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Sep 30, 2023

Vertiv Q3 2023 Earnings Report

Vertiv's Q3 2023 performance was marked by strong sales growth, increased profitability, and positive cash flow, driven by robust market demand and operational execution.

Key Takeaways

Vertiv reported strong third-quarter results, exceeding expectations with net sales of $1,743 million, an 18% increase compared to the previous year. The company raised its full-year 2023 guidance for operating profit and adjusted free cash flow, driven by strong market demand and operational execution.

Net sales reached $1,743 million, an 18% increase compared to Q3 2022, with organic net sales growth of 17%.

Orders increased by 11% year-over-year, resulting in a record-high backlog of $5.0 billion.

Operating profit increased to $251 million, and adjusted operating profit reached $296 million, exceeding the high end of the guidance range by $36 million.

Adjusted operating margin expanded by 790 basis points to 17.0% compared to Q3 2022.

Total Revenue
$1.74B
Previous year: $1.48B
+17.7%
EPS
$0.52
Previous year: $0.23
+126.1%
Adjusted EBITDA margin
17%
Previous year: 5.4%
+214.8%
Orders growth
11%
Previous year: 20.1%
-45.3%
Gross Profit
$628M
Previous year: $429M
+46.2%
Cash and Equivalents
$500M
Previous year: $258M
+93.8%
Free Cash Flow
$221M
Previous year: -$20M
-1205.0%
Total Assets
$7.41B
Previous year: $6.83B
+8.6%

Vertiv

Vertiv

Vertiv Revenue by Geographic Location

Forward Guidance

Full year financial guidance has been increased across all financial metrics. Fourth Quarter 2023 GuidanceNet sales$1,828M - $1,853MOrganic net sales growth(2)10.7% - 12.2%Adjusted operating profit(1)$295M - $305MAdjusted operating margin(2)15.9% - 16.7%Adjusted diluted EPS(1)$0.48 - $0.52Adjusted free cash flow(2)$127M - $177M

Positive Outlook

  • Net sales between $1,828M and $1,853M
  • Organic net sales growth between 10.7% and 12.2%
  • Adjusted operating profit between $295M and $305M
  • Adjusted operating margin between 15.9% and 16.7%
  • Adjusted diluted EPS between $0.48 and $0.52

Revenue & Expenses

Visualization of income flow from segment revenue to net income