Vertiv’s second quarter results were marked by robust growth in data center infrastructure demand, especially from hyperscale and colocation customers in the Americas and Asia-Pacific regions. Management credited ongoing investments in engineering, research and development, and increased manufacturing capacity for enabling the company to meet surging order volume. CEO Giordano Albertazzi noted that organic sales rose sharply, supported by backlog expansion and healthy pipelines across all segments. Operational challenges, such as higher costs related to tariffs and supply chain transitions, weighed on margins but were described by management as temporary and expected to moderate by year-end.
Is now the time to buy VRT? Find out in our full research report (it’s free).
Vertiv (VRT) Q2 CY2025 Highlights:
- Revenue: $2.64 billion vs analyst estimates of $2.36 billion (35.1% year-on-year growth, 12% beat)
- Adjusted EPS: $0.95 vs analyst estimates of $0.83 (13.9% beat)
- Adjusted EBITDA: $512.8 million vs analyst estimates of $471 million (19.4% margin, 8.9% beat)
- The company lifted its revenue guidance for the full year to $10 billion at the midpoint from $9.45 billion, a 5.8% increase
- Management raised its full-year Adjusted EPS guidance to $3.80 at the midpoint, a 7% increase
- Operating Margin: 16.8%, in line with the same quarter last year
- Organic Revenue rose 34% year on year vs analyst estimates of 20.8% growth (1,327.8 basis point beat)
- Market Capitalization: $54.88 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Vertiv’s Q2 Earnings Call
- Charles Stephen Tusa (JPMorgan): asked if margin improvements exiting the year would signal a more normalized margin profile in 2026. CEO Giordano Albertazzi confirmed expectations for margin progression to align with long-term targets.
- Amit Jawaharlaz Daryanani (Evercore): inquired about the duration and diversity of the growing backlog. Albertazzi explained that backlog composition remains stable, with some customers seeking earlier delivery, and highlighted a balanced customer mix across hyperscale, colocation, and sovereign segments.
- Jeffrey Todd Sprague (Vertical Research Partners): questioned Vertiv’s ability to recover tariff costs and the competitive impact of AWS’s liquid cooling initiatives. Albertazzi stated Vertiv remains tightly integrated with hyperscaler customers and co-develops solutions to meet their needs, seeing no disruption from new technologies.
- Scott Reed Davis (Melius Research): sought details on operational inefficiencies affecting margins. Albertazzi cited the combination of tariff-related supply chain shifts and the challenge of scaling production rapidly as the main drivers, with improvement expected as capacity expansions and process adjustments are completed.
- Andrew Burris Obin (Bank of America): asked about service contract growth in liquid cooling. Albertazzi confirmed that complexity and scale of liquid cooling deployments are creating new growth opportunities for Vertiv’s service business.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be monitoring (1) Vertiv’s ability to resolve operational inefficiencies and realize margin improvement as supply chain and tariff transitions are completed, (2) continued momentum in AI-driven orders and backlog conversion to revenue, and (3) progress integrating the Great Lakes acquisition to expand white space product capabilities. Additionally, we will keep an eye on regulatory developments and capacity expansion initiatives in EMEA, which could drive a rebound in that region.
Vertiv currently trades at $143.97, in line with $142.82 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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