Vertiv Shares Rise 0.99% on Strong Earnings and $3B Orders Despite 75th Trading Volume Rank

Vertiv (VRTX) closed July 31 with a 0.99% gain, as trading volume dropped 40.69% to $1.60 billion, ranking 75th in market activity. The stock’s performance followed a robust earnings report, with adjusted diluted EPS surging 42% to $0.95 and organic sales rising 34% year-on-year. Orders exceeded $3 billion, marking a 15% increase from the prior year, while the book-to-bill ratio reached 1.2x. Full-year net sales guidance was raised to $10 billion, reflecting 24% organic growth expectations.

Strong regional performance underpinned the results, with Americas sales up 43%, APAC up 37%, and EMEA up 7%. Free cash flow totaled $277 million in Q2, with $542 million generated in the first half of 2025, a 24% year-on-year increase. However, adjusted operating margin fell 110 basis points to 18.5%, attributed to tariff-related costs and supply chain reconfiguration. The company acknowledged temporary inefficiencies in EMEA, anticipating resolution by year-end as capacity aligns with growth.

CEO Giordano Albertazzi highlighted confidence in 2026 margin normalization, citing progress in tariff countermeasures and operational improvements. Strategic investments in R&D, capacity expansion, and the Great Lakes acquisition were emphasized as key drivers for long-term growth. The backlog grew to $8.5 billion, up 21% year-on-year, with a balanced mix of hyperscale, sovereign, and neocloud customers. Despite near-term challenges, the company reiterated its long-term margin targets and market leadership in data center infrastructure innovation.

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