Key Takeaways Vertiv posted Q3 earnings of $1.24 per share, up 63.2% year over year and 24% above estimates. Net sales grew 29% to $2.68 billion, driven by higher operating profit and strong regional contributions. VRT raised 2025 guidance, now expecting up to $10.24 billion in revenues and $4.13 EPS for the year. Vertiv Holdings (VRT) reported third-quarter 2025 non-GAAP earnings of $1.24 per share, beating the Zacks Consensus Estimate by 24%. The figure jumped 63.2% year over year.Net sales increased 29% ...

UBS sets a new price target for NYSE:VRT at $201, indicating a potential increase of approximately 17.14%.Vertiv reports a strong financial performance with an EPS of $1.24, surpassing expectations, and a revenue of $2.68 billion.The company's return on equity stands at 51.64% with a net margin of 8.93%, reflecting its operational efficiency.Vertiv Holdings Co. (NYSE: VRT) is a prominent player in the technology sector, specializing in providing critical digital infrastructure and continuity solutions. The ...

Vertiv Holdings Co (NYSE:VRT) reported better-than-expected third-quarter fiscal 2025 results on Wednesday.Net sales rose 29% year-over-year (Y/Y) to $2.68 billion, beating the consensus of $2.56 billion. Adjusted EPS stood at $1.24, beating the consensus of $0.99.For fiscal 2025, Vertiv Holdings lifted its adjusted EPS guidance to $4.07–$4.13, up from $3.75–$3.85 and above the $3.81 consensus estimate. The company also raised its 2025 sales outlook to $10.16 billion–$10.24 billion, compared with the prior ...

Core Insights - Vertiv Holdings Co (NYSE: VRT) reported its Q3 2025 results, marking a significant achievement in its strategy to capitalize on the global AI and datacenter growth [1] Financial Performance - The company continues to demonstrate strong performance metrics, positioning itself as a structural winner in the expanding AI and datacenter sectors [1] Investment Position - The analysis indicates a beneficial long position in VRT shares, highlighting confidence in the company's future prospects [2]

