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Mar 31, 2023
Vertiv Q1 2023 Earnings Report
Vertiv's first quarter results for 2023 demonstrated strong growth and profitability, exceeding expectations and leading to raised full-year guidance.
Key Takeaways
Vertiv reported a strong first quarter in 2023 with net sales growth of 32% and organic net sales growth of 35%. Operating profit increased significantly, driven by pricing and volume benefits. The company raised its full-year 2023 operating profit and adjusted operating profit guidance, reflecting confidence in continued growth and operational execution.
Net sales increased by 32% and organic net sales grew by 35% compared to the first quarter of last year.
Operating profit reached $130 million, while adjusted operating profit was $176 million, exceeding the high-end of the guidance range.
Net cash generated by operating activities was $42 million, and adjusted free cash flow was $25 million, both showing substantial increases year-over-year.
Full year 2023 operating profit guidance was raised to $618 million at the midpoint, and adjusted operating profit guidance was raised to $800 million at the midpoint, up 82% compared to 2022.
Vertiv
Vertiv
Vertiv Revenue by Segment
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CapyFin.com Forward Guidance
Vertiv raised its full year 2023 adjusted operating profit guidance based on strong first quarter results and continued resilient data center market demand.
Positive Outlook
- Market demand remains healthy and pipeline activity is encouraging.
- Strong beginning-of-the-year backlog.
- Improving supply chains.
- Improved operational execution.
- Price realization of $300 million.
Challenges Ahead
- Differences in quarterly seasonality in 2023 compared to historic patterns.
- Incremental growth investments of $40 million.
- High variability in forecasting.
- Complexity in quantifying certain amounts.
- Uncertainty with respect to forecasting.