Vertiv Reports Strong First Quarter 2025 Results
Vertiv (VRT) reported strong Q1 2025 financial results with net sales of $2.036 billion, up 24% year-over-year. The company demonstrated robust growth with trailing twelve-month orders increasing ~20% and Q1 orders up ~13% compared to Q1 2024.
Key highlights include:
- Book-to-bill ratio of ~1.4x with backlog up 10% from year-end
- Operating profit of $291 million, up 43% YoY
- Adjusted operating profit of $337 million, up 35% YoY
- Diluted EPS of $0.42 and adjusted diluted EPS of $0.64, up ~49% from Q1 2024
The company raised its full-year 2025 net sales guidance by $250 million at the midpoint while maintaining guidance for adjusted diluted EPS, adjusted operating profit, and adjusted free cash flow. Vertiv continues to see strong momentum in AI-driven demand and data center market growth, while actively working to mitigate tariff impacts through supply chain measures and commercial actions.
Vertiv (VRT) ha riportato solidi risultati finanziari nel primo trimestre 2025 con vendite nette pari a 2,036 miliardi di dollari, in aumento del 24% rispetto all'anno precedente. L'azienda ha mostrato una crescita robusta con ordini negli ultimi dodici mesi in aumento di circa il 20% e ordini del primo trimestre in crescita di circa il 13% rispetto al Q1 2024.
Punti salienti:
- Rapporto book-to-bill di circa 1,4x con backlog in crescita del 10% rispetto alla fine dell'anno
- Utile operativo di 291 milioni di dollari, in aumento del 43% su base annua
- Utile operativo rettificato di 337 milioni di dollari, in crescita del 35% su base annua
- EPS diluito di 0,42 dollari e EPS diluito rettificato di 0,64 dollari, in aumento di circa il 49% rispetto al Q1 2024
L'azienda ha alzato la guidance sulle vendite nette per l'intero anno 2025 di 250 milioni di dollari al punto medio, mantenendo le previsioni per EPS diluito rettificato, utile operativo rettificato e flusso di cassa libero rettificato. Vertiv continua a beneficiare di un forte slancio nella domanda guidata dall'intelligenza artificiale e nella crescita del mercato dei data center, lavorando attivamente per mitigare gli impatti dei dazi attraverso misure nella catena di fornitura e azioni commerciali.
Vertiv (VRT) reportó sólidos resultados financieros en el primer trimestre de 2025 con ventas netas de 2.036 millones de dólares, un aumento del 24% interanual. La compañía mostró un crecimiento robusto con pedidos en los últimos doce meses aumentando aproximadamente un 20% y pedidos del primer trimestre creciendo cerca del 13% en comparación con el Q1 2024.
Puntos clave:
- Ratio book-to-bill de aproximadamente 1,4x con cartera de pedidos creciendo un 10% desde fin de año
- Beneficio operativo de 291 millones de dólares, un aumento del 43% interanual
- Beneficio operativo ajustado de 337 millones de dólares, un incremento del 35% interanual
- EPS diluido de 0,42 dólares y EPS diluido ajustado de 0,64 dólares, un aumento de aproximadamente el 49% respecto al Q1 2024
La compañía elevó su guía de ventas netas para todo el año 2025 en 250 millones de dólares en el punto medio, manteniendo la guía para EPS diluido ajustado, beneficio operativo ajustado y flujo de caja libre ajustado. Vertiv continúa viendo un fuerte impulso en la demanda impulsada por IA y el crecimiento del mercado de centros de datos, mientras trabaja activamente para mitigar los impactos de los aranceles mediante medidas en la cadena de suministro y acciones comerciales.
Vertiv (VRT)는 2025년 1분기에 순매출 20억 3600만 달러로 전년 대비 24% 증가한 강력한 실적을 보고했습니다. 회사는 최근 12개월 주문이 약 20% 증가하고 1분기 주문이 2024년 1분기 대비 약 13% 증가하는 견고한 성장을 보였습니다.
