Vertiv Reports Strong Orders, Sales, and EPS Growth; Raises Full Year Guidance
Vertiv (NYSE: VRT) reported strong Q2 2025 results with net sales of $2.638 billion, up 35% year-over-year. The company delivered diluted EPS of $0.83 and adjusted diluted EPS of $0.95, a 42% increase from Q2 2024. Organic orders grew approximately 15% year-over-year with backlog strengthening to $8.5 billion and a book-to-bill ratio of ~1.2x.
Operating profit increased 32% to $442 million, while adjusted operating profit grew 28% to $489 million. The company raised its full-year 2025 guidance, now expecting organic sales growth of 24%, adjusted operating profit of $1.99 billion, and adjusted diluted EPS of $3.80.
Despite strong growth, adjusted operating margin declined 110 basis points to 18.5% due to tariff impacts and operational challenges, which management expects to resolve by year-end.
Vertiv (NYSE: VRT) ha riportato solidi risultati nel secondo trimestre 2025 con ricavi netti di 2,638 miliardi di dollari, in crescita del 35% su base annua. L'azienda ha registrato un utile diluito per azione di 0,83 dollari e un utile diluito rettificato per azione di 0,95 dollari, con un aumento del 42% rispetto al secondo trimestre 2024. Gli ordini organici sono cresciuti di circa il 15% su base annua, con un portafoglio ordini rafforzato a 8,5 miliardi di dollari e un rapporto book-to-bill di circa 1,2x.
Il profitto operativo è aumentato del 32% a 442 milioni di dollari, mentre il profitto operativo rettificato è cresciuto del 28% a 489 milioni di dollari. L'azienda ha rivisto al rialzo le previsioni per l'intero anno 2025, prevedendo ora una crescita organica delle vendite del 24%, un profitto operativo rettificato di 1,99 miliardi di dollari e un utile diluito rettificato per azione di 3,80 dollari.
Nonostante la forte crescita, il margine operativo rettificato è diminuito di 110 punti base, attestandosi al 18,5%, a causa degli effetti delle tariffe e delle sfide operative, che la direzione prevede di risolvere entro la fine dell'anno.
Vertiv (NYSE: VRT) reportó sólidos resultados en el segundo trimestre de 2025 con ventas netas de 2.638 millones de dólares, un aumento del 35% interanual. La compañía entregó un beneficio diluido por acción de 0,83 dólares y un beneficio diluido ajustado por acción de 0,95 dólares, un incremento del 42% respecto al segundo trimestre de 2024. Los pedidos orgánicos crecieron aproximadamente un 15% interanual, con un backlog fortalecido a 8.500 millones de dólares y una relación book-to-bill de aproximadamente 1,2x.
El beneficio operativo aumentó un 32% hasta 442 millones de dólares, mientras que el beneficio operativo ajustado creció un 28% hasta 489 millones de dólares. La compañía elevó su guía para todo el año 2025, esperando ahora un crecimiento orgánico de ventas del 24%, un beneficio operativo ajustado de 1.990 millones de dólares y un beneficio diluido ajustado por acción de 3,80 dólares.
A pesar del fuerte crecimiento, el margen operativo ajustado disminuyó 110 puntos básicos hasta el 18,5%, debido a impactos arancelarios y desafíos operativos, que la dirección espera resolver antes de fin de año.
Vertiv (NYSE: VRT)는 2025년 2분기에 26억 3,800만 달러의 순매출을 기록하며 전년 동기 대비 35% 성장한 강력한 실적을 발표했습니다. 회사는 희석 주당순이익(EPS) 0.83달러와 조정 희석 주당순이익 0.95달러를 기록해 2024년 2분기 대비 42% 증가했습니다. 유기적 주문은 전년 대비 약 15% 성장했으며, 수주 잔고는 85억 달러로 강화되고 북투빌(book-to-bill) 비율은 약 1.2배를 기록했습니다.
영업이익은 32% 증가한 4억 4,200만 달러를 기록했고, 조정 영업이익은 28% 증가한 4억 8,900만 달러를 달성했습니다. 회사는 2025년 연간 가이던스를 상향 조정하여 24%의 유기적 매출 성장, 조정 영업이익 19억 9천만 달러, 조정 희석 주당순이익 3.80달러를 예상하고 있습니다.
강력한 성장에도 불구하고, 관세 영향과 운영상의 어려움으로 조정 영업이익률은 110 베이시스 포인트 하락한 18.5%를 기록했으며, 경영진은 연말까지 이를 해결할 것으로 기대하고 있습니다.
Vertiv (NYSE : VRT) a publié de solides résultats pour le deuxième trimestre 2025 avec des ventes nettes de 2,638 milliards de dollars, en hausse de 35 % par rapport à l'année précédente. La société a enregistré un BPA dilué de 0,83 $ et un BPA dilué ajusté de 0,95 $, soit une augmentation de 42 % par rapport au deuxième trimestre 2024. Les commandes organiques ont augmenté d'environ 15 % en glissement annuel, avec un carnet de commandes renforcé à 8,5 milliards de dollars et un ratio book-to-bill d'environ 1,2x.
