Core Insights - Vertiv has launched Vertiv™ OneCore, a scalable prefabricated solution designed to simplify and accelerate high-density data center deployments globally [1][2][3] Product Features - Vertiv OneCore integrates power, thermal, and IT infrastructure technologies into a single factory-assembled system, reducing on-site complexity and compressing project timelines [1][2] - The solution supports scalable power capacity ranging from 5 to 50 MW, catering to the growing energy demands for AI and high-density deployments [5] - It offers high rack density flexibility, configurable for 96 to 944 racks, accommodating low to extreme densities based on IT requirements [5] - Integrated thermal and power systems provide energy-efficient cooling and power infrastructure, utilizing advanced heat rejection systems and scalable UPS systems [5] - The design allows for concurrent maintainability, ensuring system resilience during maintenance or upgrades [5] - Vertiv OneCore operates efficiently in diverse global climates, with temperature support ranging from -20°C to 55°C (-4°F to 131°F) [5] - The solution includes advanced redundancy options for both fluid networks and electrical systems, enhancing reliability [5] - It is compatible with a broad range of voltage inputs, meeting various regional standards [5] Sustainability and Support - Vertiv OneCore supports sustainability strategies through increased efficiency and reduced power requirements, with a flexible design that adapts to evolving technology standards [6] - Comprehensive post-deployment service and support are provided, including expert-led commissioning and proactive maintenance programs [5][6]

Core Insights - Vertiv Holdings Co reported better-than-expected second-quarter results, with earnings of 95 cents per share, surpassing the analyst consensus estimate of 83 cents per share, and quarterly sales of $2.64 billion, exceeding the estimate of $2.35 billion [1][2]. Financial Performance - The company raised its FY2025 adjusted EPS guidance from a range of $3.45-$3.65 to $3.75-$3.85 and increased its sales guidance from $9.325 billion-$9.575 billion to $9.925 billion-$10.075 billion [2]. - Vertiv experienced a 35% sales growth, indicating strong market demand and robust order momentum [3]. Strategic Positioning - The CEO highlighted the company's strategic investments in capacity expansion and innovation to meet the growing infrastructure needs, particularly in AI-enabled data centers [3]. - Following the earnings announcement, analysts adjusted their price targets for Vertiv, with Oppenheimer raising it from $140 to $151 and RBC Capital from $143 to $162, both maintaining an Outperform rating [4][9].

Core Insights - Vertiv Holdings Co. (VRT) reported second-quarter 2025 adjusted earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.83, and up from $0.67 per share a year ago [1][8] - The company achieved quarterly revenues of $2.64 billion, surpassing the Zacks Consensus Estimate by 11.86%, compared to $1.95 billion in the same quarter last year [1][8] Company Overview - Vertiv is a leading global provider of critical digital infrastructure and services for data centers, communication networks, and commercial and industrial environments, focusing on power, cooling, and IT infrastructure solutions, particularly AI-enabled infrastructure [2] Performance and Growth - The company experienced a 35% sales growth, driven by strong market demand and expanded capabilities to meet complex infrastructure needs [3] - VRT's stock price has increased by 29.4% year to date and 58.8% over the past three months, reflecting the resurgence of AI-infrastructure providers amid significant spending by data center hyperscalers [5] Strategic Partnerships - Vertiv's partnership with NVIDIA Corp. is a key catalyst for growth, aiming to stay one GPU generation ahead to provide efficient power solutions for next-gen AI data centers [3][4] - The company has a diverse partner base, including Ballard Power Systems, Compass Datacenters, Intel Corp., ZincFive, and Tecogen, enhancing its market position [4] Future Guidance - For the third quarter, VRT forecasts adjusted earnings of $0.97 per share and total revenues of $2.55 billion, slightly above current consensus estimates [6][9] - For 2025, VRT projects adjusted earnings per share between $3.75 and $3.85, with total revenues expected to range from $9.93 billion to $10.08 billion, both exceeding current consensus estimates [10] Long-Term Prospects - The AI infrastructure market is projected to see a significant increase in capital expenditure, with four major companies planning to invest $325 billion in 2025, marking a 46% year-over-year increase [12] - VRT's long-term EPS growth rate is estimated at 28.3%, significantly higher than the S&P 500's long-term growth rate of 12.6%, indicating strong future potential [13]

Financial Data and Key Metrics Changes - Adjusted diluted earnings per share (EPS) was $0.95, up approximately 42% year-on-year, primarily driven by higher adjusted operating profit [12][29] - 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 [13][30] - 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 [15][30] - Free cash flow for Q2 was $277 million, down year-on-year, but adjusted free cash flow for the first half was $542 million, a robust growth of 24% year-on-year [16][32] - Full-year adjusted free cash flow guidance raised to $1.4 billion, with net sales guidance increased by $550 million to $10 billion [17][37] 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% [32] - APAC saw a 37% organic sales increase, with margin expansion to 10.6% [32] - EMEA's organic sales grew 7%, but the region is expected to be flat for the full year due to operational execution challenges and investments in fixed costs [34][35] Market Data and Key Metrics Changes - The backlog stands strong at $8.5 billion, up 21% year-on-year and 7% sequentially from Q1, supporting increased guidance for the year [18] - The regulatory environment is becoming more conducive to AI infrastructure investment, positively impacting customer discussions and pipeline [19][110] Company Strategy and Development Direction - The company maintains a strategy of driving growth through organic expansion and strategic acquisitions, with a robust M&A pipeline [10] - Recent acquisition of Great Lakes is expected to enhance the company's capabilities in high-end rack solutions and AI infrastructure [26] - Ongoing investments in R&D and capacity expansion are aimed at staying ahead of market demand and delivering innovative solutions [11][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and future trajectory, highlighting the digital revolution and the fundamental role of data centers [10] - The company anticipates that operational inefficiencies and execution challenges will be resolved by year-end, leading to improved margins in 2026 [31][102] - The management is optimistic about the growth trajectory and market share gains, particularly in the context of AI infrastructure [40][130] Other Important Information - The company plans to change how it communicates orders, providing projected full-year orders rather than quarterly orders to better align with business operations [19] - The tariff situation remains dynamic, with ongoing countermeasures being executed to mitigate impacts [20][21] 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 [48] Question: Strength in backlog and order duration - Backlog duration remains similar to historical trends, with some customers seeking earlier deliveries, indicating a healthy demand [52][53] Question: Impact of tariffs and inflation on pricing - Management indicated that they have the commercial leverage to recover tariffs, despite delays in converting orders to sales [57] Question: Win rates and procurement changes among hyperscalers - Win rates remain stable, with no significant changes in procurement methods among hyperscalers [66][68] Question: Operational inefficiencies - Inefficiencies are attributed to tariff transitions and the need for new sources, compounded by significant growth [75][78] Question: Growth rates for thermal service contracts - Management expects strong growth in thermal service contracts, particularly related to liquid cooling systems [88] Question: Evolution of product offerings for data centers - The company is evolving its product footprint to accommodate higher voltage power distribution and increasing rack density [92][94] Question: Gross margin expectations - Management expects gross margins to improve in Q4 due to operational leverage and resolution of inefficiencies [102][121] Question: Capital allocation priorities post-acquisition - M&A will remain a key part of the capital allocation strategy, with a strong process and active pipeline in place [136]

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]