Vertiv Holdings Co (VRT): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the financial engine behind the AI infrastructure boom, and Vertiv Holdings Co's current strategy is defintely worth a close look. As someone who spent a decade analyzing these complex plays, I can tell you their model is laser-focused on ensuring uptime for the biggest cloud builders, especially through leadership in high-density liquid cooling. This focus has resulted in a massive \$9.5 billion order backlog, underpinning their projected 2025 Net Sales of \$10.16 billion to \$10.24 billion. So, if you want to see the nine building blocks-from their strategic alliances with NVIDIA to their cost structure supporting aggressive R&D-that make this near-term growth possible, check out the full canvas below.

Vertiv Holdings Co (VRT) - Canvas Business Model: Key Partnerships

You're looking at the engine room of Vertiv Holdings Co's growth strategy as of late 2025, and that engine is its network of Key Partnerships. These aren't just handshake agreements; they are concrete collaborations driving massive revenue growth, evidenced by the raised full-year 2025 net sales guidance to between $10.16 billion and $10.24 billion.

The focus on high-density computing, especially Artificial Intelligence (AI), is making these alliances critical. Vertiv Holdings Co is translating its strong order momentum-with a book-to-bill of 1.4 times for the third quarter of 2025 and a backlog reaching $9.5 billion-directly through these strategic channels.

NVIDIA for high-density AI reference designs

Your data center clients need to deploy AI compute faster and more efficiently, and that requires infrastructure that can handle extreme power and heat loads. Vertiv Holdings Co is directly addressing this by collaborating with NVIDIA on reference architectures. This partnership is about moving beyond traditional designs to support megawatt-scale racks.

The latest joint effort centers on a reference architecture for Nvidia's GB300 NVL72 platform, which supports up to 142kW per rack. This design incorporates 800 VDC power infrastructure, a significant leap from the traditional 54 VDC systems, engineered to support future NVIDIA compute demands.

Here's a look at the roadmap tied to this critical alliance:

• The 800 VDC power portfolio is planned for release in the second half of 2026.
• This timing is specifically aligned to support the 2027 rollout of NVIDIA's Rubin Ultra platforms.
• The reference design promises up to 1.5 times more AI performance and 50% quicker site deployment.

Caterpillar/Solar Turbines for integrated, modular power solutions

When you're building large-scale AI facilities, grid dependency is a major risk. Vertiv Holdings Co's strategic undertaking with Caterpillar Inc., announced on November 18, 2025, directly tackles this by integrating on-site power generation with Vertiv's cooling and power distribution. Caterpillar, a company with a market capitalization around $258.35 billion at the time of the announcement, brings massive industrial weight to this effort.

This collaboration operationalizes Vertiv Holdings Co's Bring Your Own Power & Cooling (BYOP&C) strategy. The goal is to deliver pre-designed, modular blocks that simplify deployment and lower the Power Usage Effectiveness (PUE) of the entire system.

Partner Contribution	Vertiv Holdings Co Contribution	Customer Benefit Metric
Power generation (Natural gas turbines, reciprocating engines) from Caterpillar and subsidiary Solar Turbines	Modular, pre-designed blocks for power distribution and cooling	Accelerated Time-to-Power via pre-engineered architectures
Thermal energy for Combined Cooling, Heat and Power (CCHP) applications	Complete portfolio of power and cooling solutions with validated interfaces	Lower PUE through end-to-end optimization

Channel partners and distributors for global market reach

Vertiv Holdings Co's global footprint, serving customers in over 130+ Countries, relies heavily on its extensive network of channel partners and distributors. While specific 2025 revenue attribution isn't public, the strong organic sales growth in the Americas, up 43% in Q3 2025, suggests these local and regional partners are effectively converting high demand into booked orders.

This network is essential for delivering the company's end-to-end solutions, especially as the services business, which is expected to be margin accretive following acquisitions, scales globally.

