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Financial Data and Key Metrics Changes - Adjusted diluted EPS for Q3 2025 was $1.24, up approximately 63% year over year, driven by higher adjusted operating profit [7][13] - Q3 organic sales grew 28%, with the Americas up 43% and APAC up 21%, while EMEA declined 4% [7][13] - Adjusted operating profit reached $596 million, up 43% year on year, with a margin of 22.3% [9][13] - Adjusted free cash flow was $462 million, up 38%, reflecting strong operating performance [9][16] - Total backlog increased to $9.5 billion, up about 30% year on year and 12% sequentially [10][13] 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][19] 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 [7][9] Company Strategy and Development Direction - The company is focused on maintaining technology leadership through consistent R&D investments and operational excellence [4][5] - 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 [21][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 [5][21] - The company anticipates continued organic sales growth in 2026, supported by a substantial backlog and a healthy pipeline [21][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 its full-year guidance for adjusted EPS, net sales, adjusted operating profit, and adjusted free cash flow [19][20] - The adjusted operating margin target for 2029 remains at 25%, with expectations for incremental margins in the 30% to 35% range [19][63] Q&A Session Summary Question: What is driving the order uptake and when will big announcements flow into orders for Vertiv? - Management indicated that order growth is driven by a strong market and technology evolution, with large players expanding their backlogs [28][30] Question: Can you provide more color on the services opportunity and its margin structure? - Management emphasized the service business as a unique competitive advantage, generating recurring revenue, and expected to accelerate as product systems grow [34][36] 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 would facilitate improved operating leverage and margins in EMEA [66] Question: How does the competitive environment affect Vertiv's market position? - Management expressed confidence in their innovation-driven approach, stating that they are at the forefront of industry advancements and maintain strong competitive advantages [82][84]

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 [9][21] - Q3 organic sales grew 28%, with the Americas up 43% and APAC up 21%, while EMEA declined 4% [10][21] - Adjusted operating profit reached $596 million, up 43% year on year, with a margin of 22.3% [12][22] - Adjusted free cash flow was $462 million, up 38%, translating to approximately 95% free cash flow conversion [12][23] - The company raised full-year guidance for adjusted EPS, net sales, adjusted operating profit, and adjusted free cash flow [12][28] Business Line Data and Key Metrics Changes - The Americas delivered strong organic growth of 43%, driven by accelerated AI demand across product lines [24] - APAC saw 21% organic growth, benefiting from AI infrastructure [24] - EMEA experienced a 4% decline in organic sales, but sales were higher than expectations, indicating potential for future growth [25] Market Data and Key Metrics Changes - The overall market growth is accelerating, particularly in the ColoCloud segment, which is the fastest-growing segment [11] - The trailing twelve-month organic orders growth was about 21%, with Q3 orders up 60% year over year and 20% sequentially [11][13] - Total backlog now stands at $9.5 billion, up about 30% year on year and 12% sequentially, providing strong visibility into 2026 [14] Company Strategy and Development Direction - The company is focused on maintaining technology leadership through disciplined investment, operational excellence, and R&D expansion [6][7] - Plans to accelerate investments in supply chain and services capabilities to meet evolving customer needs [30][31] - The company is committed to its November 2024 Investor Day margin targets, with a robust free cash flow providing strategic flexibility [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a multiyear period of significant growth and value creation, driven by digital transformation and increasing data demands [8][30] - The company is addressing operational and supply chain challenges experienced in Q2 and is optimistic about future performance [16][22] - Management noted that tariffs are being viewed as an input cost, with comprehensive mitigation actions in place [15][30] Other Important Information - The company is implementing regional restructuring programs in EMEA to prepare for future growth, although acceleration may not occur until the second half of 2026 [15][25] - The company is scaling service capacity in parallel with manufacturing to meet demand [19][87] Q&A Session Summary Question: What is driving the order uptick and the timeframe for big announcements to flow into orders? - Management indicated that the order growth is driven by a combination of a strong market and technology evolution, with large players expanding their backlogs [41][42] Question: Can you provide more color on the services opportunity