주요 내용:
- 북투빌(book-to-bill) 비율 약 1.4배, 연말 대비 수주 잔고 10% 증가
- 영업이익 2억 9100만 달러, 전년 동기 대비 43% 증가
- 조정 영업이익 3억 3700만 달러, 전년 동기 대비 35% 증가
- 희석 주당순이익(EPS) 0.42달러, 조정 희석 EPS 0.64달러로 2024년 1분기 대비 약 49% 증가
회사는 2025년 연간 순매출 가이던스를 중간값 기준 2억 5천만 달러 상향 조정했으며, 조정 희석 EPS, 조정 영업이익, 조정 잉여현금흐름 가이던스는 유지했습니다. Vertiv는 인공지능(AI) 수요 증가와 데이터 센터 시장 성장에 대한 강한 모멘텀을 계속해서 보고 있으며, 공급망 조치와 상업적 대응을 통해 관세 영향 완화에 적극적으로 노력하고 있습니다.
Vertiv (VRT) a publié de solides résultats financiers pour le premier trimestre 2025 avec un chiffre d'affaires net de 2,036 milliards de dollars, en hausse de 24 % par rapport à l'année précédente. L'entreprise a affiché une croissance robuste avec des commandes sur douze mois glissants en hausse d'environ 20 % et des commandes au premier trimestre en hausse d'environ 13 % par rapport au premier trimestre 2024.
Points clés :
- Ratio book-to-bill d'environ 1,4x avec un carnet de commandes en hausse de 10 % depuis la fin de l'année
- Résultat d'exploitation de 291 millions de dollars, en hausse de 43 % en glissement annuel
- Résultat d'exploitation ajusté de 337 millions de dollars, en hausse de 35 % en glissement annuel
- BPA dilué de 0,42 $ et BPA dilué ajusté de 0,64 $, en hausse d'environ 49 % par rapport au premier trimestre 2024
L'entreprise a relevé ses prévisions de chiffre d'affaires net pour l'ensemble de l'année 2025 de 250 millions de dollars au point médian tout en maintenant ses prévisions pour le BPA dilué ajusté, le résultat d'exploitation ajusté et le flux de trésorerie disponible ajusté. Vertiv continue de constater un fort élan dans la demande tirée par l'IA et la croissance du marché des centres de données, tout en travaillant activement à atténuer les impacts des droits de douane grâce à des mesures sur la chaîne d'approvisionnement et des actions commerciales.
Vertiv (VRT) meldete starke Finanzergebnisse für das erste Quartal 2025 mit Nettoumsätzen von 2,036 Milliarden US-Dollar, ein Anstieg von 24 % im Jahresvergleich. Das Unternehmen verzeichnete ein robustes Wachstum mit einem Auftragsvolumen der letzten zwölf Monate, das um etwa 20 % zunahm, und einem Auftragsvolumen im ersten Quartal, das im Vergleich zum ersten Quartal 2024 um etwa 13 % stieg.
Wichtige Highlights:
- Book-to-Bill-Verhältnis von ca. 1,4x mit einem Auftragsbestand, der seit Jahresende um 10 % gestiegen ist
- Betriebsergebnis von 291 Millionen US-Dollar, ein Anstieg von 43 % im Jahresvergleich
- Bereinigtes Betriebsergebnis von 337 Millionen US-Dollar, ein Anstieg von 35 % im Jahresvergleich
- Verwässertes Ergebnis je Aktie (EPS) von 0,42 US-Dollar und bereinigtes verwässertes EPS von 0,64 US-Dollar, ein Anstieg von etwa 49 % gegenüber dem ersten Quartal 2024
Das Unternehmen hat seine Umsatzprognose für das Gesamtjahr 2025 um 250 Millionen US-Dollar auf der Mittellinie angehoben und hält gleichzeitig die Prognosen für bereinigtes verwässertes EPS, bereinigtes Betriebsergebnis und bereinigten freien Cashflow aufrecht. Vertiv sieht weiterhin eine starke Dynamik bei der durch KI getriebenen Nachfrage und dem Wachstum des Rechenzentrumsmarktes, während es aktiv daran arbeitet, die Auswirkungen von Zöllen durch Maßnahmen in der Lieferkette und kommerzielle Maßnahmen zu mildern.
- Strong revenue growth with net sales up 24% YoY to $2.036B
- Robust order growth with TTM orders up ~20% and Q1 orders up ~13%
- Significant margin expansion with adjusted operating margin up 130 basis points to 16.5%
- Strong backlog growth of 10% from Q4 2024, reaching $7.9B
- Raised full-year 2025 net sales guidance by $250M
- Received investment grade credit rating (BBB-) from Fitch
- Increased tariff impacts affecting operations
- Regional mix negatively impacting margins
- Higher capital expenditure requirements for growth support
Insights
Vertiv reports exceptional Q1 with 24% revenue growth, raises 2025 sales guidance amid strong AI demand despite tariff challenges.
