Financial Performance & Growth - Generac's Last Twelve Months (LTM) net sales reached $4437 million [108], reflecting a 39.1% year-over-year increase [108] - The company's LTM adjusted EBITDA was $897.4 million [108], with an adjusted EBITDA margin of 20.2% [108] - In Q2 2022, net sales were $1291.4 million [108], a 40.4% increase year-over-year [108] - The company anticipates a consolidated revenue increase between 36% to 40% for the year [69] - The company's free cash flow for the Last Twelve Months (LTM) was $52.7 million [60] Market & Strategy - Generac estimates a ~$8 billion Grid Services Served Addressable Market (SAM) opportunity by 2025 in North America, Europe, and Australia [57] - The company projects an approximate 5X expansion of its Served Addressable Market (SAM) from $14 billion in 2018 to $72 billion in 2025 [35] - The total US penetration rate of Home Standby Generators (HSB) was estimated at ~5.5% at the end of 2021 [41] - The company has a 60% share of the US telecom market [107] Business Outlook - The company expects adjusted EBITDA margins between 21.5% and 22.5% [65] - The company anticipates a GAAP effective tax rate of approximately 23.0% [66]

Company Overview and Strategy - Generac's purpose is to lead the evolution to more resilient, efficient, and sustainable energy solutions[1] - The company is focused on building energy ecosystems by aggregating Distributed Energy Resources (DERs) to support the next-generation grid, emphasizing decarbonization, digitalization, and decentralization[35, 36] - The company's strategy evolution unlocks a massive and growing Served Addressable Market (SAM), projected to expand approximately 5X since 2018, reaching $72 billion in 2025[33, 34] Market Trends and Opportunities - There's a growing electricity supply/demand imbalance due to deteriorating supply reliability and rapidly increasing demand, driven by factors like climate change and electrification[24, 26, 27] - The home standby (HSB) penetration opportunity is significant, with the three largest markets (CA, TX, & FL) representing approximately 25% of addressable households but are significantly underpenetrated at approximately 3.5%[40] - Telecom infrastructure is shifting to the next generation, with 5G rollout requiring improved network quality and backup power solutions, presenting a global opportunity[22, 93] Financial Performance and Outlook - The company's LTM (Last Twelve Months) net sales through Q3 2022 were $45826 million, with domestic sales accounting for 85% and international sales for 15%[9, 13, 102] - The LTM adjusted EBITDA was $8720 million, representing a 190% margin[57, 102] - The company anticipates consolidated net sales to increase between 22% to 24% in 2023[64]

Company Overview and Strategy - Generac aims to lead the evolution to more resilient, efficient, and sustainable energy solutions[1] - The company projects a ~5X expansion of its Served Addressable Market (SAM) from $14 billion in 2018 to $72 billion in 2025, driven by factors like clean energy, connected devices, and grid services[35] - A key element of Generac's strategy is building energy ecosystems by aggregating Distributed Energy Resources (DERs) to support the next-generation grid[36] Market Trends and Opportunities - Mega-trends such as the evolution of the electrical utility model ("Grid 2.0"), climate change impact, and telecommunications infrastructure upgrades are creating opportunities for Generac[21, 22] - Approximately 25% of Americans are at high risk of resource adequacy shortfalls during normal seasonal peak conditions in the 2023-2027 period[30] - The total US penetration rate for Home Standby Generators (HSB) was estimated at ~5.75% as of 2022, indicating significant growth potential[40] Financial Performance and Outlook - Generac reported total net sales of $4.5647 billion in 2022, a 22.1% increase year-over-year[108] - The company's gross margin for 2022 was 33.3%[59, 108] - Adjusted EBITDA for 2022 was $825.4 million, with a margin of 18.1%[59, 108] - For 2023, Generac anticipates a consolidated revenue decrease between 6% to 10% and an adjusted EBITDA margin between 17% to 18%[65, 61]

Financial Performance & Outlook - Generac's LTM net sales reached $4316.8 million[62], reflecting a 6.2% year-over-year increase[111] - The adjusted EBITDA for the LTM period was $729.0 million[62], with an adjusted EBITDA margin of 16.9%[111] - The company anticipates a decrease in consolidated revenue between 6% to 10% for 2023[69], with residential products expected to decline at a high-teens rate[69], while C&I products are projected to increase at a mid-to-high single-digit rate[69] - The company expects adjusted EBITDA margins to be between 17.0% and 18.0% for 2023[65] Market Trends & Growth Strategy - The company estimates a projected ~5X expansion of Served Addressable Market (SAM) since 2018, from $14 billion in 2018 to $72 billion in 2025[39] - Residential segment accounted for 59% of the company's sales, while Commercial & Industrial contributed 31%[15] - The company estimates that the three largest markets (CA, TX, & FL) combined represent ~25% of addressable HHs, and are significantly underpenetrated at ~3.5%[44] - The company has been actively pursuing acquisitions, with 28 deals completed since 2011[64], to accelerate its "Powering a Smarter World" strategic plan[86] Grid Services & Clean Energy - In 2022, Generac Grid Services delivered 10 GWh of capacity during peak demand periods[58] - The company's software facilitated approximately 8,000 hours of DER dispatch from 20,500 devices in 2022[58] - The company estimates $10+ billion domestic SAM BY 2025 in broad residential clean energy product offering[48]

