Financial Data and Key Metrics Changes - Adjusted diluted EPS for Q3 2025 was $1.24, up approximately 63% year over year, driven by higher adjusted operating profit [7][13] - Q3 organic sales grew 28%, with the Americas up 43% and APAC up 21%, while EMEA declined 4% [7][13] - Adjusted operating profit reached $596 million, up 43% year on year, with a margin of 22.3% [9][13] - Adjusted free cash flow was $462 million, up 38%, reflecting strong operating performance [9][16] - Total backlog increased to $9.5 billion, up about 30% year on year and 12% sequentially [10][13] Business Line Data and Key Metrics Changes - The Americas segment delivered strong organic growth of 43%, driven by accelerated AI demand across product lines [16] - APAC saw 21% organic growth, supported by AI infrastructure demand [16] - EMEA experienced a 4% decline in organic sales, but expectations for recovery are set for the second half of 2026 [17][19] Market Data and Key Metrics Changes - The overall market growth is accelerating, particularly in the colo cloud segment, which is the fastest-growing area [8] - The company reported a trailing 12-month organic orders growth of about 21%, with Q3 orders up 60% year over year [7][9] Company Strategy and Development Direction - The company is focused on maintaining technology leadership through consistent R&D investments and operational excellence [4][5] - A restructuring program is being implemented in EMEA to prepare for future growth, with an expected annualized benefit of approximately $20 million starting in 2026 [17] - The company plans to accelerate investments in supply chain and services capabilities to meet evolving customer needs [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a multi-year period of significant growth and value creation, driven by digital transformation and AI demand [5][21] - The company anticipates continued organic sales growth in 2026, supported by a substantial backlog and a healthy pipeline [21][24] - Tariffs are viewed as a dynamic input cost, with mitigation strategies in place to offset their impacts [11][22] Other Important Information - The company is raising its full-year guidance for adjusted EPS, net sales, adjusted operating profit, and adjusted free cash flow [19][20] - The adjusted operating margin target for 2029 remains at 25%, with expectations for incremental margins in the 30% to 35% range [19][63] Q&A Session Summary Question: What is driving the order uptake and when will big announcements flow into orders for Vertiv? - Management indicated that order growth is driven by a strong market and technology evolution, with large players expanding their backlogs [28][30] Question: Can you provide more color on the services opportunity and its margin structure? - Management emphasized the service business as a unique competitive advantage, generating recurring revenue, and expected to accelerate as product systems grow [34][36] Question: What is the outlook for EMEA margins and the path back to mid-20s? - Management stated that a combination of sales acceleration and restructuring efforts would facilitate improved operating leverage and margins in EMEA [66] Question: How does the competitive environment affect Vertiv's market position? - Management expressed confidence in their innovation-driven approach, stating that they are at the forefront of industry advancements and maintain strong competitive advantages [82][84]

