Vertiv Holdings Co (NYSE:VRT) Q2 2023 Earnings Call Transcript

Giordano Albertazzi: Yes. Well, thanks a lot for the question. So when it comes to the backlog, we have – it planned for orders that sees our orders in Q3 and Q4 sequentially increase. And we’ll see what the backlog does exactly. We still are in an unusually big backlog situation, given our historical trends and the historical trends in the industry. We were north of 70% coverage. We believe that anything above 50% is a good place to be. But yes, let’s see how things unfold in that respect. Certainly, the pipeline strength is something that is encouraging in that respect.

Mark Delaney: And just operationally in order to support the backlog, do you need to put any more capacity – that you’ve got to see the facilities you need?

Giordano Albertazzi: Well, we do have capacity. As I explained, we have increased – invested in capacity in the last 12, 18 months. We are certainly extracting more capacity from what we have. We’ve been vocal many times about our vertical operating system, and that certainly is a big enabler for more capacity out of our current footprint. But we are very focused and very keen on building scenarios as to what exactly will happen. So we will move early if needed when we see that – there is an imbalance between the potential demand and our available capacity.

Mark Delaney: Understood. Thank you.

Giordano Albertazzi: Thank you.

Operator: Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Giordano Albertazzi for closing remarks.

Giordano Albertazzi: Well, thanks a lot. Again, a good first half and looking forward to our second half and looking forward to meeting you all in November.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.