Le bénéfice d'exploitation a augmenté de 32 % pour atteindre 442 millions de dollars, tandis que le bénéfice d'exploitation ajusté a progressé de 28 % pour atteindre 489 millions de dollars. La société a relevé ses prévisions pour l'ensemble de l'année 2025, anticipant désormais une croissance organique des ventes de 24 %, un bénéfice d'exploitation ajusté de 1,99 milliard de dollars et un BPA dilué ajusté de 3,80 $.
Malgré une forte croissance, la marge d'exploitation ajustée a diminué de 110 points de base pour atteindre 18,5 %, en raison des impacts tarifaires et des défis opérationnels, que la direction prévoit de résoudre d'ici la fin de l'année.
Vertiv (NYSE: VRT) meldete starke Ergebnisse für das zweite Quartal 2025 mit Nettoverkäufen von 2,638 Milliarden US-Dollar, ein Anstieg von 35 % im Jahresvergleich. Das Unternehmen erzielte ein verwässertes Ergebnis je Aktie (EPS) von 0,83 US-Dollar und ein bereinigtes verwässertes EPS von 0,95 US-Dollar, was einer Steigerung von 42 % gegenüber dem zweiten Quartal 2024 entspricht. Die organischen Aufträge wuchsen um etwa 15 % im Jahresvergleich, der Auftragsbestand erhöhte sich auf 8,5 Milliarden US-Dollar und das Book-to-Bill-Verhältnis lag bei etwa 1,2x.
Der operative Gewinn stieg um 32 % auf 442 Millionen US-Dollar, während der bereinigte operative Gewinn um 28 % auf 489 Millionen US-Dollar zunahm. Das Unternehmen hob seine Prognose für das Gesamtjahr 2025 an und erwartet nun ein organisches Umsatzwachstum von 24 %, einen bereinigten operativen Gewinn von 1,99 Milliarden US-Dollar und ein bereinigtes verwässertes EPS von 3,80 US-Dollar.
Trotz des starken Wachstums sank die bereinigte operative Marge um 110 Basispunkte auf 18,5 %, was auf Zollbelastungen und operative Herausforderungen zurückzuführen ist, die das Management bis zum Jahresende beheben will.
- Net sales increased 35% year-over-year to $2.638 billion
- Adjusted diluted EPS grew 42% to $0.95
- Strong organic order growth of 15% year-over-year
- Robust backlog of $8.5 billion with 1.2x book-to-bill ratio
- Operating profit up 32% to $442 million
- Strong liquidity position of $2.5 billion with low net leverage of 0.6x
- Raised full-year 2025 guidance for sales, EPS, and free cash flow
- Adjusted operating margin declined 110 basis points to 18.5%
- Higher than anticipated supply chain and manufacturing transition costs
- Operational inefficiencies and execution challenges due to growth acceleration
- Lowered full-year adjusted operating margin guidance to 20.0% from 20.5%
- Delayed achievement of long-term 25% operating margin target to 2029
Insights
Vertiv reports strong Q2 results with 35% sales growth and raises 2025 guidance despite temporary margin challenges.
Vertiv delivered exceptional Q2 2025 performance with
The company's diluted EPS reached
Despite these strong results, adjusted operating margin declined
The company's
Management has raised full-year 2025 guidance across multiple metrics: organic sales growth to
Vertiv maintains a strong balance sheet with
The company's prioritization of growth investments (R&D and manufacturing capacity) over near-term margin expansion demonstrates management's confidence in the long-term market opportunity. While this creates some temporary margin pressure, Vertiv still expects to achieve its long-term adjusted operating margin target of
- Second quarter diluted EPS of
$0.83 $0.95 42% from second quarter 2024 - Net sales up
35% , operating profit up32% and adjusted operating profit(1) up28% , each year-over-year - Organic order growth of ~
15% year-over-year and ~11% sequential improvement; trailing twelve-month (TTM) organic order growth of ~11% year-over-year - Backlog strengthened to
$8.5 billion - Raising full year 2025 guidance for adjusted diluted EPS, net sales, adjusted operating profit and adjusted free cash flow
Second quarter 2025 operating profit increased
"Vertiv's second quarter performance demonstrates the strength of our market position and our ability to execute at scale," said Giordano Albertazzi, Vertiv's Chief Executive Officer. "Our
"What we're seeing in the data center industry today goes well beyond the next few years," added Dave Cote, Vertiv's Executive Chairman. "This is a technological transformation that we believe will drive sustained long-term growth. We plan to invest resolutely and rationally, both organically and through acquisitions, to strengthen our market leadership and capitalize on this latest significant development as the digital age progresses."
