Generac Holdings (GNRC) reported $942.12 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 5.9%. EPS of $1.26 for the same period compares to $0.88 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $918.71 million, representing a surprise of +2.55%. The company delivered an EPS surprise of +27.27%, with the consensus EPS estimate being $0.99.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Financial Data and Key Metrics Changes - Overall net sales increased by 6% year-over-year to $942 million for the quarter, with residential product sales up 15% driven by strong demand for home standby generators and energy technology solutions [6][22] - Adjusted EBITDA margins increased to nearly 16% for the quarter, reflecting strong gross margins which expanded by nearly 400 basis points to 39.5%, the highest first-quarter gross margin since 2021 [7][24] - GAAP net income for the quarter was $44 million, compared to $26 million in the prior year, with diluted net income per share increasing to $0.73 from $0.39 [27][28] Business Line Data and Key Metrics Changes - Residential product sales rose to $494 million, up from $429 million, primarily due to increased shipments of home standby generators and energy storage systems [22][24] - Commercial and Industrial (C and I) product sales declined by 5% to $337 million, impacted by softness in certain end markets despite growth in domestic telecom and industrial distributor channels [16][22] - Net sales in the other products and services category increased by approximately 4% to $111 million, driven by growth in aftermarket service parts and connectivity subscription sales [23] Market Data and Key Metrics Changes - International sales increased by approximately 5% year-over-year, supported by strength in residential product shipments in Latin America [19] - Domestic segment total sales rose by 9% to $782 million, with adjusted EBITDA for the segment at 15.7% of total sales, up from 13.8% in the prior year [25][26] - The telecom market is identified as a long-term growth opportunity due to the increasing need for reliable power in expanding global tower networks [17] Company Strategy and Development Direction - The company is focused on launching a next-generation home standby generator lineup in the second half of 2025, aimed at improving efficiency and reducing costs for homeowners and channel partners [12][13] - Continued investment in residential energy technology solutions is planned, with expectations for Ecobee to achieve profitability in 2025 [15] - The company is widening its guidance ranges for 2025 to account for potential impacts from tariffs and uncertain economic conditions, while maintaining a focus on agility in response to market changes [8][29] Management's Comments on Operating Environment and Future Outlook - Management anticipates a cautious economic environment but expects the U.S. economy to avoid a full recession in 2025, despite potential impacts from tariffs [8][30] - The company expects product costs to increase by approximately $125 million in the second half of 2025 due to tariffs, but believes that price increases will offset these costs [9][68] - Management remains optimistic about long-term growth driven by megatrends such as lower power quality and rising power prices [20] Other Important Information - The company ended the first quarter with over 9,200 residential dealers, an increase of more than 400 dealers year-over-year, enhancing its distribution network [11] - Cash flow from operations was $58 million, down from $112 million in the prior year, primarily due to increased working capital [28] - The company repurchased approximately 717,000 shares for $97 million during the quarter, with $250 million remaining on its share repurchase authorization [28] Q&A Session Summary Question: Inquiry about new product launches in C and I for the data center market - Management expressed excitement about the new data center product line and confirmed that the go-to-market strategy will leverage the existing nationwide service network built for telecommunications customers [42][45] Question: Request for anecdotes regarding potential business softening - Management acknowledged the uncertainty in the economic environment but noted that outages significantly influence demand, and they are prepared to adapt to changing conditions [54][56] Question: Clarification on the impact of China tariffs on guidance - Management indicated that approximately two-thirds of the projected $125 million impact from tariffs is related to China, emphasizing ongoing efforts to diversify the supply chain [68][90]

