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Dec 31, 2020

Vertiv Q4 2020 Earnings Report

Vertiv reported strong Q4 2020 operating performance with net sales growth and increased adjusted EBITDA margin.

Key Takeaways

Vertiv reported an 11.4% increase in fourth-quarter net sales compared to the prior year, driven by strength in cloud, colocation, and telecommunication end markets. Net income for the quarter was $75 million, and adjusted EBITDA reached $187 million, with a 160 basis point increase in adjusted EBITDA margin. The company's quarter-end liquidity stood at $964 million, benefiting from a public warrant redemption.

Net sales increased by 11.4% compared to the prior year fourth quarter.

Organic sales grew by 9.5%.

Net income was $75 million.

Adjusted EBITDA was $187 million, with a margin of 14.3%.

Total Revenue
$1.31B
EPS
$0.33
Previous year: -$0.29
-213.8%
Adjusted EBITDA margin
14.3%
Previous year: 12.7%
+12.6%
Orders growth
9%
Gross Profit
$427M
Previous year: -$784M
-154.5%
Cash and Equivalents
$535M
Previous year: $224M
+139.2%
Free Cash Flow
$175M
Previous year: -$17.7M
-1090.2%
Total Assets
$5.07B
Previous year: $4.66B
+8.9%

Vertiv

Vertiv

Vertiv Revenue by Geographic Location

Forward Guidance

Full year 2021 guidance includes net sales in the range of $4,750 million to $4,800 million, organic net sales growth of 6.5% to 7.5% and adjusted diluted earnings per share of $1.01 to $1.06. Adjusted operating profit guidance of $565 million to $585 million, up 68% at the mid-point of guidance compared to full year 2020.

Positive Outlook

  • Net sales in the range of $4,750 million to $4,800 million
  • Organic net sales growth of 6.5% to 7.5%
  • Adjusted diluted earnings per share of $1.01 to $1.06
  • Adjusted operating profit guidance of $565 million to $585 million
  • Adjusted operating profit guidance up 68% at the mid-point of guidance compared to full year 2020

Revenue & Expenses

Visualization of income flow from segment revenue to net income