Vertiv Holdings Co (VRT) Earnings History

Vertiv Holdings Co - Q4 FY2025 EarningsBeat

Filed at: Feb 11, 2026, 6:00 AM EST|Read from source

EXECUTIVE SUMMARY

Vertiv reported a strong fourth quarter and full year 2025, driven by significant order growth and robust market demand, particularly in AI infrastructure. The company demonstrated strong operational execution, leading to increased sales, margins, and cash flow, positioning it for continued growth in 2026.

POSITIVE HIGHLIGHTS

  • •

    Net sales increased 23% year-over-year to $2,880 million in Q4 2025, driven by organic sales growth of 19%.

    positive
  • •

    Fourth quarter organic orders grew approximately 252% compared to last year's fourth quarter, reflecting strong market demand.

    positive
  • •

    Adjusted operating margin was 23.2%, up 170 basis points compared to fourth quarter 2024, driven by operational leverage and productivity.

    positive
  • •

    Operating cash flow increased 136% to $1,005 million and adjusted free cash flow increased 151% to $910 million in Q4 2025 compared to the prior year.

    positive

CONCERNS & RISKS

  • •

    APAC net sales decreased 9.6% year-over-year in Q4 2025, and EMEA net sales decreased 8.2% year-over-year in Q4 2025.

    attention
  • •

    EMEA adjusted operating margin decreased to 22.1% in Q4 2025 from 26.6% in Q4 2024.

    attention
  • •

    Inventories increased to $1,456.5 million in Q4 2025 from $1,244.4 million in Q4 2024.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$2.88B
+22.7%
Prior year: $2.35B
Annual (YTD)
$10.23B
N/A
Prior year: $8.01B
Net Income
Quarterly
$445.60M
+203.1%
Prior year: $147.00M
Annual (YTD)
$1.33B
N/A
Prior year: $495.80M
EPS (Diluted)
Quarterly
$1.14
+200.0%
Prior year: $0.38
Operating Income
Quarterly
$579.90M
+26.8%
Prior year: $457.20M
Annual (YTD)
$1.83B
N/A
Prior year: $1.37B
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Operating Margin
Current Quarter
20.1%
Prior Year
19.5%
YoY Change
+60 bps
Net Margin
Current Quarter
15.5%
Prior Year
6.3%
YoY Change
+920 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Americas
0.0%
N/A
CC: +46.2%
APAC
0.0%
N/A
CC: +18.2%
Europe, Middle East & Africa
0.0%
N/A
CC: -2.1%

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
Americas
N/A———+46.2%
APAC
N/A———+18.2%
Europe, Middle East & Africa
N/A———-2.1%
Total Revenue$0.00M——100.0%—

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

MANAGEMENT GUIDANCE

FY2026

Net sales
$13250000.0B—$13750000.0B
Mid-point: $13500000.0B
"Organic net sales growth of 27% - 29%"
Adjusted operating profit
2,980,000,000—3,100,000,000
Mid-point: 3,040,000,000
"Adjusted operating margin of 22.0% - 23.0%"
Adjusted diluted EPS
$5.97—$6.07
Mid-point: $6.02
"Adjusted diluted EPS growth of 42% - 45%"
Adjusted free cash flow
2,100,000,000—2,300,000,000
Mid-point: 2,200,000,000

Q1 2026

Net sales
$2500000.0B—$2700000.0B
Mid-point: $2600000.0B
"Organic net sales growth of 18% - 26%"
Adjusted operating profit
475,000,000—515,000,000
Mid-point: 495,000,000
"Adjusted operating margin of 18.5% - 19.5%"
Adjusted diluted EPS
$0.95—$1.01
Mid-point: $0.98
"Adjusted diluted EPS growth of 48% - 58%"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Restructuring costs - global programs
+$18.8M
$0.05 per share
Q4 2025
Contingent consideration
+$4.9M
$0.01 per share
Q4 2025
Mergers and acquisition costs
+$5.2M
$0.01 per share
FY2025
Restructuring costs - global programs
+$49.5M
$0.13 per share
FY2025
Contingent consideration
+$4.9M
$0.01 per share
FY2025
Mergers and acquisition costs
+$5.2M
$0.01 per share
FY2025
Nonrecurring tax benefit, net
Valuation allowance release
+$39.5M
$0.10 per share
FY2025
Term loan due 2032 amendment expense
+$7.9M
$0.02 per share
Total Impact
+$135.9M$0.34 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Our fourth quarter performance demonstrates Vertiv's leadership position in an increasingly complex and demanding data center market.

— Vertiv Holdings Co, Q4 FY2025 2025 Earnings Call

Significant growth in orders, sales, margins and cash reflects our ability to scale while maintaining a sharp focus on operational execution.

— Vertiv Holdings Co, Q4 FY2025 2025 Earnings Call

What differentiates Vertiv is our ability to anticipate and shape the industry direction.

— Vertiv Holdings Co, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

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