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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.
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 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.
- Second Quarter 2022 Operating profit (loss) GAAP $23.3 million
- Second Half 2022 Operating profit (loss) GAAP $324.9 million
- Full Year 2022 Operating profit (loss) GAAP $303.0