Vertiv Holdings Co - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.67%.
Did VRT Beat Earnings? Q2 2025 Results
Vertiv delivered a standout second quarter as the data center infrastructure giant posted adjusted diluted EPS of $0.95, up 42% year-over-year, on revenue of $2.64 billion that jumped 35% from the same period in 2024 — results that sent <a href="https://247wallst.com/investing/2025/07/30/live-will-vertiv-nyse-vrt-earnings-kick-off-another-rally/">shares climbing after the report</a>. The primary engine behind the growth was relentless demand for AI-enabled infrastructure, with the Americas segment alone surging 42.9% to $1.60 billion. Orders momentum reinforced the bullish trajectory, with organic orders rising approximately 15% year-over-year and backlog swelling to $8.50 billion. The quarter wasn't without friction — adjusted operating margin contracted 110 basis points to 18.5%, as tariff-related costs and operational strain from faster-than-expected growth weighed on profitability, headwinds management characterized as temporary. Despite trimming its margin outlook slightly to approximately 20.0% for the full year, Vertiv raised its 2025 adjusted diluted EPS guidance to $3.80 and lifted its net sales target to a range of $9.93 billion to $10.07 billion, implying 24% organic growth.
- Robust data center demand driven by AI-related activity
- 35% net sales growth year-over-year
- Organic order growth of ~15% year-over-year
- Backlog of $8.5 billion with book-to-bill ratio of ~1.2x
- Americas segment led growth with 43.2% organic sales increase
- Products revenue grew 39.6% while Services & Spares grew 19.2%
“Vertiv's second quarter performance demonstrates the strength of our market position and our ability to execute at scale. Our 35% sales growth and robust orders momentum reflect both strong market demand and our expanded capabilities to serve our customers' increasingly complex infrastructure needs. We are strategically investing in capacity expansion and accelerating our innovation pipeline to capitalize on unprecedented data center growth, particularly in AI-enabled infrastructure. The announced agreement to acquire Great Lakes Data Racks & Cabinets further strengthens our position in the fast-growing data center market. As we progress on our strong growth trajectory, we are vigorously addressing some temporary margin challenges which we anticipate will be materially addressed by the end of 2025. Given our strong performance, backlog and positive outlook, we are raising our full-year adjusted diluted EPS, net sales, adjusted operating profit and adjusted free cash flow forecast, positioning Vertiv for even stronger performance in the quarters ahead.”
Vertiv CEO, on the earnings call
Forward Guidance & Outlook
Vertiv raised full-year 2025 guidance: net sales of $9,925M-$10,075M (organic growth 23%-25%), adjusted operating profit of $1,950M-$2,030M, adjusted diluted EPS of $3.75-$3.85, and adjusted free cash flow of $1,375M-$1,425M. Adjusted operating margin guidance was lowered to 19.7%-20.3% due to tariff impacts and growth-related costs, but management expects sequential margin improvement through year-end. For Q3 2025, Vertiv guides net sales of $2,510M-$2,590M (20%-24% organic growth), adjusted operating profit of $490M-$530M, and adjusted diluted EPS of $0.94-$1.00. Long-term adjusted operating margin target of 25% by 2029. Capital expenditures expected at $250M-$300M. Guidance reflects tariff rates active as of July 28, 2025 but does not account for potential additional tariffs.
VRT YoY Financials
VRT Revenue by Segment
VRT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.