Generac Shares Surge Despite Fourth-Quarter Earnings Miss

Core Viewpoint - Generac Holdings Inc. reported fourth-quarter earnings that fell short of analyst expectations due to reduced power outage activity impacting residential generator demand, although shares rose over 17% intra-day following a positive outlook [1] Financial Performance - Adjusted earnings for the quarter were $1.61 per share, missing the analyst consensus of $1.77 [1] - Revenue declined 12% year over year to $1.09 billion, below expectations of $1.16 billion [1] - For full-year 2025, net sales were reported at $4.21 billion, down 2% from $4.30 billion in 2024 [4] Segment Performance - Residential product sales, the largest segment, dropped 23% to $572 million from $743 million in the prior-year period, attributed to continued weakness in power outage activity [2] - Commercial and Industrial (C&I) product sales increased 10% to $400 million, driven by stronger demand from data center customers [3] Future Outlook - Generac initiated fiscal 2026 guidance, projecting net sales growth in the mid-teens percentage range compared to 2025 [3] - The company expects adjusted EBITDA margins of approximately 18.0% to 19.0% [3] Shareholder Actions - The board approved a new $500 million share repurchase authorization to be executed over the next 24 months, replacing the remaining balance of its prior program [4]