Vertiv Posts Adjusted Earnings of $2.21 a Share, Raises 2026 Guidance
Key Facts
Vertiv reported third-quarter results on October 28, posting adjusted diluted earnings of $2.21 a share and sales of $4.31 billion. Earnings topped analysts’ expectations of $1.82 a share, while sales exceeded consensus of $3.75 billion, according to Investing.com. The guidance increase followed its July forecast of annual sales of $13.8 billion to $14.2 billion and adjusted earnings of $6.65 to $6.75 a share. In premarket trading on the day of the announcement, shares rose more than 12% after the results beat expectations and the company raised its guidance.
Sales grew 61% from the same quarter a year earlier, according to a quote reported by Investing.com, while adjusted operating profit jumped 83% to $1.087 billion. Adjusted operating margin reached 25.2%, up 290 basis points year over year, according to the company’s statement. Vertiv attributed the improvement to operating leverage and manufacturing productivity, partly offset by product mix and growth-oriented investments. The wider margin alongside higher operating profit shows how rising sales coincided with improved operating metrics during the quarter. In the second quarter, the company had reported net sales of $3.274 billion and adjusted diluted earnings of $1.52 a share.
On demand, Vertiv said organic orders grew more than 100% year over year in the third quarter. Chief Executive Giordano Albertazzi said the largest infrastructure expansion was accelerating and the company’s role was broadening, according to a correction to the October statement included in the evidence. The earnings statement described order growth as “more than 100% year over year.” Before the results, Reuters coverage noted that investors were watching the company’s ability to deliver on growth targets and the sustainability of AI-related demand. It also described the prior third-quarter outlook as a sharp acceleration from second-quarter figures, when adjusted earnings were $1.52 a share and sales were $3.27 billion.
One day before reporting results, Vertiv completed its acquisition of UtilityInnovation Group for about $1.45 billion in cash. The deal includes additional contingent consideration of up to $1.15 billion, tied to achieving earnings before interest, taxes, depreciation and amortization targets over two periods of 12 and 24 months. The deal broadens the context of the company’s infrastructure business, while the chief executive said in the October statement that expansion in the field was accelerating and Vertiv’s role was broadening. The company had announced that management would discuss third-quarter results on a call on October 28 at 11 a.m. Eastern time. The call was scheduled to discuss results on the same day they were released.