Adjusted Free Cash Flow(1) and Liquidity
Net cash generated by operating activities in the second quarter 2025 was
We continue to expect capital expenditures in the range of
Updated Full Year and Third Quarter 2025 Guidance
The data center market continues to show robust momentum with sequential pipeline growth and substantial increases in AI-related activity driving strong demand. This momentum is reflected in our projected 2025 organic sales growth of
Given our strong backlog and pipelines, we are raising our full-year 2025 guidance across most key metrics. We now expect organic sales growth of
Third Quarter 2025 Guidance(2)(4) | |
Net sales | |
Organic net sales growth(3) | |
Adjusted operating profit(1) | |
Adjusted operating margin(3) | |
Adjusted diluted EPS(1) | |
| |
Full Year 2025 Guidance(2)(4) | |
Net sales | |
Organic net sales growth(3) | |
Adjusted operating profit(1) | |
Adjusted operating margin(3) | |
Adjusted diluted EPS(1) | |
Adjusted free cash flow(3) | |
(1) | This release contains certain non-GAAP metrics. For reconciliations to the relevant GAAP measures and an explanation of the non-GAAP measures and reasons for their use, please refer to sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of GAAP and non-GAAP Financial Measures." |
(2) | For purposes of this presentation and accompanying earnings guidance information, tariff rates active on July 28, 2025, include (but are not limited to): existing Chapter 1-97 tariffs; Section 301 tariffs; IEEPA tariffs ( |
(3) | This is a forward-looking non-GAAP financial measure that cannot be reconciled without unreasonable efforts for those reasons set forth under "Non-GAAP Financial Measures" of this release. |
(4) | Guidance does not include any anticipated financial results for the Acquisition given that the transaction is still subject to closing conditions. |
Second Quarter 2025 Earnings Conference Call
Vertiv's management team will discuss the Company's results during a conference call on Wednesday, July 30, starting at 11 a.m. Eastern Time. The call will contain forward-looking statements and other material information regarding Vertiv's financial and operating results. A webcast of the live conference call will be available for interested parties to listen to by going to the Investor Relations section of the Company's website at investors.vertiv.com. A slide presentation will be available before the call and will be posted to the website, also at investors.vertiv.com. A replay of the conference call will also be available for 30 days following the webcast.
About Vertiv Holdings Co
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in
Category: Financial News
Non-GAAP Financial Measures
Financial information included in this release has been prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). Vertiv has included certain non-GAAP financial measures in this news release, as indicated above, that may not be directly comparable to other similarly titled measures used by other companies and therefore may not be comparable among companies. These non-GAAP financial measures include organic net sales growth (including on a segment basis), adjusted operating profit, adjusted operating margin, adjusted diluted EPS and adjusted free cash flow, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. Pursuant to the requirements of Regulation G, Vertiv has provided reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to third quarter and full-year 2025 guidance, including organic net sales growth, adjusted free cash flow and adjusted operating margin, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For those reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
See "Reconciliation of GAAP and Non-GAAP Financial Measures" in this release for Vertiv's reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Cautionary Note Concerning Forward-Looking Statements
This news release, and other statements that Vertiv may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv's future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, statements regarding Vertiv's financial position, capital structure, indebtedness, business strategy and plans and objectives of Vertiv management for future operations, as well as statements regarding growth, anticipated demand for our products and services and our business prospects during 2025, as well as expected impacts from our pricing actions, and our guidance for third quarter and full year 2025 and statements regarding tariffs, global trade conflict and any actions we may take in response thereto. