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Key takeaways from the call include:
CEO Giordano Albertazzi discussed Vertiv’s expectations for future growth, noting that the company anticipates a more normal first half/second half split in 2023, with a flat H1 and H2 due to a backlog residue from 2022. For 2024, they expect around 45% top-line growth in the first half and 55% in the second half.
Albertazzi also discussed the company’s AI-related pipeline, stating that Vertiv predominantly sees new build opportunities but also has encouraging conversations about retrofitting data centers. He expressed confidence in the long-term trend of AI adoption and stated that it is just the beginning of a multi-year cycle.
The CEO further discussed the company’s progress in improving its supply chain and expanding capacity to support future growth. He mentioned that Vertiv has a global capacity that can be leveraged for the US market, and they are actively working on certifications to meet different electrical standards.
Albertazzi also highlighted the company’s strong order volume and the opportunities in alternative power solutions, such as dynamic power solutions and battery energy storage systems. He noted that their power management solutions would benefit from the expansion of power consumption in data centers.
Regarding service growth, Albertazzi stated that service is accelerating towards double-digit growth, particularly in the life cycle segment, and highlighted their ability to support customers in the complexity of high-density computing.
When asked about capital deployment and M&A, Albertazzi urged patience until their Investor Day on November 29th, where they will provide more details. The call concluded with a reminder about the upcoming Investor Conference in November.
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