Vertiv Holdings Co · Q1 2021 earnings

Briefing

Vertiv reported strong first-quarter results, marked by significant net sales growth, robust order increases, and expanded adjusted operating profit margins.

Vertiv reported a strong first quarter with a 22.4% increase in net sales and a 21% rise in orders, leading to a record backlog. The company's adjusted operating profit margin significantly expanded, and earnings per share exceeded expectations. Vertiv raised its full-year 2021 guidance for net sales, adjusted operating profit, and adjusted EPS.

• Net sales increased by 22.4%, with organic net sales growth of 19.5% compared to the previous year's first quarter, showing strength across all regions.
• Orders rose by 21% compared to the previous year's first quarter, contributing to a record backlog of $2.1 billion.
• Operating profit reached $80 million, and adjusted operating profit was $112 million, resulting in an operating profit margin of 7.3% and an adjusted operating profit margin of 10.2%.
• Net cash from operating activities was $61 million, and free cash flow was $43 million, representing increases of $255 million and $246 million, respectively, compared to the previous year's first quarter. The company maintained strong quarter-end liquidity of $1.1 billion.

Headline financials

Revenue & EPS history

Vertiv is increasing its full year 2021 adjusted operating profit guidance to $595 million (at the mid-point), $20 million higher than previous guidance. This full year guidance includes the expected negative net impact in the remainder of the year of higher commodity and freight costs.