Q4 2025 Vertiv Holdings Co Earnings Call Transcript
Key Points
- Vertiv Holdings Co (VRT) reported a strong fourth quarter and full year 2025, with significant growth in key financial metrics.
- The company achieved a 152% year-over-year increase in fourth-quarter orders and a 117% sequential increase, indicating robust demand across all regions and markets.
- Vertiv's backlog stands at $15 billion, more than double last year's, providing a strong foundation for future growth.
- The Americas region showed remarkable strength, with a 46% organic sales growth, contributing significantly to the company's overall performance.
- Vertiv's adjusted operating margin improved to 23.2%, up 170 basis points from the previous year, reflecting strong operational performance and cost management.
- The APAC region experienced a 9% decline in sales, with China remaining a challenging market due to macroeconomic conditions.
- EMEA sales were down 14% organically, indicating continued softness in the market despite signs of recovery.
- The company decided to stop reporting actual orders, forecasts, or backlog with quarterly earnings, which may lead to less transparency for investors.
- Vertiv faces challenges in managing material inflation pressure, although it is working on mitigating these through pricing mechanisms.
- The company is increasing its capital expenditure to 3-4% of sales in 2026, which may impact short-term cash flow and require careful management to ensure returns on investment.
Good morning. My name is Nadia, and I'll be your conference operator today. At this time, I would like to welcome everyone to AI's 4th quarter and full year 2025 earnings conference call.
All lines have been placed on mute to prevent any background noise.
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, Lynn Maxiner, Vice President of Investor Relations.
Great.
Thank you, Nadia. Good morning and welcome to Verta's 4th quarter and full year 2025 earnings conference call. Joining me today are Verta's executive Chairman, Dave Cody, Chief Executive Officer Gio Albertazzi, and Chief Financial Officer Craig Chamberlain. We have 1 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
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