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Vertiv cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this release are based on current expectations and beliefs concerning future developments and their potential effects on Vertiv. There can be no assurance that future developments affecting Vertiv will be those that Vertiv has anticipated. Vertiv undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Vertiv's control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Vertiv has previously disclosed risk factors in its Securities and Exchange Commission ("SEC") reports, including those set forth in the Vertiv 2024 Annual Report on Form 10-K filed with the SEC on February 18, 2025. These risk factors and those identified elsewhere in this release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: risks relating to the continued growth of our customers' markets; long sales cycles for certain Vertiv products and solutions as well as unpredictable placing or cancelling of customer orders; failure to realize sales expected from our backlog of orders and contracts; disruption of our customer's orders or the markets; less favorable contractual terms with large customers; risks associated with governmental contracts; failure to mitigate risks associated with long-term fixed price contracts; competition in the industry in which we operate; failure to obtain performance and other guarantees from financial institutions; failure to properly manage supply chain, difficulties with third-party manufacturers and increases in costs of material, freight and/or labor, and changes in the costs of production; competition in the infrastructure technologies; risks associated with information technology disruption or cyber-security incidents; risks associated with the implementation and enhancement of information systems; failure to realize the expected benefit from any rationalization, restructuring and improvement efforts; disruption of, or changes in, Vertiv's independent sales representatives, distributors and original equipment manufacturers; increase of variability in our effective tax rate costs or liabilities associated with product liability due to global operations subjecting us to income and other taxes in the
For investor inquiries, please contact:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
E: lynne.maxeiner@vertiv.com
For media inquiries, please contact:
Antonia Caamaño
Ruder Finn for Vertiv
E: Antonia.Caamano@ruderfinn.com
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) Vertiv Holdings Co (Dollars in millions except for per share data)
| |||||||
Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | ||||
Net sales | |||||||
Net sales - products | $ 2,166.0 | $ 1,555.2 | $ 3,815.7 | $ 2,825.5 | |||
Net sales - services | 472.1 | 397.6 | 858.4 | 766.4 | |||
Net sales | 2,638.1 | 1,952.8 | 4,674.1 | 3,591.9 | |||
Costs and expenses | |||||||
Cost of sales - products | 1,470.3 | 963.0 | 2,582.4 | 1,809.3 | |||
Cost of sales - services | 271.2 | 248.6 | 508.6 | 475.0 | |||
Cost of sales | 1,741.5 | 1,211.6 | 3,091.0 | 2,284.3 | |||
Operating expenses | |||||||
Selling, general and administrative expenses | 395.6 | 363.8 | 741.9 | 677.8 | |||
Amortization of intangibles | 46.9 | 45.8 | 92.9 | 91.8 | |||
Restructuring costs | 1.9 | (2.5) | 3.0 | (2.2) | |||
Foreign currency (gain) loss, net | 2.3 | 0.2 | 4.9 | 3.4 | |||
Other operating expense (income) | 7.5 | (2.1) | 7.3 | (1.8) | |||
Operating profit (loss) | 442.4 | 336.0 | 733.1 | 538.6 | |||
Interest expense, net | 21.3 | 44.8 | 46.6 | 83.8 | |||
Loss on extinguishment of debt | — | 1.1 | — | 1.1 | |||
Change in fair value of warrant liabilities | — | 25.4 | — | 202.0 | |||
Income (loss) before income taxes | 421.1 | 264.7 | 686.5 | 251.7 | |||
Income tax expense | 96.9 | 86.6 | 197.8 | 79.5 | |||
Net income (loss) | $ 324.2 | $ 178.1 | $ 488.7 | $ 172.2 | |||
| |||||||
Earnings (loss) per share: | |||||||
Basic | $ 0.85 | $ 0.48 | $ 1.28 | $ 0.46 | |||
Diluted | $ 0.83 | $ 0.46 | $ 1.25 | $ 0.44 | |||
Weighted-average shares outstanding: | |||||||
Basic | 381,482,996 | 374,734,093 | 381,166,015 | 376,934,638 | |||
Diluted | 389,846,827 | 384,488,069 | 389,977,516 | 387,001,428 | |||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS Vertiv Holdings Co (Dollars in millions)
| |||
June 30, 2025 | December 31, 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,640.8 | $ 1,227.6 | |
Short-term investments | 98.2 | — | |
Accounts receivable, less allowances of | 2,831.0 | 2,362.7 | |
Inventories | 1,413.3 | 1,244.4 | |
Other current assets | 318.7 | 267.1 | |
Total current assets | 6,302.0 | 5,101.8 | |
Property, plant and equipment, net | 666.4 | 625.1 | |
Other assets: | |||
Goodwill | 1,374.1 | 1,321.1 | |
Other intangible assets, net | 1,454.1 | 1,487.1 | |
Deferred income taxes | 291.5 | 303.3 | |
Right-of-use assets, net | 244.9 | 202.1 | |
Other | 73.2 | 92.0 | |
