Core Insights - Generac Holdings Inc. reported strong second-quarter results, with significant growth in both residential and commercial & industrial (C&I) product sales, leading to an increase in the full-year margin outlook range [1][3][14] Financial Performance - Net sales for the second quarter of 2025 increased by 6% to $1,061 million compared to $998 million in the prior year [5] - Gross profit margin improved to 39.3% from 37.6% in the previous year, driven by favorable pricing and lower input costs [4] - Net income attributable to the company rose to $74 million, or $1.25 per share, compared to $59 million, or $0.97 per share, in the same period of 2024 [5][34] Product Segment Performance - Residential product sales increased approximately 7% to $574 million, while C&I product sales rose about 5% to $362 million compared to the prior year [5][10] - The domestic segment total sales increased approximately 7% to $884.5 million, driven by strong growth in residential energy technology solutions and portable generators [10] - International segment total sales also saw a 7% increase to $197.2 million, primarily due to higher C&I product shipments in Europe [12] Operational Highlights - Adjusted EBITDA for the second quarter was $188 million, representing 17.7% of net sales, up from $165 million or 16.5% of net sales in the prior year [5][11] - Operating expenses increased by 12% to $305 million, primarily due to higher variable costs and increased employee costs [6] Guidance and Outlook - The company updated its full-year net sales growth guidance to 2% to 5%, narrowing from the previous range of 0% to 7% [14][15] - Adjusted EBITDA margin is now expected to be approximately 18.0% to 19.0%, an increase from the previous expectation of 17.0% to 19.0% [15][16] Shareholder Actions - The company repurchased 392,521 shares for approximately $50 million during the second quarter, with about $200 million remaining under the current repurchase program [5][8]

Core Insights - Generac Holdings Inc. (GNRC) is set to report its second-quarter 2025 results on July 30, with expected revenues of $1.02 billion, reflecting a 2.6% increase year over year. The consensus estimate for earnings is $1.33 per share, down 1.5% from the previous year [1][7]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for second-quarter revenues is $1.02 billion, which is a 2.6% increase from the prior year's reported figure [1]. - The consensus estimate for earnings per share is $1.33, indicating a 1.5% decline year over year, with a recent downward adjustment of 2 cents in the past week [1][2]. Recent Performance - GNRC has consistently exceeded the Zacks Consensus Estimate in the last four quarters, achieving an average earnings surprise of 15.45%. Over the past year, GNRC shares have increased by 1%, while the Zacks Manufacturing-General Industrial industry has grown by 6.9% [2]. Factors Influencing Q2 Performance - The Residential segment, particularly home standby generators, is expected to be a significant growth driver, with Residential product sales increasing by 15% year over year to $494 million in Q1 2025, driven by rising power outages and demand for reliable backup power solutions [3]. - The adoption of residential-energy technology products, including ecobee and Energy Storage systems, is anticipated to contribute positively to revenue growth. New product launches and investments in manufacturing capacity are also expected to support top-line momentum [4]. Margin Performance - Margin performance is likely to benefit from a favorable sales mix due to strong home standby shipments, improved production efficiencies, and reduced input costs [5]. - However, there are concerns regarding softness in Commercial & Industrial (C&I) sales, which saw a 5% year-over-year decline in Q1 2025, totaling $337 million. Management anticipates flat C&I sales year over year for Q2 [5][8]. Market Conditions - The company faces challenges from volatile macroeconomic conditions, including tariff issues, intense competition, and rising operating costs, particularly due to increased marketing expenditures. For Q2 2025, Residential product sales are expected to show modest growth, with estimates of $557 million, while C&I product revenues are projected at $343 million [9]. Earnings Prediction Model - Current models do not predict an earnings beat for Generac, as the company has an Earnings ESP of -0.19% and a Zacks Rank of 3 (Hold) [10].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Generac Holdings (GNRC) despite an increase in revenues when it reports its results for the quarter ended June 2025 [1] Earnings Expectations - Generac Holdings is expected to report quarterly earnings of $1.33 per share, reflecting a year-over-year change of -1.5% [3] - Revenues are projected to be $1.02 billion, which is an increase of 2.6% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 0.94% lower over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Generac Holdings is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.19% [12] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with significant predictive power for positive readings only [9][10] - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced a positive surprise nearly 70% of the time [10] Historical Performance - In the last reported quarter, Generac Holdings had an earnings surprise of +27.27%, reporting earnings of $1.26 per share against an expectation of $0.99 [13] - The company has beaten consensus EPS estimates in all of the last four quarters [14] Conclusion - Generac Holdings does not appear to be a compelling earnings-beat candidate based on current estimates and rankings, suggesting caution for investors ahead of the earnings release [17]

