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Vertiv (NYSE:VRT) surged more than 18% in premarket trading Wednesday after posting first-quarter results that topped Wall Street expectations and raising its full-year outlook.
The company swung to a net profit of $164 million, or $0.42 per share, compared to a loss of $6 million, or $0.02 per share, in the same quarter last year. Operating income jumped 43% to $291 million, and revenue climbed 24% year over year to $2.03 billion.
Trailing 12-month orders increased 20%, with Q1 alone up 13% from a year ago and 21% ahead of Q4 2024. Adjusted free cash flow for the quarter surged to $265 million more than double the prior year driven by stronger operating performance, improved working capital, and reduced interest costs.
CEO Giordano Albertazzi said the company continues to benefit from AI-related growth across the data center sector, noting its collaboration with Nvidia is helping drive industrial-scale deployment of AI infrastructure.
Vertiv also addressed trade issues, saying that while tariffs remain a concern, its manufacturing footprint and strategy should reduce their impact over time. Most of its production in Mexico already qualifies under the USMCA.
For Q2, Vertiv expects earnings of $0.77 to $0.85 per share on revenue of $2.325 billion to $2.375 billion. For the full year, the company raised its sales forecast by $250 million at the midpoint, now expecting between $9.325 billion and $9.575 billion, along with adjusted EPS between $3.45 and $3.65.
This article first appeared on GuruFocus.