10-QPeriod: Q3 FY2025

Vertiv Holdings Co Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 22, 2025For Securities:VRT

Summary

Vertiv Holdings Co. reported a strong third quarter of 2025, with net sales increasing by 29.0% year-over-year to $2.68 billion, driven by robust growth across all segments, particularly in the Americas. This top-line performance translated into a significant surge in net income, which more than doubled to $398.5 million, or $1.02 per diluted share, compared to $176.6 million, or $0.46 per diluted share, in the prior year's quarter. The company also demonstrated improved profitability, with gross profit margin expanding to 37.8% from 36.5% in the prior year, supported by favorable product and service sales mix and operational leverage. The nine-month period also showed substantial growth, with net sales up 29.7% to $7.35 billion and net income soaring to $887.2 million from $348.8 million in the same period last year. Vertiv's strategic initiatives, including capacity expansion and the recent acquisition of Great Lakes Data Racks & Cabinets, appear to be yielding positive results. The company ended the quarter with a healthy cash position and significant availability under its revolving credit facility, positioning it well to manage its operations and pursue future growth opportunities.

Financial Highlights

52 data points
Beta

Revenue

$2.68B

37.8% Gross Margin

Net Income

$398.50M

14.9% Net Margin

EPS (Diluted)

$1.02

Total Assets

$10.82B

Cash & Equivalents

$1.40B

Free Cash Flow

$463.50M

Financial Statements
Beta
Revenue$2.68B
Cost of Revenue$1.67B
Gross Profit$1.01B
SG&A Expenses$414.30M
Operating Income$516.70M
Interest Expense$22.80M
Net Income$398.50M
EPS (Basic)$1.04
EPS (Diluted)$1.02
Shares Outstanding (Basic)382.03M
Shares Outstanding (Diluted)390.93M

Key Highlights

  • 1Net sales for the third quarter of 2025 increased by 29.0% to $2.68 billion compared to the prior year, with strong contributions from all geographic segments.
  • 2Net income for the third quarter of 2025 more than doubled to $398.5 million from $176.6 million in the prior year.
  • 3Diluted earnings per share (EPS) rose to $1.02 in Q3 2025, up from $0.46 in Q3 2024.
  • 4Gross profit margin improved to 37.8% in Q3 2025 from 36.5% in Q3 2024, driven by favorable sales mix and operational leverage.
  • 5The company completed the acquisition of Great Lakes Data Racks & Cabinets on August 20, 2025, for $203.5 million to strengthen its position in integrated infrastructure solutions.
  • 6Operating cash flow for the first nine months of 2025 increased by 26.9% to $1.13 billion.
  • 7Vertiv ended the quarter with $1.4 billion in cash, cash equivalents, and restricted cash, and had $782.8 million in availability under its ABL Revolving Credit Facility.

Frequently Asked Questions

The substantial increase in net sales, up 29.0% to $2.68 billion, was primarily driven by higher sales volumes across all product categories and geographic segments, with the Americas showing particularly strong growth. This revenue expansion, coupled with an improvement in gross profit margin to 37.8% due to a favorable sales mix and operational efficiencies, directly contributed to the doubling of net income to $398.5 million.

The acquisition of Great Lakes, completed on August 20, 2025, for $203.5 million, is expected to strengthen Vertiv's position in delivering integrated infrastructure solutions for data centers and critical digital environments, especially for AI and high-density computing applications. While the full financial impact is still being integrated, the acquisition aligns with Vertiv's strategy to enhance its offerings and capitalize on growing market demands.

Vertiv is focused on capitalizing on several key trends, including the increased demand driven by Artificial Intelligence (AI) and high-performance compute, which is boosting data center investments. The company is also expanding its thermal management portfolio to address the complexities of AI workloads and is investing in capacity expansion globally to meet anticipated demand. Management also noted ongoing efforts to mitigate impacts from trade and economic uncertainties through strategies like diversifying sourcing and regional manufacturing.

Vertiv maintains a strong liquidity position with $1.4 billion in cash, cash equivalents, and restricted cash as of September 30, 2025, and significant availability under its ABL Revolving Credit Facility. The company expects these resources, along with operating cash flow, to be sufficient for the next 12 months to fund working capital, capital expenditures (projected at $225-$275 million for the full year 2025), strategic investments, and debt service. They also intend to opportunistically access capital markets as needed.