Vertiv (VRT) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales rose 35.1% year-over-year to $2,638.1 million, with adjusted diluted EPS up 42% to $0.95, driven by robust demand in Americas and APAC, and solid growth in EMEA.

• Organic sales grew 34% year-over-year, and orders surpassed $3 billion, up 15% year-over-year, with a book-to-bill ratio of ~1.2x and backlog at $8.5 billion, up 21% year-over-year.

• Raised full-year 2025 guidance for net sales ($10 billion), adjusted EPS ($3.80), adjusted operating profit (just under $2 billion), and adjusted free cash flow ($1.4 billion), reflecting continued strong execution and market momentum.

• Announced acquisition of Great Lakes Data Racks & Cabinets for $200 million, expected to close in Q3 2025, to strengthen high-density AI infrastructure and data center market position.

• Strategic investments in R&D, capacity, and M&A, including collaborations with CoreWeave, Oklo, and NVIDIA, are positioning the company for long-term growth in AI infrastructure and data center markets.

Financial highlights

• Q2 2025 adjusted operating profit was $489 million, up 28% year-over-year, with an adjusted operating margin of 18.5%, down 110 bps due to tariffs and operational inefficiencies.

• Q2 2025 net income was $324.2 million, up 82% year-over-year; diluted EPS was $0.83, and adjusted diluted EPS was $0.95.

• Adjusted free cash flow for Q2 2025 was $277 million, down year-over-year due to working capital timing, but H1 adjusted free cash flow grew 24% to $542 million.

• Net leverage ratio at quarter end was 0.6x, with liquidity at $2.5 billion.

• Interest expense fell to $21.3 million in Q2 2025 from $44.8 million in Q2 2024.

Outlook and guidance

• Full-year 2025 guidance: adjusted EPS of $3.80, net sales of $10 billion, adjusted operating profit just under $2 billion, and adjusted free cash flow of $1.4 billion (95% conversion).

• Q3 2025 guidance: adjusted EPS of $0.97 (up 28% year-over-year), organic sales growth of 22%, and adjusted operating margin of 20%.

• Fourth quarter adjusted operating margin expected to exceed 23%, supporting the long-term target of 25% by 2029.

• Tariff headwinds and operational inefficiencies expected to moderate by year-end.

• Capital expenditures for 2025 expected in the $250–$300 million range.