Vertiv, a global leader in critical digital infrastructure, has raised its full-year financial outlook following strong second-quarter results that underscore its growing dominance in the data center sector. Driven by intensified demand for AI-enabled infrastructure and next-generation computing, Vertiv reported significant gains in sales, orders, and profitability.

It would demonstrate the central role of power, cooling, and IT management solutions in the expanding global data center ecosystem.

For the quarter ending June 30, 2025, Vertiv posted net sales of $2.64 billion, a 35% increase compared to the same period last year. The company’s organic orders surged 15% year-over-year and 11% sequentially, contributing to a growing backlog of $8.5 billion. With a book-to-bill ratio nearing 1.2x, Vertiv’s financial momentum highlights robust customer demand across hyperscale, colocation, and enterprise segments, especially in AI-optimized data center environments.

Operating profit rose by 32% to $442 million, while adjusted operating profit climbed 28% to $489 million. Although the adjusted operating margin slightly declined by 110 basis points year-over-year to 18.5% – largely due to supply chain realignment, manufacturing transition costs, and short-term execution challenges – company leadership remains confident in its long-term margin recovery plans. Strategic investments in engineering, R&D, and manufacturing are expected to help absorb these transitional costs by the end of 2025.

CEO Giordano Albertazzi emphasized that Vertiv’s results reflect its ability to scale and meet increasingly complex infrastructure demands. “With our 35% revenue growth and strong order momentum, we are well-positioned to lead in the next era of digital infrastructure,” said Mr. Albertazzi. He pointed to the recent acquisition of Great Lakes Data Racks & Cabinets as a strategic move to strengthen Vertiv’s offerings in high-density white space solutions, particularly suited to the AI-driven data center buildout.

Executive Chairman Dave Cote echoed this sentiment, stating, “What we’re seeing in the data center industry today signals not just a near-term surge, but a structural transformation that will fuel sustained long-term growth. Vertiv is committed to investing internally and externally to seize this pivotal moment.”

AI Infrastructure

In terms of liquidity, Vertiv reported $323 million in operating cash flow and $277 million in adjusted free cash flow for Q2 2025, down from the previous year primarily due to increased working capital investments. Despite this, the company’s year-to-date adjusted free cash flow has grown by 24%, supported by higher profitability and reduced interest expenses. With $2.5 billion in liquidity and net leverage of 0.6x, Vertiv maintains a strong balance sheet to support continued expansion.

As demand accelerates, particularly around AI infrastructure, Vertiv is proactively scaling global manufacturing capacity and enhancing supply chain agility. Strategic investments in engineering and advanced R&D are being prioritized to fast-track development of new products that address AI-related heat density, power consumption, and workload optimization challenges.

The company’s updated guidance reflects this optimism. For full-year 2025, Vertiv now expects organic sales growth of 24%, up from the previous forecast of 18%. Adjusted operating profit has been raised to $1.99 billion (from $1.935 billion), while adjusted diluted EPS is expected to reach $3.80, up from $3.55. Adjusted free cash flow has also been revised upward to $1.4 billion, compared to $1.3 billion previously.

While the company slightly lowered its adjusted operating margin forecast from 20.5% to 20.0% due to ongoing tariff-related costs and manufacturing adjustments, leadership reaffirmed its commitment to long-term profitability targets, including a 25% adjusted operating margin by 2029.

The momentum behind Vertiv’s performance clearly stems from the transformative shift currently underway in digital infrastructure. The growing complexity and scale of AI-centric computing environments are reshaping the physical foundation of the internet. Vertiv, with its broad product portfolio, engineering expertise, and expanding global footprint, is positioning itself to not just follow this evolution – but lead it.