Vertiv (VRT, Financial) surged more than 18% in premarket trading Wednesday after posting first-quarter results that topped Wall Street expectations and raising its full-year outlook.
The company swung to a net profit of $164 million, or $0.42 per share, compared to a loss of $6 million, or $0.02 per share, in the same quarter last year. Operating income jumped 43% to $291 million, and revenue climbed 24% year over year to $2.03 billion.
Trailing 12-month orders increased 20%, with Q1 alone up 13% from a year ago and 21% ahead of Q4 2024. Adjusted free cash flow for the quarter surged to $265 million — more than double the prior year — driven by stronger operating performance, improved working capital, and reduced interest costs.
CEO Giordano Albertazzi said the company continues to benefit from AI-related growth across the data center sector, noting its collaboration with Nvidia is helping drive industrial-scale deployment of AI infrastructure.
Vertiv also addressed trade issues, saying that while tariffs remain a concern, its manufacturing footprint and strategy should reduce their impact over time. Most of its production in Mexico already qualifies under the USMCA.
For Q2, Vertiv expects earnings of $0.77 to $0.85 per share on revenue of $2.325 billion to $2.375 billion. For the full year, the company raised its sales forecast by $250 million at the midpoint, now expecting between $9.325 billion and $9.575 billion, along with adjusted EPS between $3.45 and $3.65.
