Fourth Quarter 2025 Results February 11, 2026 Cautionary Statement Regarding Forward-Looking Statements This presentation, and other statements that Vertiv may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv's future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, statements regarding Vertiv's financial ...

Core Insights - Major companies are competing to release new models and marketing activities, leading to a tight supply of computing power, which is expected to persist for a considerable time [2] Group 1: Liquid Cooling Market - The global liquid cooling market is projected to grow 5-10 times compared to last year, with many companies expected to receive substantial orders [4] - Vertiv reported strong order growth, with organic growth of approximately 252% year-over-year and 117% quarter-over-quarter, estimating order size between $8.2 billion and $8.4 billion [6] - The backlog of orders reached $15 billion, showing a year-over-year increase of about 109% and a quarter-over-quarter increase of 57% [6] Group 2: UBS Upgrade on Invec - UBS raised the target price for Invec by 60% to 160 yuan, driven by a significant upward revision of the global liquid cooling market size and an expected CAGR of 51% from 2025 to 2030 [10] - Invec's market share is anticipated to increase faster than previously expected, with a projected market share of 10% by 2027 [10] - UBS believes Invec's core competitive advantage lies in its full value chain liquid cooling capabilities, which enhance heat dissipation efficiency [11] Group 3: Valuation Insights - UBS argues that Invec's current valuation is unreasonable and significantly underestimates its growth potential, with a projected revenue and EPS CAGR of 69% and 167% from 2025 to 2027 [12] - The valuation adjustment reflects confidence in the company's short-term market share increase and the potential for margin improvement from overseas business [12] Group 4: ByteDance's Liquid Cooling - ByteDance has increased its global capital expenditure to 300 billion, indicating a significant commitment to liquid cooling technology [13]

Vertiv posts fourth-quarter earnings per share of $1.36 from sales of $2.9 billion. Wall Street was looking for $1.29 from sales of $2.9 billion. ...

Group 1 - The S&P 500 is projected to achieve a 13% increase in earnings per share for the fourth quarter, marking the 10th consecutive quarter of annual earnings growth and the fifth consecutive quarter of double-digit growth [1] - As of February 6, 59% of S&P 500 companies have reported their fourth quarter results, indicating a strong earnings season [1] - Analysts had initially expected an 8.3% increase in earnings per share before raising expectations, particularly for technology companies, which have been significant contributors to earnings growth in recent quarters [3] Group 2 - Major capital expenditures by Big Tech are influencing the AI trade, with ongoing themes such as artificial intelligence and economic policies continuing to impact market dynamics [4] - Upcoming earnings reports from companies including Coca-Cola, Spotify, Robinhood, Lyft, Ford, Rivian, Moderna, Airbnb, and Coinbase are anticipated to provide further insights into market trends [4]

Vertiv Reports Strong Fourth Quarter with Organic Orders Growth of 252% and Diluted EPS Growth of 200% (Adjusted Diluted EPS +37%) Fourth Quarter 2025 Full Year 2025 • Organic sales growth of 26% compared to prior year. Full year diluted EPS growth of 166% and adjusted diluted EPS growth of 47%. Full year operating cash flow of $2,114 million and adjusted free cash flow of $1,887 million, an increase of 60% and 66%, respectively, compared to prior year Full Year 2026 COLUMBUS, Ohio February 11, 2026 – Verti ...

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]

