01—Abstract
Summary
Summary of the 10-Q filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Vertiv Holdings Co. reported robust financial results for the second quarter and first half of 2025, demonstrating significant top-line growth and improved profitability.
Net sales surged by 35.1%a in the second quarter and 30.1% for the first half of the year, driven by strong performance across all key segments, particularly the Americas. This growth was fueled by increased sales volumes in both product and service offerings, with a notable positive impact from foreign currency fluctuations. The company also showcased improved operational efficiency, as evidenced by a significant increase in net income.
For the second quarter, net income more than doubled to $324.2 millionb, up from $178.1 million in the prior year. This profitability jump was supported by a decrease in interest expense and the absence of warrant liability adjustments seen in the prior year. Despite a slight dip in gross margin due to product mix and tariffs, the overall operational leverage and effective cost management led to a substantial increase in operating profit.
02—Key points
Key Highlights
- Net sales increased by 35.1% year-over-year to $2,638.1 million for the second quarter of 2025 and by 30.1% to $4,674.1 million for the first six months.
- Net income for the second quarter of 2025 more than doubled to $324.2 million, compared to $178.1 million in the second quarter of 2024.
- The Americas segment showed strong growth, with net sales increasing by 42.9% in the second quarter and operating profit by 34.9%.
- Gross profit margin decreased to 34.0% for the quarter and 33.9% for the year-to-date, primarily due to product mix and tariff impacts, compared to 38.0% and 36.4% respectively in the prior year periods.
- Interest expense decreased significantly by 52.5% in the second quarter and 44.4% in the first six months due to Term Loan amendments and increased interest income.
- The company ended the quarter with a strong cash position, with cash and cash equivalents totaling $1,640.8 million.
- Vertiv announced the definitive agreement to acquire the Great Lakes Data Rack and Cabinets family of companies, expected to close in the third quarter of 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Vertiv Holdings kept $0.12.
- Revenue$2.64B100.0%
- Cost of revenue−$1.74B66.0%
- Gross profit$896.6M34.0%
- Operating costs−$454.2M17.2%
- Operating income$442.4M16.8%
- Interest, other & tax−$118.2M4.5%
- Net income$324.2M12.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $2.64B$1.95B | +35.1% |
| Cost of Revenue | $1.74B$1.21B | +43.7% |
| Gross Profit | $896.60M$741.20M | +21.0% |
| SG&A Expenses | $395.60M$363.80M | +8.7% |
| Operating Income | $442.40M$336.00M | +31.7% |
| Interest Expense | $21.30M$44.80M | −52.5% |
| Net Income | $324.20M$178.10M | +82.0% |
| EPS (Basic) | $0.85$0.48 | +77.1% |
| EPS (Diluted) | $0.83$0.46 | +80.4% |
| Shares Outstanding (Basic) | 381.48M374.73M | +1.8% |
| Shares Outstanding (Diluted) | 389.85M384.49M | +1.4% |
05—Questions
Frequently Asked Questions
What were the main drivers of Vertiv's revenue growth in the second quarter of 2025?
Vertiv's revenue growth was primarily driven by higher sales volumes across both its product and service offerings. The Americas segment, in particular, demonstrated robust expansion. Positive impacts from foreign currency fluctuations also contributed to the reported sales increase.
Why did Vertiv's gross profit margin decline despite revenue growth?
The decline in gross profit margin was primarily attributed to a shift in the mix of product and service sales, as well as the impact of tariffs. While sales volumes increased, the margin percentage was affected by these factors compared to the prior year period.
What is the significance of the decrease in interest expense?
The substantial decrease in interest expense, driven by Term Loan amendments that reduced the interest rate margin and an increase in interest income, positively impacted the company's net income. This financial maneuver improved overall profitability and reduced the cost of debt.
What are the key risks highlighted in the filing for investors to consider?
Key risks mentioned include continued global trade and economic uncertainty, potential impacts of tariffs, supply chain disruptions, competition, changes in costs of materials and labor, and risks associated with international operations. The company also faces ongoing legal proceedings and regulatory inquiries.
06—Continue