Core Insights - Vertiv (VRT) and Generac Holdings (GNRC) are significant players in the data center infrastructure market, providing essential solutions for data centers and industrial environments [2] - The data center infrastructure management market is projected to grow from approximately $3.06 billion in 2024, with a CAGR of 17.3% from 2025 to 2030, presenting substantial growth opportunities for both companies [3] Vertiv (VRT) Overview - Vertiv specializes in thermal and power management solutions for data centers, which are increasingly demanding due to the complexity of AI hardware and edge computing [4] - The company reported a 24% year-over-year increase in net sales for Q1 2025, reaching $2.036 billion, with organic orders up about 20% compared to the previous year [5] - Strong capital expenditure plans from hyperscalers for data center expansion are favorable for Vertiv, supported by a diverse partner ecosystem including major tech companies [6] Generac Holdings (GNRC) Overview - Generac is expanding its portfolio with new high-capacity generators tailored for the data center market, which is a key growth driver [7] - In April 2025, Generac launched a new range of generators (2.25 MW to 3.25 MW) designed to meet the power needs of data centers, featuring advanced technology for reliable energy solutions [8] - The rise of AI applications is driving demand for energy-intensive data centers, which may strain existing power grids, creating opportunities for Generac [9] Stock Performance and Valuation - Year-to-date, Vertiv's shares have increased by 12.1%, while Generac's shares have decreased by 5.3% due to macroeconomic uncertainties and cost pressures [11] - Vertiv's shares are currently trading at a forward Price/Sales ratio of 4.73X, compared to Generac's 1.90X, indicating a higher valuation for Vertiv [14] Earnings Estimates - The Zacks Consensus Estimate for Vertiv's 2025 earnings is $3.56 per share, reflecting a 24.91% year-over-year increase [17] - Generac's 2025 earnings estimate is $7.42 per share, showing a modest 2.06% year-over-year increase [17] Conclusion - Both Vertiv and Generac are positioned to benefit from the growing data center market, but Vertiv is viewed as the stronger investment option due to its AI-driven growth and strategic partnerships [18] - Generac faces challenges from cost pressures and macroeconomic uncertainties, impacting its market position [19]

Company Overview - Generac Holdings Inc. is a leading global designer, manufacturer, and provider of energy technology solutions and power products, founded in 1959 [3] - The company specializes in power generation equipment, energy storage systems, and energy management devices, serving residential, light commercial, and industrial markets [3] - Generac aims to empower users to utilize energy on their own terms and is committed to leading the evolution towards more resilient, efficient, and sustainable energy solutions [3] Upcoming Financial Results - Generac plans to release its second quarter 2025 financial results before the market opens on July 30, 2025 [1] - A conference call will be held at 10:00 a.m. EDT on the same day to discuss the highlights of the earnings release [1] Webcast Information - A webcast of the conference call will be accessible via a provided link and will also be available on Generac's website under the Investor Relations section [2] - A replay of the webcast will be available on the company's website following the live event [2]

Core Insights - Generac Holdings achieved a record fundraising total of $94,000 for ToolBank Disaster Services through its "Power Up With Purpose" initiative in 2025 [1][4] - The funds will be utilized to purchase and equip a mobile disaster-response tool trailer for ToolBank, which aids communities affected by natural disasters [2] - The "Power Up with Purpose" initiative has raised a total of $233,078 since its inception in 2023, with different charities benefiting each year [3] Fundraising Details - Generac surpassed its initial fundraising goal of $50,000 within the first two weeks of Summerfest, which took place from June 19 to July 5 [4] - The initiative is supported through the sale of "Power Up with Purpose" pit passes at the Generac Power Stage during Summerfest [3] - This year's partnership with ToolBank is significant as it enhances Generac's role in disaster response, aiding communities in recovery from severe weather events [4] Company Background - Generac is a leading global designer, manufacturer, and provider of energy technology solutions, founded in 1959 [6] - The company specializes in power generation equipment, energy storage systems, and energy management solutions for residential, light commercial, and industrial markets [6] - Generac aims to lead the evolution towards more resilient, efficient, and sustainable energy solutions [6]

