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Investing.com -- Shares in Vertiv Holdings (NYSE:VRT) rallied more than 8% in premarket trading Wednesday after the company reported better-than-expected second-quarter results and raised its full-year outlook.
Vertiv posted Q2 earnings per share (EPS) of $0.95, topping the consensus estimate of $0.83. Revenue surged 35% year-over-year to $2.64 billion, also ahead of analysts’ forecast of $2.35 billion.
Adjusted operating profit climbed by $108 million to $489 million, a 28% year-on-year increase. Adjusted operating margin came in at 18.5%, down 110 basis points from the prior year, reflecting the impact of ongoing tariffs.
Order trends remained solid, with organic orders up roughly 15% year-over-year and 11% sequentially. On a trailing twelve-month basis, organic orders grew approximately 11% compared to the same period last year.
"Vertiv’s second quarter performance demonstrates the strength of our market position and our ability to execute at scale," said Giordano Albertazzi, CEO of Vertiv.
"We are strategically investing in capacity expansion and accelerating our innovation pipeline to capitalize on unprecedented data center growth, particularly in AI-enabled infrastructure.
For the third quarter, Vertiv expects revenue between $2.51 billion and $2.59 billion, ahead of the $2.43 billion consensus.
Full-year 2025 guidance was raised, with projected EPS of $3.75 to $3.85, or $3.80 at the midpoint, up from the previous $3.55, and well above the consensus estimate of $3.54.
Revenue is expected to be between $9.93 billion and $10.08 billion, also ahead of the $9.48 billion expected by analysts.
Vertiv now forecasts 24% organic sales growth for the year, up from 18%, and adjusted operating profit of $1.99 billion, up from $1.94 billion.
Free cash flow outlook was lifted to $1.4 billion, up from $1.3 billion.
The company lowered its adjusted operating margin forecast to 20.0% from 20.5% but reaffirmed its long-term margin target of 25% by 2029.