Strategic technology alliances (e.g., Intel, Ballard Power Systems)

Beyond the major co-development efforts, Vertiv Holdings Co maintains a broad set of technology alliances that ensure compatibility and drive innovation across its portfolio. These relationships are foundational to maintaining a competitive edge in a market where technology cycles are rapid.

The company's strong profitability, with an EBIT margin of 15.7% and a gross margin of 35.7% in 2025, supports the continued investment in these ecosystem relationships, which are vital for future product development.

• Alliance with Intel for component-level integration and validation.
• Collaboration with Ballard Power Systems on emerging power technologies.
• Ongoing engagement in early design phases for large AI factory projects.

Purge Rite for enhanced liquid cooling service capabilities

To truly support the high-density liquid cooling required by AI, the fluid loops must be perfectly clean and maintained. Vertiv Holdings Co's acquisition of Purge Rite Intermediate, which closed in the fourth quarter of 2025, directly addresses this service gap. The deal was valued at approximately $1.0 billion in cash at closing, with an additional potential earn-out of up to $250 million.

This acquisition immediately enhances Vertiv Holdings Co's service capabilities, which is key given the company's overall $2.06 billion adjusted operating profit guidance for 2025. Purge Rite's expertise in mechanical flushing and filtration is expected to be margin accretive to Vertiv Holdings Co's Services business.

The integration aims to deliver tangible operational improvements for customers:

• Enhanced system performance through improved heat transfer.
• Reduced risk of downtime due to optimized fluid management.
• Expanded service scale supporting global operations with consistent quality.

Finance: draft 13-week cash view by Friday.

Vertiv Holdings Co (VRT) - Canvas Business Model: Key Activities

You're looking at the core engine room of Vertiv Holdings Co right now, the activities that turn market demand into booked revenue and future growth. It's all about execution in a high-growth environment, so let's look at the hard numbers from late 2025.

Designing and manufacturing critical digital infrastructure products

The output from designing and manufacturing critical digital infrastructure shows up clearly in the recent top-line results. For the third quarter ended September 30, 2025, Vertiv Holdings Co reported net sales of \$2,676 million. This represented a 29% increase compared to the third quarter of 2024. The adjusted operating margin for that same quarter hit 22.3%, showing strong operational leverage on those higher sales volumes.

The regional performance driving this manufacturing activity was uneven but strong overall:

• Americas sales grew by 43% year-over-year in Q3 2025.
• APAC sales grew by 20% year-over-year in Q3 2025.
• EMEA saw a decline of 4% in Q3 2025.

Accelerating R&D in liquid cooling and 800-volt DC power

Vertiv Holdings Co is definitely putting money behind the next wave of AI infrastructure needs. You see this commitment in the planned R&D acceleration and product timelines. The company is accelerating R&D by over 20% for 2026 to stay ahead in the GPU infrastructure race. This is directly tied to their planned launch of the 800-volt DC portfolio in the second half of 2026 (H2 2026). That timing is set to align with the rollout of NVIDIA's 2027 Rubin Ultra platforms.

The focus on liquid cooling is substantial; as of mid-2025 data, the company was investing over \$350 million annually in R&D, with a significant portion dedicated to this area. The shift from traditional 54 VDC to higher-voltage DC designs is a core activity to handle megawatt-scale rack demands.

Executing on the substantial \$9.5 billion order backlog

Executing against the backlog is a primary activity, and right now, the pipeline visibility is excellent. As of the third quarter of 2025, the total order backlog for Vertiv Holdings Co stood at \$9.5 billion. This backlog figure represents a sequential increase of 12% and a year-over-year increase of about 30%.

The rate at which new orders are coming in shows the demand outstripping fulfillment capacity, which builds that backlog. Here's the quick math on that demand:

Metric	Q3 2025 Value	Comparison
Organic Orders Growth	Up approximately 60%	Year-over-year
Book-to-Bill Ratio	Approximately 1.4x	For Q3 2025
TTM Organic Orders Growth	Approximately 21%	Trailing Twelve Months

This backlog provides strong revenue visibility extending into 2026.

