Vertiv Holdings Co reported significant financial growth in its latest quarterly results, with net sales reaching $2.64 billion for the three months ending June 30, 2025, a 35.1% increase from $1.95 billion in the same period last year. The company's product sales surged to $2.17 billion, up from $1.56 billion, while service sales also rose to $472.1 million from $397.6 million. For the first half of 2025, net sales totaled $4.67 billion, marking a 30.1% increase compared to $3.59 billion in the first half of 2024. The net income for the second quarter was $324.2 million, an 82% increase from $178.1 million a year earlier, while the first half net income reached $488.7 million, up from $172.2 million.
The company experienced a notable rise in costs, with total cost of sales increasing by 43.7% to $1.74 billion in the second quarter, driven primarily by higher sales volumes. Despite this, gross profit increased to $896.6 million, representing a gross margin of 34.0%, down from 38.0% in the prior year, attributed to a less favorable product mix and tariffs. Selling, general, and administrative expenses rose to $395.6 million, reflecting increased compensation costs, but as a percentage of sales, these expenses decreased to 15.0% from 18.6%.
Vertiv's operational metrics indicate a strong performance across its business segments. The Americas segment reported net sales of $1.60 billion, a 42.9% increase, while Asia Pacific and Europe, Middle East & Africa segments saw sales rise by 36.9% and 12.5%, respectively. The company also noted a strategic focus on expanding its manufacturing capacity, particularly in response to growing demand for AI infrastructure and thermal management solutions. This includes the opening of new facilities in India and South Carolina, aimed at enhancing production capabilities.
In terms of strategic developments, Vertiv announced the execution of a definitive agreement to acquire the Great Lakes Data Rack and Cabinets family of companies, expected to close in the third quarter of 2025. This acquisition aligns with the company's growth strategy and aims to enhance its product offerings in the data center infrastructure market. The company also reported a strong cash position of $1.64 billion as of June 30, 2025, alongside $98.2 million in short-term investments, providing a solid foundation for future investments and operational needs.
Looking ahead, Vertiv anticipates continued growth driven by increased demand for its products and services, particularly in the context of evolving market conditions and technological advancements. The company is actively monitoring global trade dynamics and inflationary pressures, which may impact its operations and pricing strategies. Overall, Vertiv's robust financial performance and strategic initiatives position it well for future growth in the critical digital infrastructure sector.
About Vertiv Holdings Co
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