Vertiv’s first quarter performance was characterized by robust demand from data center customers and continued momentum in AI infrastructure projects. Management attributed the strong results to expanding order pipelines, particularly in the Americas and Asia-Pacific, and noted effective execution on operational initiatives. CEO Giordano Albertazzi highlighted that the company’s ability to secure and deliver large-scale projects, including a major partnership with NVIDIA, played a key role in outpacing market growth. Management also pointed to disciplined pricing and supply chain resilience as supporting higher operating margins, despite the backdrop of evolving tariff pressures.
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Vertiv (VRT) Q1 CY2025 Highlights:
- Revenue: $2.04 billion vs analyst estimates of $1.93 billion (24.2% year-on-year growth, 5.2% beat)
- Adjusted EPS: $0.64 vs analyst estimates of $0.62 (3.9% beat)
- Adjusted EBITDA: $359.6 million vs analyst estimates of $358.3 million (17.7% margin, in line)
- The company lifted its revenue guidance for the full year to $9.45 billion at the midpoint from $9.2 billion, a 2.7% increase
- Management reiterated its full-year Adjusted EPS guidance of $3.55 at the midpoint
- Operating Margin: 14.3%, up from 12.4% in the same quarter last year
- Organic Revenue rose 25.3% year on year (8.1% in the same quarter last year)
- Market Capitalization: $44.44 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Vertiv’s Q1 Earnings Call
- Scott Davis (Melius Research) asked how quickly tariff mitigation efforts will reduce margin pressure. CEO Giordano Albertazzi and CFO David Fallon replied that supply chain and pricing actions should gradually offset tariffs, with sequential improvements expected each quarter.
- Amit Daryanani (Evercore) questioned the durability of order growth despite reports of hyperscaler delays. Albertazzi responded that pipelines are growing for both near-term and multi-year projects, and demand remains broad-based, not overly reliant on any single customer segment.
- Steve Tusa (JPMorgan) inquired about exposure to China imports and the balance between supply chain adjustments and pricing. Albertazzi said the company is managing exposure with a combination of both, and believes Vertiv is gaining market share due to technology leadership and reliability.
- Jeff Sprague (Vertical Research) asked why no share repurchases occurred despite strong cash flow. Albertazzi explained the priority is maintaining balance sheet flexibility for potential M&A and navigating uncertainty, with repurchases considered opportunistically.
- Chris Snyder (Morgan Stanley) sought clarity on tracking liquid cooling demand. Albertazzi stated that demand for liquid cooling often leads advanced chip shipments by several months, and Blackwell chip deployments are a good proxy, but not the only driver.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will monitor (1) the pace at which Vertiv’s tariff mitigation strategies translate into margin stabilization, (2) continued growth in the backlog and pipeline, particularly for AI-driven infrastructure, and (3) the recovery trajectory in EMEA bookings. Progress on new product commercialization, such as advanced liquid cooling solutions, will also be key to sustaining momentum.
Vertiv currently trades at $117.60, up from $71.75 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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