Vertiv today reported net sales of $1,734 million in the second quarter of 2023, an increase of $335 million, or 24%, compared with last year’s second quarter and a 25% organic net sales increase.
The second-quarter operating profit of $206 million increased $180 million and adjusted operating profit of $251 million increased $169 million from the prior year second quarter. These increases were primarily driven by benefits from pricing and volume partially offset by material, freight and labor inflation and capacity and R&D growth investments. Second quarter 2023 adjusted operating profit was above the prior guidance range primarily due to additional price-cost favorability and higher volume from continued operational execution and supply chain improvements.
“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,” said Giordano Albertazzi, Vertiv’s Chief Executive Officer. “The strength of our first half performance led us to raise our full-year financial guidance for 2023. A key focus for us this year has been cash flow, and I am particularly encouraged by the trajectory of this critical metric. While far from our full potential, we are seeing the tangible results of our operational improvement initiatives.”
Albertazzi also added “I am further encouraged by the growth acceleration potential, which has just begun in our industry, represented by data center infrastructure necessary to meet the rapidly growing demand for compute capacity driven by AI. Vertiv is very well-positioned to benefit from this trend given our extensive data center infrastructure portfolio, technology depth, global scale, market leadership and long-standing relationships across the eco-system. We are fully embracing a future data center environment with incremental opportunities directly related to AI while maintaining our relentless focus and commitment to growth, operational execution, and delivering exceptional service and being the partner of choice for our customers.”
Dave Cote, Vertiv’s Executive Chairman, added “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. Based upon the foundation established in the first six months and our uniquely strong market position to benefit from extremely positive long-term trends, we are very optimistic about the remainder of 2023 and Vertiv’s ability to create long-term value for shareholders.”
