# Vertiv Holdings Co (VRT) Q2 2025 Financial Results Summary
**Release Date: July 30, 2025**
Vertiv Holdings Co (NYSE: VRT) has reported its financial results for the second quarter ended June 30, 2025, showcasing significant growth in orders, sales, and earnings per share (EPS). Below is a detailed summary of the key metrics and outcomes from the financial report.
## Key Financial Metrics
– **Earnings Per Share (EPS)**:
– Second quarter diluted EPS: **$0.83**, up **80.4%** compared to **$0.46** from Q2 2024.
– Adjusted diluted EPS: **$0.95**, up **41.5%** from **$0.67** in the same quarter last year.
– **Sales Performance**:
– Net sales totaled **$2,638 million**, a **35%** increase ($685 million) from **$1,953 million** in Q2 2024.
– Organic sales growth was **15%** year-over-year, with **11%** sequential growth from Q1 2025.
– **Profitability**:
– Operating profit rose to **$442 million**, up **32%** from **$336 million** in Q2 of the previous year.
– Adjusted operating profit increased to **$489 million**, reflecting a **28%** growth compared to **$382 million** in the same quarter last year.
– Adjusted operating margin stood at **18.5%**, slightly lower by **110 basis points** from **19.6%** in Q2 2024.
– **Order and Backlog Growth**:
– Organic order growth achieved **15%** year-over-year and improved **11%** sequentially.
– The total backlog expanded to **$8.5 billion**, with a robust book-to-bill ratio of approximately **1.2x**.
– **Adjusted Free Cash Flow**:
– Generated **$277 million** in adjusted free cash flow, a decrease of **17.6%** from **$337 million** in the prior year’s second quarter.
## Investments and Guidance
– **Capital Expenditures**:
– Expected capital expenditures are projected between **$250 – $300 million** to bolster manufacturing capabilities.
– **Liquidity**:
– Maintained a robust financial position with **$2.5 billion** in liquidity and a net leverage ratio of approximately **0.6x**.
– **Revised Full-Year Guidance for 2025**:
– Adjusted diluted EPS guidance increased to **$3.80**, up from **$3.55**.
– Expected net sales between **$9,925 million – $10,075 million**, up from previous estimates.
– Anticipated adjusted operating profit now ranges from **$1,950 million – $2,030 million**.
– **Third Quarter 2025 Guidance**:
– Projected net sales between **$2,510 million and $2,590 million**.
– Estimated organic net sales growth of **20% – 24%**.
– Expected adjusted operating profit in the range of **$490 million – $530 million**.
## Dividends and Financial Position
– **Dividends**:
– Vertiv declared a quarterly dividend payment of **$14.2 million**, compared to **$9.4 million** in the previous year.
– **Stock Repurchase**:
– There was no noted share repurchase activity in this quarter.
## Operational Highlights
– Vertiv’s performance for the quarter highlights the company’s strong footing in the data center market, which is significantly benefiting from the rise in AI-related activities.
– The company made strategic investments in capacity expansion and innovation pipeline to maintain competitiveness within the fast-evolving digital infrastructure landscape.
In conclusion, Vertiv’s Q2 2025 results demonstrate robust growth across multiple metrics backed by strong demand in the data center market. The company’s proactive adjustments to financial guidance underscore its commitment to leveraging growth opportunities while also strategically navigating challenges in operating margins and increased working capital investments.
### UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(Dollars in millions except for per share data)
| Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | |
|---|---|---|---|---|
| Net sales | ||||
| Net sales – products | $2,166.0 | $1,555.2 | $3,815.7 | $2,825.5 |
| Net sales – services | 472.1 | 397.6 | 858.4 | 766.4 |
| Net sales | 2,638.1 | 1,952.8 | 4,674.1 | 3,591.9 |
| Costs and expenses | ||||
| Cost of sales – products | 1,470.3 | 963.0 | 2,582.4 | 1,809.3 |
| Cost of sales – services | 271.2 | 248.6 | 508.6 | 475.0 |
| Cost of sales | 1,741.5 | 1,211.6 | 3,091.0 | 2,284.3 |
| Operating expenses | ||||
| Selling, general and administrative expenses | 395.6 | 363.8 | 741.9 | 677.8 |
| Amortization of intangibles | 46.9 | 45.8 | 92.9 | 91.8 |
| Restructuring costs | 1.9 | -2.5 | 3.0 | -2.2 |
| Foreign currency (gain) loss, net | 2.3 | 0.2 | 4.9 | 3.4 |
| Other operating expense (income) | 7.5 | -2.1 | 7.3 | -1.8 |
| Operating profit (loss) | 442.4 | 336.0 | 733.1 | 538.6 |
| Interest expense, net | 21.3 | 44.8 | 46.6 | 83.8 |
| Loss on extinguishment of debt | — | 1.1 | — | 1.1 |
| Change in fair value of warrant liabilities | — | 25.4 | — | 202.0 |
| Income (loss) before income taxes | 421.1 | 264.7 | 686.5 | 251.7 |
| Income tax expense | 96.9 | 86.6 | 197.8 | 79.5 |
| Net income (loss) | $324.2 | $178.1 | $488.7 | $172.2 |
| Earnings (loss) per share: | ||||
| Basic | $0.85 | $0.48 | $1.28 | $0.46 |
| Diluted | $0.83 | $0.46 | $1.25 | $0.44 |
| Weighted-average shares outstanding: | ||||
| Basic | 381,482,996 | 374,734,093 | 381,166,015 | 376,934,638 |
| Diluted | 389,846,827 | 384,488,069 | 389,977,516 | 387,001,428 |
—
### UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $1,640.8 | $1,227.6 |
| Short-term investments | 98.2 | — |
| Accounts receivable, less allowances of $24.3 and $22.4, respectively | 2,831.0 | 2,362.7 |
| Inventories | 1,413.3 | 1,244.4 |
| Other current assets | 318.7 | 267.1 |
| Total current assets | 6,302.0 | 5,101.8 |
| Property, plant and equipment, net | 666.4 | 625.1 |
| Other assets: | ||
| Goodwill | 1,374.1 | 1,321.1 |
| Other intangible assets, net | 1,454.1 | 1,487.1 |
| Deferred income taxes | 291.5 | 303.3 |
| Right-of-use assets, net | 244.9 | 202.1 |
| Other | 73.2 | 92.0 |
| Total other assets | 3,437.8 | 3,405.6 |
| Total assets | $10,406.2 | $9,132.5 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Current portion of long-term debt | $21.0 | $21.0 |
| Accounts payable | 1,605.1 | 1,316.4 |
| Deferred revenue | 1,257.3 | 1,063.3 |
| Accrued expenses and other liabilities | 578.5 | 612.6 |
| Income taxes | 152.6 | 83.7 |
| Total current liabilities | 3,614.5 | 3,097.0 |
| Long-term debt, net | 2,900.5 | 2,907.2 |
| Deferred income taxes | 252.6 | 240.3 |
| Long-term lease liabilities | 203.1 | 171.4 |
| Other long-term liabilities | 310.1 | 282.3 |
| Total liabilities | 7,280.8 | 6,698.2 |
| Equity | ||
| Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding | — | — |
| Common stock, $0.0001 par value, 700,000,000 shares authorized, 381,803,828 and 380,703,974 shares issued and outstanding at June 30, 2025 and December 31, 2024 respectively | — | — |
| Additional paid-in capital | 2,858.2 | 2,821.4 |
| Retained earnings | 222.0 | -238.3 |
| Accumulated other comprehensive (loss) income | 45.2 | -148.8 |
| Total equity | 3,125.4 | 2,434.3 |
| Total liabilities and equity | $10,406.2 | $9,132.5 |
