Vertiv Cash Flow

2025 Net Cash provided by operating activities: $2113M

• Net Income $1332M

• Depreciation $97.1M

• Amortization: $211.5M

• Stock Based Compensation: $45.9M

• Trade working capital: $339M

• Other: $58.7M

2024 Net Cash provided by operating activities: $1319M

• Net income $495M

• TWC: $114M

• Change in fair value of warrant liabilities: $449M

• Similar figures of depreciation, amortization, stock based compensation $311M combined. then -$54.5M deferred income taxes

2025 SG&A = $1,617.8, an increase of $243.8, or 17.7% compared to 2024. The increase in SG&A was primarily driven by increased compensation costs.

2025 had restructuring cost of $54.5M as well

2025 Net Cash for investing activities: ($1500M)

• Acquisitions: $1184M

• Short Term Investments Net $89.6M

• Cap Ex: 226.4M

2024 net cash for investing activities: ($201.7M)

• Cap Ex: $167M

• Software/Acquisitions: $34.7M

2025 net cash for financing activities: ($72.3M)

• Large decrease compare to 2024 due to no repurchases of common stock in 2025

• +$26.4M employee stock options

• -$66.6M dividend payment

• -$21M pay towards long term debt

2024 net cash for financing activities: ($652.1M)

• -$599M was repurchase of common stock

• -42.2M dividend payment

• +33M employee stock options

• -$21M pay towards long term debt

Takeaways:

1. 2025 saw $794.5M increase in cash generation compared to 2024.

2. Acquisitions investments are hugely increased in 2025

   • 2026 continues the acquisition trend with ThermoKey (financial terms not disclosed)

3. Big decrease in stock buybacks in 2025

   • 2025 Stock Buybacks: $0, employee stock options issued -> $26.4M

   • 2024 had ~599M in stock buybacks

4. Cap Ex increase

   • 2025 Cap Ex: $226.4M vs 2024 16

   • 2026 Estimated Cap Ex: $425-525M to "Support Capacity Expansion"

   • 2026 Q1 Cap Ex = $112M -> On track for ~400M Cap Ex for growth