Global supply chain optimization and capacity expansion

To handle that massive order intake, supply chain and capacity activities are critical. Vertiv Holdings Co is aggressively funding capacity expansion, favoring fast and modular growth at existing sites. The company's 2025 capital expenditures are expected to be around \$250 million, with a further expansion planned for 2026 to support anticipated significant revenue growth. Operational execution is already showing benefits, as Q3 2025 adjusted operating margin expansion was aided by manufacturing and procurement productivity benefits.

The services side, which supports deployment and maintenance, is also a key activity:

• Management reiterated services as a "superpower" and accretive.
• Headcount for field engineers is scaling to approximately 4,400-4,500.

Integrating recent acquisitions like Purge Rite and Great Lakes

M&A integration is a current, major activity to round out the portfolio, especially in thermal management services. Vertiv Holdings Co completed the acquisition of Great Lakes Data Racks & Cabinets in August 2025 for approximately \$200 million, broadening rack and cabinet offerings. More recently, the acquisition of PurgeRite Intermediate was completed on December 5, 2025. The upfront cash component for PurgeRite was approximately \$1.0 billion, with an additional earn-out of up to \$250 million tied to 2026 performance metrics.

The goal of integrating PurgeRite is to enhance specialized fluid management services for liquid cooling systems. The deal is expected to be margin-accretive to Vertiv Holdings Co's services business.

Vertiv Holdings Co (VRT) - Canvas Business Model: Key Resources

You're looking at the core assets that let Vertiv Holdings Co deliver on its promise, especially with AI driving such massive infrastructure needs. These aren't just things on a shelf; they are the engine room.

Proprietary IP in thermal and power management solutions

The intellectual property centers on keeping high-density computing running efficiently and sustainably. Vertiv Holdings Co experts see the need for advanced, scalable solutions intensifying in 2025 due to GPU-driven rack densities pushing into three- and four-digit kWs. This drives the need for specialized cooling like cold-plate and immersion solutions. The company holds a commanding position in key areas, evidenced by a reported 23.5% global market share in data center cooling and 37.5% in thermal technologies as of late 2024, significantly outpacing peers. Furthermore, the IP roadmap includes collaboration with Nvidia, targeting an 800-volt DC power portfolio slated for the Rubin Ultra platform in 2027, showing a commitment to next-generation power standards.

Vertiv Holdings Co bolsters this IP through strategic additions, like the August 2025 acquisition of Waylay NV to enhance its AI-driven monitoring, automation, and control capabilities for power and cooling systems.

Global manufacturing and service network across 130+ countries

The physical footprint is vast, supporting global digital infrastructure deployment. Vertiv Holdings Co does business in more than 130 countries. This global reach is supported by a dedicated service structure, which, as of late 2025, includes over 300 service centers and approximately 4,000 service engineers globally. This network structure is organized across three regional segments: the Americas, Asia Pacific, and Europe, Middle East & Africa (EMEA).

The company is actively investing to keep pace with demand, with expected capital expenditures (CapEx) for full-year 2025 in the range of $250 - $300 million to support capacity expansion.

Strong balance sheet supporting CapEx and acquisitions

A solid financial foundation allows Vertiv Holdings Co to fund aggressive growth and strategic inorganic expansion. As of the end of the second quarter of 2025, the company reported $2.5 billion in liquidity and a net leverage ratio of approximately 0.6x. This strong position was further demonstrated by significant M&A activity in late 2025. For instance, Vertiv Holdings Co completed the acquisition of PurgeRite for approximately $1 billion in cash, enhancing its liquid cooling services portfolio. Total assets were reported at $10.82B by Q4 2025, with total liabilities at $7.31B for the same period. The Q3 2025 cash position, including cash, equivalents, and short-term investments, stood at $1.9 billion.