Financial Performance - Net sales for Q3 2025 reached $2,675.8 million, a 29.0% increase from $2,073.5 million in Q3 2024, driven by higher sales volumes and positive foreign currency impacts[105]. - Net income for Q3 2025 was $398.5 million, a substantial increase of 125.7% from $176.6 million in Q3 2024, reflecting strong operational performance[104]. - Net sales for the third quarter of 2025 were $1,712.4 million, an increase of $513.8 million or 42.9% compared to the third quarter of 2024[114]. - For the first nine months of 2025, net sales reached $7,349.9 million, a 29.7% increase from $5,665.4 million in the same period of 2024[121]. - Asia Pacific net sales reached $1,527.2 million for the first nine months of 2025, an increase of $353.4 million or 30.1% compared to the same period in 2024, driven primarily by growth in India[133]. - Europe, Middle East & Africa net sales were $1,322.7 million, a $75.8 million increase or 6.1% from the prior year, positively impacted by foreign currency by approximately $36.6 million[135]. Profitability - Gross profit for Q3 2025 was $1,010.7 million, representing 37.8% of sales, compared to $756.4 million or 36.5% of sales in Q3 2024, indicating margin expansion due to product and service sales mix[107]. - Operating profit for the Americas segment in the third quarter of 2025 was $501.8 million, an increase of $198.4 million or 65.4% from the previous year[115]. - Operating profit for the Asia Pacific segment was $68.5 million, reflecting a 55.3% increase compared to the same period in 2024[117]. - Operating profit in Asia Pacific was $173.4 million, up $66.6 million or 62.4% year-over-year, with a margin increase to 11.4% from 9.1%[134]. - Operating profit in Europe, Middle East & Africa decreased to $266.4 million, down $27.8 million or 9.4%, with a margin decline to 20.1% from 23.6%[136]. - Gross profit for the first nine months of 2025 was $2,593.8 million, representing 35.3% of sales, compared to 36.4% in the prior year[124]. Expenses and Costs - Selling, general and administrative expenses (SG&A) increased to $414.3 million in Q3 2025, up $79.7 million from Q3 2024, with SG&A as a percentage of sales decreasing to 15.5% from 16.1%[108]. - Total corporate and other costs rose to $88.9 million in the third quarter of 2025, an increase of $43.9 million primarily due to restructuring costs[120]. - Selling, general and administrative expenses increased to $1,156.2 million, a 14.2% rise compared to the first nine months of 2024[125]. - Total corporate and other costs increased to $195.0 million in the first nine months of 2025, up $65.0 million primarily due to a $32.7 million rise in restructuring costs[137]. Cash Flow and Investments - Net cash provided by operating activities was $1,134.9 million, a $240.8 million increase or 26.9% compared to the first nine months of 2024[144]. - Net cash used for investing activities was $892.7 million, significantly higher than $120.7 million in the same period last year, driven by short-term investments and business acquisitions[146]. - Net cash used for financing activities decreased to $44.3 million from $640.4 million, primarily due to a $599.9 million reduction in common share repurchases[147]. - As of September 30, 2025, the company had $1,396.0 million in cash and cash equivalents and $544.6 million in short-term investments, with $782.8 million available under the ABL Revolving Credit Facility[142]. Strategic Initiatives - The company expanded its manufacturing capacity, doubling production for switchgear, busbar, and integrated solutions since late 2021, and opened new facilities in Pune, India, and Pelzer, South Carolina in 2024[103]. - The acquisition of Great Lakes for approximately $200 million, completed on August 20, 2025, enhances the company's capabilities in integrated infrastructure solutions for data centers[103]. - The company is investing in the expansion of its thermal management portfolio to meet growing demands driven by AI workloads, focusing on optimizing performance and power utilization[103]. - The company is actively pursuing a supply chain strategy to enhance resilience amid global trade and economic uncertainties, including regional sourcing and manufacturing capabilities[100]. Interest and Restructuring - Interest expense decreased to $22.8 million in Q3 2025, down 36.5% from $35.9 million in Q3 2024, reflecting improved financial management[104]. - Restructuring costs rose to $30.7 million in Q3 2025, a significant increase of 387.3% compared to $6.3 million in Q3 2024, indicating ongoing operational adjustments[104]. - Interest expense, net, decreased to $69.4 million in the first nine months of 2025, down $50.3 million or 42.0% from the previous year[128].

Core Insights - Vertiv Holdings Co delivered a strong quarter, surpassing Wall Street expectations due to increased data center demand and orders [1] - The company raised its full-year revenue, profit, and cash flow guidance, reflecting ongoing momentum in AI-driven infrastructure [1] Financial Performance - Reported revenue was $2.7 billion, exceeding the Street's estimate of $2.69 billion, while adjusted EPS was $1.24, significantly above the consensus of 98 cents [3][4] - The strong EPS upside was attributed to a 3% revenue increase and a 240 basis point higher operating margin than estimated, with adjusted operating profit at $596 million, surpassing the Street's projection of $519 million [4] Backlog Growth - Organic orders surged 60% year-over-year, implying $3.7 billion in orders for the quarter, supported by a robust backlog of $9.5 billion, which grew 30% year-over-year [5] Outlook - Vertiv raised its full-year 2025 revenue, operating margin (to a 20.2% midpoint), and adjusted EPS guidance, with fourth quarter revenue and EPS guidance exceeding Street estimates [6] - However, fourth quarter EBIT and margin guidance fell slightly below consensus due to tariff and EMEA challenges [6] Investor Focus - Key focus areas for investors include sustained order trends, achieving a 25% margin by 2029, competitive dynamics, and capital allocation strategy [7] - Potential downside risks include challenges to revenue growth from shifts in the data center market and margin pressures from tariffs or competitive activity [7]

