Total Net Sales

+24% (from $1,639.1M in Q1 2024 to $2,036.0M in Q1 2025)

Strong organic growth and higher sales volumes drove the 24% increase, building on the previous period’s more modest results; robust demand across regions fueled this jump in net sales compared to Q1 2024. " "

Products Segment

+30% (from $1,270.3M to $1,649.7M)

Improved product mix and volume growth led to a 30% YoY increase, as product sales recovered from prior challenges such as negative foreign currency impacts, reflecting better market acceptance and operational execution versus Q1 2024. " "

Operating Profit

+43% (from $202.6M to $290.7M)

Enhanced operational efficiencies and better price-cost tailwinds boosted operating profit by 43%; compared to Q1 2024, improvements in cost management and higher sales volumes contributed to a dramatic margin expansion. " "

Net Income

Rising from a loss of $5.9M to +$164.5M

A turnaround in profitability occurred with net income rebounding from a loss in Q1 2024 to a healthy profit; increased sales, improved operating margins, and reduced cost pressures reversed the previous period’s negative results. " "

Basic EPS

From -$0.02 to +$0.43

EPS improved substantially due to the combination of higher net income and potential modest reductions in weighted-average shares outstanding, shifting from a loss per share in Q1 2024 to positive earnings in Q1 2025. " "

Cash & Cash Equivalents

Increased from $275.8M to $1,467.3M

Strong operating cash generation and improved working capital management dramatically expanded liquidity; the cash position soared as compared to Q1 2024, reflecting better collections, higher deferred revenue, and operational efficiency in contrast to the previous period’s constrained balance. " "

Organic Sales Growth

FY 2025

16% "

18% " "

raised

Adjusted Operating Profit

FY 2025

$1.935 billion "

$1.935 billion " "

no change

Adjusted Operating Margin

FY 2025

21% "

20.5% "

lowered

Adjusted Diluted EPS

FY 2025

$3.55 "

$3.55 " "

no change

Adjusted EPS

Q1 2025

$0.60 "

no current guidance

no prior guidance

Organic Sales Growth

Q1 2025

19% "

no current guidance

no prior guidance

Adjusted Operating Profit

Q1 2025

$325 million "

no current guidance

no prior guidance

Adjusted Operating Margin

Q1 2025

16.9% "

no current guidance

no prior guidance

Adjusted Free Cash Flow

Q1 2025

“Slightly higher than Q1 2024” "

no current guidance

no prior guidance

Sales Growth

Q2 2025

no prior guidance

15% sequentially and 21% YoY "

no prior guidance

Adjusted Operating Margin

Q2 2025

no prior guidance

18.5% "

no prior guidance

Free Cash Flow

Q2 2025

no prior guidance

“Consistent with the first half of 2024” "

no prior guidance

Robust Order Growth and Pipeline Strength

Consistently discussed in Q2–Q4 2024 with strong TTM order growth, high sequential and year‐over‐year increases, robust pipelines, and expanding backlogs " " " "

Continued strong performance with 20% TTM organic orders, sequential and yoy increases, robust pipeline growth across regions, and a $7.9B backlog reinforcing market strength " "

Consistent and positive – The focus on robust orders and pipeline has remained steady and strong across periods with an expanding backlog, signaling durable growth and market leadership.

Pricing Strategy and Margin Dynamics

In Q2–Q4 2024, discussions centered on price/cost positivity, commercial execution, operational leverage boosting margins, and clear long–term margin objectives " " " "

Emphasis on proactive pricing actions, repricing when needed, and supply chain countermeasures to offset tariff impacts while maintaining margin growth with an expected operating margin modestly affected by tariffs " " " "

Steady optimization with external pressures – While the company’s pricing and margin management remains a strong focus, additional measures to counter tariff headwinds have emerged in Q1 2025, highlighting continued diligence in operational execution despite external cost pressures.

Growing AI Infrastructure and Data Center Demand

Across Q2–Q4 2024, Vertiv highlighted accelerating AI adoption, integration of power and thermal management solutions, and robust data center demand driven by high-density computing and liquid cooling needs " " " " "

Q1 2025 reinforces strong demand with robust order growth, strong pipeline visibility, and initiatives like AI factory projects, confirming a continued bullish outlook on AI infrastructure and overall data center growth " " "

Consistently bullish with strategic emphasis – The narrative around AI and data center demand remains strong and has expanded with specific projects, confirming that AI infrastructure is a key growth driver with long-term significant market impact.