Here's a quick look at the financial strength metrics as of late 2025 reporting periods:

Financial Metric	Value/Period	Source Context
Total Assets (Q4 2025)	$10.82B USD	Q4 2025 Balance Sheet
Net Leverage (Q2 2025)	Approx. 0.6x	Q2 2025 Report
Liquidity (Q2 2025)	$2.5 billion	Q2 2025 Report
Expected 2025 CapEx	$250 - $300 million	Full Year 2025 Guidance
PurgeRite Acquisition Cost	Approx. $1 billion cash	December 2025 Transaction
Projected 2025 Adjusted Free Cash Flow	$1.4 billion	Raised Full-Year Guidance

Integrated portfolio of hardware, software, and analytics

Vertiv Holdings Co's offering is designed to be comprehensive, bringing together hardware, software, analytics, and ongoing services to ensure vital applications run continuously. The data center industry accounts for approximately 80% of the company's revenue. For the full fiscal year 2024, the revenue split showed Products at $6.2B (78.0%) and Services & spares at $1.8B (22.0%).

The integration is deepened by recent moves to acquire capabilities:

• Acquired Waylay NV in August 2025 to strengthen AI-driven monitoring and automation.
• Acquired PurgeRite for about $1 billion to enhance specialized fluid management services for liquid cooling systems.

The company's solutions span the entire infrastructure stack, including AC and DC power management, thermal management, switchgear, busbars, racks, modular systems, and critical infrastructure software. The 2025 full-year organic sales growth guidance was raised to 24%, reflecting strong demand for this integrated approach.

Finance: draft 13-week cash view by Friday.

Vertiv Holdings Co (VRT) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Vertiv Holdings Co for their mission-critical needs right now, late in 2025. It's all about keeping the lights on and the processing running, especially with AI workloads demanding more power than ever before.

Ensuring critical digital infrastructure continuity and uptime

The value here is simple: avoiding catastrophic failure. When you're running hyperscale or edge operations, downtime isn't an inconvenience; it's a massive financial hit. We know that for edge nodes, for example, an outage can cost operators around $1.9 M per hour. Vertiv Holdings Co provides the power management, cooling, and monitoring solutions that help keep the servers running, even when they're under the intense load from artificial intelligence tasks. This is why major players like AWS rely on their systems to avert downtime during intensive processing.

Leadership in high-density liquid cooling for AI workloads

The shift to GPU-heavy computing means rack densities are skyrocketing. Vertiv Holdings Co is positioned to manage this heat, moving beyond traditional air cooling. The market demands solutions for racks hitting three- and four-digit kWs. To cement this leadership, Vertiv Holdings Co recently completed a major strategic move in November 2025, acquiring Purge Rite Intermediate for approximately $1.0 billion in cash, with up to $250 million in additional earn-out. This acquisition directly deepens their capabilities in specialized fluid management services, which is crucial for maintaining ultra-clean, stable coolant loops necessary for reliable liquid cooling performance in these high-density AI applications.

Integrated, prefabricated, and turnkey data center solutions

Speed-to-market is non-negotiable, so Vertiv Holdings Co is pushing factory-assembled, end-to-end systems like Vertiv OneCore. This approach simplifies deployment and ensures consistent quality. You see this scale in their modular offerings, which can support a power capacity from 5 MW to 50 MW in a single block and are configurable for 96 to 944 racks. To meet the surging demand, Vertiv Holdings Co announced plans to double its production capacity by 2025 across key sites, including in the United States and Mexico, for solutions like Integrated Modular Solutions (IMS). Furthermore, the August 2025 acquisition of Great Lakes Data Racks & Cabinets for $200 million broadened their rack and cabinet offerings, supporting this turnkey value proposition.

Here's a quick look at the scale of their solutions and recent financial health, which underpins their ability to deliver:

Metric	Value (Late 2025 Data)	Context
Q3 2025 Net Sales	$2,676 million	Reflects strong top-line execution.
Q3 2025 Organic Orders Growth	60% year-over-year	Demonstrates accelerating demand for infrastructure.
Backlog (Q3 2025)	$9.5 billion	Provides significant revenue visibility.
Book-to-Bill Ratio (Q3 2025)	~1.4x	New orders significantly outpacing current revenue recognition.
FY 2025 Revenue Guidance Midpoint	~$10.20 billion	Indicates strong full-year expectation.

