Vertiv Reports Strong Fourth Quarter with Organic Orders Growth of 252% and Diluted EPS Growth of 200% (Adjusted Diluted EPS +37%)

Core Insights - Vertiv Holdings Co reported strong financial results for Q4 2025, with net sales of $2,880 million, a 23% increase from Q4 2024, driven by organic sales growth of 19% [1] - The company experienced a significant increase in organic orders, up approximately 252% year-over-year and 117% sequentially from Q3 2025, indicating robust market demand, particularly in AI infrastructure [1] - For the full year 2025, Vertiv achieved organic sales growth of 26%, with diluted EPS growth of 166% and adjusted diluted EPS growth of 47% [1] Financial Performance - Q4 2025 operating profit reached $580 million, a 27% increase from Q4 2024, while adjusted operating profit was $668 million, up 33% [1] - The adjusted operating margin for Q4 2025 was 23.2%, an increase of 170 basis points compared to Q4 2024 [1] - Full year operating cash flow was $2,114 million, and adjusted free cash flow was $1,887 million, reflecting increases of 60% and 66% respectively compared to the prior year [1] Future Guidance - For full year 2026, Vertiv expects diluted EPS in the range of $5.27 to $5.37 and adjusted diluted EPS between $5.97 and $6.07, representing increases of 56% and 43% respectively at the midpoint compared to 2025 [1] - The company anticipates net sales for 2026 to be between $13,250 million and $13,750 million, with organic sales growth projected at 27% to 29% [1] Market Dynamics - The Americas region and hyperscale/colocation data centers were primary drivers of order strength, with order growth being broad-based across regions, technologies, and customers [1] - The trailing twelve-month organic orders grew approximately 81% compared to the prior year period, reflecting strong demand in the data center market [1] - The Q4 2025 book-to-bill ratio was approximately 2.9x, with backlog increasing to $15.0 billion, up 109% year-over-year [1] Cash Flow and Liquidity - Vertiv generated $1,005 million in operating cash flow in Q4 2025, with adjusted free cash flow of $910 million, marking significant increases from the previous year [1] - The company maintained strong liquidity of $2.6 billion and a net leverage of approximately 0.5x at the end of Q4 2025 [1] - Vertiv deployed approximately $1 billion for strategic growth acquisitions during the quarter while maintaining a strong balance sheet [1]