Vertiv Holdings Co Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Vertiv reported a very strong start to 2026, with significant top-line and profit expansion driven by continued AI-related data center demand.
  • Organic sales increased 23% year-over-year (vs. Q1 2025), and total reported growth reached 30% including M&A and FX tailwinds.
  • Adjusted operating margin expanded to 20.8%, up 430 basis points year-over-year and 180 basis points above the company’s own guidance.
  • Adjusted diluted EPS reached $1.17, up 83% from Q1 2025 and $0.19 above guidance.
  • Management raised full-year 2026 guidance across revenue, margin, operating profit, and EPS.

Key Financial Results Compared to Q1 2025

  • Net Sales: $2.65 billion, up 30% (23% organic).
  • Adjusted Operating Profit: $551 million, up 64%.
  • Adjusted Operating Margin: 20.8%, up from 16.5% (+430 bps).
  • Adjusted EPS: $1.17, up from ~$0.64 (+83%).
  • Free Cash Flow: $653 million, up $147 million, supported by margin gains and working capital improvements.
  • Net leverage reduced to 0.2x, giving Vertiv significant capacity for investment and acquisitions.

Regional Performance

  • Americas: Continued exceptional momentum with 44% organic sales growth; broad-based product strength drove significant operating leverage.
  • APAC: Organic growth of 12%, below guidance due to timing; profit still grew 48% year-on-year.

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Operator: Good morning. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to Vertiv's First Quarter 2026 Earnings Conference Call. [Operator Instructions] 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, Lynne Maxeiner, Vice President of Investor Relations. Lynne Maxeiner: Great. Thank you, [ Jeanie ]. Good morning, and welcome to Vertiv's First Quarter 2026 Earnings Conference Call. Joining me today are Vertiv's Executive Chairman, Dave Cote; 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 like to point out that during the course of this call, we will make forward-looking statements regarding future events, including the future financial and operating performance of Vertiv. These forward-looking statements are subject to material risks and uncertainties, that could cause actual results to differ materially from those in the forward-looking statements. We refer to the cautionary language included in today's earnings release, and you can learn more about these risks in our annual and quarterly reports, and other filings made with the SEC. Any forward-looking stateme

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