Total other assets | 3,437.8 | 3,405.6 | |
Total assets | $ 10,406.2 | $ 9,132.5 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Current portion of long-term debt | $ 21.0 | $ 21.0 | |
Accounts payable | 1,605.1 | 1,316.4 | |
Deferred revenue | 1,257.3 | 1,063.3 | |
Accrued expenses and other liabilities | 578.5 | 612.6 | |
Income taxes | 152.6 | 83.7 | |
Total current liabilities | 3,614.5 | 3,097.0 | |
Long-term debt, net | 2,900.5 | 2,907.2 | |
Deferred income taxes | 252.6 | 240.3 | |
Long-term lease liabilities | 203.1 | 171.4 | |
Other long-term liabilities | 310.1 | 282.3 | |
Total liabilities | 7,280.8 | 6,698.2 | |
Equity | |||
Preferred stock, | — | — | |
Common stock, shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively | — | — | |
Additional paid-in capital | 2,858.2 | 2,821.4 | |
Retained earnings | 222.0 | (238.3) | |
Accumulated other comprehensive (loss) income | 45.2 | (148.8) | |
Total equity | 3,125.4 | 2,434.3 | |
Total liabilities and equity | $ 10,406.2 | $ 9,132.5 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Vertiv Holdings Co (Dollars in millions)
| |||||||
Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | ||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ 324.2 | $ 178.1 | $ 488.7 | $ 172.2 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||
Depreciation | 23.5 | 20.1 | 46.4 | 39.9 | |||
Amortization | 49.8 | 48.3 | 98.5 | 97.2 | |||
Deferred income taxes | (10.2) | 4.8 | 23.1 | (2.8) | |||
Amortization of debt discount and issuance costs | 2.1 | 2.0 | 4.3 | 4.1 | |||
Change in fair value of warrant liabilities | — | 25.4 | — | 202.0 | |||
Stock-based compensation | 13.3 | 8.5 | 24.5 | 17.7 | |||
Changes in operating working capital | (90.4) | 96.1 | (95.2) | (3.6) | |||
Other | 10.6 | (1.8) | 35.9 | (7.7) | |||
Net cash provided by (used for) operating activities | 322.9 | 381.5 | 626.2 | 519.0 | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (45.0) | (34.1) | (81.5) | (69.9) | |||
Investments in capitalized software | (0.9) | (10.9) | (3.2) | (11.6) | |||
Purchase of short-term investments | (98.1) | — | (98.1) | — | |||
Net cash provided by (used for) investing activities | (144.0) | (45.0) | (182.8) | (81.5) | |||
Cash flows from financing activities: | |||||||
Borrowings from ABL revolving credit facility and short-term borrowings | — | 80.0 | — | 270.0 | |||
Repayments of ABL revolving credit facility and short-term borrowings | — | (80.0) | — | (270.0) | |||
Repayment of long-term debt | (5.2) | (5.3) | (10.5) | (10.6) | |||
Dividend payment | (14.2) | (9.4) | (28.4) | (18.7) | |||
Repurchase of common stock | — | — | — | (599.9) | |||
Exercise of employee stock options | 11.7 | 9.2 | 13.0 | 23.6 | |||
Employee taxes paid from shares withheld | (0.3) | (18.1) | (7.0) | (21.1) | |||
Net cash provided by (used for) financing activities | (8.0) | (23.6) | (32.9) | (626.7) | |||
Effect of exchange rate changes on cash and cash equivalents | 9.0 | (5.7) | 13.3 | (11.7) | |||
Increase (decrease) in cash, cash equivalents and restricted cash | 179.9 | 307.2 | 423.8 | (200.9) | |||
Beginning cash, cash equivalents and restricted cash | 1,476.1 | 280.5 | 1,232.2 | 788.6 | |||
Ending cash, cash equivalents and restricted cash | $ 1,656.0 | $ 587.7 | $ 1,656.0 | $ 587.7 | |||
Changes in operating working capital | |||||||
Accounts receivable | $ (462.4) | $ (125.0) | $ (380.8) | $ (115.1) | |||
Inventories | (8.9) | (117.6) | (137.5) | (224.1) | |||
Other current assets | 5.6 | 0.8 | (23.9) | (30.9) | |||
Accounts payable | 183.0 | 120.5 | 269.5 | 130.3 | |||
Deferred revenue | 148.1 | 154.7 | 171.5 | 254.7 | |||
Accrued expenses and other liabilities | 36.3 | 60.1 | (43.3) | (8.4) | |||
Income taxes | 7.9 | 2.6 | 49.3 | (10.1) | |||
Total changes in operating working capital | $ (90.4) | $ 96.1 | $ (95.2) | $ (3.6) | |||
Reconciliation of GAAP and non-GAAP Financial Measures
To supplement this news release, we have included certain non-GAAP financial measures in the format of performance metrics. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company's performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Vertiv's non-GAAP financial measures include:
- Adjusted operating profit (loss), which represents operating profit (loss), adjusted to exclude amortization of intangibles;
- Adjusted operating margin, which represents adjusted operating profit (loss) divided by net sales;
- Organic net sales growth, which represents the change in net sales adjusted to exclude the impacts of foreign currency exchange rate;
- Adjusted free cash flow, which represents net cash provided by (used for) operating activities adjusted to exclude capital expenditures and investments in capitalized software; and