Vendor lock-in through deep architectural integration and sticky contracts

The integration of Vertiv Holdings Co's power and cooling systems happens early, often at the architectural planning and physical construction phase. This deep embedding creates high integration costs for the customer, making switching vendors later a major undertaking. The strength of this sticky proposition is visible in their order book metrics. As of Q3 2025, the backlog stood at $9.5 billion, which is nearly a full year's worth of Trailing Twelve Month (TTM) revenue, estimated around $9.7 billion. This robust backlog, supported by that 1.4x book-to-bill ratio, shows customers are committing to long-term infrastructure plans with Vertiv Holdings Co.

High-efficiency power and cooling for sustainability goals

The industry faces rising energy scrutiny; globally, data center power consumption is projected to climb from 1-2% of world power to potentially 3-4% by 2030 due to AI. This pressure forces customers to prioritize efficiency. You see this priority reflected in the market: 80% of senior tech leaders now view power and cooling as central to their AI strategies. Vertiv Holdings Co's value proposition here is delivering infrastructure that helps manage these energy demands, which is why their integrated power and thermal systems are designed to reduce on-site configuration friction and support consistent operations across sites, helping customers manage their environmental footprint.

Finance: finalize the Q4 2025 revenue forecast variance analysis by Monday.

Vertiv Holdings Co (VRT) - Canvas Business Model: Customer Relationships

You're looking at how Vertiv Holdings Co (VRT) keeps its biggest customers locked in, which is key since data centers make up about 60% of the firm's revenue, estimated at $4.8 billion in 2024. The relationship strategy is all about making the switch to a competitor a massive headache.

Dedicated, high-touch account management for hyperscalers

For the hyperscalers-think Meta, Amazon, Alphabet, and Microsoft, who are investing up to a combined $320 billion in data center expansion for 2025-Vertiv Holdings Co (VRT) deploys dedicated, high-touch account management. This isn't just checking in; it's deep integration into their complex, mission-critical build-outs, especially for AI infrastructure where Vertiv partners with NVIDIA on high-density reference designs. The lock-in effect is real: Vertiv's engineer-to-order customization means switching costs for hyperscalers require 6-12 months and millions in revalidations, securing Vertiv's position with lead times competitors can't match. The demand is evident in the order book; Vertiv's Q3 2025 organic orders jumped approximately 60% year-over-year, pushing the total backlog to $9.5 billion.

Long-term service contracts for lifecycle management

The stickiness continues post-sale through long-term service contracts. Vertiv Holdings Co (VRT) secures recurring revenue by offering contracts typically lasting 3 to 5 years, which is crucial for maintaining uptime in mission-critical environments. This focus is paying off, as evidenced by service contract renewal rates exceeding 90%. Looking ahead, Vertiv expects annual growth in service revenue to hit 15-20% on a base of $2B+ in the long term (2027-2028). This recurring stream helps stabilize the financials against project cycles; for instance, the company raised its full-year 2025 adjusted diluted EPS guidance to $4.10 (midpoint) following a strong Q3.

Here's a look at the scale of Vertiv Holdings Co (VRT)'s commitment to recurring revenue:

Metric	Value (Late 2025 Estimate/Actual)	Context
Service Contract Renewal Rate	90%+	Securing income stability.
Projected Service Revenue Growth (Long-Term)	15-20% Annually	Targeted growth rate for service revenue base of $2B+.
Total Backlog (Q3 2025)	$9.5 billion	Represents future committed work across all segments.
FY2025 Adjusted Operating Profit Guidance (Midpoint)	$2,060 million	Reflects operational leverage from sales and service execution.

Consultative sales for complex, mission-critical system design

When designing systems for AI-driven data centers, which demand specialized cooling and power, sales become inherently consultative. Vertiv Holdings Co (VRT) works with customers on complex needs, like handling the thermal requirements of NVIDIA's 72-GPU rack-scale systems. This consultative approach drives the strong order momentum; the TTM organic orders increased 21% compared to the prior year period, with a book-to-bill ratio of approximately 1.4x in Q3 2025. The company's ability to secure these large, custom jobs is what built the $9.5 billion backlog. You see this consultative strength reflected in their overall revenue outlook, with FY2025 organic sales growth guided between 26% and 28%.

