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Sep 30, 2021

Vertiv Q3 2021 Earnings Report

Vertiv's Q3 2021 performance was marked by net sales growth, strong orders growth, and a record backlog, despite facing inflation and supply chain challenges.

Key Takeaways

Vertiv reported a 5.8% increase in net sales and a 17.2% increase in orders, reaching a record backlog of $2.4 billion. The company's operating profit was $82 million, and adjusted operating profit was $131 million. Diluted earnings per share were $0.15, and adjusted diluted earnings per share were $0.20.

Robust end-market demand continued with double-digit order growth and record backlog of $2.4 billion.

Net sales growth of 5.8% and organic net sales growth of 3.9% versus prior year third quarter.

Third quarter operating profit of $82 million and adjusted operating profit of $131 million, with operating profit margin of 6.7% and adjusted operating profit margin of 10.7%.

Diluted earnings per share of $0.15 and adjusted diluted earnings per share of $0.20.

Total Revenue
$1.23B
Previous year: $1.16B
+5.8%
EPS
$0.2
Previous year: $0.32
-37.5%
Adjusted EBITDA margin
6.7%
Previous year: 15.4%
-56.5%
Orders growth
17.2%
Previous year: 15.5%
+11.0%
Gross Profit
$382M
Previous year: $413M
-7.6%
Cash and Equivalents
$744M
Previous year: $324M
+129.3%
Free Cash Flow
$44M
Previous year: $129M
-65.9%
Total Assets
$5.26B
Previous year: $4.77B
+10.3%

Vertiv

Vertiv

Vertiv Revenue by Geographic Location

Forward Guidance

Vertiv has updated its guidance to include impacts from the E+I acquisition, as well as the divestiture of the heavy industrial UPS business. The net impacts from these transactions are an additional $55 million in net sales and $13 million in adjusted operating profit and are included in the guidance table for both fourth quarter and full year 2021.

Positive Outlook

  • Net sales $4,970M - $5,030M
  • Organic net sales growth 10.5% - 11.5%
  • Adjusted operating profit $543M - $563M
  • Adjusted operating margin 10.9% - 11.2%
  • Adjusted EPS $0.97 - $1.03

Challenges Ahead

  • Supply chain headwinds continue at current levels for the remainder of the year.
  • Anticipate supply chain pressure to continue at least through the first half of 2022.
  • 4Q 2021 Net sales $1,382M - $1,442M
  • 4Q 2021 Organic net sales growth 3.0% - 7.0%
  • 4Q 2021 Adjusted EPS $0.24 - $0.30

Revenue & Expenses

Visualization of income flow from segment revenue to net income