[Management View]
Vertiv reported a 34% organic sales growth in Q2 2025, with record quarterly orders exceeding $3 billion. The company highlighted a 21% increase in backlog and 11% trailing twelve-month organic orders growth. Strategic initiatives included the pending acquisition of Great Lakes and collaborations on AI and power infrastructure.

[Outlook]
Vertiv raised its full-year 2025 guidance, projecting adjusted diluted EPS of $3.8, adjusted operating profit just under $2 billion, and adjusted free cash flow of $1.4 billion. The company expects Q3 organic revenue growth of 22%, led by mid-30s percentage growth in the Americas and low 20s in APAC.

[Financial Performance]
Adjusted diluted EPS for Q2 2025 was $0.95, up 42% YoY. Organic sales growth was 34%, driven by 43% growth in the Americas, 37% in APAC, and 7% in EMEA. Adjusted operating profit was $489 million, up 28% YoY, with an adjusted operating margin of 18.5%, down 110 basis points due to tariffs.

[Q&A Highlights]
Question 1: Did Apple Intelligence drive sales of the iPhone 16 series? Which features are most popular with users?
Answer: In markets where Apple Intelligence was introduced, the iPhone 16 series outperformed markets where the feature was not introduced. Users used features such as ‘Writing Tools,’ ‘Image Playground,’ and ‘Genmoji’ extensively, especially the ‘Clean Up’ feature. The ‘Clean Up’ feature received a lot of attention in Apple Store demos. Apple Intelligence is also continuing to expand language support, which is expected to further enhance user experience and demand.

Question 2: Strength that we're seeing in both your backlog and orders right now. And maybe just touch on two fronts. One, are you seeing a shift in the duration of your orders right now? Or maybe just talk about the range of what that order book or backlog looks like, that would be really helpful. And then secondarily, can you just touch on the diversity of this backlog? You mentioned CoolWeave, I think, at the end of your comments. Actually, the Neo Cloud seems to be ramping up in a much bigger way.
Answer: Backlog is pretty much similar to what we have seen historically. There is no dramatic elongation or shrinkage. Some customers would like to have stuff earlier, indicating a healthy sector. The pipeline has a little elongation, providing more visibility. The diversity includes core hyperscale, traditional colocation, sovereign, and new cloud, showing a well-balanced portfolio.

Question 3: Just first on tariffs and inflation, just given this kind of remarkable demand pulse you're seeing, do you have kind of the commercial leverage to fully recover tariffs? We're just talking about some kind of delay in terms of moving through the order backlog and converting to sales. And then I'm sorry, Giordano, could you just maybe address a little scare through the market a couple of weeks ago on, you know, AWS delivering some kind of or developing some kind of liquid cooling application. How you put something like that in context to your business.
Answer: Hyperscalers have strong opinions on their infrastructure, and no two have the same design philosophy. It's important to have strong relationships and be involved in technology development with them. The AWS situation is not an anomaly; it's part of the market dynamics. Vertiv is always connected with hyperscalers, co-engineering with them.

Question 4: Can we just talk about win rates? There's obviously a lot of speculation around, you know, the evolution to liquid cooling and lots of new entrants and the likes. So just wondering, you know, in terms of your win rates, especially on the AI infrastructure side of things, how is your win rate comparing to the last two or three years? And here comes the end. Is there any change in the way that the hyperscalers are procuring equipment?
Answer: Win rates are stable, which is positive when combined with a strong pipeline. There is no significant change in how hyperscalers procure infrastructure components. Some design with suppliers, while others co-engineer solutions. The approach varies by customer.

[Sentiment Analysis]
The tone of the management was optimistic and confident, emphasizing strong performance and strategic growth. Analysts' questions focused on operational efficiencies, market dynamics, and strategic initiatives, reflecting a positive outlook on Vertiv's future.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|----------------------------|---------------|---------------|-------------|
| Adjusted Diluted EPS | $0.95 | $0.67 | +42% |
| Organic Sales Growth | 34% | 25% | +9% |
| Adjusted Operating Profit | $489 million | $382 million | +28% |
| Adjusted Operating Margin | 18.5% | 19.6% | -110 bps |
| Adjusted Free Cash Flow | $277 million | $283 million | -2% |
| Backlog | $8.5 billion | $7.0 billion | +21% |

[Risks and Concerns]
- Tariff impacts and supply chain inefficiencies.
- Temporary costs related to manufacturing transitions.
- Executional challenges in EMEA.

[Final Takeaway]
Vertiv's Q2 2025 performance showcased significant growth in organic sales and record orders, driven by strong performance in the Americas and APAC regions. The company raised its full-year guidance, reflecting confidence in continued growth and operational improvements. Strategic acquisitions and collaborations position Vertiv for leadership in AI and power infrastructure. While tariff impacts and supply chain challenges present risks, management's proactive measures and strong market demand support a positive outlook for the remainder of 2025 and beyond.