Vertiv (VRT) Q4 2025 earnings summary

Executive summary

• Delivered record Q4 and full year 2025 results, exceeding guidance with strong organic sales and margin expansion, driven by robust Americas growth and significant order momentum, especially in hyperscale and colocation data centers.

• Backlog reached $15 billion, more than double last year, with a book-to-bill ratio of 2.9x and organic orders up 252% year-over-year.

• Strategic investments in engineering, capacity, and customer partnerships, including the acquisition of PurgeRite, are enhancing technical capabilities and recurring revenue.

• Service portfolio and new solutions like OneCore and SmartRow are accelerating data center deployment and supporting AI-driven demand.

• Service headcount is approaching 5,000 field personnel, supporting growth in installed base and service revenue.

Financial highlights

• Q4 2025 net sales were $2,880M, up 19–23% year-over-year, led by Americas up 46%, with APAC and EMEA declining.

• Q4 adjusted operating margin was 23.2%, up 170 bps; adjusted operating profit was $668M, up 33% year-over-year.

• Q4 adjusted diluted EPS was $1.36, up 37% year-over-year and $0.10 above guidance.

• Full year 2025 net sales reached $10.23B, up 26% organically; adjusted operating profit was $2.09B, up 35%.

• Adjusted free cash flow for the year was $1.887B, up 66%, with a conversion rate of 115%.

Outlook and guidance

• 2026 guidance: adjusted diluted EPS of $5.97–$6.07 (up 43% at midpoint), net sales of $13.25B–$13.75B (27–29% organic growth), and adjusted operating margin of 22.0–23.0%.

• Adjusted free cash flow expected at $2.1B–$2.3B, up 17% year-over-year.

• Q1 2026 guidance: adjusted diluted EPS of $0.95–$1.01 (up 53%), net sales of $2.5B–$2.7B (22% organic growth), and adjusted operating margin of 18.5–19.5%.

• Americas expected to continue leading growth, with APAC showing mid-20% growth and EMEA flat to down mid-single digits, but EMEA expected to recover in H2 2026.