Vertiv Holdings Co Earnings Recaps
Vertiv shares rose 16.5% after the company reported 61% year-over-year sales growth, expanded adjusted operating margin, and raised full-year guidance across key metrics. Q3 organic orders more than doubled year over year, while management cited supply, permitting, and labor availability as pacing items—not current constraints on growth.
Key takeaways
- Net sales increased 61% year over year to a quarter total not specified in the transcript; organic sales grew approximately 55%, with acquisitions contributing another 6%.
- Adjusted operating margin reached 25.2%, up 290 basis points year over year; adjusted operating profit rose 83% to more than $1 billion.
- Adjusted diluted EPS was $2.21, up 78%; adjusted free cash flow rose 50% to $652 million.
- Full-year sales guidance was raised to $14.7 billion, with adjusted diluted EPS at $7.15 and adjusted operating profit above $3.5 billion. Adjusted free cash flow guidance increased to $2.7 billion.
- Q3 organic orders were up more than 100% year over year. Management flagged power availability, permitting, and skilled construction labor as pacing items, and said it would no longer share orders data going forward.
Vertiv delivered a notably strong start to 2026, driven by robust organic growth, strategic capacity investments, and expanding market opportunities, particularly in data center infrastructure.
Key takeaways
- Q1 organic sales surged 23% YoY, with total growth including M&A and FX at 30%; Americas led with 44% organic growth.
- Adjusted operating margin improved 430 basis points to 20.8%, fueling a 64% increase in adjusted operating profit to $551 million.
- Adjusted diluted EPS rose 83% to $1.17, surpassing guidance; full-year EPS guidance raised to $6.35, up 51%.
- Strong pipeline momentum persists, with positive trends in Americas, APAC, and improving sentiment in EMEA, supporting expectations for continued order growth.
- The company is actively expanding capacity, advancing supply chain resilience, and managing inflationary pressures through diversification and strategic investments.
Vertiv's Q3 2025 results demonstrated robust growth, surpassing guidance across all key metrics, highlighted by a 63% rise in adjusted EPS and a remarkable 28% increase in organic sales.
Key takeaways
- Adjusted EPS reached $1.24, reflecting a 63% year-over-year increase, fueled by strong operating profit.
- Organic sales rose 28%, with Americas growing by 43% and a book-to-bill ratio of 1.4, indicating strong demand.
- Adjusted operating profit totaled $596 million, marking a 43% increase year-over-year with a solid 22.3% margin.
- The company's backlog grew to $9.5 billion, up 30% year-over-year, providing visibility into future revenue.
- Full-year guidance has been raised for adjusted EPS, net sales, operating profit, and free cash flow due to sustained momentum.
Vertiv delivered a robust Q2 2025 performance with a 34% organic sales growth, surpassing $3 billion in orders for the quarter, and significantly raising its full-year guidance amid a strong backlog.
Key takeaways
- Adjusted diluted EPS increased 42% year-on-year to $0.95, supported by a 28% rise in adjusted operating profit.
- Orders grew 15% YoY and 11% sequentially, with a book-to-bill ratio of 1.2x, affirming strong momentum in the business.
- Free cash flow reached $277 million in Q2, with a robust adjusted free cash flow of $542 million for 1H 2025, prompting a guidance increase to $1.4 billion for the full year.
- Full-year net sales guidance raised by $550 million to $10 billion, with expected organic growth of approximately 24% and adjusted diluted EPS guidance lifted to $3.80.
- Strong backlog of $8.5 billion, up 21% YoY, positions Vertiv favorably for continued growth in the face of evolving market demands.