and its margin structure? - Management emphasized the service business as a unique competitive advantage, noting that while it typically lags behind product growth, it is expected to accelerate [50][52] Question: What is the outlook for margins and the impact of tariffs? - Management confirmed that the path to the long-term margin target remains intact, with expectations for incrementals in the 30% to 35% range [62][64] Question: What is the confidence in the EMEA market recovery? - Management expressed cautious optimism about EMEA, citing a need for capacity and encouraging signs of pipeline growth [75][77] Question: How is the company scaling up its support function to keep up with top-line growth? - Management reported an increase in headcount for field engineers, with a focus on aligning service capacity with product demand [85][87] Question: How does the company view the competitive environment and recent innovations? - Management welcomed the innovation intensity in the industry, asserting that it drives their competitive advantage and reinforces their market position [130][132]

Market Overview - The U.S. stock market opened with slight declines across major indices, including S&P 500 (-0.04%), Russell 2000 (-0.11%), Dow (-0.14%), and Nasdaq (-0.18%) [2] Earnings Reports - Intuitive Surgical reported strong earnings, leading to a significant increase in its stock price by 17.76%. Other notable gainers include Vertiv (+7.1%) and Hilton (+3.1%) [3] - Pegasystems saw a rise of 12.5%, while Capital One and Haliburton increased by 4.12% and 2.77%, respectively, benefiting from positive earnings sentiment from the previous day [3] - Conversely, Texas Instruments experienced a sharp decline of 7.9% following weaker after-hours results, alongside other laggards like Manhattan Associates (-7.9%), Netflix (-7.4%), and Newmont (-4.77%) [4] - Mattel's stock fell by 5.5% after missing earnings expectations and reporting a decline in North American sales [4] Upcoming Earnings - Major earnings reports expected later today include Tesla, SAP, and IBM, which will be released after the market closes [8] Economic Indicators - The 10-Year Treasury yield decreased by 1.9 points to 3.944%, while the Continuous Gold Contract fell by 1.76% to $4,036.80 [6]

Q3 2025 Performance Highlights - Adjusted diluted earnings per share (EPS) for Q3 2025 increased by approximately 63% compared to Q3 2024, primarily driven by higher adjusted operating profit resulting from a 28% increase in organic net sales and benefits from lower income taxes[6] - Organic net sales in Q3 2025 increased by 28% compared to Q3 2024, driven by strong performance in the Americas (up 43%) and APAC (up 21%), while EMEA experienced a 4% decline[6] - The book-to-bill ratio for Q3 2025 was approximately 1.4x, with trailing twelve-month (TTM) organic orders growth of approximately 21%[7] - Adjusted operating margin for Q3 2025 reached 22.3%, exceeding both guidance and the prior year's figures, contributing to an adjusted operating profit of $596 million, a 43% increase from the previous year's quarter[7] Full Year 2025 Guidance - The company raised its full-year adjusted free cash flow guidance to $1,500 million[8] - The company raised its full-year adjusted diluted EPS guidance to $4.10, a 44% increase from 2024, and adjusted operating profit guidance to $2,060 million, a 33% increase from 2024, primarily driven by a $2.2 billion increase in projected net sales, a 27% increase from 2024[9] - The company expects full-year 2025 adjusted operating margin to be approximately 20.2%, about 80 bps higher than full-year 2024[9] Orders and Backlog - Strong backlog at the end of the third quarter of $9.5 billion, up approximately $2.2 billion or approximately 30% versus the same prior year period and up 12% versus the end of the second quarter 2025[15] - Third quarter orders up approximately 60% from third quarter 2024 and up approximately 20% sequentially[15] Regional Performance - Americas net sales increased by 42.9% to $1,712.4 million in Q3 2025 from $1,198.6 million in Q3 2024, with organic growth of 43%[46] - APAC net sales increased by 20.2% to $519.8 million in Q3 2025 from $432.4 million in Q3 2024, with organic growth of 21.3%[46] - EMEA net sales increased by 0.2% to $443.6 million in Q3 2025 from $442.5 million in Q3 2024, but experienced a 4% decline in organic net sales[46]

Core Insights - Vertiv Holdings (NYSE: VRT) is recognized for its essential cooling equipment in a market focused on thermal management solutions [1] Company Overview - Vertiv Holdings specializes in designing and manufacturing equipment necessary for cooling systems, indicating a strong position in the thermal management sector [1] Investment Perspective - The article emphasizes the importance of sustained profitability, characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital, as a more reliable driver of returns than valuation alone [1]

Vertiv Holdings Co. (VRT) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +24.00%. A quarter ago, it was expected that this company would post earnings of $0.83 per share when it actually produced earnings of $0.95, delivering a surprise of +14.46%.Over the last four quarters, the compan ...