Core Insights - Vertiv reported strong third-quarter earnings, exceeding analyst expectations with adjusted earnings of $1.24 per share on sales of $2.68 billion, compared to expectations of 98 cents per share on $2.58 billion in sales [2][3] - The company experienced a significant increase in orders, with a 60% year-over-year growth and a 20% sequential increase from the second quarter [2] - For the current quarter, Vertiv anticipates adjusted earnings of $1.26 per share on sales of $2.85 billion, slightly above analyst projections [3] Financial Performance - Vertiv's third-quarter sales grew by 29% year-over-year, reflecting strong market demand and a robust competitive position [4] - The company built a significant backlog, indicating future growth potential [4] Market Position - Vertiv is recognized as a leader in the Electrical-Power/Equipment industry, tied for first place with nVent Electric, both holding an IBD Composite Rating of 99 [4][5] - The company is featured on three IBD lists: IBD 50, Big Cap 20, and Leaderboard, highlighting its strong market presence [5]

Core Insights - Vertiv Holdings Co. reported strong financial results, with an EPS of $1.24, exceeding estimates and showcasing significant growth [2][6] - The company's revenue reached approximately $2.68 billion, surpassing expectations and indicating a solid market position [3][6] - The growth is largely driven by the AI-driven market, with a 29% increase in net sales year-over-year [4][6] Financial Performance - The EPS of $1.24 represents a 24% earnings surprise compared to the estimated $0.98 [2] - Revenue of $2.68 billion reflects a 3.6% increase over estimates and a rise from $2.07 billion in the same quarter last year [3] - The Americas region saw a 43% increase in sales, while the APAC region experienced a 20% increase [4] Market Dynamics - The AI-driven market has significantly contributed to Vertiv's growth, with a 60% year-over-year surge in organic orders [4] - The company operates within the Zacks Computers - IT Services industry, competing with major firms in delivering innovative IT solutions [1] Financial Metrics - Vertiv has a price-to-earnings (P/E) ratio of approximately 82.09, indicating a high valuation relative to its earnings [5] - The debt-to-equity ratio stands at about 1.02, suggesting a balanced approach to financing [5] - A current ratio of 1.74 demonstrates a solid liquidity position, ensuring the company can meet short-term obligations [5]

Financial Data and Key Metrics Changes - Adjusted diluted EPS for Q3 was $1.24, up approximately 63% year over year, driven by higher adjusted operating profit [8][14] - Q3 organic sales grew 28%, with the Americas up 43% and APAC up 21%, while EMEA declined 4% [8][14] - Adjusted operating profit reached $596 million, up 43% year on year, with a margin of 22.3% [9][14] - Adjusted free cash flow was $462 million, up 38%, translating to approximately 95% free cash flow conversion [16] Business Line Data and Key Metrics Changes - The Americas segment delivered strong organic growth of 43%, driven by accelerated AI demand [16][17] - APAC saw 21% organic growth, supported by AI infrastructure demand [16] - EMEA experienced a 4% decline in organic sales, but there are expectations for recovery in the second half of 2026 [17][18] Market Data and Key Metrics Changes - The overall market growth is accelerating, particularly in the colo cloud segment, which is the fastest-growing area [8] - The total backlog now stands at $9.5 billion, up about 30% year on year and 12% sequentially, indicating strong visibility into 2026 [10][21] Company Strategy and Development Direction - The company is focused on maintaining technology leadership through R&D investments and operational excellence [4][6] - A restructuring program is being implemented in EMEA to prepare for future growth, although acceleration may not occur until the second half of 2026 [10][17] - The company plans to accelerate investments in supply chain and services capabilities to meet evolving customer needs [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a multi-year period of significant growth and value creation, driven by digital transformation and AI demand [6][22] - The company anticipates continued significant organic sales growth in 2026, supported by a substantial backlog and market indicators [22][24] - Tariffs are viewed as a dynamic input cost, with mitigation strategies in place to offset their impacts [11][22] Other Important Information - The company is raising full-year guidance for adjusted EPS, net sales, adjusted operating profit, and adjusted free cash flow [20][21] - The engineering and R&D spending is expected to grow by over 20% in 2026 to maintain competitive advantage [24] Q&A Session Summary Question: What is driving the order uptake and when will big announcements flow into orders for Vertiv? - Management indicated that strong market conditions, technology evolution, and reliable execution are driving order growth, but the timing of large customer announcements translating into orders can vary [29][31] Question: Can you provide more color on the services opportunity and its margin structure? - Management emphasized that the service business is a unique competitive advantage and is expected to catch up as product systems grow, with a strong focus on technology and customer experience [37][39] Question: What is the outlook for EMEA margins and the path back to mid-20s? - Management stated that a combination of sales acceleration and restructuring efforts will facilitate improved margins in EMEA, with expectations for significant improvement in Q4 [91][92] Question: How does the company view the competitive environment and recent innovations? - Management expressed confidence in their innovation capabilities and the importance of staying ahead in the market, viewing recent innovations as opportunities rather than threats [108]