Vertiv's Q1 2025 results demonstrate exceptional financial momentum with several standout metrics. The company delivered
The demand environment remains robust, particularly in AI infrastructure. This is evidenced by the impressive book-to-bill ratio of ~1.4x and backlog of
Profitability metrics are equally strong, with adjusted operating profit increasing
Vertiv's balance sheet strength is notable with
Management has raised full-year 2025 net sales guidance by
Vertiv's strategic positioning in AI infrastructure deployment shows early success with strong order growth and NVIDIA partnerships.
Vertiv is capitalizing on the accelerated scaling of AI deployments across the data center market, positioning itself at the forefront of this substantial growth opportunity. The company's reference designs for NVIDIA's GB200 and GB300 NVL72 platforms demonstrate its ability to provide essential power and cooling solutions optimized for high-density AI computing environments where thermal management is critical.
The iGenius project highlighted in the report illustrates Vertiv's capability to rapidly deploy complete AI infrastructure solutions at scale. This project showcases their advanced cooling systems and power infrastructure designed specifically for the extreme demands of AI computing environments - a significant differentiator as many facilities struggle with the power density requirements of AI workloads.
What's particularly notable is management's assessment that we're "still in the early stages" of the AI infrastructure buildout. This aligns with industry projections of a multi-year investment cycle as organizations scale their AI capabilities from pilot projects to production environments. The
Vertiv's strategic investments in engineering resources and manufacturing capacity position them to address the specialized needs of AI infrastructure. Their
The company's ability to provide comprehensive infrastructure solutions rather than just individual components gives them an advantage in complex AI deployments. As AI computing demands continue to intensify, Vertiv's focus on operational excellence and high-performance culture appears well-aligned with market needs, suggesting continued strong performance as this technology transformation accelerates.
- Strong first quarter trailing twelve-month (TTM) orders growth of ~
20% , with first quarter orders up ~13% compared to last year's first quarter and up ~21% sequentially from fourth quarter 2024 - First quarter book-to-bill ratio of ~1.4x. Backlog
10% higher than year-end and up25% from end of first quarter 2024 - First quarter net sales of
$2,036 million 24% higher than first quarter 2024, with organic net sales up25% - First quarter diluted EPS of
$0.42 $0.64 49% from first quarter 2024. First quarter operating profit of$291 million $337 million 43% and35% respectively from first quarter 2024 - Raising full year 2025 net sales guidance by
$250 million
First quarter 2025 operating profit of
"Vertiv's strong first quarter results demonstrate our continued momentum and reinforce our position for long-term sustainable growth," said Giordano Albertazzi, Vertiv's Chief Executive Officer. "We continue to see accelerated scaling of AI deployments across the data center market, with strong demand signals reinforcing both our near- and long-term growth outlook. The iGenius project, which involves delivering a complete AI infrastructure solution for one of
Dave Cote, Vertiv's Executive Chairman, added: "Vertiv's first quarter results demonstrate how well the team is executing in an increasingly complex environment. The focus on operational excellence and high-performance culture is delivering strong results. Our operational and commercial improvements over the past three years have positioned us well to effectively manage through the tariff environment and navigate these challenges. While we're seeing heightened demand in the market, particularly in AI infrastructure, what is most exciting is that we are still in the early stages of unlocking Vertiv's full potential. The team's relentless focus on execution, and ability to keep customers future-ready through this rapid market evolution, positions us well to create substantial long-term value for our shareholders as this market continues to expand and transform."
Adjusted Free Cash Flow(1) and Liquidity
Net cash generated by operating activities in first quarter 2025 was
Liquidity remained strong at
Updated Full Year and Second Quarter 2025 Guidance
The data center market continues to show robust momentum as evidenced by our pipeline growth and strong AI-driven demand. The company continues to invest in ER&D and capacity expansion to support the growing needs of the industry, particularly in AI infrastructure deployments. The tariff situation remains fluid, but we are proactively working to mitigate the impact with supply chain countermeasures, production flexibility and commercial actions. Our guidance reflects the potential impacts of the tariff rates existing as of April 22, 2025, and assumes those rates continue throughout 2025(2). Our guidance reflects this assumption as well as our estimates of likely outcomes, based on current information and the planned countermeasures we expect to implement.