- Adjusted diluted EPS, which represents diluted earnings per share adjusted to exclude amortization of intangibles and change in warranty liability.
Regional Segment Results
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Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
2025 | 2024 | Δ | Δ% | Organic Δ%(2) | 2025 | 2024 | Δ | Δ% | Organic Δ%(2) | ||||||||||
Net sales(1) | |||||||||||||||||||
AMER | $ 1,602.3 | $ 1,121.1 | $ 481.2 | 42.9 % | 43.2 % | $ 2,787.6 | $ 2,046.1 | $ 741.5 | 36.2 % | 36.7 % | |||||||||
APAC | 560.2 | 409.1 | 151.1 | 36.9 % | 36.8 % | 1,007.4 | 741.4 | 266.0 | 35.9 % | 36.6 % | |||||||||
EMEA | 475.6 | 422.6 | 53.0 | 12.5 % | 7.0 % | 879.1 | 804.4 | 74.7 | 9.3 % | 7.1 % | |||||||||
Total | $ 2,638.1 | $ 1,952.8 | $ 685.3 | 35.1 % | 34.0 % | $ 4,674.1 | $ 3,591.9 | $ 1,082.2 | 30.1 % | 30.0 % | |||||||||
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Adjusted operating profit (loss)(3) | |||||||||||||||||||
AMER | $ 384.6 | $ 285.1 | $ 99.5 | 34.9 % | $ 644.3 | $ 472.9 | $ 171.4 | 36.2 % | |||||||||||
APAC | 59.2 | 32.3 | 26.9 | 83.3 % | 104.9 | 62.7 | 42.2 | 67.3 % | |||||||||||
EMEA | 104.2 | 109.5 | (5.3) | (4.8) % | 182.9 | 179.8 | 3.1 | 1.7 % | |||||||||||
Corporate(4) | (58.7) | (45.1) | (13.6) | 30.2 % | (106.1) | (85.0) | (21.1) | 24.8 % | |||||||||||
Total | $ 489.3 | $ 381.8 | $ 107.5 | 28.2 % | $ 826.0 | $ 630.4 | $ 195.6 | 31.0 % | |||||||||||
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Adjusted operating margins(5) | |||||||||||||||||||
AMER | 24.0 % | 25.4 % | (1.4) % | 23.1 % | 23.1 % | — % | |||||||||||||
APAC | 10.6 % | 7.9 % | 2.7 % | 10.4 % | 8.5 % | 1.9 % | |||||||||||||
EMEA | 21.9 % | 25.9 % | (4.0) % | 20.8 % | 22.4 % | (1.6) % | |||||||||||||
Vertiv | 18.5 % | 19.6 % | (1.1) % | 17.7 % | 17.6 % | 0.1 % | |||||||||||||
(1) | Segment net sales are presented excluding intercompany sales. |
(2) | Organic basis is adjusted to exclude foreign currency exchange rate impact. |
(3) | Adjusted operating profit (loss) is only adjusted at the Corporate segment. There are no adjustments at the reportable segment level between operating profit (loss) and adjusted operating profit (loss). |
(4) | Corporate costs consist of headquarters management costs, asset impairments, and costs that support centralized global functions including Finance, Treasury, Risk Management, Strategy & Marketing, Legal, and Human Resources. |
(5) | Adjusted operating margins calculated as adjusted operating profit (loss) divided by net sales. |
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Sales by product and service offering
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Three months ended June 30, | |||||||
2025 | 2024 | Δ | Δ% | ||||
Products | $ 1,320.8 | $ 892.1 | $ 428.7 | 48.1 % | |||
Services & spares | 281.5 | 229.0 | 52.5 | 22.9 % | |||
$ 1,602.3 | $ 1,121.1 | $ 481.2 | 42.9 % | ||||
Products | $ 424.0 | $ 293.1 | $ 130.9 | 44.7 % | |||
Services & spares | 136.2 | 116.0 | 20.2 | 17.4 % | |||
$ 560.2 | $ 409.1 | $ 151.1 | 36.9 % | ||||
Products | $ 374.1 | $ 332.1 | $ 42.0 | 12.6 % | |||
Services & spares | 101.5 | 90.5 | 11.0 | 12.2 % | |||
$ 475.6 | $ 422.6 | $ 53.0 | 12.5 % | ||||
Total: | |||||||
Products | $ 2,118.9 | $ 1,517.3 | $ 601.6 | 39.6 % | |||
Services & spares | 519.2 | 435.5 | 83.7 | 19.2 % | |||
$ 2,638.1 | $ 1,952.8 | $ 685.3 | 35.1 % | ||||
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Six months ended June 30, | |||||||
2025 | 2024 | Δ | Δ% | ||||
Products | $ 2,279.1 | $ 1,608.2 | $ 670.9 | 41.7 % | |||
Services & spares | 508.5 | 437.9 | 70.6 | 16.1 % | |||
$ 2,787.6 | $ 2,046.1 | $ 741.5 | 36.2 % | ||||
Products | $ 757.8 | $ 517.1 | $ 240.7 | 46.5 % | |||
Services & spares | 249.6 | 224.3 | 25.3 | 11.3 % | |||
$ 1,007.4 | $ 741.4 | $ 266.0 | 35.9 % | ||||
Products | $ 693.1 | $ 629.4 | $ 63.7 | 10.1 % | |||
Services & spares | 186.0 | 175.0 | 11.0 | 6.3 % | |||
$ 879.1 | $ 804.4 | $ 74.7 | 9.3 % | ||||
Total: | |||||||
Products | $ 3,730.0 | $ 2,754.7 | $ 975.3 | 35.4 % | |||
Services & spares | 944.1 | 837.2 | 106.9 | 12.8 % | |||
$ 4,674.1 | $ 3,591.9 | $ 1,082.2 | 30.1 % | ||||
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Organic growth by product and service offering
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Three months ended June 30, 2025 | |||||||
Net Sales Δ | FX Δ | Organic growth | Organic Δ%(1) | ||||
Products | $ 428.7 | $ 2.4 | $ 431.1 | 48.3 % | |||
Services & spares | 52.5 | 1.1 | 53.6 | 23.4 % | |||
$ 481.2 | $ 3.5 | $ 484.7 | 43.2 % | ||||
Products | $ 130.9 | $ (0.9) | $ 130.0 | 44.4 % | |||
Services & spares | 20.2 | 0.3 | 20.5 | 17.7 % | |||
$ 151.1 | $ (0.6) | $ 150.5 | 36.8 % | ||||
Products | $ 42.0 | $ (19.2) | $ 22.8 | 6.9 % | |||