Vertiv Holdings Co (NYSE:VRT) is one of the stocks in Jim Cramer’s recent game plan. Cramer seemed optimistic around the company’s upcoming earnings, as he stated: “Wednesday, we’ve got two data center stories, Vertiv, which cools the red-hot data centers, and GE Vernova… I believe Vertiv will once again deliver an excellent number.” A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels Vertiv Holdings Co (NYSE:VRT) provides digital infrastructure solutions and services for ...

Core Viewpoint - Vertiv has raised its full-year outlook, attributing this adjustment to a strong backlog and pipelines in an AI-driven market [1] Group 1: Company Performance - The company reported a significant increase in demand driven by advancements in artificial intelligence [1] - Vertiv's strong backlog indicates robust future revenue potential, reflecting confidence in ongoing projects and customer commitments [1] Group 2: Market Context - The AI-driven market is creating new opportunities for growth, positioning Vertiv favorably within the industry [1] - The overall industry trend towards digital transformation and AI integration is expected to benefit companies like Vertiv [1]

```markdown [Third Quarter 2025 Highlights](index=1&type=section&id=Third%20Quarter%202025%20Highlights) [Summary of Key Financial and Operational Achievements](index=1&type=section&id=Summary%20of%20Key%20Financial%20and%20Operational%20Achievements) Vertiv reported strong third-quarter 2025 results, with significant growth in net sales, operating profit, and orders, driven by increased market demand, particularly in AI-driven infrastructure Key Financial and Operational Achievements | Metric | Q3 2025 Value | Change YoY (%) | Change QoQ (%) | | :-------------------------- | :------------ | :--------- | :--------- | | Net Sales | $2,676 million | +29% | - | | Organic Orders | - | +60% | +20% | | TTM Organic Orders | - | +21% | - | | Book-to-bill ratio | ~1.4x | - | - | | Backlog | $9.5 billion | - | - | | Operating Profit | $517 million | +39% | - | | Adjusted Operating Profit | $596 million | +43% | - | | Adjusted Operating Margin | 22.3% | +220 bps | +380 bps | | Diluted EPS | $1.02 | +122% | - | | Adjusted Diluted EPS | $1.24 | +63% | - | - Strong sales growth was driven by **43% growth in Americas** and **20% growth in APAC**[2](index=2&type=chunk) - The company is investing more decisively in expanding manufacturing and services capacity and amplifying ER&D capabilities to meet strong industry demand, especially in AI-driven infrastructure[4](index=4&type=chunk) - Accelerated a restructuring program in EMEA to optimize and focus operations, anticipating improved market conditions in H2 2026[4](index=4&type=chunk) [Financial Performance Overview](index=9&type=section&id=Financial%20Performance%20Overview) [Consolidated Statements of Earnings (Loss)](index=9&type=section&id=Consolidated%20Statements%20of%20Earnings%20(Loss)) Vertiv reported substantial increases in net sales and profitability for both the third quarter and the nine months ended September 30, 2025, compared to the prior year periods, driven by growth in both product and service sales Consolidated Statements of Earnings (Loss) - Key Metrics | Metric | Q3 2025 ($M) | Q3 2024 ($M) | 9M 2025 ($M) | 9M 2024 ($M) | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | | Net Sales - Products | 2,214.4 | 1,653.7 | 6,030.1 | 4,479.2 | | Net Sales - Services | 461.4 | 419.8 | 1,319.8 | 1,186.2 | | **Total Net Sales** | **2,675.8** | **2,073.5** | **7,349.9** | **5,665.4** | | Cost of Sales - Products | 1,398.4 | 1,066.3 | 3,980.8 | 2,875.6 | | Cost of Sales - Services | 266.7 | 250.8 | 775.3 | 