Key Takeaways For 2025, GNRC now expects revenues to increase 2-5% compared with the 0-7% rise guided earlier. Net income margin (before deducting for non-controlling interests) is now expected to be in the range of 7.5-8.5% compared with the 6.5-8.5% guided earlier. Adjusted EBITDA margin is estimated to be between 18% and 19% (previous projection being 17-19%). Due to the enactment of the One Big Beautiful Bill Act on federal income tax payments, GNRC now expects free cash flow conversion from adjusted ne ...

Financial Data and Key Metrics Changes - Overall net sales increased by 6% year over year to $1,060 million for the quarter [5][23] - Adjusted EBITDA margins improved to nearly 18%, up from 16.5% in the prior year [6][26] - Gross profit margin rose to 39.3% compared to 37.6% in the prior year, driven by favorable pricing and lower input costs [25] Business Line Data and Key Metrics Changes - Residential product sales increased by 7% to $574 million, driven by growth in energy storage systems and portable generators [23] - C and I product sales rose by 5% to $362 million, supported by domestic industrial distributor and telecom shipments [24] - Home standby sales remained flat year over year, while portable generator sales saw robust growth despite lower outage activity [9][11] Market Data and Key Metrics Changes - Domestic segment sales increased by 7% to $884 million, with international segment sales also up by 7% to $197 million [26][27] - The company experienced strong growth in the telecom market, which is expected to continue due to increasing power reliability needs [17] Company Strategy and Development Direction - The company is focusing on expanding its dealer network, which increased by approximately 400 dealers year over year [10] - A significant emphasis is placed on the upcoming launch of a new generation of home standby generators, which is expected to enhance market competitiveness [11] - The company is entering the data center market, with a backlog of over $150 million, indicating strong demand for large megawatt generators [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating evolving market conditions while focusing on growth opportunities [22] - The company anticipates a contraction in the residential solar market but remains committed to its energy ecosystem strategy [16][61] - Future growth is expected in the C and I product segment, particularly in the data center market, which is projected to grow significantly [19][48] Other Important Information - The company repurchased approximately 393,000 shares for $50 million during the quarter, with $200 million remaining on the share repurchase authorization [30] - Total debt outstanding at the end of the quarter was $1.4 billion, resulting in a gross debt leverage ratio of 1.7 times [31] Q&A Session Summary Question: Update on data center market entry - Management indicated that initial shipments to international markets will start in Q3, with domestic shipments expected late this year, but significant revenue impact is anticipated in 2026 [42][43] Question: Changes in investment philosophy regarding solar and inverter markets - Management acknowledged a potential contraction in the solar market but emphasized the importance of solar and storage technologies in the residential energy ecosystem [53][61] Question: Trends in home standby generator demand - Management noted that installations are up year to date, with a focus on monitoring demand trends in the second half of the year, particularly in light of potential outage events [84]

Financial Data and Key Metrics Changes - Overall net sales increased by 6% year over year to $1,060,000,000 for the quarter [4][21] - Adjusted EBITDA margins improved to nearly 18%, driven by strong gross margin performance and better operating leverage [5][24] - Gross profit margin rose to 39.3% compared to 37.6% in the prior year, primarily due to favorable pricing and lower input costs [23] Business Line Data and Key Metrics Changes - Residential product sales increased by 7% year over year to $574,000,000, driven by growth in energy storage systems and portable generator sales [21][22] - C and I product sales grew by 5% year over year to $362,000,000, supported by domestic industrial distributor and telecom shipments [22] - Sales in the Other Products and Services category increased by approximately 8% to $125,000,000, primarily due to growth in aftermarket service parts and Ecobee sales [22] Market Data and Key Metrics Changes - Domestic segment total sales increased by 7% to $884,000,000, including a 1% contribution from recent acquisitions [24] - International segment total sales also rose by approximately 7% to $197,000,000, benefiting from foreign currency [24] - The telecom market is expected to deliver robust growth for the full year 2025, driven by increasing reliance on wireless communications [16] Company Strategy and Development Direction - The company is focusing on expanding