Part I [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Vertiv reported a significant Q1 2025 turnaround with **$164.5 million** net income on **$2.04 billion** net sales [Condensed Consolidated Statements of Earnings (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20(Loss)) Q1 2025 net sales grew **24.2%** to **$2.04 billion**, driving **$164.5 million** net income from a prior-year loss Q1 2025 vs. Q1 2024 Statement of Earnings (in millions, except per share data) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $2,036.0 | $1,639.1 | 24.2% | | Operating profit (loss) | $290.7 | $202.6 | 43.5% | | Net income (loss) | $164.5 | $(5.9) | N/A | | Diluted EPS | $0.42 | $(0.02) | N/A | - The significant swing from net loss to net income was partly due to the absence of a **$176.6 million** loss from the change in fair value of warrant liabilities, which was recorded in Q1 2024[12](index=12&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached **$9.45 billion**, with cash at **$1.47 billion** and total equity at **$2.67 billion** Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,467.3 | $1,227.6 | | Inventories | $1,383.5 | $1,244.4 | | Total assets | $9,451.1 | $9,132.5 | | Long-term debt, net | $2,904.1 | $2,907.2 | | Total liabilities | $6,784.7 | $6,698.2 | | Total equity | $2,666.4 | $2,434.3 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash flow more than doubled to **$303.3 million**, while financing cash outflow significantly decreased Cash Flow Summary (in millions) | Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $303.3 | $137.5 | | Net cash used for investing activities | $(38.8) | $(36.5) | | Net cash used for financing activities | $(24.9) | $(603.1) | - The significant decrease in cash used for financing activities is primarily due to a **$599.9 million** repurchase of common stock in Q1 2024 that did not recur in Q1 2025[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail business segments, revenue recognition, debt, and legal contingencies, including a securities class action - The company operates in three business segments: Americas; Asia Pacific; and Europe, Middle East & Africa, providing critical digital infrastructure and services[25](index=25&type=chunk) - The company's effective tax rate was **38.0%** for Q1 2025, influenced by a valuation allowance for legislative changes, compared to **54.6%** in Q1 2024, which was impacted by non-deductible changes in warrant liabilities[40](index=40&type=chunk) - The company is party to a securities class action lawsuit, derivative lawsuits, and is responding to a subpoena from the SEC and a document request from the U.S Attorney's Office related to the allegations[69](index=69&type=chunk)[70](index=70&type=chunk)[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses **24.2%** net sales growth driven by AI demand, **43.5%** operating profit increase, and strong liquidity [Outlook and Trends](index=23&type=section&id=Outlook%20and%20Trends) The company is expanding capacity and product offerings to meet AI-driven demand while enhancing supply chain resilience - Increased maturity and adoption of AI and high-performance compute is driving technology innovation and has led to increased demand for the company's products and services[93](index=93&type=chunk) - The company is expanding manufacturing capacity to meet customer demand, including doubling capacity for switchgear and busbar since late 2021 and opening new facilities in India and South Carolina in 2024[87](index=87&type=chunk)[88](index=88&type=chunk) - Vertiv is managing geopolitical and macroeconomic uncertainties by pursuing a supply chain strategy of supplier and geographic resilience, including adding regional sourcing and manufacturing capabilities[85](index=85&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q1 2025 net sales grew **24.2%** to **$2.04 billion**, leading to **$164.5 million** net income despite a slight gross margin decrease - Net sales increased by **$396.9 million (24.2%)** YoY, primarily due to higher sales volumes[90](index=90&type=chunk) - Gross margin slightly decreased from **34.6%** to **33.7%** YoY, primarily due to the mix of product and service sales and the impact of tariffs[92](index=92&type=chunk) - SG&A as a percentage of sales decreased from **19.2%** in Q1 2024 to **17.0%** in Q1 2025, indicating improved operating leverage[94](index=94&type=chunk) - Interest expense decreased by **$13.7 million** YoY due to Term Loan amendments and higher interest income[97](index=97&type=chunk) [Business Segments](index=26&type=section&id=Business%20Segments) All three geographic segments, Americas, Asia Pacific, and EMEA, reported strong sales and operating profit growth with improved margins Americas Segment Performance (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $1,185.3 | $925.0 | 28.1% | | Operating profit | $259.7 | $187.8 | 38.3% | | Margin | 21.9% | 20.3% | +1.6 p.p. | Asia Pacific Segment Performance (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $447.2 | $332.3 | 34.6% | | Operating profit | $45.7 | $30.4 | 50.3% | | Margin | 10.2% | 9.1% | +1.1 p.p. | Europe, Middle East & Africa Segment Performance (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $403.5 | $381.8 | 5.7% | | Operating profit | $78.7 | $70.3 | 11.9% | | Margin | 19.5% | 18.4% | +1.1 p.p. | [Capital Resources and Liquidity](index=29&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains strong liquidity with **$1.47 billion** cash and **$784.2 million** credit availability, projecting **$250-300 million** in 2025 capital expenditures - As of March 31, 2025, the company had **$1,467.3 million** in cash and cash equivalents and **$784.2 million** of availability under its ABL Revolving Credit Facility[111](index=111&type=chunk) - The company expects capital expenditures (including capitalized software) to be between **$250.0 million** and **$300.0 million** for the full year 2025[108](index=108&type=chunk) - Net cash from operating activities increased by **120.6%** YoY to **$303.3 million** in Q1 2025, driven by higher net income and improved working capital[113](index=113&type=chunk)[114](index=114&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in quantitative and qualitative market risk disclosures were reported since the 2024 Form 10-K - There have been no material changes in market risk disclosures since the 2024 Form 10-K[118](index=118&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes - The CEO and CFO concluded that as of March 31, 2025, the Company's disclosure controls and procedures were effective[120](index=120&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected or are reasonably likely to materially affect internal controls[121](index=121&type=chunk) Part II [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) Vertiv faces a securities class action, derivative lawsuits, and government inquiries regarding alleged false statements - A putative securities class action lawsuit alleges that the company made materially false or misleading statements regarding inflationary and supply chain pressures between February 2021 and February 2022. Some claims have been dismissed, while others remain pending[123](index=123&type=chunk) - Shareholder derivative lawsuits have been filed and consolidated, alleging breach of fiduciary duty by certain directors and officers related to the same issues as the class action. These actions are currently stayed[124](index=124&type=chunk) - In November 2023, the company received a subpoena from the SEC and a parallel request for documents from the U.S Attorney's Office for the Southern District of New York related to the allegations in the lawsuits[126](index=126&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) The company's risk factors remain materially unchanged from those disclosed in its 2024 Form 10-K - The Company's risk factors have not materially changed from those described in its 2024 Form 10-K[130](index=130&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales or share repurchases occurred in Q1 2025, with **$2.4 billion** remaining under the program - The Board of Directors approved a stock repurchase program of up to **$3.0 billion** through December 31, 2027[133](index=133&type=chunk) - During the first quarter of 2025, Vertiv made no share repurchases. As of March 31, 2025, **$2.4 billion** was available for repurchase[134](index=134&type=chunk)