Financial Data and Key Metrics Changes - Adjusted diluted EPS for Q3 was $1.24, up approximately 63% year over year, driven by higher adjusted operating profit [9][21] - Q3 organic sales grew 28%, with the Americas up 43% and APAC up 21%, while EMEA declined 4% [10][21] - Adjusted operating profit reached $596 million, up 43% year on year, with a margin of 22.3% [12][22] - Adjusted free cash flow was $462 million, up 38%, translating to approximately 95% free cash flow conversion [12][23] - The company raised full-year guidance for adjusted EPS, net sales, adjusted operating profit, and adjusted free cash flow [12][28] Business Line Data and Key Metrics Changes - The Americas delivered strong organic growth of 43%, driven by accelerated AI demand across product lines [24] - APAC saw 21% organic growth, benefiting from AI infrastructure [24] - EMEA experienced a 4% decline in organic sales, but sales were higher than expectations, indicating potential for future growth [25] Market Data and Key Metrics Changes - The overall market growth is accelerating, particularly in the ColoCloud segment, which is the fastest-growing segment [11] - The trailing twelve-month organic orders growth was about 21%, with Q3 orders up 60% year over year and 20% sequentially [11][13] - Total backlog now stands at $9.5 billion, up about 30% year on year and 12% sequentially, providing strong visibility into 2026 [14] Company Strategy and Development Direction - The company is focused on maintaining technology leadership through disciplined investment, operational excellence, and R&D expansion [6][7] - Plans to accelerate investments in supply chain and services capabilities to meet evolving customer needs [30][31] - The company is committed to its November 2024 Investor Day margin targets, with a robust free cash flow providing strategic flexibility [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a multiyear period of significant growth and value creation, driven by digital transformation and increasing data demands [8][30] - The company is addressing operational and supply chain challenges experienced in Q2 and is optimistic about future performance [16][22] - Management noted that tariffs are being viewed as an input cost, with comprehensive mitigation actions in place [15][30] Other Important Information - The company is implementing regional restructuring programs in EMEA to prepare for future growth, although acceleration may not occur until the second half of 2026 [15][25] - The company is scaling service capacity in parallel with manufacturing to meet demand [19][87] Q&A Session Summary Question: What is driving the order uptick and the timeframe for big announcements to flow into orders? - Management indicated that the order growth is driven by a combination of a strong market and technology evolution, with large players expanding their backlogs [41][42] Question: Can you provide more color on the services opportunity and its margin structure? - Management emphasized the service business as a unique competitive advantage, noting that while it typically lags behind product growth, it is expected to accelerate [50][52] Question: What is the outlook for margins and the impact of tariffs? - Management confirmed that the path to the long-term margin target remains intact, with expectations for incrementals in the 30% to 35% range [62][64] Question: What is the confidence in the EMEA market recovery? - Management expressed cautious optimism about EMEA, citing a need for capacity and encouraging signs of pipeline growth [75][77] Question: How is the company scaling up its support function to keep up with top-line growth? - Management reported an increase in headcount for field engineers, with a focus on aligning service capacity with product demand [85][87] Question: How does the company view the competitive environment and recent innovations? - Management welcomed the innovation intensity in the industry, asserting that it drives their competitive advantage and reinforces their market position [130][132]

Q3 2025 Performance Highlights - Adjusted diluted earnings per share (EPS) for Q3 2025 increased by approximately 63% compared to Q3 2024, primarily driven by higher adjusted operating profit resulting from a 28% increase in organic net sales and benefits from lower income taxes[6] - Organic net sales in Q3 2025 increased by 28% compared to Q3 2024, driven by strong performance in the Americas (up 43%) and APAC (up 21%), while EMEA experienced a 4% decline[6] - The book-to-bill ratio for Q3 2025 was approximately 1.4x, with trailing twelve-month (TTM) organic orders growth of approximately 21%[7] - Adjusted operating margin for Q3 2025 reached 22.3%, exceeding both guidance and the prior year's figures, contributing to an adjusted operating profit of $596 million, a 43% increase from the previous year's quarter[7] Full Year 2025 Guidance - The company raised its full-year adjusted free cash flow guidance to $1,500 million[8] - The company raised its full-year adjusted diluted EPS guidance to $4.10, a 44% increase from 2024, and adjusted operating profit guidance to $2,060 million, a 33% increase from 2024, primarily driven by a $2.2 billion increase in projected net sales, a 27% increase from 2024[9] - The company expects full-year 2025 adjusted operating margin to be approximately 20.2%, about 80 bps higher than full-year 2024[9] Orders and Backlog - Strong backlog at the end of the third quarter of $9.5 billion, up approximately $2.2 billion or approximately 30% versus the same prior year period and up 12% versus the end of the second quarter 2025[15] - Third quarter orders up approximately 60% from third quarter 2024 and up approximately 20% sequentially[15] Regional Performance - Americas net sales increased by 42.9% to $1,712.4 million in Q3 2025 from $1,198.6 million in Q3 2024, with organic growth of 43%[46] - APAC net sales increased by 20.2% to $519.8 million in Q3 2025 from $432.4 million in Q3 2024, with organic growth of 21.3%[46] - EMEA net sales increased by 0.2% to $443.6 million in Q3 2025 from $442.5 million in Q3 2024, but experienced a 4% decline in organic net sales[46]

Core Insights - The discussion centers around the significant investments in technology and infrastructure, particularly in the context of demand outpacing supply, with a focus on companies that are positioned to benefit from this trend [2][6]. Investment Strategy - The investment strategy suggests focusing on companies with a market cap of $500 billion or less, as they are expected to have substantial growth potential [3][4]. - Specific companies highlighted include Celestica (CLS) and Verdiff (VRT), which are involved in hardware manufacturing and data center operations, respectively [4][5]. Market Valuation and Trends - Current market valuations have increased significantly, driven by excitement around AI, but high valuations do not necessarily indicate an impending market sell-off [8][9]. - The expectation for slower returns in the remainder of the year is noted, with a target for the S&P 500 set at 6,700, indicating limited upside potential [11][12]. Economic Factors - The importance of both the AI narrative and Federal Reserve policies is emphasized, with the AI trade being viewed as more critical for market direction [12][13]. - Concerns are raised about the Fed's potential interest rate cuts in an environment of persistent core inflation above 3%, which is atypical and could pose risks [14].

