Vertiv Holdings Q3 FY12/25 Earnings Review
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It’s Not Complicated
If you are building a lot of datacenters, you need a lot of the stuff that VRT manufactures and assembles. So whilst the AI capex boom continues, VRT orders ought to continue to look good. Vertiv’s challenge is that its business model is fundamentally low margin - just 36% gross margin on a TTM basis as of end Q3 - and so its stock is likely to blow in the wind. When the going is good and being “an AI name” matters, it will likely rise. When the going gets tough and fundamentals matter once more, its margins won’t save it. So I think we have to view this stock as a simple directional play on the popularity of AI as an investment theme.
Let’s get into the numbers, the valuation, our stock chart and rating.