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Vertiv Holdings Co

VRT
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Business Summary

Vertiv Holdings Co is a global leader in critical digital infrastructure for applications in data centers, communication networks, and commercial and industrial environments. The company designs, manufactures, sells, installs, maintains, and services critical digital infrastructure technologies and rapidly deployable customized solutions. Vertiv's global footprint comprises engineering, manufacturing, operations, sales and service locations in more than 40 countries across the Americas, Asia Pacific and Europe, Middle East & Africa. The company primarily serves customers across three main end markets: data centers (including hyperscale/cloud, colocation, neocloud and enterprise), communication networks, and commercial and industrial applications.

Vertiv encounters two principal types of competitors: niche players such as Delta Electronics, Inc., Stulz GmbH, Johnson Controls International PLC, and Socomec Holding SA, and large-scale global competitors such as Schneider Electric, S.E., Eaton Corporation Plc, Legrand SA, and Huawei Investment & Holding Co., Ltd. The company differentiates itself through application expertise and customer collaboration, the most complete portfolio and continual innovation, proven superior reliability and quality, a truly global presence and ability to scale, and an industry-leading global service network. Vertiv's estimated combined order backlog was $15.0 billion as of December 31, 2025, compared to $7.2 billion as of December 31, 2024.

Vertiv generates revenue through the sale of products and services. Products include AC and DC power management, thermal management, low/medium voltage switchgear, busbar, air cooled and liquid cooled thermal management products, integrated modular solutions, racks, single phase UPS, rack power distribution, rack thermal systems, configurable integrated solutions, energy storage solutions, hardware, and software for managing IT equipment. Services include preventative maintenance, project management, acceptance testing, engineering and consulting, performance assessments, remote monitoring, specialized fluid management, training, spare parts, and critical digital infrastructure software. The company goes to market through multiple channels, with approximately 3,000 salespeople located around the world, and also utilizes a robust network of channel partners, distributors, IT resellers, and value-added retailers.

Vertiv's product offerings include AC and DC power management, thermal management, low/medium voltage switchgear, busbar, air cooled and liquid cooled thermal management products, integrated modular solutions, racks, single phase UPS, rack power distribution, rack thermal systems, configurable integrated solutions, energy storage solutions, hardware, and software for managing IT equipment. The company's services offerings include preventative maintenance, project management, acceptance testing, engineering and consulting, performance assessments, remote monitoring, specialized fluid management, training, spare parts, and critical digital infrastructure software. Vertiv operates over 300 service centers and deploys approximately 5,000 service engineers globally. The company's most prominent brands include Vertiv, Liebert, NetSure, Geist, Energy Labs, ERS, Albér, and Avocent.

In 2025, Vertiv spent $441.7 on engineering, research and development. The company acquired Great Lakes Data Racks & Cabinets family of companies in August 2025 for approximately $200 million , which enhances its rack, cabinet and integrated white-space infrastructure offerings. In December 2025, Vertiv acquired Purge Rite Intermediate, LLC for total consideration of $1,138.3 million , net of cash acquired of $14.4 , expanding its thermal services capabilities. The company also entered into strategic partnerships with NVIDIA, Oklo, and Caterpillar. On November 29, 2023, the Board approved a stock repurchase program authorizing the repurchase of shares in an aggregate amount of up to $3.0 billion through December 31, 2027. As of December 31, 2025, $2.4 billion remains for additional share repurchases under the current approved program. The company increased its quarterly cash dividend to $0.0625 per share on November 14, 2025.

For the year ended December 31, 2025, Vertiv's net sales were $10,229.9 , an increase of $2,218.1 , or 27.7% , compared with $8,011.8 in 2024. Gross profit was $3,715.2 , or 36.3% of sales, compared to $2,934.2 , or 36.6% of sales in 2024. Operating profit was $1,829.7 in 2025, compared to $1,367.4 in 2024. Net income was $1,332.8 in 2025, compared to $495.8 in 2024. Net cash provided by operating activities was $2,113.8 in 2025, compared to $1,319.3 in 2024.

Business Outlook

Vertiv expects to have capital expenditures (including capitalized software) of $425 to $525 in 2026 in order to support capacity expansion across the business.

Vertiv is investing in expanding its global capacity to meet both current and anticipated customer demand across key infrastructure segments. Since late 2021, Vertiv has more than doubled its manufacturing capacity for switchgear, busbar and integrated power solutions through the opening of new facilities and capacity increases at existing operations worldwide. The company opened a new state-of-the-art manufacturing facility and test laboratory in Pune, India in 2024, and expanded its domestic infrastructure solutions manufacturing footprint in 2024 with the addition of a 215,000-square-foot facility in Pelzer, South Carolina. The company anticipates continuing to invest in capacity globally. Increased maturity and adoption of AI and high-performance compute is currently impacting the data center industry and driving technology innovation leading to increased demand, and Vertiv has invested in developing new product, services, and solutions to serve this growing industry.