725.8 | | **Total Cost of Sales** | **1,665.1** | **1,317.1** | **4,756.1** | **3,601.4** | | Operating Profit (Loss) | 516.7 | 371.6 | 1,249.8 | 910.2 | | Net Income (Loss) | 398.5 | 176.6 | 887.2 | 348.8 | | Basic EPS | 1.04 | 0.47 | 2.33 | 0.93 | | Diluted EPS | 1.02 | 0.46 | 2.27 | 0.90 | - Operating profit increased by **39% in Q3 2025** and **37% for the nine months ended September 30, 2025**, compared to the prior year periods[24](index=24&type=chunk) - Net income more than doubled in Q3 2025, rising from **$176.6 million to $398.5 million**, and significantly increased for the nine-month period[24](index=24&type=chunk) [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) Vertiv's balance sheet shows growth in total assets, primarily driven by increases in cash, short-term investments, accounts receivable, and inventories, while maintaining a stable debt structure Consolidated Balance Sheets - Key Metrics | Metric | Sep 30, 2025 ($M) | Dec 31, 2024 ($M) | | :-------------------------- | :---------------- | :---------------- | | Cash and cash equivalents | 1,396.0 | 1,227.6 | | Short-term investments | 544.6 | — | | Accounts receivable, net | 2,810.7 | 2,362.7 | | Inventories | 1,437.1 | 1,244.4 | | **Total current assets** | **6,549.2** | **5,101.8** | | **Total assets** | **10,816.3** | **9,132.5** | | Accounts payable | 1,718.9 | 1,316.4 | | Deferred revenue | 1,131.9 | 1,063.3 | | **Total current liabilities** | **3,576.8** | **3,097.0** | | Long-term debt, net | 2,897.6 | 2,907.2 | | **Total liabilities** | **7,307.6** | **6,698.2** | | **Total equity** | **3,508.7** | **2,434.3** | - Total assets increased by **$1,683.8 million** from December 31, 2024, to September 30, 2025[26](index=26&type=chunk) - Total equity increased by **$1,074.4 million**, reflecting improved profitability and retained earnings[26](index=26&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Vertiv generated strong cash flow from operating activities in Q3 and YTD 2025, which was partially offset by significant investing activities, including capital expenditures and business acquisitions Consolidated Statements of Cash Flows - Key Activities | Cash Flow Activity | Q3 2025 ($M) | Q3 2024 ($M) | 9M 2025 ($M) | 9M 2024 ($M) | | :---------------------------------- | :----------- | :----------- | :----------- | :----------- | | Net cash from operating activities | 508.7 | 375.1 | 1,134.9 | 894.1 | | Net cash from investing activities | (709.9) | (39.2) | (892.7) | (120.7) | | Net cash from financing activities | (11.4) | (13.7) | (44.3) | (640.4) | | Increase (decrease) in cash | (211.8) | 329.7 | 212.0 | 128.8 | | Ending cash, cash equivalents and restricted cash | 1,444.2 | 917.4 | 1,444.2 | 917.4 | - Investing activities in Q3 2025 included **$45.2 million in capital expenditures**, **$1.5 million in capitalized software**, **$441.5 million in short-term investments**, and **$221.7 million for business acquisitions**[27](index=27&type=chunk) - Changes in operating working capital negatively impacted cash flow by **$45.5 million in Q3 2025**, primarily due to increases in accounts receivable and inventories, partially offset by increases in accounts payable[27](index=27&type=chunk) [Liquidity and Adjusted Free Cash Flow](index=2&type=section&id=Liquidity%20and%20Adjusted%20Free%20Cash%20Flow) [Liquidity and Adjusted Free Cash Flow Performance](index=2&type=section&id=Liquidity%20and%20Adjusted%20Free%20Cash%20Flow%20Performance) Vertiv demonstrated strong liquidity and adjusted free cash flow growth in Q3 2025, driven by higher operating profit and lower interest costs, with its credit rating upgraded reflecting robust financial