Q1 2026 Vertiv Holdings Co Earnings Call Transcript
Key Points
- Vertiv Holdings Co (VRT) reported a strong start to 2026 with organic sales up 23% year-on-year and total growth of 30% including M&A and FX.
- The Americas region was a significant growth driver with 44% organic growth, contributing to a 53% increase in net sales.
- Adjusted operating margin improved to 20.8%, up 430 basis points year-on-year, driven by strong operational leverage and favorable price-cost execution.
- Adjusted diluted EPS increased by 83% to $1.17, exceeding guidance by $0.19.
- The company raised its full-year guidance, expecting adjusted diluted EPS of $6.35, up 51% from 2025, supported by a 53% increase in adjusted operating profit guidance.
- EMEA region experienced a 29% decline in organic sales, reflecting softer orders from previous quarters.
- Ongoing tariff headwinds continue to impact margins, although efforts are being made to offset these through countermeasures.
- The company faces challenges related to supply chain complexities and labor constraints, although these are being managed.
- Despite strong cash flow, the company remains cautious about working capital due to inventory ramp-up and prudent forecasting of customer down payments.
- There is a temporary margin headwind expected in Q2 due to capacity investments and tariff changes, impacting sequential margin growth.
Good morning. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to Vertiv's first quarter 2026 earnings conference call. (Operator Instructions) Please note that this call is being recorded.
I would now like to turn the program over to your host for today's conference call, Lynne Maxeiner, Vice President of Investor Relations.
Great. Thank you, Jeanie. Good morning, and welcome to Vertiv's first quarter 2026 earnings conference Call. Joining me today are Vertiv's Executive Chairman, Dave Cote; Chief Executive Officer, Gio Albertazzi; and Chief Financial Officer, Craig Chamberlain.
We have one hour for the call today during the Q&A portion of the call, please be mindful of others in the queue and limit yourself to one question. And if you have a follow-up question, please rejoin the queue. Before we begin, I would like to point out that during the course of this call, we will make forward
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