Vertiv (VRT) Shares Drop 5.5%

Vertiv Holdings Co. has reported strong financial results for the fourth quarter of 2023, with net sales reaching $1,865 million, marking a 13% increase from the same period in 2022. The company also noted a record high $5.5 billion backlog at the end of the fourth quarter, reflecting robust market demand for its digital infrastructure and continuity solutions.

Giordano Albertazzi, Vertiv's CEO, expressed satisfaction with the company's performance, stating, "Vertiv delivered a strong fourth quarter, capping off a year of significant progress built on our unrelenting focus on operational execution, driving a high-performance culture and demonstrating financial strength underpinned by continued robust market demand for Vertiv’s innovative products and services."

The company's outlook for 2024 remains positive, with expectations of net sales growth of 10%, operating profit of $1,095 to $1,145 million, and adjusted operating profit of $1,275 to $1,325 million, representing a 23% increase at the mid-point compared to full year 2023.

Dave Cote, Vertiv's Executive Chairman, commended the CEO and his team for achieving improved performance across all financial metrics, including profitability and strong adjusted free cash flow, which supports the acceleration of the company's long-term capital deployment framework. Additionally, he highlighted the company's upgraded credit ratings and strengthened balance sheet.

The company's full 8-K submission is available here.

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