Link: Vertiv is a data center buildout play with 50% CapEx growth ahead

Core Viewpoint - Verdive is positioned as a strong player in the data center buildout sector, with significant expected capital expenditure growth and organic growth potential [1][5]. Company Performance - Capital expenditure (Capex) is projected to grow by approximately 50% from 2025 to 2029 [1]. - The company has a backlog of $8.5 billion and a book-to-bill ratio of 1.2 times [1]. - Record orders reached $3.2 billion, reflecting a 25% year-over-year increase [2]. Growth and Margins - Verdive is expected to achieve organic growth of 15% to 20% [1][5]. - Operating margins are currently at a low point but are anticipated to improve, with a target of reaching 25% by 2028 [2]. Earnings Potential - The company is projected to have earnings power in the range of $7 to $10 [3]. Competitive Positioning - Compared to peers like Johnson Controls and Eaton, Verdive trades at a premium but is believed to offer faster growth and better operating leverage [4][5]. - The management team, led by David Cody, is considered best-in-class, contributing positively to the company's outlook [6][9]. Industry Context - The global demand for data centers is significant, with a current count of 11,400, and a need to increase to around 30,000 to meet future demand [11]. - The company is closely tied to the AI data center narrative, which is expected to remain strong [10][11].