Vertiv(US:VRT)2025-10-22 20:14Financial 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].