health Liquidity and Adjusted Free Cash Flow | Metric | Q3 2025 Value | Change from Q3 2024 (%) | | :-------------------------------- | :------------ | :---------------------- | | Net cash generated by operating activities | $509 million | +36% | | Adjusted free cash flow | $462 million | +38% | | Liquidity (end of Q3 2025) | $2.7 billion | - | | Net leverage (end of Q3 2025) | ~0.5x | - | - Moody's Investors Service upgraded Vertiv's credit rating to **Ba1 from Ba2**, citing strong market position and consistent operational achievements[7](index=7&type=chunk) - Adjusted free cash flow growth was partially offset by increased taxes from higher profitability and capital investments[6](index=6&type=chunk) [Segment Performance Analysis](index=13&type=section&id=Segment%20Performance%20Analysis) [Regional Segment Results](index=13&type=section&id=Regional%20Segment%20Results) The Americas and APAC regions showed strong growth in net sales and adjusted operating profit for both Q3 and YTD 2025, while EMEA's net sales remained flat in Q3 with a decline in adjusted operating profit Regional Net Sales and Adjusted Operating Profit (Q3 2025 vs Q3 2024) | Region | Net Sales Q3 2025 ($M) | Net Sales Q3 2024 ($M) | Change (%) | Organic Change (%) | Adj. Op. Profit Q3 2025 ($M) | Adj. Op. Profit Q3 2024 ($M) | Change (%) | | :----- | :--------------------- | :--------------------- | :--- | :--------- | :--------------------------- | :--------------------------- | :--- | | AMER | 1,712.4 | 1,198.6 | 42.9% | 43.0% | 501.8 | 303.4 | 65.4% | | APAC | 519.8 | 432.4 | 20.2% | 21.3% | 68.5 | 44.1 | 55.3% | | EMEA | 443.6 | 442.5 | 0.2% | (4.0)% | 83.5 | 114.4 | (27.0)% | | Total | 2,675.8 | 2,073.5 | 29.0% | 28.4% | 595.6 | 416.9 | 42.9% | Regional Net Sales and Adjusted Operating Profit (9M 2025 vs 9M 2024) | Region | Net Sales 9M 2025 ($M) | Net Sales 9M 2024 ($M) | Change (%) | Organic Change (%) | Adj. Op. Profit 9M 2025 ($M) | Adj. Op. Profit 9M 2024 ($M) | Change (%) | | :----- | :--------------------- | :--------------------- | :--- | :--------- | :--------------------------- | :--------------------------- | :--- | | AMER | 4,500.0 | 3,244.7 | 38.7% | 39.0% | 1,146.1 | 776.3 | 47.6% | | APAC | 1,527.2 | 1,173.8 | 30.1% | 31.0% | 173.4 | 106.8 | 62.4% | | EMEA | 1,322.7 | 1,246.9 | 6.1% | 3.1% | 266.4 | 294.2 | (9.4)% | | Total | 7,349.9 | 5,665.4 | 29.7% | 29.4% | 1,421.6 | 1,047.3 | 35.7% | Adjusted Operating Margins by Region | Region | Q3 2025 (%) | Q3 2024 (%) | Change (%) | 9M 2025 (%) | 9M 2024 (%) | Change (%) | | :----- | :------ | :------ | :--- | :------ | :------ | :--- | | AMER | 29.3% | 25.3% | 4.0% | 25.5% | 23.9% | 1.6% | | APAC | 13.2% | 10.2% | 3.0% | 11.4% | 9.1% | 2.3% | | EMEA | 18.8% | 25.9% | (7.1)% | 20.1% | 23.6% | (3.5)% | | Vertiv | 22.3% | 20.1% | 2.2% | 19.3% | 18.5% | 0.8% | [Sales by Product and Service Offering](index=14&type=section&id=Sales%20by%20Product%20and%20Service%20Offering) Product sales significantly outpaced service and spares sales growth across all regions for both the third quarter and year-to-date 2025, with the Americas leading in product sales growth Sales by Product and Service Offering (Q3 2025 vs Q3 2024) | Region | Category | Q3 2025 ($M) | Q3 2024 ($M) | Change (%) | | :------- | :--------- | :----------- | :----------- | :--- | | Americas | Products | 1,426.6 | 957.0 | 49.1% | | | Services & spares | 285.8 | 241.6 | 18.3% | | Asia Pacific | Products | 392.7 | 313.9 | 25.1% | | | Services & spares | 127.1 | 118.5 | 7.3% | | EMEA | Products | 348.3 | 344.7 | 1.0% | | | Services & spares | 95.3 | 97.8 | (2.6)% | | **Total** | **Products** | **2,167.6** | **1,615.6** | **34.2%** | | | **Services & spares** | **508.2** | **457.9** | **11.0%** | Sales by Product and Service Offering (9M 2025 vs 9M 2024) | Region | Category | 9M 2025 ($M) | 9M 2024 ($M) | Change (%) | | :------- | :--------- | :----------- | :----------- | :--- | | Americas | Products | 3,705.7 | 2,565.2 | 44.5% | | | Services & spares | 794.3 | 679.5 | 16.9% | | Asia Pacific | Products | 1,150.5 | 831.0 | 38.4% | | | Services & spares | 376.7 | 342.8 | 9.9% | | EMEA | Products | 1,041.4 | 974.1 | 6.9% | | | Services & spares | 281.3 | 272.8 | 3.1% | | **Total** | **Products** | **5,897.6** | **4,370.3** | **34.9%** | | | **Services & spares** | **1,452.3** | **1,295.1** | **12.1%** | [Organic Growth by Product and Service Offering](index=15&type=section&id=Organic%20Growth%20by%20Product%20and%20Service%20Offering) Organic growth, excluding foreign currency exchange rate impacts, mirrored overall sales trends, with products showing stronger growth than services, particularly in the Americas and Asia Pacific Organic Growth by Product and Service Offering (Q3 2025) | Region | Category | Organic Growth ($M) | Organic Change (%) | | :------- | :--------- | :------------------ | :--------- | | Americas | Products | 471.1 | 49.2% | | | Services & spares | 43.8 | 18.1% | | Asia Pacific | Products | 82.4 | 26.3% | | | Services & spares | 9.6 | 8.1% | | EMEA | Products | (10.4) | (3.0)% | | | Services & spares | (7.3) | (7.5)% | | **Total** | **Products** | **543.1** | **33.6%** | | | **Services & spares** | **46.1** | **10.1%** | Organic Growth by Product and Service Offering (9M 2025) | Region | Category | Organic Growth ($M) | Organic Change (%) | | :------- | :--------- | :------------------ | :--------- | | Americas | Products | 1,148.1 | 44.8% | | | Services & spares | 117.5 | 17.3% | | Asia Pacific | Products | 326.1 | 39.2% | | | Services & spares | 37.4 | 10.9% | | EMEA | Products | 37.4 | 3.8% | | | Services & spares | 1.8 | 0.7% | | **Total** | **Products** | **1,511.6** | **34.6%** | | | **Services & spares** | **156.7** | **12.1%** | [Segment Operating Profit (Loss)](index=16&type=section&id=Segment%20Operating%20Profit%20(Loss)) The Americas segment was the primary driver of operating profit growth, while EMEA experienced a decline, and corporate costs also increased, impacting overall profitability Segment Operating Profit (Loss) | Segment | Q3 2025 ($M) | Q3 2024 ($M) | 9M 2025 ($M) | 9M 2024 ($M) | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | | Americas | 501.8 | 303.4 | 1,146.1 | 776.3 | | Asia Pacific | 68.5 | 44.1 | 173.4 | 106.8 | | Europe, Middle East & Africa | 83.5 | 114.4 | 266.4 | 294.2 | | Total reportable segments | 653.8 | 461.9 | 1,585.9 | 1,177.3 | | Corporate | (88.0) | (39.7) | (189.2) | (121.3) | | Amortization of intangibles | (48.2) | (45.3) | (141.1) | (137.1) | | **Operating profit (loss)** | **516.7** | **371.6** | **1,249.8** | **910.2** | - Corporate costs increased significantly from **$39.7 million in Q3 2024 to $88.0 million in Q3 2025**[38](index=38&type=chunk) [Outlook and Guidance](index=2&type=section&id=Outlook%20and%20Guidance) [Full Year and Fourth Quarter 2025 Guidance](index=2&type=section&id=Full%20Year%20and%20Fourth%20Quarter%202025%20Guidance) Vertiv is raising its full-year 2025 guidance across key financial metrics, reflecting sustained business momentum, strong backlog, and strategic investments to capitalize on market opportunities - Vertiv is strategically increasing ER&D investments and expanding production capacity to meet rising industry demand, with **2025 capital expenditures expected to be ~$250 million** and further expansion in 2026[8](index=8&type=chunk) Updated