Second Quarter 2025 Guidance(2) | |
Net sales | |
Organic net sales growth(3) | |
Adjusted operating profit(1) | |
Adjusted operating margin(3) | |
Adjusted diluted EPS(1) | |
Full Year 2025 Guidance(2) | |
Net sales | |
Organic net sales growth(3) | |
Adjusted operating profit(1) | |
Adjusted operating margin(3) | |
Adjusted diluted EPS(1) | |
Adjusted free cash flow(3) |
(1) | This release contains certain non-GAAP metrics. For reconciliations to the relevant GAAP measures and an explanation of the non-GAAP measures and reasons for their use, please refer to sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of GAAP and non-GAAP Financial Measures." |
(2) | Our guidance reflects the currently expected impacts of the tariff rates active as of April 22, 2025, assuming such rates remain constant through year-end. For purposes of this earnings release and accompanying information, tariff rates active on April 22, 2025, include (but are not limited to): existing Chapter 1-97 tariffs; Section 301 tariffs; IEEPA tariffs ( |
(3) | This is a forward-looking non-GAAP financial measure that cannot be reconciled without unreasonable efforts for those reasons set forth under "Non-GAAP Financial Measures" of this release. |
First Quarter 2025 Earnings Conference Call
Vertiv's management team will discuss the Company's results during a conference call on Wednesday, April 23, starting at 11 a.m. Eastern Time. The call will contain forward-looking statements and other material information regarding Vertiv's financial and operating results. A webcast of the live conference call will be available for interested parties to listen to by going to the Investor Relations section of the Company's website at investors.vertiv.com. A slide presentation will be available before the call and will be posted to the website, also at investors.vertiv.com. A replay of the conference call will also be available for 30 days following the webcast.
About Vertiv Holdings Co
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in
Category: Financial News
Non-GAAP Financial Measures
Financial information included in this release has been prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). Vertiv has included certain non-GAAP financial measures in this news release, as indicated above, that may not be directly comparable to other similarly titled measures used by other companies and therefore may not be comparable among companies. These non-GAAP financial measures include organic net sales growth (including on a segment basis), adjusted operating profit, adjusted operating margin, adjusted diluted EPS and adjusted free cash flow, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. Pursuant to the requirements of Regulation G, Vertiv has provided reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to second quarter and full-year 2025 guidance, including organic net sales growth, adjusted free cash flow and adjusted operating margin, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For those reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
See "Reconciliation of GAAP and Non-GAAP Financial Measures" in this release for Vertiv's reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Cautionary Note Concerning Forward-Looking Statements
This news release, 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 position, capital structure, indebtedness, business strategy and plans and objectives of Vertiv management for future operations, as well as statements regarding growth, anticipated demand for our products and services and our business prospects during 2025, as well as expected impacts from our pricing actions, and our guidance for second quarter and full year 2025 and statements regarding tariffs, global trade conflict and any actions we may take in response thereto. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Vertiv cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this release are based on current expectations and beliefs concerning future developments and their potential effects on Vertiv. There can be no assurance that future developments affecting Vertiv will be those that Vertiv has anticipated. Vertiv undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Vertiv's control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Vertiv has previously disclosed risk factors in its Securities and Exchange Commission ("SEC") reports, including those set forth in the Vertiv 2024 Annual Report on Form 10-K filed with the SEC on February 18, 2025. These risk factors and those identified elsewhere in this release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: risks relating to the continued growth of our customers' markets; long sales cycles for certain Vertiv products and solutions as well as unpredictable placing or cancelling of customer orders; failure to realize sales expected from our backlog of orders and contracts; disruption of our customer's orders or the markets; less favorable contractual terms with large customers; risks associated with governmental contracts; failure to mitigate risks associated with long-term fixed price contracts; competition in the industry in which we operate; failure to obtain performance and other guarantees from financial institutions; failure to properly manage supply chain, difficulties with third-party manufacturers and increases in costs of material, freight and/or labor, and changes in the costs of production; competition in the infrastructure technologies; risks associated with information technology disruption or cyber-security incidents; risks associated with the implementation and enhancement of information systems; failure to realize the expected benefit from any rationalization, restructuring and improvement efforts; disruption of, or changes in, Vertiv's independent sales representatives, distributors and original equipment manufacturers; increase of variability in our effective tax rate costs or liabilities associated with product liability due to global operations subjecting us to income and other taxes in the
For investor inquiries, please contact:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
E: lynne.maxeiner@vertiv.com
For media inquiries, please contact:
Brianna Rabe
Ruder Finn for Vertiv
E: brianna.rabe@ruderfinn.com
Source: Vertiv Holdings Co
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) Vertiv Holdings Co (Dollars in millions except for per share data) | |||
Three months ended | Three months ended | ||
Net sales | |||
Net sales - products | $ 1,649.7 | $ 1,270.3 | |
Net sales - services | 386.3 | 368.8 | |
Net sales | 2,036.0 | 1,639.1 | |
Costs and expenses | |||
Cost of sales - products | 1,112.1 | 846.3 | |
Cost of sales - services | 237.4 | 226.4 | |
Cost of sales | 1,349.5 | 1,072.7 | |
Operating expenses | |||
Selling, general and administrative expenses | 346.3 | 314.0 | |
Amortization of intangibles | 46.0 | 46.0 | |
Restructuring costs | 1.1 | 0.3 | |
Foreign currency (gain) loss, net | 2.6 | 3.2 | |
Other operating expense (income) | (0.2) | 0.3 | |
Operating profit (loss) | 290.7 | 202.6 | |
Interest expense, net | 25.3 | 39.0 | |
Change in fair value of warrant liabilities | — | 176.6 | |
Income (loss) before income taxes | 265.4 | (13.0) | |
Income tax expense (benefit) | 100.9 | (7.1) | |
Net income (loss) | $ 164.5 | $ (5.9) | |
Earnings (loss) per share: | |||
Basic | $ 0.43 | $ (0.02) | |
Diluted | $ 0.42 | $ (0.02) | |
Weighted-average shares outstanding: | |||
Basic | 380,845,511 | 379,135,184 | |
Diluted | 390,109,650 | 379,135,184 | |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS Vertiv Holdings Co (Dollars in millions) | |||
March 31, 2025 | December 31, 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,467.3 | $ 1,227.6 | |
Accounts receivable, less allowances of | 2,310.5 | 2,362.7 | |
Inventories | 1,383.5 | 1,244.4 | |
Other current assets | 300.4 | 267.1 | |
Total current assets | 5,461.7 | 5,101.8 | |
Property, plant and equipment, net | 637.4 | 625.1 | |
Other assets: | |||
Goodwill | 1,339.8 | 1,321.1 | |
Other intangible assets, net | 1,462.7 | 1,487.1 | |
Deferred income taxes | 269.2 | 303.3 | |
Right-of-use assets, net | 203.7 | 202.1 | |
Other | 76.6 | 92.0 | |
Total other assets | 3,352.0 | 3,405.6 | |
Total assets | $ 9,451.1 | $ 9,132.5 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Current portion of long-term debt | $ 21.0 | $ 21.0 | |
