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