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Vertiv Holdings VRT reported first-quarter 2025 non-GAAP earnings of 64 cents per share, which beat the Zacks Consensus Estimate by 3.23%. The figure jumped 48.8% year over year.
Net sales increased 24.2% year over year to $2.04 billion, which surpassed the Zacks Consensus Estimate by 6.26%. Net sales on an organic basis increased 25.3% year over year.
VRT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.42%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
VRT Prospects Ride on Strong Backlog
Organic orders (excluding foreign exchange) rose 20% year over year, and the book-to-bill ratio was roughly 1.4x in the first quarter. The backlog at the end of the first quarter was $7.9 billion. Backlog was 10%, higher than the end of 2024 and up 25% from the year-ago quarter.
Vertiv Holdings Co. Price, Consensus and EPS Surprise
Vertiv Holdings Co. price-consensus-eps-surprise-chart | Vertiv Holdings Co. Quote
Product revenues (which accounted for 81% of total revenues) jumped 29.9% year over year to $1.65 billion. Service revenues (19% of total revenues) grew 4.7% year over year to $386.3 million.
Americas revenues increased 28.1% year over year (28.8% organic) to $1.19 billion and accounted for 58.2% of total revenues. Product revenues climbed 33.8% year over year (34.4% organic) to $958.3 million. Service & spares revenues increased 8.7% (9.6% organic) to $227 million in the reported quarter.
Asia and Pacific (APAC) revenues increased 34.6% year over year (36.4% organic) to $447.2 million and accounted for 22% of total revenues. Product revenues increased 49% year over year (50.7% organic) to $333.8 million. Service & spares revenues grew 4.7% (6.7% organic) to $113.4 million in the reported quarter.
Europe, Middle East, and Africa (EMEA) revenues increased 5.7% year over year (7.2% organic) to $403.5 million and accounted for 19.8% of total revenues. Product revenues increased 7.3% year over year (8.4% organic) to $319 million. Service & spares revenues remained flat (2.7% organic) at $84.5 million in the first quarter of 2025.
VRT’s Operating Details
Selling, general and administrative (SG&A) expenses increased 10.3% year over year to $346.3 million. As a percentage of sales, SG&A expenses decreased 210 basis points (bps) year over year to 17%.
Adjusted operating profit jumped 35.4% year over year to $336.7 million. The first-quarter non-GAAP operating margin was 16.5%, up 140 bps year over year.
Americas’ adjusted operating profit surged 38.3% year over year to $259.7 million. EMEA’s adjusted operating profit jumped 11.9% to $78.7 million. APAC’s adjusted operating profit surged 50.3% year over year to $45.7 million.