Financial Data and Key Metrics Changes - Vertiv reported a strong fourth quarter and full year 2025, with adjusted diluted EPS of $1.36, up 37% year-over-year, and adjusted operating profit of $668 million, up 33% from the prior year [9][23]. - The company achieved a trailing twelve-month organic orders growth of 81%, with fourth quarter orders up 152% year-over-year and a book-to-bill ratio of 2.9 times [8][11]. - Adjusted free cash flow for the full year was approximately $1.9 billion, with a conversion rate of 115% [9][28]. Business Line Data and Key Metrics Changes - In the Americas, sales were up 50%, with 46% organic growth, driven by strong demand across products and customer segments [25]. - APAC sales were down 10%, with a 9% organic decline, primarily due to macroeconomic conditions in China [25]. - EMEA sales decreased by 8%, with a 14% organic decline, but the company expects a return to sales growth in the second half of 2026 [26]. Market Data and Key Metrics Changes - The Americas market continues to be the primary growth engine, with expectations of high 30% sales growth [10]. - EMEA is showing signs of recovery, with improved market sentiment and pipeline growth [10]. - APAC is experiencing robust growth outside of China, particularly in India and the rest of Asia [11]. Company Strategy and Development Direction - Vertiv is focused on engineering innovation, capacity expansion, and deep customer partnerships, which are translating into strong results [5][6]. - The company is committed to maintaining a competitive edge through technological advancements and service capabilities, particularly in AI-driven infrastructure [6][17]. - Vertiv plans to increase capital expenditures to 3-4% of sales in 2026 to support growth [15][29]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture significant market opportunities and maintain strong performance in 2026 and beyond [13][33]. - The company anticipates adjusted diluted EPS of $6.02 for 2026, representing 43% growth at the midpoint, with net sales projected at $13.5 billion [29][31]. - Management highlighted the importance of addressing operational bottlenecks to convert backlog into revenue effectively [60]. Other Important Information - The company is experiencing favorable pricing conditions, with 2025 pricing exceeding inflation and expectations for the same in 2026 [14]. - Vertiv's service portfolio is a critical competitive advantage, with lifecycle services orders growing over 25% year-on-year [17][18]. Q&A Session Summary Question: Insights on order values and potential increases - Management indicated that the current framework for dollar per megawatt remains valid, with technology complexity potentially increasing order values over time [39][41]. Question: Unusual large projects in Q4 - Management confirmed that while there were large orders, they reflect market demand rather than unusual incentives or anomalies [50][52]. Question: Operational steps to convert backlog into revenue - Management emphasized ongoing capacity expansion and productivity improvements as key steps to convert backlog into sales [60][62]. Question: Changes in permitting bottlenecks in Europe - Management noted an acceleration of investment in EMEA, with improved market sentiment and expanding pipelines [67][68]. Question: Visibility into future workflows from customer relationships - Management highlighted the importance of strong relationships with data center leaders, allowing for advanced R&D and technology alignment [73][75].

Financial Data and Key Metrics Changes - Vertiv reported a strong fourth quarter and full year 2025, with adjusted diluted EPS of $1.36, up 37% year-over-year, and adjusted operating profit of $668 million, up 33% from the prior year [9][23]. - The company achieved a trailing twelve-month organic orders growth of 81%, with fourth quarter orders up 152% year-over-year and a book-to-bill ratio of 2.9 times [8][11]. - Adjusted free cash flow for the full year was approximately $1.9 billion, with a conversion rate of 115% [9][28]. Business Line Data and Key Metrics Changes - In the Americas, sales were up 50%, with 46% organic growth, driven by broad-based strength across products and customer segments [25]. - APAC sales were down 10%, with a 9% organic decline, primarily due to macroeconomic conditions in China [25]. - EMEA sales were down 8%, with a 14% organic decline, but the company expects a return to sales growth in the second half of 2026 [25][26]. Market Data and Key Metrics Changes - The Americas market continues to be the primary growth engine, with expectations of high 30% sales growth [10]. - EMEA is showing signs of recovery, with improved market sentiment and pipeline growth [10][26]. - APAC is experiencing robust growth outside of China, particularly in India and the rest of Asia [10][11]. Company Strategy and Development Direction - Vertiv is focused on engineering innovation, capacity expansion, and deep customer partnerships, which are translating into strong results [5][6]. - The company is committed to maintaining a competitive edge through technological advancements and service capabilities, particularly in AI-driven infrastructure [6][18]. - Vertiv plans to increase capital expenditures to 3-4% of sales in 2026 to support growth [15][29]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture significant market opportunities and maintain strong performance in 2026 and beyond [5][33]. - The company anticipates adjusted diluted EPS of $6.02 for 2026, representing 43% growth at the midpoint, with net sales projected at $13.5 billion [28][29]. - Management highlighted the importance of addressing operational bottlenecks to convert backlog into revenue effectively [58]. Other Important Information - The company will no longer report actual orders or backlog with quarterly earnings to reduce volatility in performance representation [12]. - Pricing has remained favorable, exceeding inflation in 2025, and is expected to continue in 2026 [14]. Q&A Session Summary Question: Insights on order values and CapEx impact - Management indicated that the current framework for dollar per megawatt remains valid, with no significant anomalies in order sizes [39][40]. - CapEx is expected to correlate with growth, moving to 3-4% of sales, which will support revenue growth [41][42]. Question: Unusual large projects in Q4 - Management confirmed that while there were large orders, they reflect market demand rather than unusual incentives [49][50]. Question: Operational steps to convert backlog into revenue - Management is focused on capacity expansion and productivity improvements to convert backlog into sales effectively [58][60]. Question: Changes in EMEA and Asia markets - Management noted improved market sentiment in EMEA and attributed current challenges in Asia to general market conditions rather than competitive dynamics [66][68]. Question: Visibility into future workflows from customer relationships - Management emphasized the importance of strong relationships with customers to anticipate future technology needs and align R&D efforts accordingly [71][73].