Accounts payable | 1,407.1 | 1,316.4 | |
Deferred revenue | 1,095.1 | 1,063.3 | |
Accrued expenses and other liabilities | 534.2 | 612.6 | |
Income taxes | 126.6 | 83.7 | |
Total current liabilities | 3,184.0 | 3,097.0 | |
Long-term debt, net | 2,904.1 | 2,907.2 | |
Deferred income taxes | 238.4 | 240.3 | |
Long-term lease liabilities | 172.2 | 171.4 | |
Other long-term liabilities | 286.0 | 282.3 | |
Total liabilities | 6,784.7 | 6,698.2 | |
Equity | |||
Preferred stock, | — | — | |
Common stock, | — | — | |
Additional paid-in capital | 2,829.6 | 2,821.4 | |
Accumulated deficit | (88.0) | (238.3) | |
Accumulated other comprehensive (loss) income | (75.2) | (148.8) | |
Total equity | 2,666.4 | 2,434.3 | |
Total liabilities and equity | $ 9,451.1 | $ 9,132.5 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Vertiv Holdings Co (Dollars in millions) | |||
Three months ended | Three months ended | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 164.5 | $ (5.9) | |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Depreciation | 22.9 | 19.8 | |
Amortization | 48.7 | 48.9 | |
Deferred income taxes | 33.3 | (7.6) | |
Amortization of debt discount and issuance costs | 2.2 | 2.1 | |
Change in fair value of warrant liabilities | — | 176.6 | |
Changes in operating working capital | (4.8) | (99.7) | |
Stock-based compensation | 11.2 | 9.2 | |
Other | 25.3 | (5.9) | |
Net cash provided by (used for) operating activities | 303.3 | 137.5 | |
Cash flows from investing activities: | |||
Capital expenditures | (36.5) | (35.8) | |
Investments in capitalized software | (2.3) | (0.7) | |
Net cash provided by (used for) investing activities | (38.8) | (36.5) | |
Cash flows from financing activities: | |||
Borrowings from ABL revolving credit facility and short-term borrowings | — | 190.0 | |
Repayments of ABL revolving credit facility and short-term borrowings | — | (190.0) | |
Repayment of long-term debt | (5.3) | (5.3) | |
Dividend payment | (14.2) | (9.3) | |
Repurchase of common stock | — | (599.9) | |
Exercise of employee stock options | 1.3 | 14.4 | |
Employee taxes paid from shares withheld | (6.7) | (3.0) | |
Net cash provided by (used for) financing activities | (24.9) | (603.1) | |
Effect of exchange rate changes on cash and cash equivalents | 4.3 | (6.0) | |
Increase (decrease) in cash, cash equivalents and restricted cash | 243.9 | (508.1) | |
Beginning cash, cash equivalents and restricted cash | 1,232.2 | 788.6 | |
Ending cash, cash equivalents and restricted cash | $ 1,476.1 | $ 280.5 | |
Changes in operating working capital | |||
Accounts receivable | $ 81.6 | $ 9.9 | |
Inventories | (128.6) | (106.5) | |
Other current assets | (29.5) | (31.7) | |
Accounts payable | 86.5 | 9.8 | |
Deferred revenue | 23.4 | 100.0 | |
Accrued expenses and other liabilities | (79.6) | (68.5) | |
Income taxes | 41.4 | (12.7) | |
Total changes in operating working capital | $ (4.8) | $ (99.7) | |
Reconciliation of GAAP and non-GAAP Financial Measures
To supplement this news release, we have included certain non-GAAP financial measures in the format of performance metrics. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company's performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Vertiv's non-GAAP financial measures include:
- Adjusted operating profit (loss), which represents operating profit (loss), adjusted to exclude amortization of intangibles;
- Adjusted operating margin, which represents adjusted operating profit (loss) divided by net sales;
- Organic net sales growth, which represents the change in net sales adjusted to exclude the impacts of foreign currency exchange rate;
- Adjusted free cash flow, which represents net cash provided by (used for) operating activities adjusted to exclude capital expenditures and investments in capitalized software; and
- Adjusted diluted EPS, which represents diluted earnings per share adjusted to exclude amortization of intangibles and change in warranty liability.
Regional Segment Results | |||||||||
Three months ended March 31, | |||||||||
2025 | 2024 | Δ | Δ% | Organic | |||||
Net sales(1) | |||||||||
AMER | $ 1,185.3 | $ 925.0 | $ 260.3 | 28.1 % | 28.8 % | ||||
