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Jun 30, 2021
Vertiv Q2 2021 Earnings Report
Reported strong financial results with net sales growth and increased profitability.
Key Takeaways
Vertiv reported a strong second quarter with a 25% increase in net sales and a record backlog of $2.3 billion. The company raised its full year guidance for sales, adjusted operating profit, and adjusted diluted earnings per share.
Diluted earnings per share increased $0.20 and adjusted diluted earnings per share increased $0.15 from last year’s second quarter.
Net sales growth of 25% and organic net sales growth of 20% from last year’s second quarter, with double-digit sales growth in all regions.
Record backlog of $2.3 billion at the end of June. Order growth of 24% compared to prior year’s second quarter.
Operating profit increased $32 million, or 45%, and adjusted operating profit increased $31 million, or 30%, from last year’s second quarter. Adjusted operating margin of 10.6%, up 40 basis points.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
End-market demand remains robust, and Vertiv is increasing its full year net sales guidance to 14% growth at the midpoint (12% organic growth). The company is raising the midpoint of its full year adjusted operating profit guidance to $600 million.
Positive Outlook
- Increasing full year net sales guidance to 14% growth at the midpoint (12% organic growth).
- Raising the midpoint of full year adjusted operating profit guidance to $600 million.
- Implemented additional pricing actions to help offset inflation and supply-chain challenges.
- Fixed cost reductions to help offset inflation and supply-chain challenges.
- Expect pricing to ramp-up as we progress through 2021 and to completely offset gross material and freight inflation within the fourth quarter.
Challenges Ahead
- Material inflation continues to be a challenge.
- Supply-chain challenges continue to be a challenge.
- The full year guidance includes the expected negative net impact in the remainder of the year of current commodity and freight costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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