Regional Market Dynamics and Regulatory Environment

Q2–Q4 2024 discussions provided region–by–region breakdowns; Americas and APAC showed robust growth while EMEA faced slower activity tied to regulatory delays and decision–making challenges " " " " "

Q1 2025 reiterates strong growth in Americas and APAC, while noting EMEA lags due to slower AI infrastructure build and a cautious regulatory outlook, yet the pipeline remains encouraging " " "

Mixed regional sentiment – Repeated emphasis on strong performance in the Americas and APAC, whereas EMEA continues to face regulatory headwinds. The recurring caution around European markets suggests ongoing challenges that could impact regional growth dynamics.

Capacity Constraints and Capital Expenditure Concerns

In Q2–Q4 2024, capacity expansion discussions and proactive CapEx investments were highlighted; although industry–wide permitting matters were noted, Vertiv remained confident in its production capabilities and balanced capital deployment " " " "

Q1 2025 indicates capacity is managed well with investments meeting strong demand; while no explicit CapEx concerns were noted, the focus remained on meeting growing demand across sectors "

Steady reassurance and proactive planning – The company consistently addresses capacity positively. Investments and production flexibility are maintained across periods, with no new constraints emerging but continued proactive measures reinforcing confidence in supply capabilities.

Tariff Mitigation Strategies and Tariff Headwinds

In Q4 2024, initial mention of strategic supply base expansion and geographic balance to mitigate tariff impacts was observed. " " Q2/ Q3 2024 had little to no mention.

In Q1 2025, detailed supply chain adjustments, repricing, and an operational playbook are emphasized to mitigate tariffs, noting a sequential decline in tariff impacts and a goal of neutrality by end–2025 " " " " "

Increasing focus and operational detail – While initially less emphasized, tariff-related challenges have gained prominence in Q1 2025 with a structured plan, signaling a heightened focus on navigating uncertain trade conditions without derailing margin growth.

Backlog Repricing and Contract Rigidity Risks

No explicit discussion in Q2–Q4 2024; earlier calls mentioned pricing confidence and backlog visibility but did not focus on repricing or contract rigidity specifically. " " "

Q1 2025 introduces discussions on actively re–pricing existing backlog when needed and addressing contract rigidity risks through customer conversations, ensuring guidance reflects these risks " "

Emerging concern – This is a new focus area in Q1 2025, where management now explicitly addresses the need for backlog repricing and navigating contract inflexibility, indicating heightened market scrutiny and a proactive approach to adjusting legacy agreements without compromising guidance.

Disconnect Between Orders and Customer CapEx Spending

Q2–Q4 2024 largely clarified that while order timing may show lumpiness, there was no significant disconnect; CEO comments in Q4 reaffirmed alignment between orders and CapEx spending. " " "

Q1 2025 does not detail a disconnect; management emphasizes strong demand and order increases, with no indication of a disconnect between orders and customer CapEx spending " "

Consistent reassurance – Across periods, Vertiv maintains that there is alignment between orders and actual customer CapEx spending, with any issues attributed to timing nuances rather than a fundamental disconnect.

Liquid Cooling Market Share Expansion

Q2 2024 discussed order trajectory, expanded production capacity, and competitive advantages; Q3 2024 emphasized aggressive market share gains, win rates, and unique service capabilities; Q4 2024 included positioning within a specified market value range " " " " "

Q1 2025 briefly mentions using Blackwell shipments as a proxy for liquid cooling demand, with positive sentiment on product trajectory, though less detailed on share metrics compared to prior quarters "

Strong and growing focus – Liquid cooling remains a highlighted growth area with markedly positive sentiment in Q3 2024. Although Q1 2025 is less detailed, the continuation of positive signals indicates persistent expansion efforts and market leadership ambitions in this key technology.

Seasonality and Revenue Timing Concerns

Q2–Q3 2024 discussions acknowledged timing issues with advanced payments, order-to-revenue conversion elongation, and shipment timing variations that sometimes pulled revenue forward. " " " "

Q1 2025 did not directly emphasize seasonality, though earlier Q4 2024 comments (as context) indicated strong Q1 performance despite potential cash flow headwinds; Q1 focus remains on robust order performance rather than seasonality "

Managed timing risks – While seasonality and revenue timing have consistently been discussed as inherent market dynamics, Vertiv appears to be managing these concerns effectively, with Q1 2025 showing strong performance despite potential timing headwinds.

Enterprise Segment Growth (declining emphasis)

Q2 2024 noted stable enterprise performance with potential modest acceleration driven by AI; Q4 2024 mentioned slower growth in distributed IT but comfort in the white space; Q3 2024 had no significant discussion on the enterprise focus " "

Q1 2025 briefly noted enterprise interest in AI and infrastructure, but with less emphasis compared to hyperscalers and colocation, indicating a relative declining focus on this segment "

Relative de‐emphasis – While the enterprise segment remains part of the overall market, recent periods show a declining emphasis relative to high-growth areas like AI–driven hyperscale and colocation, suggesting a strategic shift towards segments with higher growth potential.