APAC | 447.2 | 332.3 | 114.9 | 34.6 % | 36.4 % | ||||
EMEA | 403.5 | 381.8 | 21.7 | 5.7 % | 7.2 % | ||||
Total | $ 2,036.0 | $ 1,639.1 | $ 396.9 | 24.2 % | 25.3 % | ||||
Adjusted operating profit (loss)(3) | |||||||||
AMER | $ 259.7 | $ 187.8 | $ 71.9 | 38.3 % | |||||
APAC | 45.7 | 30.4 | 15.3 | 50.3 % | |||||
EMEA | 78.7 | 70.3 | 8.4 | 11.9 % | |||||
Corporate(4) | (47.4) | (39.9) | (7.5) | 18.8 % | |||||
Total | $ 336.7 | $ 248.6 | $ 88.1 | 35.4 % | |||||
Adjusted operating margins(5) | |||||||||
AMER | 21.9 % | 20.3 % | 1.6 % | ||||||
APAC | 10.2 % | 9.1 % | 1.1 % | ||||||
EMEA | 19.5 % | 18.4 % | 1.1 % | ||||||
Vertiv | 16.5 % | 15.2 % | 1.3 % | ||||||
(1) | Segment net sales are presented excluding intercompany sales. |
(2) | Organic basis is adjusted to exclude foreign currency exchange rate impact. |
(3) | Adjusted operating profit (loss) is only adjusted at the Corporate segment. There are no adjustments at the reportable segment level between operating profit (loss) and adjusted operating profit (loss). |
(4) | Corporate costs consist of headquarters management costs, asset impairments, and costs that support centralized global functions including Finance, Treasury, Risk Management, Strategy & Marketing, and Legal. |
(5) | Adjusted operating margins calculated as adjusted operating profit (loss) divided by net sales. |
Sales by product and service offering | |||||||
Three months ended March 31, | |||||||
2025 | 2024 | Δ | Δ% | ||||
Products | $ 958.3 | $ 716.1 | $ 242.2 | 33.8 % | |||
Services & spares | 227.0 | 208.9 | 18.1 | 8.7 % | |||
$ 1,185.3 | $ 925.0 | $ 260.3 | 28.1 % | ||||
Products | $ 333.8 | $ 224.0 | $ 109.8 | 49.0 % | |||
Services & spares | 113.4 | 108.3 | 5.1 | 4.7 % | |||
$ 447.2 | $ 332.3 | $ 114.9 | 34.6 % | ||||
Products | $ 319.0 | $ 297.3 | $ 21.7 | 7.3 % | |||
Services & spares | 84.5 | 84.5 | — | — % | |||
$ 403.5 | $ 381.8 | $ 21.7 | 5.7 % | ||||
Total: | |||||||
Products | $ 1,611.1 | $ 1,237.4 | $ 373.7 | 30.2 % | |||
Services & spares | 424.9 | 401.7 | 23.2 | 5.8 % | |||
$ 2,036.0 | $ 1,639.1 | $ 396.9 | 24.2 % | ||||
Organic growth by product and service offering | |||||||
Three months ended March 31, 2025 | |||||||
Net Sales Δ | FX Δ | Organic growth | Organic Δ%(1) | ||||
Products | $ 242.2 | $ 3.8 | $ 246.0 | 34.4 % | |||
Services & spares | 18.1 | 2.0 | 20.1 | 9.6 % | |||
$ 260.3 | $ 5.8 | $ 266.1 | 28.8 % | ||||
Products | $ 109.8 | $ 3.8 | $ 113.6 | 50.7 % | |||
Services & spares | 5.1 | 2.2 | 7.3 | 6.7 % | |||
$ 114.9 | $ 6.0 | $ 120.9 | 36.4 % | ||||
Products | $ 21.7 | $ 3.3 | $ 25.0 | 8.4 % | |||
Services & spares | — | 2.3 | 2.3 | 2.7 % | |||
$ 21.7 | $ 5.6 | $ 27.3 | 7.2 % | ||||
Total: | |||||||
Products | $ 373.7 | $ 10.9 | $ 384.6 | 31.1 % | |||
Services & spares | 23.2 | 6.5 | 29.7 | 7.4 % | |||
$ 396.9 | $ 17.4 | $ 414.3 | 25.3 % | ||||
(1) | Organic growth percentage change is calculated as organic growth divided by net sales for the three months ended March 31, 2024. |
Segment operating profit (loss) | |||
Operating profit (loss) | Three months ended | Three months ended | |
$ 259.7 | $ 187.8 | ||
45.7 | 30.4 | ||
78.7 | 70.3 | ||
Total reportable segments | 384.1 | 288.5 | |
Foreign currency gain (loss) | (2.6) | (3.2) | |
Corporate and other | (44.8) | (36.7) | |
Total corporate, other and eliminations | (47.4) | (39.9) | |
Amortization of intangibles | (46.0) | (46.0) | |
Operating profit (loss) | $ 290.7 | $ 202.6 | |
Reconciliation of net cash provided by (used for) operating activities to adjusted free cash flow | |||
Three months ended | Three months ended | ||
Net cash provided by (used for) operating activities | $ 303.3 | $ 137.5 | |
Capital expenditures | (36.5) | (35.8) | |
Investments in capitalized software | (2.3) | (0.7) | |
Adjusted free cash flow | $ 264.5 | $ 101.0 | |
Reconciliation from operating profit (loss) to adjusted operating profit (loss) | |||
Three months ended | Three months ended | ||
Operating profit (loss) | $ 290.7 | $ 202.6 | |
Amortization of intangibles | 46.0 | 46.0 | |
Adjusted operating profit (loss) | $ 336.7 | $ 248.6 | |
Reconciliation from operating margin to adjusted operating margin | |||||
Three months ended | Three months ended | Δ | |||
