Company: VRT
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001674101-25-000008
Chunk: 94

Company: Vertiv Holdings Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 the extent interest rates continue to fluctuate our interest expense will change, although we expect these changes to be mitigated by our interest rate swaps and interest income.

Income Taxes 

Income tax expense was $96.9 in the second quarter of 2025 compared to $86.6 in the second quarter of 2024. The $10.3 increase is primarily due to increased business performance and the change in the discrete tax benefits due to stock compensation. The effective rate in the second quarter of 2025 was primarily influenced by favorable impact discrete tax benefits related to stock compensation. For the second quarter of 2024, income tax expense was primarily influenced by the negative impact of non-deductible changes in fair value of the warrant liabilities and discrete tax benefits related to stock compensation.

Business Segments

The following is detail of business segment results for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Segment profitability is defined as operating profit (loss). Segment margin represents segment operating profit (loss) expressed as a percentage of segment net sales. For reconciliations of segment net sales and earnings to our consolidated results, see “Note 10 — Segment Information,” of our Unaudited Condensed Consolidated Financial Statements. Segment net sales are presented excluding intercompany sales.

Americas (Dollars in millions)Three months ended June 30, 2025Three months ended June 30, 2024$ Change% ChangeNet sales$1,602.3 $1,121.1 $481.2 42.9 %Operating profit (loss)384.6 285.1 99.5 34.9 Margin24.0 %25.4 %

Americas net sales were $1,602.3 in the second quarter of 2025, an increase of $481.2, or 42.9%, from the second quarter of 2024. The increase in sales was primarily driven by higher sales volume due to products increasing by $428.7 and sales of service & spares increasing by $52.5. Americas net sales were negatively impacted by foreign currency of approximately $3.5.

Operating profit (loss) in the second quarter of 2025 was $384.6, an increase of $99.5 compared with the second quarter of 2024. Margin was slightly down due primarily to the mix of product and service sales in addition to the negative impact of tariffs