its dealer network, which increased to approximately 9,300 industrial dealers, enhancing consumer awareness for home standby products [9] - A new generation of home standby generators is set to launch, featuring improved efficiency and lower costs [10] - The company is committed to optimizing pricing strategies in response to evolving tariff landscapes while executing supply chain and cost reduction initiatives [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the data center market, with a backlog of over $150,000,000 for large megawatt generators [19] - The company anticipates a challenging comparison for 2025 due to the absence of major outage events, but expects to maintain a baseline level of demand [11][32] - Management noted that the residential solar market is likely to contract, prompting a reevaluation of investment levels in solar technologies [15][62] Other Important Information - The company repurchased approximately 393,000 shares for $50,000,000 during the quarter, with $200,000,000 remaining on the share repurchase authorization [28] - Total debt outstanding at the end of the quarter was $1,400,000,000, resulting in a gross debt leverage ratio of 1.7 times [29] Q&A Session Summary Question: Update on the data center market entry - Management indicated that initial shipments to international markets will start in Q3, with domestic shipments expected late this year, but significant revenue impact is anticipated in 2026 [40][41] Question: Comments on Ecobee and solar market investment - Management acknowledged a potential contraction in the solar market but emphasized the importance of solar and storage technologies in the residential energy ecosystem [54][62] Question: Trends in home standby demand - Management noted that installations of home standby products are up year to date, with a robust dealer network supporting growth, despite lower outage activity in the first half of the year [85][86]

Core Insights - Generac Holdings reported revenue of $1.06 billion for the quarter ended June 2025, marking a year-over-year increase of 6.3% and exceeding the Zacks Consensus Estimate by 3.61% [1] - The company's EPS for the same period was $1.65, up from $1.35 a year ago, representing a surprise of 24.06% over the consensus estimate of $1.33 [1] Revenue Breakdown - Revenue from Residential products was $574.19 million, surpassing the estimated $557.36 million, reflecting a year-over-year increase of 6.7% [4] - Revenue from Other products reached $124.78 million, exceeding the estimated $120.73 million, with a year-over-year increase of 7.9% [4] - Revenue from Commercial & Industrial products was $362.2 million, above the estimated $342.91 million, showing a year-over-year increase of 5.2% [4] Stock Performance - Shares of Generac Holdings have returned +3.2% over the past month, compared to a +3.4% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Generac Holdings (GNRC) came out with quarterly earnings of $1.65 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.35 per share a year ago. These figures are adjusted for non-recurring items. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectation ...

[Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Generac's Q2 2025 performance exceeded expectations with strong sales and profitability across segments, alongside strategic market entries [Overall Performance and Operational Highlights](index=1&type=section&id=Overall%20Performance%20and%20Operational%20Highlights) Generac exceeded Q2 2025 expectations with strong Residential and C&I sales, driven by energy storage, home energy management, and data center market entry - Generac's Q2 2025 results exceeded expectations with **strong performance** in Residential and C&I product sales, driven by energy storage systems, home energy management solutions, and portable generator market share gains. The company also successfully entered the data center market[3](index=3&type=chunk) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) Generac reported increased net sales, net income, and Adjusted EBITDA in Q2 2025, while cash flow from operations and free cash flow decreased Q2 2025 Key Financial Metrics (YoY Comparison) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--------------------------------- | :---------- | :---------- | :--------- | | Net Sales | $1,061 million | $998 million | 6% | | Residential Product Sales | $574 million | $538 million | 7% | | C&I Product Sales | $362 million | $344 million | 5% | | Net Income Attributable to Company | $74 million | $59 million | 25.4% | | EPS (Diluted) | $1.25 | $0.97 | 28.9% | | Adjusted Net Income Attributable to Company | $97 million | $82 million | 18.3% | | Adjusted EPS (Diluted) | $1.65 | $1.35 | 22.2% | | Adjusted EBITDA | $188 million | $165 million | 13.9% | | Adjusted EBITDA Margin | 17.7% | 16.5% | 1.2 pp | | Cash Flow from Operations | $72 million | $78 million | -7.7% | | Free Cash Flow | $14 million | $50 million | -72.0% | - The company repurchased **392,521 shares** of its common stock for approximately **$50 million** during Q2 2025, with **$200 million** remaining under the current repurchase program[4](index=4&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Additional%20Second%20Quarter%202025%20Consolidated%20Highlights) Generac's Q2 2025 saw improved gross profit margin and effective tax rate, but increased operating expenses and decreased cash flow from operations [Profitability and Expenses](index=2&type=section&id=Profitability%20and%20Expenses) Gross profit margin improved to 39.3% in Q2 2025 due to pricing and lower costs, despite a 12.0% increase in operating expenses Q2 2025 Gross Profit Margin | Metric | Q2 2025 | Q2 2024 | Change (pp) | | :----------------- | :------ | :------ | :---------- | | Gross Profit Margin | 39.3% | 37.6% | 1.7 | - Operating expenses increased by **$32.6 million**, or **12.0%**, primarily due to higher variable costs from increased shipment volumes, increased employee costs to support future growth, and ongoing expenses from recent acquisitions[6](index=6&type=chunk) Q2 2025 Provision for Income Taxes | Metric | Q2 2025 | Q2 2024 | Change (pp) | | :----------------- | :------ | :------ | :---------- | | Effective Tax Rate | 17.2% | 25.0% | -7.8 | [Cash Flow and Debt Management](index=2&type=section&id=Cash%20Flow%20and%20Debt%20Management) Cash flow from operations and free cash flow decreased in Q2 2025 due to working capital and capital expenditures, while debt facilities were extended Q2 2025 Cash Flow Summary | Metric | Q2 2025 | Q2 2024 | Change ($M) | | :-------------------------- | :------ | :------ | :---------- | | Cash Flow from Operations | $72.2M | $77.7M | -$5.5M | | Free Cash Flow | $14.5M | $49.7M | -$35.2M | - Generac amended and extended its existing term loan A and revolving credit facility, setting a new maturity date of **July 1, 2030**. The term loan A balance is now **$700 million**, and the revolving facility borrowing capacity is reduced to **$1.0 billion**[9](index=9&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Results) Both Domestic and International segments reported strong sales growth and improved Adjusted EBITDA margins in Q2 2025 [Domestic Segment](index=2&type=section&id=Domestic%20Segment) Domestic segment sales increased 7% to $884.5 million, driven by residential energy tech and C&I products, with improved Adjusted EBITDA margin Domestic Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------- | :---------- | :---------- | :--------- | | Total Sales | $884.5 million | $827.1 million | 7% | | Adjusted EBITDA | $158.1 million | $139.7 million | 13.2% | | Adjusted EBITDA Margin | 17.9% | 16.9% | 1.0 pp | - Growth was primarily driven by residential energy technology solutions, portable generators, and C&I products to industrial distributors and national telecom customers, partially offset by softness in C&I product shipments to national rental accounts[10](index=10&type=chunk) [International Segment](index=2&type=section&id=International%20Segment) International segment sales grew 7% to $197.2 million, boosted by inter-segment sales and European C&I products, with an improved Adjusted EBITDA margin International Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------- | :---------- | :---------- | :--------- | | Total Sales | $197.2 million | $184.5 million | 7% | | Adjusted EBITDA | $29.5 million | $25.0 million | 18.0% | | Adjusted EBITDA Margin | 15.0% | 13.6% | 1.4 pp | - Core sales growth was primarily driven by higher inter-segment sales and strength in C&I product shipments in Europe, partially offset by softer shipments in other regions[12](index=12&type=chunk) [Full-Year 2025 Outlook](index=2&type=section&id=2025%20Outlook) Generac updated its full-year 2025 guidance, narrowing sales growth and raising profitability and free cash flow conversion targets [Sales Guidance](index=2&type=section&id=Sales%20Guidance) Generac narrowed its full-year 2025 net sales growth guidance to 2% to 5%, reflecting Q2 outperformance and revised tariff assumptions Full-Year 2025 Net Sales Growth Guidance Update | Metric | Previous Guidance | Updated Guidance | | :---------------------- | :---------------- | :--------------- | | Net Sales Growth (YoY) | 0% to 7% | 2% to 5% | [Profitability Guidance](index=3&type=section&id=Profitability%20Guidance) The company raised its full-year 2025 net income margin to 7.5%-8.5% and Adjusted EBITDA margin to 18.0%-19.0% Full-Year 2025 Profitability Guidance Update | Metric | Previous Guidance | Updated Guidance | | :--------------------------------- | :---------------- | :--------------- | | Net Income Margin | 6.5% to 8.5% | 7.5% to 8.5% | | Adjusted EBITDA Margin | 17.0% to 19.0% | 18.0% to 19.0% | [Cash Flow Guidance](index=3&type=section&id=Cash%20Flow%20Guidance) Generac increased its full-year 2025 free cash flow conversion guidance to 90%-100%, driven by the One Big Beautiful Bill Act