Financial Data and Key Metrics Changes - Adjusted diluted earnings per share (EPS) was $0.95, up approximately 42% from Q2 2024, primarily driven by higher adjusted operating profit [9][27] - Organic sales grew 34% year-on-year, with strong performance in The Americas (up mid-40s) and APAC (up mid-30s), while EMEA delivered high single-digit growth [10][28] - Adjusted operating profit was $489 million, up 28% year-on-year, with an adjusted operating margin of 18.5%, approximately 110 basis points lower than the prior year due to tariffs [12][28] - Free cash flow for Q2 was $277 million, lower year-on-year, but adjusted free cash flow for the first half was $542 million, a robust growth of 24% year-on-year [13][30] - Full-year adjusted free cash flow guidance raised to $1.4 billion, with net sales guidance increased by $550 million to $10 billion [14][36] Business Line Data and Key Metrics Changes - Americas organic sales increased by 43%, driven by strength in colocation and hyperscale markets, with an adjusted operating margin of 24% [30] - APAC saw a 37% organic sales increase, with margin expansion to 10.6% [30] - EMEA's organic sales grew 7%, but are expected to be flat for the full year due to operational execution challenges and investments in fixed costs [31][32] Market Data and Key Metrics Changes - Q2 orders were up approximately 15% from Q2 2024 and up 11% sequentially from Q1 2025, with a trailing twelve-month organic orders growth of 11% [11][15] - Backlog stood at $8.5 billion, up 21% year-on-year and 7% sequentially from Q1, supporting increased guidance for the year [15][36] Company Strategy and Development Direction - The company continues to focus on organic expansion and strategic acquisitions to extend market leadership, with the recent acquisition of Great Lakes showcasing this approach [7][24] - Investments in R&D and capacity expansion are aimed at staying ahead of market demand and delivering innovative solutions [8][18] - The company is adapting to a changing regulatory environment that is becoming more conducive to AI infrastructure investment [16][104] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on long-term opportunities in the digital revolution and data center market [6][8] - The operational challenges faced in Q2 are expected to be resolved by year-end, with a projected adjusted operating margin improvement in Q4 [29][96] - The company anticipates continued strong growth in 2025, raising guidance for adjusted diluted EPS and net sales [14][35] Other Important Information - The company plans to communicate projected full-year orders rather than quarterly orders starting from Q4 2025 to better align with business operations [16] - The tariff situation remains dynamic, with ongoing countermeasures being executed to mitigate impacts [17][18] Q&A Session Summary Question: Margin expectations for 2026 - Management believes that 2026 could be a more normal year for margins, with a positive long-term trajectory expected [44][45] Question: Strength in backlog and order duration - Backlog duration remains similar to historical trends, with some customers seeking earlier deliveries, indicating a healthy demand [48][50] Question: Tariffs and inflation recovery - The company has commercial leverage to recover tariffs, and relationships with hyperscalers are strong, allowing for co-engineering opportunities [54][56] Question: Win rates and procurement changes - Win rates remain stable, with no significant changes in how hyperscalers procure equipment [62][66] Question: Operational inefficiencies - Inefficiencies are attributed to tariff transitions and the need for increased capacity to meet growth demands, with expectations for normalization [74][78] Question: Growth rates for thermal service contracts - Liquid cooling is expected to drive growth in thermal service contracts, as the complexity of systems increases [83][85] Question: Current product footprint evolution - The company is evolving its product offerings to accommodate higher voltage power distribution and increasing rack density [88][90] Question: Free cash flow allocation - Free cash flow will be prioritized for strategic acquisitions, with a strong process in place for capital allocation [129][131] Question: Modular and prefab solutions trend - There is an acceleration in modular business, with prefabrication of technology being a key focus for the company [134][135]

Second Quarter 2025 Results July 30, 2025 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 posi ...

Core Viewpoint - Vertiv Holdings Co reported strong financial results for the second quarter of 2025, with significant growth in net sales and operating profit, driven by robust demand in the data center market and strategic investments in capacity and innovation [1][2][3]. Financial Performance - Net sales for Q2 2025 reached $2,638 million, a 35% increase ($685 million) year-over-year, attributed to strong data center demand [1][10]. - Operating profit increased by $106 million to $442 million, up 32% from the prior year, while adjusted operating profit grew by $108 million to $489 million, representing a 28% increase [2][10]. - Adjusted diluted EPS for Q2 2025 was $0.95, a 42% increase from Q2 2024 [10]. Orders and Backlog - Organic orders increased approximately 15% year-over-year and 11% sequentially from Q1 2025, with a trailing twelve-month (TTM) organic order growth of approximately 11% [1][10]. - The backlog strengthened to $8.5 billion, with a book-to-bill ratio of approximately 1.2x for the quarter [1][10]. Strategic Initiatives - The company is strategically investing in capacity expansion and innovation, particularly in AI-enabled infrastructure, to capitalize on data center growth [3][6]. - Vertiv announced an agreement to acquire Great Lakes Data Racks & Cabinets, which is expected to enhance its position in the high-density data center market [3][5]. Guidance and Outlook - The company raised its full-year 2025 guidance, expecting organic sales growth of 24%, adjusted operating profit of $1,990 million, and adjusted free cash flow of $1.4 billion [7][8]. - For Q3 2025, projected net sales are between $2,510 million and $2,590 million, with organic net sales growth expected between 20% and 24% [8][10]. Cash Flow and Liquidity - Net cash generated by operating activities in Q2 2025 was $323 million, with adjusted free cash flow of $277 million, each decreasing by approximately $59 million from Q2 2024 [4][10]. - The company maintains a robust financial position with $2.5 billion in liquidity and a net leverage of approximately 0.6x at the end of Q2 2025 [5][10].