Services & spares | 11.0 | (4.3) | 6.7 | 7.4 % | |||
$ 53.0 | $ (23.5) | $ 29.5 | 7.0 % | ||||
Total: | |||||||
Products | $ 601.6 | $ (17.7) | $ 583.9 | 38.5 % | |||
Services & spares | 83.7 | (2.9) | 80.8 | 18.6 % | |||
$ 685.3 | $ (20.6) | $ 664.7 | 34.0 % | ||||
(1) | Organic growth percentage change is calculated as organic growth divided by net sales for the three months ended June 30, 2024. |
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Six months ended June 30, 2025 | |||||||
Net Sales Δ | FX Δ | Organic growth | Organic Δ%(1) | ||||
Products | $ 670.9 | $ 6.2 | $ 677.1 | 42.1 % | |||
Services & spares | 70.6 | 3.1 | 73.7 | 16.8 % | |||
$ 741.5 | $ 9.3 | $ 750.8 | 36.7 % | ||||
Products | $ 240.7 | $ 2.9 | $ 243.6 | 47.1 % | |||
Services & spares | 25.3 | 2.5 | 27.8 | 12.4 % | |||
$ 266.0 | $ 5.4 | $ 271.4 | 36.6 % | ||||
Products | $ 63.7 | $ (15.9) | $ 47.8 | 7.6 % | |||
Services & spares | 11.0 | (2.0) | 9.0 | 5.1 % | |||
$ 74.7 | $ (17.9) | $ 56.8 | 7.1 % | ||||
Total: | |||||||
Products | $ 975.3 | $ (6.8) | $ 968.5 | 35.2 % | |||
Services & spares | 106.9 | 3.6 | 110.5 | 13.2 % | |||
$ 1,082.2 | $ (3.2) | $ 1,079.0 | 30.0 % | ||||
(1) | Organic growth percentage change is calculated as organic growth divided by net sales for the six months ended June 30, 2024. |
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Segment operating profit (loss)
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Operating profit (loss) | Three months ended June 30, 2025 | Three months ended | Six months ended June 30, 2025 | Six months ended June 30, 2024 | |||
$ 384.6 | $ 285.1 | $ 644.3 | $ 472.9 | ||||
59.2 | 32.3 | 104.9 | 62.7 | ||||
104.2 | 109.5 | 182.9 | 179.8 | ||||
Total reportable segments | 548.0 | 426.9 | 932.1 | 715.4 | |||
Foreign currency gain (loss) | (2.3) | (0.2) | (4.9) | (3.4) | |||
Corporate | (56.4) | (44.9) | (101.2) | (81.6) | |||
Total corporate and other | (58.7) | (45.1) | (106.1) | (85.0) | |||
Amortization of intangibles | (46.9) | (45.8) | (92.9) | (91.8) | |||
Operating profit (loss) | $ 442.4 | $ 336.0 | $ 733.1 | $ 538.6 | |||
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Reconciliation of net cash provided by (used for) operating activities to adjusted free cash flow
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Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | ||||
Net cash provided by (used for) operating activities | $ 322.9 | $ 381.5 | $ 626.2 | $ 519.0 | |||
Capital expenditures | (45.0) | (34.1) | (81.5) | (69.9) | |||
Investments in capitalized software | (0.9) | (10.9) | (3.2) | (11.6) | |||
Adjusted free cash flow | $ 277.0 | $ 336.5 | $ 541.5 | $ 437.5 | |||
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Reconciliation from operating profit (loss) to adjusted operating profit (loss)
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Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | ||||
Operating profit (loss) | $ 442.4 | $ 336.0 | $ 733.1 | $ 538.6 | |||
Amortization of intangibles | 46.9 | 45.8 | 92.9 | 91.8 | |||
Adjusted operating profit (loss) | $ 489.3 | $ 381.8 | $ 826.0 | $ 630.4 | |||
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Reconciliation from operating margin to adjusted operating margin
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Three months ended June 30, 2025 | Three months ended June 30, 2024 | Δ | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Δ | ||||||
Vertiv net sales | $ 2,638.1 | $ 1,952.8 | $ 685.3 | $ 4,674.1 | $ 3,591.9 | $ 1,082.2 | |||||
Vertiv operating profit (loss) | 442.4 | 336.0 | 106.4 | 733.1 | 538.6 | 194.5 | |||||
Vertiv operating margin | 16.8 % | 17.2 % | (0.4) % | 15.7 % | 15.0 % | 0.7 % | |||||
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Amortization of intangibles | $ 46.9 | $ 45.8 | $ 1.1 | $ 92.9 | $ 91.8 | $ 1.1 | |||||
Vertiv adjusted operating profit (loss) | 489.3 | 381.8 | 107.5 | 826.0 | 630.4 | 195.6 | |||||
Vertiv adjusted operating margin | 18.5 % | 19.6 % | (1.1) % | 17.7 % | 17.6 % | 0.1 % | |||||
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Reconciliation of Diluted EPS to Adjusted Diluted EPS
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Three months ended June 30, 2025 | |||||||||
Operating profit (loss) | Interest expense, net | Income tax expense (benefit) | Net income (loss) | Diluted EPS(1) | |||||
GAAP | $ 442.4 | $ 21.3 | $ 96.9 | $ 324.2 | $ 0.83 | ||||
Amortization of intangibles | 46.9 | — | — | 46.9 | 0.12 | ||||
Non-GAAP adjusted | $ 489.3 | $ 21.3 | $ 96.9 | $ 371.1 | $ 0.95 | ||||
Diluted shares (in millions) | 389.8 | ||||||||
(1) | Diluted EPS and adjusted diluted EPS is calculated using 389.8 million shares (includes 381.5 million basic shares and 8.3 million potential dilutive equity awards). |
