AI Takeaway
VRT delivered exceptional FY2025 results with revenue surging 27.7% to $10.2B and net income nearly tripling to $1.3B, driven by strong demand for data center infrastructure solutions.
Revenue
$10.23B
++27.69% YoY
EPS (Basic)
$3.49
++164.39% YoY
Operating Income
$1.83B
++33.81% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
VRT grew total revenue by 27.7% year-over-year to $10.23B in FY2025, up from $8.01B in the prior year, reflecting robust demand for power and thermal management solutions tied to data center expansion and AI infrastructure buildout.
Source: Source: 10-K Income Statement
Net income jumped 168.8% to $1.33B from $495.8M in the prior year, with diluted EPS rising 166.4% to $3.41, indicating significant operating leverage and improved profitability beyond just top-line growth.
Source: Source: 10-K Income Statement
Operating margin improved modestly to 17.9% from 17.1% in the prior year, with operating income growing 33.8% to $1.83B, demonstrating disciplined cost management even as SG&A and R&D spending increased in absolute terms.
Source: Source: 10-K Income Statement & Key Ratios
2 more insights available
Upgrade to unlockVRT carries a debt-to-equity ratio of approximately 2.10x, meaning total liabilities of $8.27B significantly exceed stockholders' equity of $3.94B. While long-term debt was stable at $2.91B, rising current liabilities (up 42.3% to $4.41B) increase near-term financial obligations and could pressure liquidity if business conditions deteriorate.
Source: Source: 10-K Balance Sheet & Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.36 versus the $1.29 analyst consensus — a +5.1% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $10.23B | $8.01B | +27.69% |
Cost of Revenue | $6.51B | $5.08B | +28.30% |
Operating Income | $1.83B | $1.37B | +33.81% |
Net Income | $1.33B | $495.8M | +168.82% |
EPS (Basic) | $3.49 | $1.32 | +164.39% |
EPS (Diluted) | $3.41 | $1.28 | +166.41% |
R&D Expense | $441.7M | $367.6M | +20.16% |
SG&A Expense | $1.62B | $1.37B | +17.74% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $12.21B | $9.13B | +33.72% |
Current Assets | $6.82B | $5.1B | +33.67% |
Total Liabilities | $8.27B | $6.7B | +23.48% |
Current Liabilities | $4.41B | $3.1B | +42.30% |
Stockholders' Equity | $3.94B | $2.43B | +61.91% |
Cash & Equivalents | $1.73B | $1.23B | +40.80% |
Long-Term Debt | $2.91B | $2.93B | -0.52% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.11B | $1.32B | +60.22% |
Investing Cash Flow | $-1.5B | $-201.7M | -644.08% |
Financing Cash Flow | $-72.3M | $-652.1M | +88.91% |
Dividends Paid | $66.6M | $42.2M | +57.82% |
Share Buybacks | $0 | $599.9M | -100.00% |
D&A | $308.6M | $277M | +11.41% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 17.9% | 17.1% | +0.82% |
Net Margin | 13.0% | — | — |
ROE | 33.8% | — | — |
ROA | 10.9% | — | — |
Current Ratio | $1.547 | — | — |
Debt to Equity | $2.099 | — | — |
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VRT's revenue grew 27.7% year-over-year to $10.23B in FY2025, up from $8.01B in the prior year. This growth was driven by strong demand for data center power and thermal management infrastructure, particularly tied to AI and hyperscale computing expansion.
The standout takeaway from VRT's FY2025 results was the near-tripling of net income to $1.33B (+168.8%) and diluted EPS of $3.41 (+166.4%), far outpacing the already-strong 27.7% revenue growth. Operating cash flow also surged 60.2% to $2.11B, confirming high-quality earnings backed by real cash generation.
Key risks inferred from VRT's FY2025 financial data include heavy capital expenditure commitments (investing outflows surged to -$1.50B), customer concentration in hyperscale data centers, and a debt-to-equity ratio of 2.10x that leaves the company moderately leveraged. A slowdown in AI infrastructure spending or rising input costs could pressure both revenue growth and margins.
VRT's financial health appears strong: cash and equivalents grew 40.8% to $1.73B, stockholders' equity rose 61.9% to $3.94B, and operating cash flow hit $2.11B. The main area to monitor is the elevated current liabilities (up 42.3% to $4.41B) and the significant increase in capital investment, which reduced free cash flow availability.
VRT paid $66.6M in dividends in FY2025, up 57.8% from $42.2M in the prior year, but conducted zero share buybacks compared to $599.9M in repurchases the prior year. This suggests management prioritized capital investment and balance sheet flexibility over returning cash to shareholders through buybacks.