Vertiv(US:VRT) ZACKS·2025-10-23 19:06Core Insights - Vertiv Holdings (VRT) reported strong third-quarter 2025 results with non-GAAP earnings of $1.24 per share, exceeding estimates by 24% and reflecting a 63.2% year-over-year increase [1][11] - Net sales reached $2.68 billion, a 29% increase year-over-year, also surpassing estimates by 3.60% [1][11] - The company raised its 2025 guidance, now expecting revenues between $10.16 billion and $10.24 billion and non-GAAP earnings per share between $4.07 and $4.13 [13] Financial Performance - Organic sales growth was robust at 28.4% year-over-year, with product revenues accounting for 82.8% of total revenues, increasing by 33.9% to $2.21 billion [1][4] - Service revenues grew by 9.9% year-over-year to $461.4 million [4] - Adjusted operating profit surged 42.9% year-over-year to $595.6 million, with a non-GAAP operating margin of 22.3%, up 220 basis points [8] Regional Performance - Americas revenues increased by 42.9% year-over-year to $1.71 billion, contributing 64% of total revenues [5] - APAC revenues rose by 20.2% year-over-year to $519.8 million, accounting for 19.4% of total revenues [6] - EMEA revenues saw a slight increase of 0.2% year-over-year to $443.6 million, but organic sales declined by 4% [7] Order Backlog and Future Prospects - Organic orders rose 60% year-over-year, with a book-to-bill ratio of approximately 1.4x, and a backlog of $9.5 billion, up 30% from the end of 2024 [3] - The company expects fourth-quarter 2025 revenues between $2.81 billion and $2.89 billion, with organic net sales growth projected at 18% to 22% [14] Balance Sheet and Cash Flow - As of September 30, 2025, cash and cash equivalents totaled $1.39 billion, down from $1.64 billion at the end of the previous quarter [10] - Free cash flow for the third quarter was reported at $462 million, with cash flow from operating activities increasing to $508.7 million [12]