Financial Performance & Targets - Generac's revenue CAGR from 2010 IPO through 2023F is 16%[19] - The company anticipates approximately 25% GAAP effective tax rate[83] - The company projects to double its adjusted EBITDA from approximately $650 million in 2023F to approximately $1300 million in 2026[90] - The company targets net sales of approximately $585 billion midpoint with 12%-14% CAGR and $1+ billion cumulative FCF from 2024-2026[90] - The company's consolidated net sales decreased by 125% LTM[118] Market Opportunity & Strategy - The company projects approximately 5X expansion of Served Addressable Market (SAM) since 2018, reaching $66 billion in 2026[37] - Every 1% of Home Standby Generator (HSB) penetration represents approximately $3 billion end market opportunity[52] - The company's Energy Technology sales are expected to grow to 21% of overall sales mix[90] - The company's Global C&I net sales are expected to grow from approximately $15 billion in 2023F to approximately $20 billion by 2026[90] HSB Market - The total US penetration rate of Home Standby Generators (HSB) is approximately 575% as of 2022[54]

Company Overview - Generac's LTM net sales reached $43 billion [12] - The company's LTM adjusted EBITDA was $811 million [12] - Residential product net sales accounted for 57% of the LTM product net sales mix [12] - Commercial & Industrial product net sales made up 32% of the LTM product net sales mix [12] Financial Performance and Guidance - The company anticipates a consolidated net sales increase between 0% and 7% for 2025 [111] - Adjusted EBITDA margins are projected to be between 170% and 190% in 2025 [112] - The company expects a 70% to 90% conversion of adjusted net income to free cash flow [114] Market and Growth Opportunities - The total US penetration rate of home standby generators is approximately 65% [58] - Texas, Florida, and California account for about 25% of the US addressable homes [58] - The company estimates the 2024 total addressable market for residential energy technology to be approximately $7 billion [64]

Financial Performance & Outlook - Generac's revenue CAGR from its 2010 IPO through 2024F is 15%[22] - The company anticipates consolidated revenue to increase between 3% to 7% in 2024[81] - Adjusted EBITDA margins are projected to be between 165% to 175% in 2024[81] - The company expects approximately 100% conversion of adjusted net income to free cash flow in 2024[81] Market Dynamics & Opportunities - Residential products accounted for 95% of LTM net sales, while international sales made up the remaining 5%[45] - Commercial & Industrial products accounted for 60% of LTM net sales domestically and 40% internationally[70] - Every 1% increase in Home Standby Generator (HSB) penetration represents approximately $35 billion in end market opportunity[52] - The residential energy technology served addressable market (SAM) is projected to grow from $45 billion in 2022 to $145 billion in 2026[57] Capital Allocation - The company has approximately $500 million remaining on its current share repurchase authorization[93] - The company targets a gross debt leverage ratio of 1-2x[89]

Generac Overview and Growth - Generac's purpose is to lead the evolution to more resilient, efficient, and sustainable energy solutions[2, 51] - The company has shown a track record of growth with a 15% revenue CAGR from its 2010 IPO through 2024F[33] - In 2024, Generac estimates net sales of $2.1 billion from residential products, $1.4 billion from C&I products, and $0.5 billion from other products[18] Financial Performance and Outlook - The company's 2024F guidance includes consolidated revenue increasing between 4% to 8%, with residential products increasing at a mid-teens rate and C&I products decreasing at a mid-to-high single-digit rate[107] - Generac anticipates adjusted EBITDA margins between 17% and 18% in 2024F[102] - The company expects free cash flow to be well above 100% conversion of adjusted net income in 2024F[104] Market Opportunities and Strategies - The US HSB (Home Standby) penetration rate is at 6.25% as of 2023, with every 1% of US penetration representing ~$3.5 billion end market opportunity[62, 63] - The company is building a home energy ecosystem to prioritize energy resilience and independence, deliver savings by optimizing for energy efficiency, and balance comfort and conservation[57] - Generac is developing optimized solutions for C&I energy evolution, including multi-asset connected microgrids[90, 96]

Financial Performance - LTM Net Sales reached $4.1 billion[14] - LTM Adjusted EBITDA was $736 million[14] - The company anticipates free cash flow of approximately $500 million in 2024[121] - Q3 2024 Net Sales were $1,173.6 million, a 9.6% increase year-over-year[147] - Q3 2024 Adjusted EBITDA was $231.9 million, a 22.9% increase year-over-year[147] Revenue Mix - Residential product net sales accounted for 55% of the total, amounting to $2.3 billion[14, 19] - Commercial & Industrial product net sales represented 34% of the total, amounting to $1.4 billion[14, 19] - Other product net sales made up 11% of the total, amounting to $0.5 billion[14, 19] - Domestic net sales accounted for 83% of the total, while international net sales accounted for 17%[14] Market Opportunity - The U S home standby generator penetration rate is approximately 6 25%[63] - The company estimates that every 1% increase in penetration represents a $3 5 billion opportunity[63] - US Average Electricity Prices have increased +33% since 2020[72]

Financial Performance & Guidance - Generac's revenue CAGR was 15% from the 2010 IPO through 2024F[21] - The company anticipates consolidated net sales to increase between 3% and 7% in 2024[90] - Residential product sales are expected to increase at a mid-teens rate, while C&I products are projected to decrease approximately 10% in 2024[90] - Adjusted EBITDA margins are projected to be between 16.5% and 17.5% for 2024[86] - The company expects approximately 100% conversion of adjusted net income to free cash flow in 2024[88] - In Q4 2023, Net Sales were $1063.7 million, representing a 1.4% year-over-year increase, and full year 2023 Net Sales reached $4022.7 million, a decrease of 11.9%[108] Market Opportunity & Strategy - Generac projects an approximately 5X expansion of its Served Addressable Market (SAM) from $14 billion in 2018 to $66 billion in 2026[40] - The company's strategy evolution unlocks a massive and growing SAM[40] - The Global Residential SAM is projected to increase from $22.4 billion in 2022 to $36.6 billion in 2026[46] - The Global C&I SAM is projected to increase from $16 billion in 2022 to $29.8 billion in 2026[73]