Generac Reports Fourth Quarter and Full-Year 2024 Results

Core Insights - Generac Holdings Inc. reported record fourth quarter net sales of $1.23 billion, a 16% increase from$ 1.06 billion in the same quarter of the previous year, driven by strong demand for residential products [4][5] - The company achieved an all-time record free cash flow of $286 million in the fourth quarter, up from$ 266 million in the prior year [4][9] - For the full year 2024, net sales increased by 7% to $4.30 billion compared to$ 4.02 billion in 2023, with residential product sales rising 18% [4][5] Fourth Quarter 2024 Highlights - Residential product sales surged 28% to $743 million, while Commercial & Industrial (C&I) product sales remained flat at$ 363 million [4] - Net income attributable to the company was $117 million, or$ 2.15 per share, compared to $97 million, or$ 1.57 per share, in the same period of 2023 [4] - Adjusted EBITDA reached a record $265 million, representing 21.5% of net sales, compared to$ 213 million, or 20.0% of net sales, in the prior year [4][6] Full-Year 2024 Highlights - The company reported a net income of $316 million, or$ 5.39 per share, compared to $215 million, or$ 3.27 per share, in 2023 [4] - Adjusted net income for 2024 was $438 million, or$ 7.27 per share, up from $335 million, or$ 5.40 per share, in 2023 [4] - Cash flow from operations for the year was a record $741 million, compared to$ 522 million in the previous year [4] Business Segment Results - Domestic segment sales increased 20% to $1.07 billion, driven by significant growth in home standby and portable generators [10] - Adjusted EBITDA for the domestic segment was a record$ 242.8 million, or 22.7% of total sales, compared to $192.2 million, or 21.6% of total sales, in the prior year [11] - International segment sales decreased 1% to$ 187.5 million, impacted by foreign currency fluctuations, with core growth driven by Latin America [12][13] 2025 Outlook - The company anticipates net sales growth of approximately 3% to 7% for 2025, primarily from residential product sales [15] - Adjusted EBITDA margin is expected to be around 18.0% to 19.0% for the full year [16] - The company aims to maintain strong operating and free cash flow, with free cash flow conversion from adjusted net income projected between 80% to 90% [16]