Vertiv Q2 2025 slides: EPS surges 42%, company raises full-year guidance

Vertiv Holdings Co (NASDAQ:NYSE:VRT) reported strong second-quarter 2025 results on July 30, with significant growth across key financial metrics and raised guidance for the full year, despite ongoing tariff challenges. The data center infrastructure provider’s stock rose 3.92% in premarket trading following the announcement.

Quarterly Performance Highlights

Vertiv delivered impressive financial results for Q2 2025, with adjusted diluted earnings per share reaching $0.95, a 42% increase compared to the second quarter of 2024 and $0.14 above prior guidance. Net sales grew to $2.64 billion, representing 34% organic growth year-over-year and exceeding guidance by $288 million.

The company reported adjusted operating profit of $489 million, up 28% from the prior year quarter and $54 million above guidance, though adjusted operating margin decreased 110 basis points to 18.5%. Adjusted free cash flow was $277 million, down 18% from Q2 2024.

As shown in the following chart of quarterly financial results:

The company’s book-to-bill ratio remained strong at approximately 1.2x for the second quarter, with trailing twelve-month organic orders growth of about 11%. Vertiv’s backlog stood at $8.5 billion at the end of Q2, up approximately $1.5 billion or 21% compared to the same period last year.

Regional Performance Analysis

Vertiv’s growth was broad-based across all regions, with particularly strong performance in the Americas and Asia Pacific. The Americas led with 43% organic growth, reaching $1.6 billion in net sales and maintaining a robust 24% adjusted operating margin. APAC delivered 37% organic growth with net sales of $560 million, while EMEA grew 7% organically to $476 million.

The regional breakdown of performance is illustrated in this chart:

"Demand remains strong with orders pipeline expanding in all regions," noted the company, though it cautioned that the "tariff situation remains fluid." Vertiv highlighted that it continues to optimize its supply chain and manufacturing footprint while investing in manufacturing and service capacity to support future growth.

Strategic Initiatives

A key strategic development announced during the presentation was Vertiv’s acquisition of Great Lakes, a leading rack manufacturer with facilities in the U.S. and Europe, for $200 million. The transaction is expected to close in Q3 2025 and will strengthen Vertiv’s position in the critical white space market, particularly for AI infrastructure.

As shown in this slide detailing the strategic acquisition and market positioning:

The company also highlighted significant customer and collaboration initiatives, including CoreWeave’s deployment of NVIDIA (NASDAQ:NVDA) GB300 NVL72 systems and a collaboration with Oklo Inc. to advance power and cooling solutions for data centers. These partnerships underscore Vertiv’s growing role in supporting AI infrastructure deployment.

Forward-Looking Guidance

Based on strong Q2 performance and continued robust demand, Vertiv raised its full-year 2025 guidance across multiple metrics. The company now expects:

• Full-year net sales of $10 billion (up from previous guidance)
• Adjusted operating profit of $1.99 billion, up 28% year-over-year
• Adjusted operating margin of approximately 20%, up 60 basis points
• Adjusted diluted EPS of $3.80, representing 33% growth from 2024
• Adjusted free cash flow of $1.4 billion, up $100 million from previous guidance

The updated full-year guidance is presented in this chart:

For the third quarter of 2025, Vertiv projects net sales of $2.55 billion (organic growth of 22%), adjusted operating profit of $510 million (up 22%), and adjusted diluted EPS of $0.97 (up 28%).

Challenges and Risks

Despite the strong overall performance, Vertiv faces several challenges, most notably related to tariffs. The company described the tariff situation as "fluid and uncertain" and noted it is executing countermeasures. The presentation indicated tariff rates ranging from 25% to 145% on various products from China, as well as 25% to 50% tariffs on steel and aluminum.

These tariffs represent a significant margin headwind, though the company is implementing proactive mitigation strategies through supply chain adjustments, operational changes, and commercial approaches. Vertiv also noted that its guidance assumes certain foreign exchange rates, including CNY/USD at 7.17 and a 1-month SOFR rate of 4.3%.

Market Context

Vertiv’s Q2 2025 results continue the momentum seen in Q1, when the company reported a 49% year-over-year increase in adjusted EPS to $0.64. The stock has performed strongly over the past year, trading between $53.60 and $155.84, with a closing price of $142.70 on July 29, 2025.

The company’s key takeaways from the presentation highlight both its strong current performance and strategic positioning for future growth:

With data center infrastructure demand continuing to grow, particularly for AI applications, Vertiv appears well-positioned to capitalize on these market trends despite tariff and supply chain challenges. The raised guidance suggests management confidence in navigating these headwinds while delivering substantial growth through the remainder of 2025.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.