Vertiv (VRT) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered record results, with adjusted diluted EPS up 63% to $1.24 and net sales rising 28–29% year-over-year, driven by strong execution, robust AI/data center demand, and favorable product mix.

• Americas led with 43% organic growth, APAC up 20–21%, and EMEA down 4% or flat, with margin expansion in Americas and APAC, and restructuring underway in EMEA.

• Backlog reached $9.5B, up 30% year-over-year, and book-to-bill ratio was 1.4x, supporting strong visibility into 2026.

• Adjusted operating profit increased 43% to $596M, with adjusted operating margin at 22.3%, up over 200 bps year-over-year.

• Full-year 2025 guidance was raised for adjusted EPS, net sales, operating profit, and free cash flow, reflecting continued investment in capacity, technology, and AI-driven services.

Financial highlights

• Q3 2025 net sales: $2,676M (+28–29% YoY); adjusted operating profit: $596M (+43% YoY); adjusted diluted EPS: $1.24 (+63% YoY).

• Adjusted free cash flow: $462M, up 38% year-over-year, with 95% conversion.

• Gross margin improved to 37.8% in Q3 2025, with SG&A as a percentage of sales declining.

• Net leverage at 0.5x, with liquidity of $2.7B at quarter-end.

• Book-to-bill ratio at 1.4x; trailing 12-month organic orders growth at 21%.

Outlook and guidance

• Q4 2025 guidance: adjusted EPS $1.23–$1.29 (+27% YoY), net sales $2,810M–$2,890M (+20–27% YoY), operating profit $620M–$660M, margin ~22.4%.

• Full-year 2025 guidance raised: adjusted EPS $4.07–$4.13 (+44% YoY), net sales $10,160M–$10,240M (+27% organic), operating profit $2,040M–$2,080M (+33% YoY), margin ~20.2%.

• Adjusted free cash flow guidance raised to $1,470M–$1,530M, with 95% conversion.

• Capital expenditures for 2025 expected at $225M–$275M, with further expansion in 2026.

• Expect continued significant organic sales growth, margin expansion, and robust free cash flow in 2026.