Core Insights - The AI revolution is driving significant demand for semiconductor technologies, but the long-term winners may be companies providing essential infrastructure solutions, such as cooling systems for data centers [1][3] - Johnson Controls International (JCI) is strategically positioned to capitalize on this trend by focusing on the data center market and addressing the challenges of energy consumption and heat management [3][4] Company Strategy - Johnson Controls has undergone a corporate transformation, selling its Residential and Light Commercial HVAC business for approximately $5.0 billion to focus on complex commercial building solutions [4] - The company plans to use the proceeds from the sale for a $5.0 billion accelerated share repurchase program, part of a broader capital return strategy with about $9.8 billion available for repurchase as of June 30, 2025 [5][6] Financial Performance - Johnson Controls reported a record backlog of $14.6 billion in its third quarter 2025 earnings report, indicating strong demand and revenue visibility [9] - The company exceeded analyst estimates with an adjusted EPS of $1.05 and raised its full-year guidance for adjusted EPS to a range of $3.65-$3.68, reflecting a year-over-year increase of 14-15% [11] Technological Advancements - JCI launched the Silent-Aire Coolant Distribution Unit (CDU) platform for scalable liquid cooling, addressing the heat loads of AI racks [10] - The company made a multi-million dollar investment in Accelsius, focusing on two-phase, direct-to-chip cooling technology essential for future AI processors [10] Leadership Impact - The appointment of CEO Joakim Weidemanis has led to a new business system focused on operational efficiency, aiming to cut manufacturing lead times for key data center products [7][8] - This operational improvement is expected to provide a competitive advantage in a rapidly growing market [8] Market Position - Johnson Controls offers a more grounded investment opportunity compared to AI chipmakers, with a forward P/E ratio under 30, reflecting strong fundamentals [12] - The company's strategic focus on infrastructure solutions positions it as a critical enabler of the AI revolution, appealing to investors seeking stability in the sector [13]

Core Insights - The AI infrastructure sector is experiencing significant growth, driven by high demand for productivity and efficiency gains from AI technology [1] - Major players like Nvidia and Palantir have seen substantial stock price increases, with Nvidia up 62% and Palantir's stock doubling in the past six months [2] - Vertiv Holdings has outperformed these larger companies with a remarkable 152% stock price increase in the same timeframe, indicating strong market interest [3] Company Performance - Vertiv specializes in power management systems, thermal management systems, and data center solutions, which are in high demand due to the increasing complexity and power requirements of AI workloads [4] - The company has formed partnerships, such as with CoreWeave, to enhance its offerings and capitalize on the growing AI data center market [5] - Vertiv's revenue for the first half of 2025 rose by 30% year-over-year to $4.67 billion, with a projected organic sales growth of 24% for the year [7] Strategic Moves - Vertiv's acquisition of Great Lakes for $200 million aims to strengthen its position in the AI data center market, addressing the rapid increase in order demand [8] - The company's book-to-bill ratio of 1.2 in Q2 indicates strong order growth, with over $3 billion in orders received, prompting an optimistic full-year outlook [9] Market Trends - AI-driven power demand in data centers is expected to surge by 165% by 2030, creating a significant market opportunity for Vertiv's products [10] - Data center capacity could increase fourfold by 2030, leading to a potential shortfall in meeting AI-related demand, further boosting the need for Vertiv's solutions [11] Valuation Metrics - Despite a significant stock price increase, Vertiv is trading at 34 times forward earnings, which is lower than the average for the U.S. technology sector [14] - The company's price/earnings-to-growth (PEG) ratio stands at 0.91, indicating that the stock is undervalued relative to its earnings growth potential [15]

