Vertiv Holdings Co · Q2 2026 call

We have a great position in a good industry and continue to execute very well. […] The industry outlook is incredibly good because the digital age has decades to go.

A strong quarter EPS, margin, profit and cash convincingly strong. Continuing on a trajectory of strong sales growth even with some timing elements. Pleased with what we see in July and full confidence in h 2 execution and backlog.

Our global pipeline momentum remains very strong. And we expect another year of robust orders growth. Demand signals are clear and broad based.

We experienced some minor timing shifts in Q2 revenue, primarily driven by multiphase project execution and temporary supply chain dynamics. But the demand is there and the trajectory is strong.

On capital expenditures, we now expect to be at the high end of our range 4% of 2026 sales, As we further expand the global capabilities and capacity going into 2027.

as a number of viable power architectures expand and AC and DC coexist to deliver on the 800V DC, Vertiv's content opportunity per megawatt expands. And we are leading this transition.

On adjusted diluted EPS, we delivered $1.52 that is up $0.57 or 60% versus prior year. And $0.12 above guidance.

At our quarter end, our net leverage is at negative 0.1x, providing even more flexibility.

Starting with adjusted diluted EPS, we now expect $6.70 at the midpoint, that is up $2.50 or 60% versus 2025.

Finally, adjusted free cash flow is expected to be $2.5 billion at the midpoint. that is up $1.613 billion or 182% versus 2025.

If I talk about the speed of the pipeline, we talk about acceleration. It means that the sales cycle within the within the pipeline can be faster or slower. So we noticed an acceleration. So it is becoming faster sales cycle.

our deferred revenue is a read through in terms of those advanced deposits on orders, but it is also ongoing deposits as we go through the milestones of delivering those larger projects.

I would not use the word disruption.

We are seeing good signs of it being able to ratchet up on that learning curve. And as we think about the second half, we have also assumed some of that congestion continues as we normally would.

When we talk about unlocking revenue, let's just be clear that you know, the revenues that were let's say, little bit locked in some elements on the second quarter are being delivered, deployed in the second half. And we feel extremely well about that.