First Quarter 2025 Results April 23, 2025 Cautionary Statement Regarding Forward-Looking Statements This presentation, 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 posi ...

Vertiv Holdings Co (NYSE:VRT) Q1 2025 Earnings Conference Call April 23, 2025 11:00 AM ET Company Participants Lynne Maxeiner - VP, Global Treasury & Investor Relations David Cote - Executive Chairman Giordano Albertazzi - CEO & Director David Fallon - CFO Conference Call Participants Scott Davis - Melius Research Amit Daryanani - Evercore Steve Tusa - JPMorgan Jeff Sprague - Vertical Research Andrew Obin - Bank of America Merrill Lynch Nicole DeBlase - Deutsche Bank Andy Kaplowitz - Citigroup Nigel Coe - W ...

Vertiv (VRT) Q1 2025 Earnings Call April 23, 2025 07:23 PM ET Company Participants Lynne Maxeiner - Vice President of Global Treasury & Investor RelationsDavid Cote - Executive ChairmanGiordano Albertazzi - Director & CEODavid Fallon - Chief Financial OfficerScott Davis - CEO & ChairmanAmit Daryanani - Senior Managing Director - Equity ResearchSteve Tusa - Managing DirectorJeffrey Sprague - Founder and Managing PartnerAndrew Obin - MD - Equity ResearchAndrew Kaplowitz - Managing DirectorNigel Coe - Managing ...