Core Insights - The company has developed a Data Center Building Block Solution (DCBPSBS) that significantly reduces the time required to build data centers, potentially cutting the time by 30% to 50% compared to traditional methods [2][9] - The solution not only accelerates the construction process but also lowers costs and power consumption, optimizing overall performance for customers [2][6] - The company is expanding its manufacturing capacity in the U.S. to meet increasing customer demand, indicating that current capacity is nearly fully booked [5][6] Product Offerings - The company provides a comprehensive range of products for data centers, including GPU racks, liquid cooling systems, and all necessary plumbing and electrical systems, allowing for a more integrated and efficient build process [4][9] - The building block solution is designed to be plug-and-play, enabling customers to quickly set up their data centers with minimal hassle [9] Customer Engagement - The company is currently working with major clients, including Google, Microsoft, and Oracle, to implement its building block solutions [10][15] - There is a strong focus on collaboration with customers to ensure that the solutions meet their specific needs and can be deployed rapidly [9][14] Market Trends - The demand for data centers is expected to continue growing, driven by advancements in AI and the increasing need for efficient computing solutions [17] - Recent large-scale deals in the tech industry, particularly related to AI, highlight the growing importance of robust data center infrastructure [11][12]

Core Insights - Flex has launched the industry's first globally manufactured, fully integrated platform for gigawatt data centers, specifically designed to support AI and HPC, enabling operators to deploy infrastructure up to 30% faster [1][5]. Group 1: Platform Features - The new platform integrates power, cooling, compute, and services into pre-engineered, modular designs, addressing the challenges of rising power, heat, and scale in data centers [2][4]. - Flex's platform allows for faster deployment, reducing time-to-market and accelerating revenue recognition [6]. - The architecture is flexible and open, allowing for adaptability to customer-preferred OEMs, which enhances deployment predictability [6]. Group 2: Product Innovations - Key innovations include high-density, liquid-cooled IT racks designed to support +/-400V and facilitate the transition to 800VDC power architectures [6]. - The Capacitive Energy Storage System is the first UL 1973-certified system aimed at reducing electrical disturbances from AI workloads [6]. - Modular rack-level coolant distribution units (CDUs) provide scalable capacity of up to 1.8 MW, supporting evolving AI, HPC, and hyperscale workloads [6]. Group 3: Operational Efficiency - The platform leverages Flex's global manufacturing and supply chain network, ensuring unmatched scalability, resilience, and deployment speed [5]. - Prefabricated power pods and skids simplify installation and reduce onsite labor, cutting construction time from over 12 months to just 6-12 months [6]. - The integrated hardware and end-to-end support enhance reliability, sustainability, and speed to scale for customers [7].

Core Insights - Vertiv Holdings Co has appointed Craig Chamberlin as Executive Vice President and Chief Financial Officer, effective November 10, 2025, succeeding David Fallon who will retire and serve as a consultant until December 31, 2026 [1][4] Group 1: Leadership Transition - Craig Chamberlin joins Vertiv from Wabtec Corporation, where he was Group Vice President and CFO of the ~$3 billion Transit segment, demonstrating operational leadership in margin improvement and strategic capital deployment [2] - Giordano (Gio) Albertazzi, CEO of Vertiv, expressed confidence in Chamberlin's track record in operational finance and business transformation, aligning with Vertiv's strategic priorities for margin expansion and global operations optimization [3] - David Fallon is recognized for his leadership during his eight-year tenure as CFO, successfully navigating Vertiv's transition to a public company and enhancing shareholder value [4] Group 2: Chamberlin's Background - Prior to Wabtec, Chamberlin spent 14 years at General Electric in senior financial roles, including Executive Director and CFO of Global Supply Chain and Engineering for GE Transportation [2] - Chamberlin holds an MBA in Operations and Logistics and a Bachelor of Science in Electrical Engineering from Ohio University [2] Group 3: Company Overview - Vertiv provides hardware, software, analytics, and services to support critical applications in data centers, communication networks, and industrial facilities, operating in over 130 countries [5]

Group 1 - Galaxy Digital Inc. will report its third quarter 2025 financial results on October 21, 2025, before the opening of Nasdaq and the Toronto Stock Exchange [1] - CEO Michael Novogratz and management will host a conference call at 8:30 AM Eastern Time on the same day to update investors and analysts [1] - A live webcast of the conference call will be available on the Company's Investor Relations website and YouTube channel, with a replay accessible afterward [1] Group 2 - Galaxy Digital is a global leader in digital assets and data center infrastructure, providing solutions that enhance finance and artificial intelligence [2] - The Company offers institutional access to various services including trading, advisory, asset management, staking, self-custody, and tokenization technology [2] - Galaxy operates a significant data center infrastructure, including the 800 MW Helios campus in Texas, with an additional 2.7 GW of power under study, making it one of the largest data center developments in North America [2]