Vertiv Holdings, Llc · NYSE:VRT
Vertiv — Q1 2025 Earnings Presentation
23 slides from Vertiv's earnings presentation, Apr 23, 2025
Slide 1: First Quarter 2025 Results
First Quarter 2025 Results April 23, 2025
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation, and other statements that Vertiv may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv’s future financial
Slide 3: First quarter 2025 key messages
First quarter 2025 key messages First quarter adjusted diluted earnings per share of $0.64, up ~49% from first quarter 2024 – primarily driven by higher adjusted operating profit. First quarter organic net sales up 25% compared to first quarter 2024 driven by continued strength in Americas (up high
Slide 4: Customer demand, operations, and procurement update
Customer demand, operations, and procurement update Customer demand Operations and Procurement update • Twelve-month (TTM) organic orders growth of ~20% vs. • Strong supply chain resilience and regionalization built same prior year period and up ~21% sequentially from fourth over the last 2.5 years.
Slide 5: Tariff Environment and Mitigation Actions
Tariff Environment and Mitigation Actions Exposure Current State Future State (actions underway) Existing capacity already addresses meaningful portion of Continue to invest in expansion of U.S. capacity and supply U.S. Capacity U.S. demand, and capacity to support growing demand chain capabilities
Slide 6: First quarter 2025 financial results
First quarter 2025 financial results $Millions; deltas to midpoint of guidance range . Diluted EPS $0.64 2,036 337 16.5% 265 15.2% 1,639 249 $0.43 101 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 + • • + + • + + • − • − Strong first quarter results driven by organi
Slide 7: First quarter 2025 segment results
First quarter 2025 segment results $Millions • • • • • • Adjusted operating profit $188 $260 $30 $46 $70 $79 Q1 2025 Earnings Note: See “Non-GAAP Financial Measures” beginning on slide 13 of the Appendix. 7
Slide 8: Second quarter 2025 financial guidance
Second quarter 2025 financial guidance $Millions; deltas to midpoint of guidance range . Diluted EPS $0.81 2,350 435 19.6% 18.5% $0.67 1,953 382 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 + • • + • − • • Expecting continued momentum into second quarter while navigating tariff un
Slide 9: Full year 2025 financial guidance
Full year 2025 financial guidance $Millions; deltas to midpoint of guidance . Diluted EPS 9,450 1,935 1,300 $3.55 20.5% 8,012 19.4% 1,135 $2.85 1,552 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 + • • + + + + − • • − − − Increasing midpoint of organic sales growth
Slide 10: Further illustrative tariff scenarios
Further illustrative tariff scenarios $Millions $2,015 Upside sales scenario $1,985 Guidance - high-end Adjusted Operating $1,935 Guidance - midpoint Profit $1,885 Guidance - low-end $1,850 Countermeasure risk scenario $1,800 April 2nd reciprocal tariffs reinstated scenario (all country negotiations
Slide 11: Key takeaways
Key takeaways CUSTOMER PROJECT SPOTLIGHT1 Deploying Europe’s First Sovereign AI Supercomputer Exceeded guidance for first quarter net sales and adjusted for highly regulated industries including finance, diluted EPS, continuing strong momentum from 2024 healthcare, and public sector. • Vertiv secure
Slide 12: Non-GAAP financial reconciliations
Non-GAAP financial reconciliations 12
Slide 13: Non-GAAP financial measures – first quarter results
Non-GAAP financial measures – first quarter results Reconciliation of segment operating profit (loss) to operating profit (loss) and adjusted Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin operating profit (loss) ($M | 1st QUARTER) 1Q25 1Q24 ($M | 1st
Slide 14: Non-GAAP financial measures – first quarter results (cont.)
Non-GAAP financial measures – first quarter results (cont.) Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Income Operating profit Interest tax expense ($M, except EPS | 1st QUARTER 2025) (loss) expense, net (benefit) Net income
Slide 15: Non-GAAP financial measures – second quarter 2025 guidance
Non-GAAP financial measures – second quarter 2025 guidance1 Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Income Operating profit Interest tax expense ($M, except EPS | 2nd QUARTER 2025) (loss) expense, net (benefit) Net income
Slide 16: Non-GAAP financial measures – FY 2025 guidance
Non-GAAP financial measures – FY 2025 guidance1 At midpoint of guidance range Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Income Operating profit Interest tax expense ($M, except EPS | FULL YEAR 2025) (loss) expense, net (bene
Slide 17: Non-GAAP financial measures: Q1 2024 – Q1 2025 results
Non-GAAP financial measures: Q1 2024 – Q1 2025 results Net Sales1 ($M) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Americas $925.0 $1,121.1 $1,198.6 $1,255.9 $4,500.6 $1,185.3 Asia Pacific 332.3 409.1 432.4 544.0 1,717.8 447.2 Europe, Middle East & Africa 381.8 422.6 442.5 546.5 1,793.4 403.5 Total $1,639.1 $1,95
Slide 18: Non-GAAP financial measures: Q1 2024 – Q1 2025 results
Non-GAAP financial measures: Q1 2024 – Q1 2025 results Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin ($M) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Net sales $1,639.1 $1,952.8 $2,073.5 $2,346.4 $8,011.8 $2,036.0 Operating profit 202.6 336.0 371.6 457.2 1,367.4 290
Slide 19: Non-GAAP financial measures: Q1 2024 – Q1 2025 results
Non-GAAP financial measures: Q1 2024 – Q1 2025 results Reconciliation of segment operating profit (loss) to operating profit (loss) and adjusted operating profit (loss) ($M) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Americas $187.8 $285.1 $303.4 $321.5 $1,097.8 $259.7 Asia Pacific 30.4 32.3 44.1 68.4 175.2 45.7
Slide 20: Non-GAAP financial measures – organic net sales growth reconciliation
Non-GAAP financial measures – organic net sales growth reconciliation Reconciliation of change in net sales to organic change in net sales Organic Net Sales Δ FX Δ growth Organic Δ % 1 ($M | 1st QUARTER 2025) Americas: $260.3 $5.8 $266.1 28.8% Asia Pacific: 114.9 6.0 120.9 36.4% Europe, Middle East
Slide 21: Key FX rates and other modeling assumptions
Key FX rates and other modeling assumptions $Millions unless otherwise specified FX translation impact1 2025 vs. 2024 Avg 2024 Q2-Q4 Q1 Q2 Q3 Q4 FY Assumption Sales ~(17) ~(5) ~(15) ~6 ~(31) CNY / USD 7.19 7.26 Adj. OP ~(4) ~(2) ~(2) ~3 ~(5) EUR / USD $1.08 $1.11 GBP / USD $1.28 $1.31 USD / INR 83.8
Slide 22: Additional Tax Information
Additional Tax Information Effective Tax Rate (ETR) Reconciliation • Nonrecurring tax effect of DTA VA: In 1Q25 we recorded tax expense of $40M related to establishment of “valuation allowance on certain deferred tax assets” (DTA VA) that were adversely impacted by legislative changes enacted in Jan
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