Financial Data and Key Metrics Changes - The company reported a strong performance in Q4 2025, with organic orders up 152% year-over-year and 117% sequentially, leading to a trailing twelve-month organic orders growth of 81% [6][10] - Q4 organic net sales increased by 19%, primarily driven by a 46% organic growth in the Americas, while APAC and EMEA saw declines of 9% and 14% respectively [6][20] - Adjusted operating margin for Q4 was 23.2%, up 170 basis points from Q4 2024, with adjusted operating profit reaching $668 million, a 33% increase from the prior year [7][20] - Adjusted diluted EPS for Q4 was $1.36, up 37% year-over-year, exceeding prior guidance by $0.10 [20] - For the full year 2025, adjusted diluted EPS was $4.20, up 47%, with net sales of $10.2 billion reflecting 26% organic growth [24] Business Line Data and Key Metrics Changes - In the Americas, sales were up 50% with 46% organic growth, driven by strong demand across products and customer segments [22] - APAC sales decreased by 10%, with a 9% organic decline primarily due to macroeconomic conditions in China [22] - EMEA sales were down 8%, with a 14% organic decline, but the company expects a return to sales growth in the second half of 2026 [23] Market Data and Key Metrics Changes - The backlog stood at $15 billion, more than double the previous year, with a book-to-bill ratio of 2.9 times [6][10] - The company anticipates continued strength in the Americas, projecting high 30% sales growth, while APAC is expected to grow in the mid-20% range, and EMEA is projected to be flat to down mid-single digits [26] Company Strategy and Development Direction - The company is focused on engineering innovation, capacity expansion, and deep customer partnerships, which are translating into strong results [4][5] - The company is committed to maintaining a competitive edge through technology leadership and operational capabilities, with a focus on capturing growth opportunities in the AI-driven infrastructure build-out [4][5] - The service portfolio is highlighted as a critical competitive advantage, with lifecycle services orders growing over 25% year-on-year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture significant portions of the growing pipeline, with pricing expected to exceed inflation in 2026 [12] - The company is actively managing inflationary pressures through pricing mechanisms and collaboration with suppliers [13] - Management is optimistic about the market's recovery, particularly in EMEA, and expects to see continued growth in 2026 [9][23] Other Important Information - The company plans to increase capital expenditures to 3-4% of sales in 2026, up from the historical 2-3% [13][26] - Adjusted free cash flow for the full year was approximately $1.9 billion, up 66%, providing flexibility for investments and shareholder returns [25] Q&A Session Summary Question: On the dollar value of the orders and content creep - Management indicated that the current framework of $3 million-$3.5 million per megawatt remains valid, with technology complexity potentially increasing order values over time [36][37] Question: On large projects and unusual orders in Q4 - Management confirmed that while there were large orders, they are consistent with market demand and not due to any unusual incentives [49][50] Question: On operational steps to convert backlog into revenues - Management emphasized a two-pronged approach of capacity expansion through CapEx and productivity improvements to effectively convert backlog into sales [60][62] Question: On EMEA market conditions and China - Management noted improved market sentiment in EMEA, with pipelines expanding, while the situation in China is attributed to general market conditions rather than competitive dynamics [70][71] Question: On service organization and headcount - Management reported an increase in service headcount, approaching 5,000 field personnel, to support the growing install base and service demands [97][99] Question: On backlog and deferred revenue inflows - Management clarified that deferred revenue balances are influenced by the type and mix of orders, with efforts to secure down payments and progress payments [113][116]

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]

Core Insights - Vertiv reported fourth-quarter earnings per share of $1.36, exceeding Wall Street's expectation of $1.29 [1] - The company's sales for the quarter were $2.9 billion, which matched analyst expectations [1] Financial Performance - Earnings per share for the fourth quarter stood at $1.36, which indicates a strong performance relative to market expectations [1] - Total sales for the quarter were reported at $2.9 billion, consistent with analyst forecasts [1]

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]