Core Viewpoint - Galaxy Digital Inc. has successfully executed one of the largest notional bitcoin transactions in crypto history, selling over 80,000 bitcoin valued at over $9 billion for a Satoshi-era investor as part of an estate planning strategy [1][2]. Company Overview - Galaxy Digital Inc. is a global leader in digital assets and data center infrastructure, providing solutions that enhance progress in finance and artificial intelligence [3]. - The company's digital assets platform offers institutional access to various services including trading, advisory, asset management, staking, self-custody, and tokenization technology [3]. - Galaxy also invests in and operates advanced data center infrastructure to support AI and high-performance computing, addressing the increasing demand for scalable energy and computing solutions in the U.S. [3]. - The company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia [3].

Core Insights - Vertiv has appointed Wei Shen as the new president of Greater China, effective July 22, 2025, succeeding Edward Cui [1][3] - Wei Shen brings extensive experience from Gates Corporation and Eaton Electrical, focusing on business transformation and operational excellence [2][3] - Vertiv specializes in critical digital infrastructure, providing solutions for data centers, communication networks, and industrial facilities [4][5] Company Overview - Vertiv offers a comprehensive portfolio that includes power, cooling, and IT infrastructure solutions, enabling continuous operations and scalable growth for customers [4][5] - The company operates in over 130 countries and is headquartered in Westerville, Ohio, USA [5]

Core Insights - Vertiv has announced an agreement to acquire Great Lakes Data Racks & Cabinets for $200 million, aiming to strengthen its leadership in high-density integrated infrastructure offerings [1][2] - The acquisition is expected to enhance Vertiv's ability to deliver AI-ready rack solutions optimized for various computing markets, including enterprise, edge, colocation, and hyperscale AI [2][4] Financial Overview - The purchase price represents approximately 11.5 times the expected 2026 EBITDA, factoring in cost synergies and cross-selling opportunities [2] - The transaction is anticipated to close in the third quarter of 2025, subject to customary closing conditions and regulatory approvals [5] Company Background - Great Lakes, established in 1985 and headquartered in Edinboro, PA, operates manufacturing and assembly facilities in the U.S. and Europe, offering a range of data rack enclosures and integrated infrastructure solutions [3] - The acquisition will enhance Vertiv's end-to-end critical digital infrastructure offerings, providing a comprehensive set of products and services for data center needs [3][4] Strategic Implications - The integration of Great Lakes' expertise with Vertiv's existing portfolio is expected to deliver significant customer benefits, including faster deployment, enhanced operational efficiency, and improved scalability for AI and edge computing applications [4] - Vertiv aims to position itself as a premier technology solutions provider in the critical white space market through this acquisition [4]

Core Insights - The rapid advancement of AI technology is driving the demand for high-capacity computing clusters, entering the megawatt-level era, where solving computing power needs is crucial for gaining a competitive edge in the AI sector [1][2] Group 1: AI Data Center Development - AI data centers are expected to transition into a high-density megawatt era, facing new challenges in power supply and cooling infrastructure, requiring preparation in power chain reconstruction and hybrid cooling solutions [2] - The Chinese intelligent computing market is accelerating, with expanding computing power scale and optimized structure, but challenges such as rapid electricity consumption growth and application implementation difficulties remain [3] - The construction of intelligent computing centers is characterized by a "333" trend, indicating three forms, three main bodies, and three standards, necessitating higher infrastructure requirements across training, inference, and IDC dimensions [5] Group 2: Power and Cooling Solutions - The power supply chain faces severe challenges in capacity, heat dissipation, and reliability due to the rapid increase in cabinet power density in intelligent computing centers [4] - Liquid cooling applications must focus on five key factors: feed temperatures, flow rate, filtration, fluid selection, and fault prevention and detection [6] - Vertiv's 360AI solution encompasses energy management, thermal management, prefabrication, software, and services, ensuring efficient operation of intelligent computing centers [9] Group 3: Lifecycle Services and Innovations - The integrated service model for intelligent computing centers, covering construction, operation, and maintenance, effectively reduces total cost of ownership (TCO) and enables rapid deployment and stable operation [10] - Vertiv's new products showcased at the event include advanced energy management and thermal management solutions, designed to support high-density computing needs and enhance operational efficiency [11][12] - The company emphasizes a flexible and resilient energy system, with high efficiency and low environmental impact, supporting the construction of intelligent computing centers [12][14]

