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Mar 31, 2022
Vertiv Q1 2022 Earnings Report
Vertiv's Q1 2022 earnings exceeded guidance with a net sales increase of 5.3% and orders growth of 34%.
Key Takeaways
Vertiv reported strong first quarter 2022 results, exceeding guidance with a 5.3% increase in net sales and a 34% growth in orders. The company's backlog reached a record-high of $4.1 billion. However, operating profit was negatively impacted by inflation and supply chain constraints.
Net sales increased by 5.3% compared to the prior year, reaching $1,156 million.
Orders grew by 34% compared to the prior year, with a record-high backlog of $4.1 billion.
Operating loss was $45 million, while adjusted operating profit was $13 million, impacted by inflation and supply chain issues.
Pricing realization of $40 million exceeded forecast by $10 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Vertiv anticipates a strong second half of 2022, positioning the company well for 2023, with end-market demand remaining strong and pricing accelerating significantly as the year progresses. Supply chain and inflationary headwinds are expected to persist for the balance of 2022.
Positive Outlook
- Expect the impact of the aggressive pricing actions taken in late 2021 and early 2022 to continue to enhance profitability over subsequent quarters.
- Encouraged by the pricing seen in new orders, which continue to grow strongly.
- Confident in pricing plan for the remainder of the year.
- On track to deliver strong second half 2022 results and meet full year commitments with consistently improving profitability going forward into 2023.
- End-market demand continues to be strong.
Challenges Ahead
- Supply chain issues showed no improvement in the first quarter, and we expect continued challenges throughout 2022.
- Inflation was favorable to first quarter guidance, we have included an additional $10 million for inflationary pressures for the full year given the uncertainty in global commodity and freight markets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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