Core Insights - The AI trade is experiencing a significant resurgence, particularly benefiting tech stocks as fears around AI spending have eased [1] - Vertiv Holdings has emerged as a key player in critical digital infrastructure, with its stock rising over 2,000% from under $10 per share during the 2022 bear market [2] - Vertiv's stock reached all-time highs of over $200 per share, reflecting a 25% gain in the current year, driven by its role in the AI ecosystem [3] Company Performance - Vertiv's growth has been significantly influenced by the surge in AI demand, particularly for data center capacity, where power and cooling solutions are critical [5] - The company has established itself as a leader in liquid cooling technologies, essential for high-density AI servers, and has formed partnerships with major chip manufacturers like Nvidia [6] - In the past year, Vertiv reported a 29% increase in organic net sales, with data center-related revenue becoming the primary growth driver [7] Market Position and Analyst Sentiment - Recent analyst upgrades and recognition of Vertiv's thermal solutions have highlighted its competitive advantages, particularly in a volatile market [9] - The upcoming earnings report is anticipated to show a 30% year-over-year increase in EPS, with revenues projected at $2.88 billion [10] - Analysts expect continued organic growth of over 20% for 2026, reflecting strong market confidence in Vertiv's future performance [11] Earnings Expectations - Vertiv has a positive Earnings ESP of +2.23%, indicating a potential for a positive earnings surprise in the upcoming report [13] - The company holds a Zacks Rank 2 (Buy), supported by positive estimate revisions and a history of exceeding earnings expectations [11]

Group 1: AI and Gold Market Trends - There has been a significant increase in interest surrounding artificial intelligence (AI) stocks, with companies like Vertiv benefiting from this trend [1] - Gold prices have surged by 72.5% over the past year and 156% over the last five years, indicating a strong market for the precious metal [1] - Concerns about a potential tech bubble in AI, similar to the dotcom crash, may drive more investors towards gold as a safer asset [3] Group 2: Wheaton Precious Metals Overview - Wheaton Precious Metals operates as a streaming company, providing upfront payments to mines in exchange for future gold and silver production [5][7] - The company currently has contracts with 23 mines and is involved in 25 development projects globally, forecasting a 40% increase in production over the next two years [8] - Wheaton's financial performance has improved significantly, with net earnings of $913.4 million for the first nine months of 2025, more than double the $440.9 million from the same period in 2024 [9]

Group 1: AI and Gold Market Trends - There has been a significant increase in interest surrounding artificial intelligence (AI) stocks, with companies like Vertiv benefiting from this trend [1] - Gold prices have surged by 72.5% over the past year and 156% over the last five years, indicating a strong market for the precious metal [1] - Concerns about a potential tech bubble in AI, similar to the dotcom crash, may drive more investors towards gold as a safer asset [3] Group 2: Wheaton Precious Metals Overview - Wheaton Precious Metals operates as a streaming company, providing upfront payments to mines in exchange for future gold and silver production [5][7] - The company currently has contracts with 23 mines and is involved in 25 development projects globally, forecasting a 40% increase in production over the next two years [8] - Wheaton's net earnings for the first nine months of 2025 reached $913.4 million, more than double the $440.9 million generated during the same period in 2024, highlighting the benefits of the rising gold market [9]

Core Thesis - Vertiv Holdings Co is positioned as a key beneficiary of the AI infrastructure supercycle, providing essential power and thermal solutions for modern data centers [1][5] Financial Performance - In Q3 2025, Vertiv experienced a 60% year-over-year increase in organic orders, 29% growth in net sales, and a 63% rise in adjusted EPS, with a backlog of $9.5 billion [2] - Adjusted operating profit margins reached 22.3%, indicating improved operating leverage and procurement productivity [2] Strategic Initiatives - Collaboration with NVIDIA to develop 800 VDC platforms and advanced liquid-cooling systems enhances Vertiv's competitive edge by providing validated architectures that mitigate deployment risks [2][3] - The company’s extensive field-service network, software, digital twins, and AI reference architectures contribute to recurring revenue streams and cross-selling opportunities [3] Growth Potential - Bolt-on acquisitions, such as Great Lakes Data Racks & Cabinets and PurgeRite, enhance Vertiv's thermal and power capabilities, reflecting strategic optionality and confidence in sustained AI demand [3] - Strong cash flow, high operating discipline, and multiple growth catalysts, including new product releases and expanded service capacity, present a compelling investment opportunity [4] Market Context - Despite concerns regarding hyperscaler capex cyclicality and potential competition, the long-term demand driven by AI infrastructure growth is supported by independent research and record data-center spending projections [3]