Group 1: Market Trends - Investors are actively purchasing shares of Generac, with the company experiencing nearly 12% growth this week and on track for its best week since November 2024 [1] - High temperatures and power outages across the central and eastern United States are contributing to increased demand for backup generators [2] - The Atlantic hurricane season is projected to be above normal, with the National Oceanic and Atmospheric Administration forecasting 13 to 19 named storms, including 3 to 5 major hurricanes [3] Group 2: Industry Challenges - The combination of extreme heat and storms is straining the aging U.S. power grid, with research indicating a potential 50% increase in power outage risks due to climate change [5] - Generac's CEO highlighted the critical nature of the situation, noting that the demand for electricity is expected to grow at a 2.5% compound annual growth rate from 2024 to 2035 [6] Group 3: Related Companies - Trane Technologies, which produces cooling systems, is another company to watch, currently rated as a hold by analysts [7] - Utility stocks are anticipated to benefit from rising power demand, with Bank of America expecting significant tailwinds for the power sector in the second half of the year [7] - Preferred investment opportunities in the utilities sector include Sempra, Northwestern Energy, and Alliant Energy, as analysts seek laggards with catalysts for outperformance [8]

Company Overview - Generac Holdings Inc. is experiencing quiet trading, consolidating after a nearly 5% increase in stock price attributed to potential increased sales of generators due to a heatwave in the Midwest [1] Technical Analysis - The stock has shown bullish patterns, particularly an ascending triangle, indicating aggressive buyers and complacent sellers, which sets the stage for potential upward movement [2][8] - Resistance was noted around the $117 level in early April, where the stock remained until early May, indicating a balance between sellers and buyers [3][5] - Following this, another ascending triangle pattern emerged in late May and June, with resistance forming around $131, yet buyers continued to enter the market at higher prices, leading to a breakout and upward trend [6][7]

Business Overview - Generac's LTM sales as of 12/31/14 were $1.461 billion[13] - The company holds approximately 75% share of the domestic HSB market[16] - The home standby generator market has a low penetration rate of approximately 3.5%[16,67] Growth & Strategy - The company experienced approximately 12% organic revenue CAGR from 2004 to 2014[17,67] - Every 1% increase in home standby penetration represents approximately $2 billion of market opportunity[31,67] - The company anticipates approximately flat organic sales growth in 2015, despite headwinds from oil & gas, telecom, and foreign currency[64] - Acquisition growth is expected to add approximately 3% to growth[64] Financial Performance & Outlook - The company's 2015 adjusted EBITDA margins are expected to range from 23.5% to 24.0%[63] - The cash tax rate for full-year 2015 is anticipated to be approximately 18% of pretax income[65] - The company has favorable tax attributes worth an estimated $3.50 to $4.25 per share in present value tax savings[67,71]

Company Overview - Generac's 2015 sales reached $1.317 billion[8] - The company has achieved approximately 7% organic revenue CAGR from 2005 to 2015[9] - The company has approximately 3,200 employees as of December 31, 2015[8] Growth Strategies & Market Opportunities - Every 1% increase in North American home standby generator penetration represents approximately $2 billion of market opportunity[18] - The annual market for Engine Powered Tools (EPT) is estimated to be between $1.1 billion and $1.4 billion[24] - The global market for C&I stationary products is estimated to be over $16 billion, with the domestic market at approximately $3 billion[30] - The overall rental industry is projected to grow at approximately 6% CAGR from 2015-2019[41] Financial Performance & Outlook - The company anticipates a cash tax rate for full-year 2016 to be approximately 10% of pretax income[64] - The company expects cash taxes going forward to be approximately 36% tax rate on pre-tax profits less approximately $50 million annual tax shield[64] - The company's tax attributes and 338(h)10 election overview results in present value tax savings of approximately $200-$250 million, or $300-$375 per share[77]