Generac (US:GNRC) Globenewswire·2025-10-29 10:00Core Insights - Generac Holdings Inc. reported a decrease in net sales by 5% to $1.11 billion for Q3 2025, compared to $1.17 billion in Q3 2024, primarily due to lower demand for home standby and portable generators amid a significantly reduced power outage environment [5][12][30] - The company experienced a gross profit margin decline to 38.3% from 40.2% year-over-year, attributed to an unfavorable sales mix, higher tariffs, and lower manufacturing absorption, although partially offset by increased price realization [4][5] - Adjusted net income for Q3 2025 was $108 million, or $1.83 per share, down from $136 million, or $2.25 per share, in the same period last year [5][30] Financial Performance - Operating expenses rose by $20.2 million, or 6.7%, compared to Q3 2024, due to legal and regulatory charges [5] - Net income attributable to the company was $66 million, or $1.12 per share, compared to $114 million, or $1.89 per share, in Q3 2024 [5][30] - Adjusted EBITDA for the quarter was $193 million, representing 17.3% of net sales, down from $232 million, or 19.8% of net sales, in the prior year [5][30] Segment Performance - Domestic segment sales decreased approximately 8% to $938.1 million, driven by weaker home standby and portable generator sales, partially offset by growth in residential energy technology and C&I product sales [8][9] - International segment sales increased approximately 11% to $185.5 million, supported by strong C&I product shipments to European markets and initial shipments of large-megawatt generators to data center customers [10][11] Outlook - The company has revised its full-year 2025 net sales guidance to be approximately flat compared to the previous year, down from an earlier forecast of a 2% to 5% increase [12][13] - Adjusted EBITDA margin is now expected to be around 17.0%, lower than the previous guidance of 18.0% to 19.0% [13]