Vertiv continues to invest in expansion of its thermal management portfolio and product capabilities to meet customer demand, with investment and expansion efforts directed at capturing new technologies across the entire thermal chain from chip to heat rejection, re-use, and more. The company also continues to see attractive opportunities in its services business as customers increasingly prioritize reliability, performance optimization, and lifecycle management across more complex and mission-critical digital infrastructure environments. Vertiv continues to pursue strategic partnerships and investment opportunities that enhance its technology capabilities, including partnerships with NVIDIA, Oklo, and Caterpillar. The company continues to invest in prefabricated, factory-integrated, and standardized infrastructure solutions designed to reduce on-site complexity and improve deployment efficiency, including its SmartRun overhead infrastructure portfolio and Vertiv OneCore architecture.

Gross margin was relatively flat in 2025 as benefits from higher sales volume and improved price realization were offset by cost inflation, particularly related to tariffs. The company has an on-going multi-year restructuring program in place to align its cost structure to support margin expansion targets, including workforce reductions and footprint optimization across all segments. During 2025, the company initiated an additional global restructuring program to streamline operations, optimize its cost structure and improve operational efficiencies, with restructuring costs of $54.5 in 2025 compared to $5.3 in 2024.

Vertiv continues to pursue its supply chain strategy of supplier and geographic resilience, including continuing to add regional sourcing and manufacturing capabilities and capacity to complement its existing global supply chain. The company is strengthening its supply base and manufacturing footprint in the U.S. and other strategic jurisdictions around the world as part of its overall capacity strategy to grow with customer demand. Vertiv is continually analyzing and implementing strategic measures in an effort to minimize the financial and operational impacts of new and proposed tariffs on its business operations, including continued expansion of domestic manufacturing, alternative sourcing of components and parts regionally, increased sourcing of components and parts that qualify under applicable trade agreements, and continued evaluation of its ability to incorporate tariff impacts into pricing decisions.

Vertiv's capital expenditures (including capitalized software) were $226.4 in 2025. The company expects to have capital expenditures (including capitalized software) of $425 to $525 in 2026. As of December 31, 2025, $2.4 billion remains for additional share repurchases under the current approved program. The company increased its quarterly cash dividend to $0.0625 per share on November 14, 2025, which was paid on December 18, 2025 to shareholders of record on November 25, 2025, and currently expects to continue to pay a quarterly dividend.

The global trade and economic environment continues to evolve rapidly with the imposition of new U.S. tariffs and retaliatory tariffs being imposed by foreign countries. The imposition of U.S. tariffs and foreign country retaliatory tariffs, or the proposed imposition of additional or similar tariffs, in jurisdictions where Vertiv has manufacturing facilities or where its customers operate could increase its cost of doing business and could significantly impact its financial performance. The company is also continually monitoring the evolving macroeconomic environment, including monitoring inflationary and recessionary pressures resulting from the ongoing tariffs and geopolitical climate, which could significantly impact the labor markets, exchange rates, customer demand, supply chain, capital markets and other economic conditions in the jurisdictions it operates throughout 2026 and beyond.

Vertiv's customers have the right in some circumstances, usually with penalties or other termination consequences, to reduce or defer firm orders in backlog. If customers terminate, reduce or defer firm orders, the revenue the company expects to generate from its backlog may not be fully realized. Due to its large backlog, pricing changes may take longer to be reflected in its financial results. The company's recent acquisitions have added to its sales pipeline and backlog, and the contracts associated with these acquisitions may have differing terms, allowing customers to reduce firm orders or terminate contracts, with varying costs.

Risk Factors

Vertiv faces material risks from its reliance on the continued growth of customers' data center and communication infrastructure demand; if these do not continue to grow, overall customer demand for its product offerings could decrease. The company's estimated combined order backlog was $15.0 billion as of December 31, 2025, and customers have the right in some circumstances to reduce or defer firm orders, meaning the revenue expected from backlog may not be fully realized. Vertiv is subject to various changes in production costs, including raw materials like steel, copper, and aluminum, and has experienced significant increases in material, freight and labor costs and custom duties and tariffs. The company operates in a highly competitive environment with large-scale global competitors like Schneider Electric, S.E., Eaton Corporation Plc, Legrand SA, and Huawei Investment & Holding Co., Ltd. As of December 31, 2025, Vertiv had total goodwill and net intangible assets of $3,928.5 , which constituted approximately 32% of total assets, and failure to realize the value of these assets could adversely affect results. The company's level of indebtedness, with outstanding principal amounts of $2,076.1 on the Term Loan due 2032 and $850.0 on the Senior Secured Notes due 2028 as of December 31, 2025, could have important consequences including making it more difficult to satisfy obligations and limiting flexibility.

