Archive photo: Data-center server aisle. Brett Sayles/Pexels (cropped)
Vertiv raised its full-year outlook Wednesday after third-quarter sales jumped 61% and organic orders more than doubled, as the supplier of power and cooling infrastructure benefited from expanding data-center investment.
Net sales reached $4.313 billion, up from about $2.676 billion a year earlier. Organic sales grew 55%, with acquisitions contributing approximately six percentage points to reported growth, according to the company’s earnings release.
Diluted earnings per share rose 91% to $1.95 under U.S. generally accepted accounting principles. Adjusted diluted earnings per share, a non-GAAP measure, increased 78% to $2.21.
Sales outlook rises by $650 million
Vertiv raised the midpoint of its full-year net-sales forecast by $650 million. It now expects 2026 sales of $14.45-$14.85 billion and organic growth of 37-39%. Its adjusted diluted earnings forecast is $7.10-$7.20 a share, with an adjusted operating margin of 23.5-24.5%.
The company expects fourth-quarter sales of $4.313-$4.513 billion, organic growth of 49-51% and adjusted diluted earnings of $2.22-$2.28 a share. These are forecasts, not reported results.
Organic growth, adjusted earnings, adjusted operating margin and adjusted free cash flow are non-GAAP measures. Vertiv said certain forward-looking non-GAAP measures could not be reconciled to GAAP without unreasonable effort because of forecasting uncertainty.
Data-center demand supports orders
Chief Executive Giordano Albertazzi said organic orders grew more than 100% from a year earlier as customers invested in data-center infrastructure. The company said it was expanding capacity and accelerating product development to meet demand.
“The demands on data center infrastructure are evolving faster than ever, and Vertiv’s role in that buildout keeps expanding,” Albertazzi said.
Americas sales rose 75%, or 66% organically. Asia-Pacific sales increased 50%, or 48% organically, while Europe, the Middle East and Africa grew 23%, or 19% organically.
Profit and cash flow increase
Operating profit rose 90% to $984 million. Adjusted operating profit increased 83% to $1.087 billion, with an adjusted operating margin of 25.2%, up 2.9 percentage points.
Cash generated by operating activities rose 64% to $794 million, while adjusted free cash flow increased 50% to $652 million. Vertiv forecasts full-year adjusted free cash flow of $2.6-$2.8 billion and capital expenditures of approximately 4% of revenue.
The company attributed stronger profitability to higher sales and manufacturing productivity, partly offset by sales mix and continued investment in growth.
JBizNews Desk | Columbus, Ohio
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