Financial Data and Key Metrics Changes - Overall net sales increased by 6% year-over-year to $942 million for the quarter, with residential product sales up 15% driven by strong demand for home standby generators and energy technology solutions [5][21] - Adjusted EBITDA margins increased to nearly 16% for the quarter, reflecting continued strong gross margins which expanded by nearly 400 basis points to 39.5%, the highest first-quarter gross margin since 2021 [5][24] - GAAP net income for the quarter was $44 million, compared to $26 million in the prior year, with diluted net income per share increasing to $0.73 from $0.39 [26][27] Business Line Data and Key Metrics Changes - Residential product sales reached $494 million, a 15% increase from $429 million in the prior year, primarily due to higher shipments of home standby generators and energy storage systems [22] - Commercial and Industrial (C and I) product sales declined by 5% year-over-year to $337 million, with growth in domestic telecom and industrial distributor channels offset by softness in other C and I end markets [22][16] - Sales in the other products and services category increased by approximately 4% to $111 million, driven by growth in aftermarket service parts and connectivity subscription sales [23] Market Data and Key Metrics Changes - International sales increased approximately 5% year-over-year, driven by strength in residential product shipments in Latin America, despite a decline in international C and I product sales [18] - Power outage hours during the first quarter were above the long-term baseline average, particularly due to wildfires in Southern California, which is a developing market for home standby generators [9][10] Company Strategy and Development Direction - The company is widening its guidance ranges for the year to reflect potential impacts from tariffs and federal policy actions, while maintaining a cautious outlook on consumer spending [6][29] - A new generation of home standby generators is set to launch in the second half of 2025, aimed at improving efficiency and reducing costs for homeowners and channel partners [11][12] - The company is focused on expanding its distribution network and enhancing consumer awareness, particularly in underpenetrated markets like California [10][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the U.S. economy will avoid a full recession in 2025, despite a more cautious economic environment anticipated for consumers [6] - The company expects product costs to increase by approximately $125 million in the second half of 2025 due to tariffs, but anticipates that price increases will offset these costs [7][68] - Management highlighted the importance of agility in responding to changing market conditions and trade policies, emphasizing the company's ability to adapt [60] Other Important Information - The company ended the first quarter with over 9,200 residential dealers, an increase of more than 400 dealers year-over-year, which supports a higher baseline level of consumer awareness [10] - Total debt outstanding at the end of the quarter was $1.3 billion, with a gross debt leverage ratio of 1.6 times, within the targeted range [28] Q&A Session Summary Question: About new product launches in C and I for the data center end market - Management confirmed that the new data center product line will leverage the existing nationwide service network built for telecommunications, allowing for direct sales and aftermarket service through dealers [41][46] Question: Insights on potential softening in business - Management noted that higher prices could dampen demand, but outages remain a critical factor driving generator sales, with the assumption that the average environment will align with long-term averages [55][56] Question: Clarification on the impact of China tariffs - Management indicated that approximately two-thirds of the projected $125 million impact from tariffs is related to China, emphasizing ongoing efforts to diversify the supply chain [68][89]

Financial Performance - Net sales increased by 6% to $942 million in Q1 2025, compared to $889 million in Q1 2024, with residential product sales up approximately 15% to $494 million[4] - Net income attributable to the Company was $44 million, or $0.73 per share, compared to $26 million, or $0.39 per share, in the same period of 2024[4] - Adjusted EBITDA was $150 million, representing 15.9% of net sales, up from $127 million, or 14.3% of net sales, in the prior year[4] - Gross profit margin improved to 39.5% from 35.6% in the prior-year first quarter, driven by a favorable sales mix and lower input costs[5] - Domestic segment sales increased approximately 9% to $782.3 million, driven by higher sales of home standby generators and energy technology solutions[9] - International segment sales slightly decreased to $185.5 million, impacted by a 5% unfavorable effect from foreign currency[11] - Net sales for Q1 2025 reached $942,121, an increase of 5.9% compared to $889,273 in Q1 2024[35] - Gross profit for Q1 2025 was $371,986, up from $316,379 in Q1 2024, reflecting a gross margin improvement[35] - Net income attributable to Generac Holdings Inc. for Q1 2025 was $43,840, a significant increase of 67.3% from $26,232 in Q1 2024[35] - Adjusted EBITDA for Q1 2025 was $149,546, representing a 17.5% increase from $127,233 in Q1 2024[39] - Domestic sales in Q1 2025 totaled $782,336, compared to $720,473 in Q1 2024, indicating a growth of 8.6%[39] Guidance and Expectations - The Company updated its full-year 2025 net sales growth guidance to 0 to 7%, down from the previous range of 3 to 7%[4] - Adjusted EBITDA margin guidance for 2025 is now expected to be 17.0 to 19.0%, compared to the previous range of 18.0 to 19.0%[15] - Free cash flow is expected to convert from adjusted net income between 70 to 90% for the full year[16] Expenses and Costs - Operating expenses increased by $38.8 million, or 15.6%, primarily due to higher employee costs and increased marketing spend[6] - Research and development expenses increased to $62,048 in Q1 2025, up from $49,410 in Q1 2024, reflecting a focus on innovation[35] Cash and Assets - Cash and cash equivalents decreased to $187,464 as of March 31, 2025, down from $281,277 at the end of 2024[37] - Total current assets as of March 31, 2025, were $1,988,539, a slight decrease from $2,032,170 at the end of 2024[33] - Total liabilities decreased to $2,587,429 as of March 31, 2025, compared to $2,611,888 at the end of 2024[33] Shareholder Returns and Stock Activity - The company repurchased $97,454 in stock during Q1 2025, indicating a commitment to returning value to shareholders[37] Adjusted Income and Other Charges - Adjusted net income for Q1 2025 was $75.80 million, up from $53.20 million in Q1 2024, reflecting a 42.5% growth[43] - Adjusted net income per diluted share increased to $1.26 in Q1 2025 from $0.88 in Q1 2024, marking a 43.2% rise[43] - The weighted average common shares outstanding on a diluted basis decreased from 60,486,125 in Q1 2024 to 59,747,589 in Q1 2025[43] - Amortization of intangible assets was $25.49 million in Q1 2025, slightly up from $24.75 million in Q1 2024[43] - The company incurred $3.75 million in legal, regulatory, and clean energy product charges in Q1 2025, compared to $2.54 million in Q1 2024[43] - Losses attributable to business or asset dispositions were $0.39 million in Q1 2025, significantly higher than $0.04 million in Q1 2024[43] - The change in fair value of investments resulted in a loss of $9.95 million in Q1 2025, compared to a loss of $6.02 million in Q1 2024[43] - The tax effect of add backs was $(10.37) million in Q1 2025, compared to $(8.93) million in Q1 2024[43] - The company reported transaction costs and other purchase accounting adjustments of $0.11 million in Q1 2025, down from $0.84 million in Q1 2024[43]