Core Insights - Vertiv (VRT) and Generac Holdings (GNRC) are significant players in the data center infrastructure market, providing essential solutions for data centers and industrial environments [2] - The data center infrastructure management market is projected to grow from approximately $3.06 billion in 2024, with a CAGR of 17.3% from 2025 to 2030, presenting substantial growth opportunities for both companies [3] Vertiv (VRT) Overview - Vertiv specializes in thermal and power management solutions for data centers, which are increasingly demanding due to the complexity of AI hardware and edge computing [4] - The company reported a 24% year-over-year increase in net sales for Q1 2025, reaching $2.036 billion, with organic orders up about 20% compared to the previous year [5] - Strong capital expenditure plans from hyperscalers for data center expansion are favorable for Vertiv, supported by a diverse partner ecosystem including major tech companies [6] Generac Holdings (GNRC) Overview - Generac is expanding its portfolio with new high-capacity generators tailored for the data center market, which is a key growth driver [7] - In April 2025, Generac launched a new range of generators (2.25 MW to 3.25 MW) designed to meet the power needs of data centers, featuring advanced technology for reliable energy solutions [8] - The rise of AI applications is driving demand for energy-intensive data centers, which may strain existing power grids, creating opportunities for Generac [9] Stock Performance and Valuation - Year-to-date, Vertiv's shares have increased by 12.1%, while Generac's shares have decreased by 5.3% due to macroeconomic uncertainties and cost pressures [11] - Vertiv's shares are currently trading at a forward Price/Sales ratio of 4.73X, compared to Generac's 1.90X, indicating a higher valuation for Vertiv [14] Earnings Estimates - The Zacks Consensus Estimate for Vertiv's 2025 earnings is $3.56 per share, reflecting a 24.91% year-over-year increase [17] - Generac's 2025 earnings estimate is $7.42 per share, showing a modest 2.06% year-over-year increase [17] Conclusion - Both Vertiv and Generac are positioned to benefit from the growing data center market, but Vertiv is viewed as the stronger investment option due to its AI-driven growth and strategic partnerships [18] - Generac faces challenges from cost pressures and macroeconomic uncertainties, impacting its market position [19]

Core Viewpoint - Vertiv Holdings Co. will report its second quarter 2025 results on July 30, 2025, before market open, with a conference call scheduled for the same day at 11 a.m. Eastern Time [1][2]. Group 1: Financial Reporting - The second quarter 2025 results will be available through a press release and a link to presentation materials on Vertiv's investor relations website [1]. - A live conference call will be accessible in the Investor Relations section of Vertiv's website, with a replay available for 30 days after the event [2]. Group 2: Company Overview - Vertiv Holdings Co. specializes in critical digital infrastructure, providing hardware, software, analytics, and ongoing services to support vital applications [3]. - The company addresses challenges in data centers, communication networks, and commercial and industrial facilities with a comprehensive portfolio of power, cooling, and IT infrastructure solutions [3]. - Vertiv operates in over 130 countries and is headquartered in Westerville, Ohio, USA [3].

Core Insights - Endeavour Energy LLC and Jabil Inc. have expanded their collaboration to deliver modular, just-in-time (JIT) AI-ready infrastructure, aiming to enhance scalability and efficiency in data center operations [1][5] - The new JIT model is designed to eliminate capacity bottlenecks, reduce the risk of overbuild, and significantly lower total capital expenditure, with potential upfront investment reductions of up to 90% [2][4] Company Collaboration - The partnership combines Endeavour's advanced data center technologies with Jabil's manufacturing and supply chain solutions, enabling a dynamic, demand-responsive delivery of infrastructure tailored for AI [3][6] - This collaboration is expected to provide up to 2 gigawatts per year of elastic AI infrastructure capacity, aligning infrastructure delivery with real-time demand [4][7] Strategic Initiative - The initiative represents a shift from traditional large capital investments to a more precise, incremental, and demand-driven approach, improving capital efficiency and reducing risk for customers [5][6] - Jabil's recent $500 million commitment to domestic cloud and AI infrastructure manufacturing is expected to be operational by mid-2026, further supporting this strategic initiative [5] Industry Impact - The new just-in-time platform is set to launch in the United States in Q1 2027, with over a dozen Edged data centers already operational or under construction across North America and Europe [7] - The initiative aims to address both technological and business challenges in the AI era, ensuring that critical infrastructure accelerates innovation rather than constraining it [6]