Predictive analytics and maintenance services

Vertiv Holdings Co (VRT) integrates software and analytics into its offering, moving beyond just hardware installation. This includes services like Performance Optimization and Predictive Maintenance, often powered by platforms like Alber analytics. The goal is to use data to anticipate issues, which is a major value driver for customers; industry studies suggest that predictive maintenance can reduce maintenance costs by 25-30% and cut unplanned downtime by 35-50%. Vertiv specifically sees its edge business, which leverages these analytics, pushing toward 25% margins. Furthermore, the industry trend shows that by 2025, nearly 50% of enterprise-generated data will be processed at the edge, making Vertiv's localized analytics capabilities increasingly relevant for real-time decision-making.

The service offerings Vertiv Holdings Co (VRT) provides include:

• Project & Commissioning Services
• Preventive Maintenance for Industrial Applications
• Remote Services
• Performance Optimization Services
• Spare Parts & Parts Management
• Liquid Cooling Services

Finance: draft 13-week cash view by Friday.

Vertiv Holdings Co (VRT) - Canvas Business Model: Channels

You're looking at how Vertiv Holdings Co moves its critical digital infrastructure and continuity solutions to the market as of late 2025. It's a mix of direct engagement for the biggest players and a wide partner ecosystem.

Direct sales force to major hyperscale and colocation customers

The direct channel targets the largest consumers of data center infrastructure, like the hyperscalers. This approach is clearly paying off, given the full-year 2025 net sales guidance was raised to $10.2 billion. For the third quarter of 2025 alone, net sales hit $2.68 billion, with organic sales growing 28% year-over-year, showing strong direct engagement, especially in the Americas, which was up 43% in Q3 2025. The backlog supporting this direct pipeline stood at $9.5 billion as of Q3 2025, up 30% year-over-year.

Global network of distributors and resellers

Vertiv Holdings Co relies on a broad network to reach a wider customer base beyond the top-tier hyperscalers. While specific distributor revenue percentages aren't explicitly broken out for 2025, the overall business structure suggests significant channel reliance. The company's total revenue for the twelve months ending September 30, 2025, was $9.696B. The structure often splits revenue between direct product sales and channel-driven sales, which is reflected in the product versus service split.

Here's a look at a recent revenue segmentation, which gives you a sense of the product mix moving through all channels:

Revenue Component	Amount (USD)	Percentage of Total Revenue
Products	$6.4B	79.8%
Services & Spares	$1.8B	22%

Field service engineers for installation and maintenance

The service side is a key component of the channel strategy, ensuring continuity and supporting complex deployments. This segment is seeing targeted investment. Vertiv Holdings Co recently acquired Purge Rite Intermediate for approximately $1.0 billion, with up to an additional $250 million in earn-out, specifically to enhance liquid cooling and thermal management services. This strategic move points to an intent to bolster the high-touch service component delivered by field service engineers. For context, the Services & Spares segment represented 22% of the revenue in a recent reporting period, totaling $1.8B.

Digital platforms for software and remote monitoring

The focus on digital infrastructure is driving the need for connected services. Vertiv Holdings Co is emphasizing technology leadership to support the expanding AI and data center market. While specific metrics on the number of remotely monitored assets aren't public, the company's strategy is clearly leaning into digital enablement to support its physical infrastructure sales. The adjusted operating margin for Q3 2025 reached 22.3%, exceeding prior year performance by more than 200 basis points, which reflects operational leverage across all delivery methods, including digital support.

• Q3 2025 Adjusted Operating Profit: $596 million.
• Full Year 2025 Adjusted Operating Profit Guidance: $2.06 billion.
• Net leverage stood at 0.5x at the end of Q3 2025.

