared to full year 2024[5] - Full year 2025 net sales expected to be $9,125 to$9,275 million, ~$75 million higher than previous guidance despite an FX headwind of ~$125 million[5] - First quarter 2025 net sales guidance of $1,900 million to$1,950 million with organic net sales growth of 17% to 21%[9] - For the first quarter of 2025, the company provided guidance for a GAAP operating profit of $280.0 million and a net income of$148.0 million, leading to a diluted EPS of $0.38[53] - The full year 2025 guidance includes a GAAP operating profit of$1,754.0 million and a net income of $1,169.0 million, with a projected diluted EPS of$2.98[54] - The non-GAAP adjusted figures for 2025 are projected to be an operating profit of $1,935.0 million and a net income of$1,390.0 million, resulting in a diluted EPS of $3.55[54] - The guidance for 2025 does not account for potential impacts from recent policy changes or considerations by the new U.S. Administration[54] Capital Expenditures - Capital expenditure forecast for 2025 is ~$275 million, ~3.0% of sales, to support industry growth[8] - Capital expenditures for the year ended December 31, 2024, totaled $167.0 million, compared to$127.9 million in 2023[42] Non-GAAP Measures - The company emphasized the importance of non-GAAP financial measures to provide a clearer view of operational performance, excluding non-recurring items[30] - The company indicated that reconciling certain forward-looking GAAP measures to non-GAAP measures for FY 2025 is not feasible without unreasonable effort due to high variability and complexity[55]