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Three months ended June 30, 2024 | |||||||||||||
Operating profit (loss) | Interest expense, net | Loss on extinguishment of debt | Change in warrant liability | Income tax expense (benefit) | Net income (loss) | Diluted EPS(1) | |||||||
GAAP | $ 336.0 | $ 44.8 | $ 1.1 | $ 25.4 | $ 86.6 | $ 178.1 | $ 0.46 | ||||||
Amortization of intangibles | 45.8 | — | — | — | — | 45.8 | 0.12 | ||||||
Change in warrant liability | — | — | — | (25.4) | (9.1) | 34.5 | 0.09 | ||||||
Non-GAAP adjusted | $ 381.8 | $ 44.8 | $ 1.1 | $ — | $ 77.5 | $ 258.4 | $ 0.67 | ||||||
Pro-forma diluted shares (in millions) | 384.5 | ||||||||||||
(1) | Diluted EPS and adjusted diluted EPS is calculated using 384.5 million shares (includes 374.7 million basic shares and 9.8 million potential dilutive stock options and restricted stock units). We believe that this adjusted version better reflects our actual performance because it removes the impact of warrant liability accounting and the associated impact on adjusted diluted EPS. |
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Six months ended June 30, 2025 | |||||||||
Operating profit (loss) | Interest expense, net | Income tax expense (benefit) | Net income (loss) | Diluted EPS(1) | |||||
GAAP | $ 733.1 | $ 46.6 | $ 197.8 | $ 488.7 | $ 1.25 | ||||
Amortization of intangibles | 92.9 | — | — | 92.9 | 0.24 | ||||
Non-recurring tax adjustment, net(2) | — | — | (39.5) | 39.5 | 0.10 | ||||
Non-GAAP adjusted | $ 826.0 | $ 46.6 | $ 158.3 | $ 621.1 | $ 1.59 | ||||
Diluted shares (in millions) | 390.0 | ||||||||
(1) | Diluted EPS and adjusted diluted EPS is calculated using 390.0 million shares (includes 381.2 million basic shares and 8.8 million potential dilutive equity awards). |
(2) | Nonrecurring tax adjustment of |
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Six months ended June 30, 2024 | |||||||||||||
Operating profit (loss) | Interest expense, net | Loss on extinguishment of debt | Change in warrant liability | Income tax expense (benefit) | Net income (loss) | Diluted EPS(1) | |||||||
GAAP | $ 538.6 | $ 83.8 | $ 1.1 | $ 202.0 | $ 79.5 | $ 172.2 | $ 0.44 | ||||||
Amortization of intangibles | 91.8 | — | — | — | — | 91.8 | 0.24 | ||||||
Change in warrant liability | — | — | — | (202.0) | 38.8 | 163.2 | 0.42 | ||||||
Non-GAAP adjusted | $ 630.4 | $ 83.8 | $ 1.1 | $ — | $ 118.3 | $ 427.2 | $ 1.10 | ||||||
Diluted shares (in millions) | 387.0 | ||||||||||||
(1) | Diluted EPS and adjusted diluted EPS is calculated using 387.0 million shares (includes 376.9 million basic shares and 10.1 million potential dilutive stock options and restricted stock units). We believe that this adjusted version better reflects our actual performance because it removes the impact of warrant liability accounting and the associated impact on adjusted diluted EPS. |
Vertiv Holdings Co 2025 Adjusted Guidance Reconciliation of Diluted EPS to Adjusted Diluted EPS(1)(2)
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Third Quarter 2025 | |||||||||
Operating profit (loss) | Interest expense, net | Income tax expense (benefit) | Net income (loss) | Diluted EPS(3) | |||||
GAAP | $ 463.8 | $ 20.0 | $ 111.0 | $ 332.8 | $ 0.85 | ||||
Amortization of intangibles | 46.2 | — | — | 46.2 | 0.12 | ||||
Non-GAAP adjusted | $ 510.0 | $ 20.0 | $ 111.0 | $ 379.0 | $ 0.97 | ||||
Diluted shares (in millions) | 390.0 | ||||||||
Full Year 2025 | |||||||||
Operating profit (loss) | Interest expense, net | Income tax expense (benefit) | Net income (loss) | Diluted EPS(3) | |||||
GAAP | $ 1,807.7 | $ 87.0 | $ 461.5 | $ 1,259.2 | $ 3.23 | ||||
Amortization of intangibles | 182.3 | — | — | 182.3 | 0.47 | ||||
Non-recurring tax adjustment, net(4) | — | — | (39.5) | 39.5 | 0.10 | ||||
Non-GAAP adjusted | $ 1,990.0 | $ 87.0 | $ 422.0 | $ 1,481.0 | $ 3.80 | ||||
Diluted shares (in millions) | 390.0 | ||||||||
(1) | Our guidance reflects the currently expected impacts of the tariff rates active on July 28, 2025, including (but not limited to): existing Chapter 1-97 tariffs; Section 301 tariffs; IEEPA tariffs ( |
(2) | Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to FY 2025 guidance, including organic net sales growth, adjusted operating margin and adjusted free cash flow, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For the same reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results. |
(3) | Diluted EPS and adjusted diluted EPS based on 390.0 million shares (includes 381.2 million basic shares and 8.8 million potential dilutive equity awards). |
(4) | Nonrecurring tax adjustment of |
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SOURCE Vertiv Holdings Co
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