Management Priorities

Management's message emphasizes Vertiv's position as a global leader in critical digital infrastructure, with a focus on fueling the revolution of the digital world and supercharging data's potential. The company's strategic priorities are maintaining customer focus, achieving operational excellence, building a high-performance culture, fostering innovation, and reinforcing financial strength. Management highlights the significant growth in backlog from $7.2 billion as of December 31, 2024 to $15.0 billion as of December 31, 2025, driven by continued strong demand. The company expects to have capital expenditures (including capitalized software) of $425 to $525 in 2026 to support capacity expansion. Management also emphasizes the company's investments in AI-driven demand, thermal management portfolio expansion, strengthened services capabilities, strategic partnerships, and the need for speed and scale in deployment.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Backlog
  2. [2] Item 1, Business — Backlog
  3. [3] Item 1, Business — Sales and Marketing
  4. [4] Item 1, Business — Customer Service and Support
  5. [5] Item 1, Business — Customer Service and Support
  6. [6] Item 1, Business — Engineering, Research and Development
  7. [7] Item 7, MD&A — Outlook and Trends
  8. [8] Item 8, Note 2 — Acquisitions
  9. [9] Item 8, Note 2 — Acquisitions
  10. [10] Item 5, Market for Registrant's Common Equity — Repurchases of Securities
  11. [11] Item 5, Market for Registrant's Common Equity — Repurchases of Securities
  12. [12] Item 5, Market for Registrant's Common Equity — Cash Dividends
  13. [13] Item 7, MD&A — Results of Operations
  14. [14] Item 7, MD&A — Results of Operations
  15. [15] Item 7, MD&A — Results of Operations
  16. [16] Item 7, MD&A — Results of Operations
  17. [17] Item 7, MD&A — Results of Operations
  18. [18] Item 7, MD&A — Results of Operations
  19. [19] Item 7, MD&A — Results of Operations
  20. [20] Item 7, MD&A — Results of Operations
  21. [21] Item 7, MD&A — Results of Operations
  22. [22] Item 7, MD&A — Results of Operations
  23. [23] Item 7, MD&A — Results of Operations
  24. [24] Item 7, MD&A — Results of Operations
  25. [25] Item 7, MD&A — Summary Statement of Cash Flows
  26. [26] Item 7, MD&A — Summary Statement of Cash Flows
  27. [27] Item 7, MD&A — Capital Resources and Liquidity
  28. [28] Item 7, MD&A — Outlook and Trends
  29. [29] Item 7, MD&A — Results of Operations
  30. [30] Item 7, MD&A — Results of Operations
  31. [31] Item 7, MD&A — Capital Resources and Liquidity
  32. [32] Item 7, MD&A — Capital Resources and Liquidity
  33. [33] Item 5, Market for Registrant's Common Equity — Repurchases of Securities
  34. [34] Item 5, Market for Registrant's Common Equity — Cash Dividends
  35. [35] Item 1A, Risk Factors — We may not realize all of the sales expected from our backlog of orders and contracts
  36. [36] Item 1A, Risk Factors — Our results of operations may be adversely affected if we fail to realize the full value of our goodwill and intangible assets
  37. [37] Item 1A, Risk Factors — Our results of operations may be adversely affected if we fail to realize the full value of our goodwill and intangible assets
  38. [38] Item 8, Note 6 — Debt
  39. [39] Item 8, Note 6 — Debt
  40. [40] Item 1, Business — Backlog
  41. [41] Item 1, Business — Backlog
  42. [42] Item 7, MD&A — Capital Resources and Liquidity
  43. [43] Item 8, Consolidated Statements of Earnings (Loss)
  44. [44] Item 8, Consolidated Statements of Earnings (Loss)
  45. [45] Item 8, Consolidated Statements of Earnings (Loss)
  46. [46] Item 8, Consolidated Statements of Earnings (Loss)
  47. [47] Item 8, Consolidated Statements of Earnings (Loss)
  48. [48] Item 8, Consolidated Statements of Earnings (Loss)
  49. [49] Item 8, Consolidated Statements of Earnings (Loss)
  50. [50] Item 8, Consolidated Statements of Earnings (Loss)
  51. [51] Item 7, MD&A — Results of Operations
  52. [52] Item 7, MD&A — Results of Operations
  53. [53] Item 7, MD&A — Results of Operations
  54. [54] Item 7, MD&A — Results of Operations
  55. [55] Item 7, MD&A — Summary Statement of Cash Flows
  56. [56] Item 7, MD&A — Summary Statement of Cash Flows
  57. [57] Item 8, Consolidated Balance Sheets
  58. [58] Item 8, Consolidated Balance Sheets
  59. [59] Item 8, Note 6 — Debt
  60. [60] Item 7, MD&A — Results of Operations
  61. [61] Item 7, MD&A — Results of Operations
  62. [62] Item 7, MD&A — Results of Operations
  63. [63] Item 7, MD&A — Business Segments
  64. [64] Item 7, MD&A — Business Segments
  65. [65] Item 7, MD&A — Business Segments
  66. [66] Item 7, MD&A — Business Segments
  67. [67] Item 7, MD&A — Business Segments
  68. [68] Item 7, MD&A — Business Segments

Analysis on 6/8/2026