Full Year and Fourth Quarter 2025 Guidance (Midpoint) | Metric | Fourth Quarter 2025 Guidance | Full Year 2025 Guidance | | :-------------------------- | :--------------------------- | :---------------------- | | Net sales | $2,810M - $2,890M | $10,160M - $10,240M | | Organic net sales growth | 18% - 22% | 26% - 28% | | Adjusted operating profit | $620M - $660M | $2,040M - $2,080M | | Adjusted operating margin | 22.1% - 22.7% | 20.0% - 20.5% | | Adjusted diluted EPS | $1.23 - $1.29 | $4.07 - $4.13 | | Adjusted free cash flow | $470M - $530M | $1,470M - $1,530M | - The company increased its adjusted diluted EPS guidance from **$3.80 to $4.10**, adjusted operating profit from **$1,990 million to $2,060 million**, and adjusted free cash flow from **$1,400 million to $1,500 million** (all figures at midpoint of guidance)[9](index=9&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) [About Vertiv Holdings Co](index=4&type=section&id=About%20Vertiv%20Holdings%20Co) Vertiv Holdings Co is a global leader in critical digital infrastructure, providing hardware, software, analytics, and services to ensure continuous, optimal, and scalable operation of vital applications - Vertiv offers a portfolio of power, cooling, and IT infrastructure solutions and services, extending from the cloud to the edge of the network[14](index=14&type=chunk) - Headquartered in Westerville, Ohio, USA, Vertiv operates in **over 130 countries**[14](index=14&type=chunk) [Earnings Conference Call Details](index=4&type=section&id=Earnings%20Conference%20Call%20Details) Vertiv's management team will host a conference call to discuss the Q3 2025 results, with a webcast and slide presentation available on the company's investor relations website - The conference call was scheduled for Wednesday, October 22, at **11 a.m. Eastern Time**[13](index=13&type=chunk) - A webcast of the live call and a slide presentation are available on investors.vertiv.com, with a replay available for **30 days**[13](index=13&type=chunk) [Non-GAAP Financial Information](index=4&type=section&id=Non-GAAP%20Financial%20Information) [Explanation of Non-GAAP Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Vertiv utilizes several non-GAAP financial measures to provide investors with supplemental information for evaluating ongoing operations and comparing financial results - Management believes these non-GAAP measures offer useful supplemental information for evaluating the Company's ongoing operations and comparing with past and future periods[15](index=15&type=chunk)[28](index=28&type=chunk) - **Adjusted operating profit (loss):** Operating profit (loss) adjusted to exclude amortization of intangibles and restructuring costs - **Adjusted operating margin:** Adjusted operating profit (loss) divided by net sales - **Organic net sales growth:** Change in net sales adjusted to exclude impacts of foreign currency exchange rates - **Adjusted free cash flow:** Net cash provided by (used for) operating activities adjusted to exclude capital expenditures and investments in capitalized software - **Adjusted diluted EPS:** Diluted earnings per share adjusted to exclude amortization of intangibles, restructuring costs, net non-recurring tax adjustments, term loan amendment expense, and change in warranty liability - Reconciliation of certain forward-looking GAAP to non-GAAP measures for guidance is not available without unreasonable effort due to high variability and uncertainty[16](index=16&type=chunk) [Reconciliation of GAAP and Non-GAAP Financial Measures (Q3 2025 & Q3 2024)](index=16&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Financial%20Measures%20(Q3%202025%20%26%20Q3%202024)) Detailed