Vertiv’s Strong Organic Order Growth Signals Data Center Upside
Explore how Vertiv’s robust organic order growth and strategic moves position it for sustained success in the booming data center infrastructure market, highlighting key financial metrics and competitive dynamics.
Key Takeaways
- Vertiv’s organic orders surged 15% year-over-year in Q2 2025, topping $3 billion.
- Order backlog hit a record $8.5 billion, growing 21% year-over-year.
- The Americas and APAC regions led with mid-40% and mid-30% order growth respectively.
- Vertiv’s acquisition of Waylay NV boosts AI-driven data center monitoring capabilities.
- Despite stiff competition from ABB and Eaton, Vertiv’s stock gained 18.2% year-to-date.
Vertiv Holdings Co. is making waves with its impressive organic order growth, signaling a strong pulse in the data center infrastructure market. In Q2 2025, the company’s orders jumped 15% year-over-year, surpassing $3 billion for the first time—a milestone that speaks volumes about demand for its broad product lineup. This surge is more than just numbers; it reflects Vertiv’s strategic positioning amid the accelerating buildout of AI-driven data centers and digital infrastructure modernization.
The company’s order backlog swelled to $8.5 billion, a 21% increase from last year, underscoring a healthy pipeline that promises future revenue. Regional growth was led by the Americas and Asia-Pacific, with gains of mid-40% and mid-30%, respectively. Vertiv’s recent acquisition of Belgium-based Waylay NV further strengthens its foothold in AI-powered monitoring and automation, a critical edge in a fiercely competitive landscape.
This article unpacks Vertiv’s financial performance, competitive challenges, and strategic moves, offering a clear-eyed view of why its organic order growth is a key indicator of sustained momentum and potential upside in the evolving data center sector.
Tracking Organic Order Growth
Imagine a company that not only meets but beats expectations quarter after quarter. That’s Vertiv in Q2 2025, with organic orders climbing 15% year-over-year and 11% sequentially. Crossing the $3 billion mark in orders for the first time isn’t just a number—it’s a statement. It shows Vertiv’s products, from thermal systems to modular solutions, are resonating in a market hungry for data center infrastructure.
This growth isn’t a flash in the pan. Over the trailing twelve months, organic orders rose 11%, confirming sustained momentum. The book-to-bill ratio of 1.2x tells a story of demand outpacing supply, a bullish sign that the order pipeline is expanding faster than shipments. For investors and industry watchers, these metrics are like a heartbeat—steady and strong.
Behind these figures lies a diverse product portfolio and a customer base that’s broadening. Vertiv’s ability to attract and retain orders organically, without relying solely on acquisitions, speaks to its operational strength and market relevance. It’s a reminder that in business, growth rooted in core operations often signals durability.
Building a Robust Backlog
Think of Vertiv’s order backlog as a treasure chest of future revenue. At $8.5 billion, it’s not just big—it’s 21% larger than last year’s, with a 7% sequential increase. This backlog reflects orders received but not yet fulfilled, a crucial indicator of what’s coming down the pipeline.
A growing backlog means Vertiv isn’t just selling today; it’s locking in tomorrow’s business. The book-to-bill ratio above 1 confirms this, showing that incoming orders exceed shipments. It’s like filling a reservoir faster than water flows out, ensuring steady supply downstream.
This robust backlog provides a cushion against market fluctuations and supports the company’s raised guidance for full-year 2025. It also signals confidence from customers who are committing capital to Vertiv’s solutions, betting on its ability to deliver in a fast-evolving data center landscape.
Driving Regional Growth
Not all growth is created equal, and Vertiv’s regional performance tells a compelling story. The Americas led with mid-40% order growth, a powerhouse showing that demand in North and South America is surging. Asia-Pacific followed with mid-30% gains, reflecting the region’s rapid digital infrastructure expansion.
Even Europe, Middle East, and Africa (EMEA) chipped in with high single-digit growth, proving that Vertiv’s reach is global. This geographic diversity cushions the company against localized economic hiccups and taps into multiple growth engines.
Why does this matter? Because data center infrastructure needs vary by region, and Vertiv’s ability to capture demand across continents shows adaptability and market insight. It’s like having multiple sails catching different winds, propelling the company forward regardless of where the breeze blows.
Leveraging Strategic Acquisitions
Growth isn’t just organic for Vertiv—it’s also strategic. The acquisition of Belgium-based Waylay NV is a smart move to enhance AI-driven monitoring, automation, and control for data center power and cooling systems. In a world where efficiency and uptime are king, these capabilities are gold.
This acquisition complements Vertiv’s existing portfolio, adding layers of innovation that meet the rising complexity of data centers. It’s a clear signal that Vertiv isn’t resting on its laurels but actively shaping the future of digital infrastructure.
Such moves also help fend off competition from giants like ABB and Eaton, who are aggressively expanding their own data center offerings. By integrating AI and automation, Vertiv is not just keeping pace—it’s aiming to lead.
Navigating Competition and Valuation
No growth story is without rivals. Vertiv faces stiff competition from ABB and Eaton, both making significant strides in the data center space. ABB’s double-digit order growth and Eaton’s 55% jump in data center orders show the market is hot and contested.
Yet, Vertiv’s stock has gained 18.2% year-to-date, outperforming the broader sector. This suggests investors recognize its unique strengths and growth potential. The company trades at a premium price-to-book ratio of 16.40X, higher than the sector’s 10.21X, reflecting high expectations.
Despite this, Vertiv’s price/earnings-to-growth ratio near 1.2 indicates the valuation aligns with its growth prospects. The consensus earnings estimate for 2025 rose 7% in the past month, signaling confidence. In a competitive arena, Vertiv’s blend of strong orders, backlog, and innovation keeps it in the race—and often ahead.
Long Story Short
Vertiv’s strong organic order growth is more than a quarterly headline—it’s a beacon of enduring market strength in a sector fueled by AI and cloud expansion. The company’s ability to convert orders into sales, maintain a robust backlog, and raise full-year guidance paints a picture of confident execution amid short-term margin pressures. Its strategic acquisitions and regional growth leadership add layers of resilience and innovation. While competition from ABB and Eaton is intensifying, Vertiv’s diversified product portfolio and growing customer base provide a sturdy foundation. Investors have rewarded this momentum with an 18.2% year-to-date stock gain, reflecting optimism about the company’s trajectory. The elevated valuation metrics suggest expectations are high, but supported by solid growth fundamentals. For those tracking data center infrastructure plays, Vertiv’s story is a compelling mix of strong order flow, strategic foresight, and market relevance. As digital infrastructure demands accelerate, Vertiv’s organic order growth signals a promising runway for continued operational success and shareholder value.