Generac (GNRC) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net sales increased 16% to $1.23 billion compared to $1.06 billion in the prior-year quarter[4] - Full-year 2024 net sales increased 7% to $4.30 billion, with core sales growing approximately 6%[4] - Net sales for Q4 2024 reached $1,234,801, a 16.1% increase from $1,063,670 in Q4 2023[33] - Total net sales for the year ended December 31, 2024, reached $4,295,834, an increase of 6.8% compared to $4,022,667 in 2023[38] - Domestic net sales for the year ended December 31, 2024, were $3,635,081, up from $3,320,261 in 2023, reflecting a growth of 9.5%[38] - International net sales for the year ended December 31, 2024, decreased to $725,385 from $837,895 in 2023, a decline of 13.4%[38] Profitability Metrics - Adjusted EBITDA reached a record $265 million, representing 21.5% of net sales, up from 20.0% in the prior year[4] - Adjusted EBITDA for the year ended December 31, 2024, was $789,101, compared to $637,859 in 2023, representing an increase of 23.6%[40] - Operating income for the year increased to $536,742, representing a 39.0% rise compared to $386,199 in 2023[33] - Net income attributable to Generac Holdings Inc. for the year was $316,315, a 47.4% increase from $214,606 in 2023[33] Cash Flow and Assets - Cash flow from operations reached a record $741 million for the full year, compared to $522 million in the prior year[4] - Free cash flow for the year ended December 31, 2024, was $741,301, compared to $521,670 in 2023[35] - Free cash flow for the year ended December 31, 2024, was $604,568, compared to $395,904 in 2023, an increase of 52.7%[45] - Total current assets increased to $2,032,170 as of December 31, 2024, from $1,997,692 in 2023[31] - Cash and cash equivalents at the end of the period were $281,277, up from $200,994 in 2023[35] Sales Breakdown - Residential product sales rose 28% to $743 million, while Commercial & Industrial product sales were approximately flat at $363 million[4] - Residential products sales for the three months ended December 31, 2024, were $743,336, up from $580,391 in 2023, a growth of 28.1%[38] - Commercial & industrial products sales for the three months ended December 31, 2024, were $363,376, slightly up from $362,923 in 2023[38] Expenses and Liabilities - Research and development expenses for the year were $219,600, an increase of 26.7% from $173,443 in 2023[33] - Total liabilities decreased to $2,611,888 in 2024, down from $2,743,693 in 2023[31] Shareholder Actions - The company repurchased approximately 1.05 million shares for $153 million during 2024, with $347 million remaining under the current repurchase program[4] Legal and Regulatory Matters - The company incurred $5.4 million in legal expenses related to patent lawsuits in the fourth quarter of 2024[46] - The company reported a provision of $5.8 million for civil fines related to a matter with the Consumer Product Safety Commission for the full year 2023[46]