Full-Year 2025 Free Cash Flow Conversion Guidance Update | Metric | Previous Guidance | Updated Guidance | | :------------------------------------ | :---------------- | :--------------- | | Free Cash Flow Conversion from Adj. Net Income | 70% to 90% | 90% to 100% | [Company Information](index=3&type=section&id=About%20Generac) This section provides an overview of Generac, its forward-looking statements, associated risks, and definitions of non-GAAP financial measures [About Generac](index=3&type=section&id=About%20Generac_Detail) Generac is a global leader in energy technology solutions, providing power generation, storage, and management for diverse markets - Generac is a global leader in energy technology solutions, offering power generation, energy storage, and energy management products for residential, commercial, and industrial markets, aiming for resilient, efficient, and sustainable energy[19](index=19&type=chunk) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-looking%20Information) This section cautions that forward-looking statements are subject to risks, including raw material costs, supplier dependence, and trade policy changes - Forward-looking statements in this release are not guarantees of performance and involve risks and uncertainties that could cause actual results to differ materially[20](index=20&type=chunk)[21](index=21&type=chunk) - Key risk factors include fluctuations in cost, availability, and quality of raw materials and components; dependence on a small number of suppliers; changes and volatility in trade policies (tariffs); and changes in durable goods spending by consumers and businesses[21](index=21&type=chunk)[24](index=24&type=chunk) [Non-GAAP Financial Measures Definitions](index=5&type=section&id=Non-GAAP%20Financial%20Metrics) Generac defines Core Sales, Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow as key non-GAAP financial metrics - Core Sales excludes the impact of acquisitions and foreign currency translation, facilitating easier comparison of net sales performance[25](index=25&type=chunk) - Adjusted EBITDA is defined as net income before noncontrolling interests adjusted for interest, depreciation, amortization, income tax, and various non-cash and non-recurring items[26](index=26&type=chunk) - Adjusted Net Income is net income before noncontrolling interests adjusted for amortization of intangible assets, deferred financing costs, transaction costs, business optimization expenses, and certain legal/regulatory charges[27](index=27&type=chunk) - Free Cash Flow is defined as net cash provided by operating activities, plus proceeds from beneficial interests in securitization transactions, less expenditures for property and equipment[28](index=28&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents Generac's balance sheets, comprehensive income statements, and cash flow statements for Q2 2025 and year-to-date [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $5,388.8 million as of June 30, 2025, driven by inventories and property, with corresponding increases in liabilities and equity Condensed Consolidated Balance Sheet Summary (June 30, 2025 vs Dec 31, 2024) | Metric | June 30, 2025 ($ Thousands) | Dec 31, 2024 ($ Thousands) | Change ($ Thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------------- | | Total Current Assets | 2,245,689 | 2,032,170 | 213,519 | | Total Assets | 5,388,801 | 5,109,331 | 279,470 | | Total Current Liabilities | 1,121,280 | 1,033,152 | 88,128 | | Total Liabilities | 2,813,610 | 2,611,888 | 201,722 | | Total Stockholders' Equity | 2,575,191 | 2,497,443 | 77,748 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2025 net sales rose to $1,061.2 million, with net income attributable to Generac increasing to $74.0 million, or $1.25 per diluted share Condensed Consolidated Statements of Comprehensive Income (Three Months Ended June 30) | Metric | 2025 ($ Thousands) | 2024 ($ Thousands) | Change ($ Thousands) | Change (%) | | :--------------------------------------- | :----------------- | :----------------- | :------------------- | :--------- | | Net sales | 1,061,169 | 998,197 | 62,972 | 6.3% | | Gross profit | 416,749 | 375,561 | 41,188 | 11.0% | | Income from operations | 111,789 | 103,235 | 8,554 | 8.3% | | Net income attributable to Generac Holdings Inc. | 74,016 | 59,115 | 14,901 | 25.2% | | Diluted EPS | $1.25 | $0.97 | $0.28 | 28.9% | Condensed Consolidated Statements of Comprehensive Income (Six Months Ended June 30) | Metric | 2025 ($ Thousands) | 2024 ($ Thousands) | Change ($ Thousands) | Change (%) | | :--------------------------------------- | :----------------- | :----------------- | :------------------- | :--------- | | Net sales | 2,003,290 | 1,887,470 | 115,820 | 6.1% | | Gross profit | 788,735 | 691,940 | 96,795 | 14.0% | | Income from operations | 195,427 | 170,104 | 25,323 | 14.9% | | Net income attributable to Generac Holdings Inc. | 117,856 | 85,347 | 32,509 | 38.1% | | Diluted EPS | $1.98 | $1.36 | $0.62 | 45.6% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to $130.3 million for the six months ended June 30, 2025, primarily due to increased inventories Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2025 ($ Thousands) | 2024 ($ Thousands) | Change ($ Thousands) | | :------------------------------------ | :----------------- | :----------------- | :------------------- | | Net cash provided by operating activities | 130,341 | 189,562 | (59,221) | | Net cash used in investing activities | (93,308) | (74,024) | (19,284) | | Net cash used in financing activities | (101,318) | (96,509) | (4,809) | | Net (decrease) increase in cash and cash equivalents | (57,746) | 17,323 | (75,069) | - The decrease in net cash from operating activities was significantly impacted by a **$199.3 million increase in inventories** in 2025, compared to a **$12.2 million increase** in 2024[36](index=36&type=chunk) [Supplemental Financial Information](index=9&type=section&id=Segment%20Reporting%20and%20Product%20Class%20Information) This section details segment and product class performance, along with reconciliations for non-GAAP financial measures [Segment and Product Class Performance](index=9&type=section&id=Segment%20Reporting%20and%20Product%20Class%20Information_Detail) Both Domestic and International segments reported 7% sales growth in Q2 2025, with residential products leading external net sales increases Total Sales by Reportable Segment (Three Months Ended June 30) | Segment | 2025 ($ Thousands) | 2024 ($ Thousands) | Change ($ Thousands) | Change (%) | | :---------- | :----------------- | :----------------- | :------------------- | :--------- | | Domestic | 884,462 | 827,139 | 57,323 | 6.9% | | International | 197,204 | 184,508 | 12,696 | 6.9% | External Net Sales by Product Class (Three Months Ended June 30) | Product Class | 2025 ($ Thousands) | 2024 ($ Thousands) | Change ($ Thousands) | Change (%) | | :------------------------ | :----------------- | :----------------- | :------------------- | :--------- | | Residential products | 574,189 | 538,399 | 35,790 | 6.6% | | Commercial & industrial products | 362,203 | 344,169 | 18,034 | 5.2% | | Other | 124,777 | 115,629 | 9,148 | 7.9% | Adjusted EBITDA by Reportable Segment (Three Months Ended June 30) | Segment | 2025 ($ Thousands) | 2024 ($ Thousands) | Change ($ Thousands) | Change (%) | | :---------- | :----------------- | :----------------- | :------------------- | :--------- | | Domestic | 158,117 | 139,674 | 18,443 | 13.2% | | International | 29,512 | 25,015 | 4,497 | 18.0% | | Total Adjusted EBITDA | 187,629 | 164,689 | 22,940 | 13.9% | [Non-GAAP Reconciliation Schedules](index=10&type=section&id=Reconciliation%20Schedules) Detailed reconciliations are provided for Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow, outlining specific adjustments from GAAP net income Net Income to Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Adjustment Item | 2025 ($ Thousands) | 2024 ($ Thousands) | | :------------------------------------ | :----------------- | :----------------- | | Net income attributable to Generac Holdings Inc. | 74,016 | 59,115 | | Interest expense | 18,242 | 23,318 | | Depreciation and amortization | 48,321 | 42,880 | | Provision for income taxes | 15,422 | 19,638 | | Non-cash share-based compensation expense | 14,752 | 12,715 | | Adjusted EBITDA | 187,629 | 164,689 | Net Income to Adjusted Net Income Reconciliation (Three Months Ended June 30) | Adjustment Item | 2025 ($ Thousands) | 2024 ($ Thousands) | | :------------------------------------ | :----------------- | :----------------- | | Net income attributable to Generac Holdings Inc. | 74,016 | 59,115 | | Amortization of intangible assets | 25,681 | 24,791 | | Business optimization and other charges | 3,442 | 1,140 | | Provision for legal, regulatory and other costs | 4,911 | 363 | | Tax effect of add backs | (17,138) | (7,520) | | Adjusted net income attributable to Generac Holdings Inc. | 97,328 | 81,690 | Free Cash Flow Reconciliation (Three Months Ended June 30) | Metric | 2025 ($ Thousands) | 2024 ($ Thousands) | | :------------------------------------ | :----------------- | :----------------- | | Net cash provided by operating activities | 72,189 | 77,664 | | Expenditures for property and equipment | (57,716) | (27,952) | | Free cash flow | 14,473 | 49,712 |

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]

Key Takeaways Generac Holdings Inc. (GNRC) will report second-quarter 2025 results on July 30, before market open. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.02 billion, up 2.6% from the prior- year reported number. GNRC expects second-quarter net sales growth in the low single-digit range. The consensus estimate for earnings is pinned at $1.33 per share, down 1.5% year over year. The estimate has moved down 2 cents in the past seven days. GNRC beat the Zacks Consensus Estimate ...

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]