Nvidia partner Vertiv's (VRT 11.68%) stock rose by as much as 21% in early morning trading as the company's first-quarter earnings report confirmed that there's nothing wrong with demand for data center equipment. The stock was up 10.5% around 12:30 p.m. ET. The report contained plenty of positives, and Vertiv continues to offer investors an excellent way to get exposure to AI-led demand for data center capacity.Vertiv's excellent quarter: OrdersThe two major pluses from the earnings report this morning wer ...

Core Insights - Vertiv Holdings Co (NYSE:VRT) stock increased by 16.4% to $83.60 following better-than-expected first-quarter earnings and revenue, along with an upward revision of full-year sales guidance, driven by strong demand for data center infrastructure to support artificial intelligence (AI) [1] Group 1: Stock Performance - The stock is currently trading at its highest level since late March, although it remains 48% below its record high of $155.81 from January 24, and has a year-to-date deficit of 24% [2] - Shares are testing their 50-day moving average, which has not been cleared on a closing basis since a late January bear gap [2] Group 2: Options Activity - Vertiv stock has experienced significant options activity with 28,000 calls and 9,992 puts traded, which is triple the typical overall options volume for this time [3] - The most popular option is the weekly 4/25 90-strike call, with new positions being opened [3] Group 3: Sentiment Shift - There has been a notable shift in trader sentiment, as puts were more popular prior to the recent surge in call activity, indicated by a 10-day put/call volume ratio of 1.05, ranking higher than 95% of readings from the past year [4]

Core Viewpoint - Vertiv (VRT) has experienced a significant stock price recovery following a better-than-expected earnings report, reversing a year-to-date decline of 39.29% and surging 18.35% in pre-market trading [1][3]. Financial Performance - Vertiv reported a year-over-year earnings-per-share (EPS) growth of 49% to $0.64 and a sales increase of 24% to $2.04 billion [3]. - The company has upgraded its 2025 net sales guidance to a range of $9.325 billion to $9.575 billion, up from the previous forecast of $9.125 billion to $9.275 billion [4]. Analyst Sentiment - Analysts maintain a bullish outlook on VRT stock, with a consensus rating of 'strong buy' and an average 12-month price target of $113 [5][6]. - The lowest analyst forecast is $73, which is above the latest closing price, while the highest forecast suggests a potential rise to $146 [6]. Market Context - Despite the positive earnings report, there are concerns regarding the broader economic environment, including trade war risks and potential bubbles in the data center sector [9][10].

Core Viewpoint - Vertiv Holdings Co. reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.43 per share a year ago, indicating a positive earnings surprise of 3.23% [1][2] Financial Performance - The company achieved revenues of $2.04 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.24%, and up from $1.64 billion in the same quarter last year [2] - Over the last four quarters, Vertiv has consistently exceeded consensus EPS estimates and revenue expectations [2] Stock Performance - Vertiv shares have declined approximately 36.8% since the beginning of the year, contrasting with the S&P 500's decline of 10.1% [3] - The current Zacks Rank for Vertiv is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $2.25 billion, while the estimate for the current fiscal year is $3.47 on revenues of $9.15 billion [7] - The trend of estimate revisions for Vertiv is currently mixed, which may change following the recent earnings report [6] Industry Context - The Computers - IT Services industry, to which Vertiv belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Dynatrace, is expected to report quarterly earnings of $0.30 per share, with a revenue expectation of $434.56 million, reflecting a 14.1% increase from the previous year [9]

Strong first quarter trailing twelve-month (TTM) orders growth of ~20%, with first quarter orders up ~13% compared to last year's first quarter and up ~21% sequentially from fourth quarter 2024 First quarter book-to-bill ratio of ~1.4x. Backlog 10% higher than year-end and up 25% from end of first quarter 2024 First quarter net sales of $2,036 million, 24% higher than first quarter 2024, with organic net sales up 25% First quarter diluted EPS of $0.42 and adjusted diluted EPS(1) of $0.64, up ~49% from firs ...

Key Takeaways Vertiv shares have struggled in 2025 amid the cooldown in AI stocks. The company is on deck to report quarterly results this week. Analysts have taken a bearish stance on its EPS outlook. The AI trade has cooled off significantly in 2025, a stark turnaround after big gains that spanned several years. While many have recalculated their bets, the staying power of AI is undeniable, and it will undoubtedly remain a focal point within the market for years to come.A company in the middle of the fr ...