Company: VRT
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001628280-25-005905
Chunk: 131

Company: Vertiv Holdings Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 131
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 In 2023, income tax expense was primarily influenced by the mix of income between our U.S. and non-U.S. operations, net of changes in valuation allowances and uncertain tax positions, and reflects the impact of non-deductible changes in fair value of warrant liabilities, as well as discrete tax adjustments related to legislation changes enacted in the period. 

Income tax expense in 2024 was $196.1 higher than 2023 primarily due to the increased financial performance, changes in non-U.S tax holidays and incentives and the change in valuation allowance.

Business Segments

The following are business segment results for the years ended December 31, 2024 and 2023. Segment profitability is defined as operating profit (loss). Segment margin represents segment operating profit (loss) expressed as a percentage of segment net sales. For reconciliations of segment net sales and earnings to our consolidated results, see “Note 14 — Segment Information”, of our Consolidated Financial Statements. Segment net sales are presented excluding intercompany sales.

Americas (Dollars in millions)December 31, 2024December 31, 2023$ Change% ChangeNet sales$4,500.6 $3,844.5 $656.1 17.1 %Operating profit (loss)1,097.8 762.4 335.4 44.0 %Margin24.4 %19.8 %

Americas net sales of $4,500.6 in 2024 increased $656.1, or 17.1%, from 2023. The increase in sales was primarily driven by higher sales volumes due to products increasing by $557.9 and service & spares increasing by $98.2. Americas net sales were negatively impacted by foreign currency of approximately $28.2.

Operating profit (loss) in 2024 was $1,097.8, increase of $335.4 compared with 2023. Margin increased primarily due to higher sales volumes, manufacturing and procurement productivity, and improved price realization.

Asia Pacific (Dollars in millions)December 31, 2024December 31, 2023$ Change% ChangeNet sales$1,717.8 $1,527.8 $190.0 12.4 %Operating profit (loss)175.2 147.4 27.8 18.9 %Margin10.2 %9.6 %

Asia Pacific