Financial Data and Key Metrics Changes - Adjusted diluted EPS for Q3 reached $1.24, up approximately 63% year-over-year, driven by higher adjusted operating profit [8][14] - Q3 organic sales grew 28%, with the Americas up 43% and APAC up 21%, while EMEA declined 4% [8][14] - Adjusted operating profit was $596 million, up 43% year-on-year, with an adjusted operating margin of 22.3% [9][14] - Adjusted free cash flow of $462 million was up 38%, translating to approximately 95% free cash flow conversion [9][16] - The total backlog now stands at $9.5 billion, up about 30% year-on-year and 12% sequentially [10] Business Line Data and Key Metrics Changes - The Americas segment delivered strong organic growth of 43%, driven by accelerated AI demand across product lines [16] - APAC saw 21% organic growth, supported by AI infrastructure demand [16] - EMEA experienced a 4% decline in organic sales, but expectations for recovery are set for the second half of 2026 [17][21] Market Data and Key Metrics Changes - The overall market growth is accelerating, particularly in the colo cloud segment, which is the fastest-growing area [8] - The company reported a trailing 12-month organic orders growth of about 21%, with Q3 orders up 60% year-over-year [8][9] Company Strategy and Development Direction - The company is focused on maintaining technology leadership through R&D investments and operational excellence [4][6] - A restructuring program is being implemented in EMEA to prepare for future growth, with an expected annualized benefit of approximately $20 million starting in 2026 [17] - The company plans to accelerate investments in supply chain and services capabilities to meet evolving customer needs [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a multi-year period of significant growth and value creation, driven by digital transformation and AI demand [6][22] - The company anticipates continued significant organic sales growth in 2026, supported by a substantial backlog and a healthy pipeline [22][24] - Management acknowledged the dynamic nature of tariffs but is optimistic about mitigating their impacts by Q1 2026 [22][23] Other Important Information - The company is committed to maintaining a robust free cash flow, providing strategic flexibility for future investments [23] - The engineering and R&D spending is expected to grow by over 20% in 2026 to stay ahead of industry demands [24] Q&A Session Summary Question: What is driving the order uptake and when will big announcements translate into orders? - Management indicated that strong market conditions, technology evolution, and reliable execution are driving order growth, but the timing of large customer announcements translating into orders can vary [29][31] Question: Can you provide more color on the services opportunity and its margin structure? - Management highlighted that the service business is a unique competitive advantage and is expected to catch up with product growth, generating recurring revenue [37][39] Question: What is the outlook for margins and the impact of tariffs? - Management confirmed that the long-term margin target of 25% by 2029 remains intact, with expectations for incremental margins in the 30%-35% range [46][50] Question: How is the company preparing for growth in EMEA? - Management expressed confidence in a sales acceleration in EMEA and noted that operational inefficiencies are being addressed to improve margins [94][95] Question: What is the competitive environment and how is the company responding to innovations? - Management emphasized the importance of innovation and maintaining a competitive edge through continuous investment in technology [110][111]