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Mar 31, 2021
Vertiv Q1 2021 Earnings Report
Vertiv reported strong first-quarter results, marked by significant net sales growth, robust order increases, and expanded adjusted operating profit margins.
Key Takeaways
Vertiv reported a strong first quarter with a 22.4% increase in net sales and a 21% rise in orders, leading to a record backlog. The company's adjusted operating profit margin significantly expanded, and earnings per share exceeded expectations. Vertiv raised its full-year 2021 guidance for net sales, adjusted operating profit, and adjusted EPS.
Net sales increased by 22.4%, with organic net sales growth of 19.5% compared to the previous year's first quarter, showing strength across all regions.
Orders rose by 21% compared to the previous year's first quarter, contributing to a record backlog of $2.1 billion.
Operating profit reached $80 million, and adjusted operating profit was $112 million, resulting in an operating profit margin of 7.3% and an adjusted operating profit margin of 10.2%.
Net cash from operating activities was $61 million, and free cash flow was $43 million, representing increases of $255 million and $246 million, respectively, compared to the previous year's first quarter. The company maintained strong quarter-end liquidity of $1.1 billion.
Vertiv
Vertiv
Vertiv Revenue by Segment
Vertiv Revenue by Geographic Location
Revenue by Segment
Products Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comEMEA Revenue
CapyFin.com Forward Guidance
Vertiv is increasing its full year 2021 adjusted operating profit guidance to $595 million (at the mid-point), $20 million higher than previous guidance. This full year guidance includes the expected negative net impact in the remainder of the year of higher commodity and freight costs.
Positive Outlook
- Net sales $4,875M - $4,925M
- Organic net sales growth 9.5% - 10.5%
- Adjusted operating profit $585M - $605M
- Adjusted operating margin 12.0% - 12.3%
- Adjusted EPS $1.08 - $1.14