Vertiv Holdings Co (VRT) - Canvas Business Model: Customer Segments

You're looking at the core customer base driving Vertiv Holdings Co's significant growth as of late 2025. The numbers show a clear pivot toward AI-driven infrastructure demand.

The overall market growth is accelerating, with Vertiv Holdings Co tracking at the higher end of its projections. The company's total backlog stood at $9.5 billion as of the end of the third quarter of 2025, providing strong visibility into 2026. Vertiv Holdings Co expects net sales for the full year 2025 to reach $10.2 billion, translating to an organic growth rate of 27% for the full year. The trailing twelve-month (TTM) organic orders growth was 21% compared to the prior TTM period. Vertiv Holdings Co generates over 90% of its revenue from digital infrastructure solutions serving data centers, telecom, and enterprise customers.

Here is a look at the revenue split by offering for the Trailing Twelve Months ending September 30, 2025:

Offering Category	TTM Revenue (as of Sep 30, 2025)	Percentage of Total TTM Revenue (Approximate)
Products	$7.90B	~82.1%
Services and Spares	$1.80B	~18.6%

The company's Q3 2025 book-to-bill ratio was approximately 1.4x, with Q3 organic orders increasing approximately 60% year-over-year.

Hyperscale cloud providers (major AI infrastructure builders)

This segment, along with colocation, is fueling the order momentum. Vertiv Holdings Co is gaining market share here. The company is heavily focused on expanding its liquid cooling capacity, which is critical for the high-density computing driven by AI workloads. Management noted that technology giants like Meta, Amazon, Alphabet, and Microsoft are likely to invest up to $320 billion combined for AI-related technologies and data center expansion for the year 2025. The company's engineer-to-order customization creates switching costs for hyperscalers estimated at 6-12 months and millions in revalidations.

Colocation data center operators

This segment, often grouped with cloud, is described as the fastest-growing segment within the overall market growth. Vertiv Holdings Co is actively capturing demand from these operators expanding infrastructure for AI workloads. The company reported strong sales growth in the Americas region at 43% in Q3 2025, with APAC growing at 20%, both regions heavily influenced by hyperscale and colocation build-outs.

Telecommunication networks (5G and edge computing)

Vertiv Holdings Co sees a significant opportunity in telecom retrofits. The estimated market opportunity for telecom retrofits is $18.6 billion. The demand driven by 5G has increased power consumption by 2-3x compared to 4G. Furthermore, 77.5% of 4G sites are cited as yet to be upgraded, representing future deployment potential. Vertiv Holdings Co is investing in R&D, with investment in engineering and R&D growing at nearly 20% in the current year.

Large enterprise data centers and commercial facilities

Enterprise data centers are increasingly impacted by the AI trend as it expands beyond the initial cloud and colocation providers. Vertiv Holdings Co provides critical digital infrastructure and continuity solutions for these commercial and industrial sites globally, operating in more than 130 countries. The company's Q3 2025 adjusted operating margin reached 22.3%, demonstrating operational leverage across its customer base despite headwinds.

You should track the regional performance, as EMEA sales decreased by 4% in Q3 2025, while the Americas grew by 43%.

Vertiv Holdings Co (VRT) - Canvas Business Model: Cost Structure

You're looking at the major outlays that keep Vertiv Holdings Co's critical digital infrastructure running and expanding. Honestly, when you see the growth they are experiencing, the cost side needs to be watched closely, especially with all the AI demand driving everything.

Cost of Goods Sold (COGS) for manufacturing and supply chain

The cost to build and deliver the power, cooling, and IT infrastructure is a significant driver of the overall cost structure. For the twelve months ending September 30, 2025, Vertiv Holdings Co's Cost of Goods Sold (COGS) hit \$6.232B. That figure represented a substantial year-over-year increase of 30.29% compared to the prior period. Looking back, the COGS for the twelve months ending September 30, 2025, was the peak over the last five reported fiscal years.

