Company: VRT
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001674101-25-000024
Chunk: 98

Company: Vertiv Holdings Co
Filing Date: 2025-10-22
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 5.3 (4.4)(83.0)Other operating expense (income)(0.1)(6.7)6.6 98.5 Operating profit (loss)516.7 371.6 145.1 39.0 Interest expense, net22.8 35.9 (13.1)(36.5)Loss on extinguishment of debt1.7 — 1.7 — Change in fair value of warrant liabilities— 67.2 (67.2)(100.0)Income tax expense93.7 91.9 1.8 2.0 Net income (loss)$398.5 $176.6 $221.9 125.7 %

Net Sales

Net sales were $2,675.8 in the third quarter of 2025, an increase of $602.3, or 29.0%, compared with $2,073.5 in the third quarter of 2024. The increase in sales was primarily driven by higher sales volumes and positive impacts from foreign currency of $13.1. Product sales increased $552.0, which included positive impacts from foreign currency of $8.9. Services & Spares sales increased $50.3, which included positive impacts from foreign currency of $4.2.

Excluding intercompany sales, net sales were $1,712.4 in the Americas, $519.8 in Asia Pacific, and $443.6 in Europe, Middle East & Africa. Movements in net sales by segment and offering are each detailed in the Business Segment section below.

Cost of Sales

Cost of sales were $1,665.1 in the third quarter of 2025, an increase of $348.0, or 26.4% compared to the third quarter of 2024. The increase in cost of sales was primarily driven by the impact of higher sales volumes. Gross profit was $1,010.7 in the third quarter of 2025, or 37.8% of sales, compared to $756.4, or 36.5% of sales in the third quarter of 2024. Margin expansion in the third quarter of 2025 was primarily driven by the mix of product and service sales. 

Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) were $414.3 in the third quarter of 2025, an