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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.
Revenue by Segment
Revenue by Geographic Location
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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