Here are some historical COGS figures for context:

Period Ending	Cost of Goods Sold (Annual)	Year-over-Year Change
2024	\$5.078B	13.78%
2023	\$4.463B	9.5%
2022	\$4.075B	17.26%

R&D investment, increasing over 20% for 2026

To maintain its leadership in the rapidly evolving AI infrastructure space, Vertiv Holdings Co is putting serious money into future technology. Management confirmed plans to accelerate Research & Development spending by over 20% for 2026. This investment is specifically timed to align with next-generation GPU platforms, such as the planned launch of their 800-volt DC portfolio in the second half of 2026. Staying ahead of multiple GPU generations is the goal here. That's a clear action to protect their moat.

Capital expenditures (CapEx) for capacity expansion, around \$250M-\$300M

To support the strong growth trajectory, Vertiv Holdings Co is investing in its physical footprint and capacity. The guidance for Capital Expenditures (CapEx) for the full year 2025 was set around \$275 million, which translates to approximately 3.0% of sales. This range aligns with the requested target, as other statements indicated expectations for CapEx in the range of \$250 - \$300 million for 2025. This spending helps ensure they can meet the sustained, robust market demand.

Sales, General, and Administrative (SG&A) expenses

The costs associated with running the business outside of direct manufacturing-think selling, marketing, and corporate overhead-are also climbing with scale. For the twelve months ending September 30, 2025, Vertiv Holdings Co's SG&A expenses were \$1.518B. This represented an 11.5% increase year-over-year. For comparison, the annual SG&A for 2024 was \$1.374B.

Here's a quick look at the trend in SG&A:

• SG&A for the twelve months ending September 30, 2025: \$1.518B
• Annual SG&A for 2024: \$1.374B
• Annual SG&A for 2023: \$1.312B

Acquisition costs, like the \$1.0 billion for Purge Rite

A major, discrete cost event in late 2025 was the acquisition of Purge Rite Intermediate, LLC, which significantly bolstered Vertiv Holdings Co's specialized fluid management services for liquid cooling. The deal closed on December 4, 2025. The total consideration structure was:

• Upfront cash consideration: Approximately \$1.0 billion, subject to customary adjustments.
• Potential additional consideration (Earn-out): Up to an additional \$250 million in cash based on achieving certain 2026 performance metrics.

The upfront purchase price of approximately \$1.0 billion represented about 10.0x the expected 2026 EBITDA, including anticipated cost synergies. Paying entirely in cash means an immediate cash outflow, which is a key consideration for liquidity planning. Finance: draft 13-week cash view by Friday.

Vertiv Holdings Co (VRT) - Canvas Business Model: Revenue Streams

The revenue streams for Vertiv Holdings Co are heavily concentrated in the sale of critical digital infrastructure, with a significant tailwind from the global acceleration in AI deployment.

Total 2025 Net Sales guidance has been raised, projecting revenues to be between \$10.16 billion and \$10.24 billion. This top-line growth is directly tied to the massive, ongoing capital expenditure cycle in data centers, which is the primary driver for Vertiv Holdings Co's business.

The revenue composition breaks down into two primary categories:

• Product sales (thermal, power, IT infrastructure hardware)
• Services revenue (maintenance, lifecycle management, software)

Based on Q1 2025 performance, the streams are weighted toward hardware and infrastructure sales:

Revenue Component	Approximate Q1 2025 Percentage of Total Revenue
Product sales	81%
Services revenue	19%

Product sales include core offerings like UPS (Uninterruptible Power Supplies), thermal management systems, switchgear, and modular solutions necessary for high-density computing environments.

Services revenue, which management has called a 'superpower,' covers maintenance contracts, lifecycle management, and associated software, providing a recurring element to the revenue base.

From a cash generation perspective, Adjusted Free Cash Flow guidance for the full year 2025 has been increased to \$1.5 billion. This strong cash conversion supports the aggressive investment cycle the company is undertaking.

The entire revenue trajectory is fundamentally dependent on one key market dynamic:

• Revenue driven by AI-related data center demand, which fuels orders for advanced power and cooling infrastructure.

This demand is evidenced by record order momentum, with trailing twelve-month organic orders growth around 21% as of late 2025, and a backlog reaching \$9.5 billion.