Vertiv(US:VRT) ZACKS·2026-02-12 16:35Core Insights - Vertiv Holdings (VRT) reported fourth-quarter 2025 non-GAAP earnings of $1.36 per share, exceeding the Zacks Consensus Estimate by 5.80% and reflecting a 37.4% year-over-year increase [1] - Net sales rose 22.7% year over year to $2.88 billion, slightly surpassing the Zacks Consensus Estimate by 0.07% [1] - Organic net sales increased by 19% year over year [1] Financial Performance - Organic orders surged approximately 252% year over year, with a backlog of $15.0 billion, up 109% compared to Q4 2024 and 57% sequentially from Q3 2025 [2] - The book-to-bill ratio for Q4 was approximately 2.9x, with trailing 12-month organic orders growth at 81% compared to the prior-year period [2] - Product revenues, accounting for 82% of total revenues, increased 23.3% year over year to $2.36 billion, while service revenues rose 20.2% year over year to $519.5 million [2] Regional Performance - Americas' revenues increased 50.2% year over year (46% organic) to $1.88 billion, representing 65.5% of total revenues [3] - Asia and Pacific (APAC) revenues decreased 9.6% year over year (9.3% organic decline) to $492 million, accounting for 17.1% of total revenues [4] - Europe, Middle East, and Africa (EMEA) revenues decreased 8.2% year over year (14.1% organic) to $501.7 million, making up 17.4% of total revenues [5] Operating Details - Selling, general, and administrative (SG&A) expenses rose 27.7% year over year to $461.6 million, but as a percentage of sales, SG&A expenses decreased by 60 basis points to 16% [6] - Adjusted operating profit increased 32.5% year over year to $668.1 million, with a non-GAAP operating margin of 23.2%, up 170 basis points year over year [6] Balance Sheet and Cash Flow - As of December 31, 2025, cash and cash equivalents totaled $1.72 billion, up from $1.39 billion as of September 30, 2025 [8] - Long-term debt decreased to $2.892 billion from $2.897 billion in the previous quarter [8] - Cash flow from operating activities was $1 billion for the reported quarter, up from $508.7 million in the prior quarter, with free cash flow at $909.9 million [9] Future Guidance - For 2026, revenues are expected to be between $13.25 billion and $13.75 billion, with organic net sales growth projected between 27% and 29% [10] - Adjusted operating profit for 2026 is anticipated to be between $2.98 billion and $3.10 billion, with an operating margin in the 22%-23% range [10] - First-quarter 2026 revenues are expected to be between $2.5 billion and $2.7 billion, with organic net sales growth projected between 18% and 26% [11]