WAUKESHA, Wis., April 30, 2025 (GLOBE NEWSWIRE) -- Generac Holdings Inc. (NYSE: GNRC) (“Generac” or the “Company”), a leading global designer and manufacturer of energy technology solutions and other power products, today reported financial results for its first quarter ended March 31, 2025 and provided an update on its outlook for the full-year 2025. First Quarter 2025 Highlights Net sales increased 6% to $942 million during the first quarter of 2025 as compared to $889 million in the prior-year first quar ...

Core Viewpoint - Generac Holdings Inc. is set to report its first-quarter 2025 results on April 30, with expectations of revenue growth driven by strong residential product sales, despite challenges in the commercial and industrial (C&I) segment [1][3][4]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for first-quarter revenues is $918.7 million, reflecting a 3.3% increase year-over-year, while earnings are estimated at 99 cents per share, up 12.5% year-over-year [1]. - Generac has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average earnings surprise of 14.2% [2]. - The company's shares have declined 17.8% over the past year, compared to a 9.3% loss in the Zacks Manufacturing-General Industrial industry [2]. Group 2: Key Factors Influencing Performance - The residential segment, particularly home standby generators, is expected to be a significant growth driver, with a 28% year-over-year increase in residential product sales in Q4 2024, reaching $743 million [3]. - Demand for Generac's products has been bolstered by extreme weather events leading to power outages, with 2024 recording the highest number of outage hours since 2010 [4]. - The first quarter typically sees less impact from hurricanes, but unexpected severe weather could positively influence sales [4]. Group 3: Product Developments and Market Position - Generac's expansion into the data center market with new high-capacity generators (2.25 MW to 3.25 MW) is aimed at meeting rising electricity needs and enhancing reliability [11]. - The ecobee smart thermostat line is gaining traction, with the launch of the Smart Thermostat Essential expected to contribute to top-line growth [12]. - The introduction of the 28kW home standby generator model enhances Generac's product offerings, providing a comprehensive home energy solution [13]. Group 4: Segment Performance Insights - The Zacks Consensus Estimate for residential products' revenues is $483.5 million, while C&I products' revenues are estimated at $324.6 million [8]. - There is concern over prolonged weakness in C&I revenues, with expectations of flat year-over-year sales and a high single-digit decline in the first quarter [7].

All-new Vanquish Autonomous is designed to improve productivity and profitabilityWAUKESHA, Wis., April 28, 2025 /PRNewswire/ -- Mean Green, a leading battery-powered, commercial-grade turf care manufacturer and a Generac Power Systems (NYSE: GNRC) company, today announced the expansion of its commercial-grade electric mower lineup with its all-new Vanquish Autonomous. Mean Green Vanquish Autonomous The world's first commercial-electric stand-on autonomous mower is built for the crews that never stop pu ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Generac Holdings (GNRC) , which belongs to the Zacks Manufacturing - General Industrial industry.When looking at the last two reports, this generator maker has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 12.82%, on average, in the last two quarters.For the last reported quarter, Generac Holdings came out with ...

Core Viewpoint - Generac Holdings Inc. is set to release its first quarter 2025 financial results on April 30, 2025, with a conference call scheduled for 10:00 a.m. EDT to discuss the earnings highlights [1]. Company Overview - Generac is a total energy solutions company founded in 1959, recognized as a leading global designer, manufacturer, and provider of energy technology solutions [3]. - The company offers a wide range of products including power generation equipment, energy storage systems, and energy management devices, catering to residential, light commercial, and industrial markets [3]. - Generac pioneered the affordable backup generator and established the automatic home standby generator category, continuing to expand its energy technology offerings to promote resilient, efficient, and sustainable energy solutions [3]. Conference Call Details - A webcast of the upcoming conference call will be accessible via a specific link and will also be available on Generac's website under the Investor Relations section [2]. - Following the live event, a replay of the conference call will be made available on the company's website [2].

Generac Holdings (GNRC) shares ended the last trading session 12.5% higher at $114.65. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 22.4% loss over the past four weeks.The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to skyrocketing indices and subsequent increases for most stocks including Generac. Apart from that, the ...