Vertiv net sales | $ 2,036.0 | $ 1,639.1 | $ 396.9 | ||
Vertiv operating profit (loss) | 290.7 | 202.6 | 88.1 | ||
Vertiv operating margin | 14.3 % | 12.4 % | 1.9 % | ||
Amortization of intangibles | $ 46.0 | $ 46.0 | $ — | ||
Vertiv adjusted operating profit (loss) | 336.7 | 248.6 | 88.1 | ||
Vertiv adjusted operating margin | 16.5 % | 15.2 % | 1.3 % | ||
Reconciliation of Diluted EPS to Adjusted Diluted EPS | |||||||||
Three months ended March 31, 2025 | |||||||||
Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS(1) | |||||
GAAP | $ 290.7 | $ 25.3 | $ 100.9 | $ 164.5 | $ 0.42 | ||||
Amortization of intangibles | 46.0 | — | — | 46.0 | 0.12 | ||||
Non-recurring tax adjustment, net(2) | — | — | (39.5) | 39.5 | 0.10 | ||||
Non-GAAP adjusted | $ 336.7 | $ 25.3 | $ 61.4 | $ 250.0 | $ 0.64 | ||||
Diluted shares (in millions) | 390.1 | ||||||||
(1) | Diluted EPS and adjusted diluted EPS is calculated using 390.1 million shares (includes 380.8 million basic shares and 9.3 million potential dilutive equity awards). |
(2) | Nonrecurring tax adjustment of |
Three months ended March 31, 2024 | |||||||||||
Operating profit | Interest expense, | Change in warrant | Income tax expense | Net income | Diluted EPS(1) | ||||||
GAAP | $ 202.6 | $ 39.0 | $ 176.6 | $ (7.1) | $ (5.9) | $ (0.02) | |||||
Amortization of intangibles | 46.0 | — | — | — | 46.0 | 0.12 | |||||
Change in warrant liability | — | — | (176.6) | 47.9 | 128.7 | 0.33 | |||||
Non-GAAP adjusted | $ 248.6 | $ 39.0 | $ — | $ 40.8 | $ 168.8 | $ 0.43 | |||||
Pro-forma diluted shares (in millions) | 389.3 | ||||||||||
(1) | Diluted EPS is calculated using 379.1 million shares. Adjusted diluted EPS uses 389.3 million adjusted diluted shares, which includes 379.1 million basic shares and 10.2 million additional shares from potentially dilutive equity awards that would be dilutive if the Company had net income in the first three months of 2024. We believe that this adjusted version better reflects our actual performance because it removes the impact of warrant liability accounting and the impact on adjusted diluted EPS. |
Vertiv Holdings Co 2025 Adjusted Guidance Reconciliation of Diluted EPS to Adjusted Diluted EPS(1)(2)
| |||||||||
Second Quarter 2025 | |||||||||
Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS(3) | |||||
GAAP | $ 389.0 | $ 23.0 | $ 96.0 | $ 270.0 | $ 0.69 | ||||
Amortization of intangibles | 46.0 | — | — | 46.0 | 0.12 | ||||
Non-GAAP adjusted | $ 435.0 | $ 23.0 | $ 96.0 | $ 316.0 | $ 0.81 | ||||
Diluted shares (in millions) | 392.0 | ||||||||
Full Year 2025 | |||||||||
Operating profit (loss) | Interest expense, net | Income tax expense | Net income (loss) | Diluted EPS(5) | |||||
GAAP | $ 1,754.0 | $ 125.0 | $ 459.5 | $ 1,169.5 | $ 2.98 | ||||
Amortization of intangibles | 181.0 | — | — | 181.0 | 0.47 | ||||
Non-recurring tax adjustment, net(4) | — | — | (39.5) | 39.5 | 0.10 | ||||
Non-GAAP adjusted | $ 1,935.0 | $ 125.0 | $ 420.0 | $ 1,390.0 | $ 3.55 | ||||
Diluted shares (in millions) | 392.0 | ||||||||
(1) | Our guidance reflects the currently expected impacts of the tariff rates active as of April 22, 2025, assuming such rates remain constant through year-end. For purposes of this earnings release and accompanying information, tariff rates active on April 22, 2025, include (but are not limited to): existing Chapter 1-97 tariffs; Section 301 tariffs; IEEPA tariffs ( |
(2) | Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to FY 2025 guidance, including organic net sales growth, adjusted operating margin and adjusted free cash flow, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For the same reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results. |
(3) | Diluted EPS and adjusted diluted EPS based on 392.0 million shares (includes 382.0 million basic shares and 10.0 million potential dilutive equity awards). |
(4) | Nonrecurring tax adjustment of |
(5) | Diluted EPS and adjusted diluted EPS based on 392.0 million shares (includes 382.0 million basic shares and 10.0 million potential dilutive equity awards). |
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SOURCE Vertiv Holdings Co
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