reconciliations are provided for key non-GAAP metrics, illustrating the adjustments made from GAAP figures for both the three and nine months ended September 30, 2025 and 2024 Reconciliation of Net Cash from Operating Activities to Adjusted Free Cash Flow | Metric | Q3 2025 ($M) | Q3 2024 ($M) | 9M 2025 ($M) | 9M 2024 ($M) | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | | Net cash provided by (used for) operating activities | 508.7 | 375.1 | 1,134.9 | 894.1 | | Capital expenditures | (45.2) | (36.4) | (126.7) | (106.3) | | Investments in capitalized software | (1.5) | (2.8) | (4.7) | (14.4) | | **Adjusted free cash flow** | **462.0** | **335.9** | **1,003.5** | **773.4** | Reconciliation from Operating Profit (Loss) to Adjusted Operating Profit (Loss) | Metric | Q3 2025 ($M) | Q3 2024 ($M) | 9M 2025 ($M) | 9M 2024 ($M) | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | | Operating profit (loss) | 516.7 | 371.6 | 1,249.8 | 910.2 | | Amortization of intangibles | 48.2 | 45.3 | 141.1 | 137.1 | | Restructuring costs | 30.7 | — | 30.7 | — | | **Adjusted operating profit (loss)** | **595.6** | **416.9** | **1,421.6** | **1,047.3** | Reconciliation of Diluted EPS to Adjusted Diluted EPS (Q3 2025) | Metric | GAAP Diluted EPS ($) | Adjustments ($) | Non-GAAP Adjusted Diluted EPS ($) | | :-------------------------- | :--------------- | :---------- | :---------------------------- | | Q3 2025 | $1.02 | Amortization of intangibles: $0.12, Restructuring costs: $0.08, Term loan amendment expense: $0.02 | $1.24 | [Reconciliation of 2025 Adjusted Guidance](index=18&type=section&id=Reconciliation%20of%202025%20Adjusted%20Guidance) The report provides a reconciliation of GAAP Diluted EPS to Adjusted Diluted EPS for the fourth quarter and full year 2025 guidance, detailing the specific adjustments made Reconciliation of Diluted EPS to Adjusted Diluted EPS (Q4 2025 Guidance) | Metric | GAAP Diluted EPS ($) | Adjustments ($) | Non-GAAP Adjusted Diluted EPS ($) | | :-------------------------- | :--------------- | :---------- | :---------------------------- | | Q4 2025 | $1.14 | Amortization of intangibles: $0.12 | $1.26 | Reconciliation of Diluted EPS to Adjusted Diluted EPS (Full Year 2025 Guidance) | Metric | GAAP Diluted EPS ($) | Adjustments ($) | Non-GAAP Adjusted Diluted EPS ($) | | :-------------------------- | :--------------- | :---------- | :---------------------------- | | Full Year 2025 | $3.41 | Amortization of intangibles: $0.49, Restructuring costs: $0.08, Non-recurring tax adjustment: $0.10, Term loan amendment expense: $0.02 | $4.10 | - Guidance reflects tariff rates active on October 20, 2025, and does not account for proposed tariffs that may become effective later[49](index=49&type=chunk) [Cautionary Note Concerning Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Concerning%20Forward-Looking%20Statements) [Risks and Uncertainties](index=4&type=section&id=Risks%20and%20Uncertainties) This section serves as a standard disclaimer, highlighting that statements regarding future performance, strategies, or expectations are forward-looking and subject to numerous assumptions, risks, and uncertainties - Forward-looking statements are not guarantees of performance and are subject to risks and uncertainties that change over time[18](index=18&type=chunk)[20](index=20&type=chunk) - Key risk factors include continued growth of customer markets, long sales cycles, failure to realize sales from backlog, supply chain management issues, competition, IT disruption, and global economic weakness[20](index=20&type=chunk) - Vertiv undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws[20](index=20&type=chunk) ```