Generac (US:GNRC) ZACKS·2026-02-11 17:06Core Insights - Generac Holdings Inc. (GNRC) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.61, missing the Zacks Consensus Estimate of $1.81, and down from $2.80 in the prior-year quarter [1] - Net sales were $1.09 billion, a 12% decline from $1.23 billion in the prior-year quarter, also missing the consensus estimate of $1.17 billion [1] Demand and Sales Performance - Weaker demand for home standby and portable generators amid a softer outage environment offset increases in sales to data center customers and higher shipments of residential energy technology products [2] - Domestic revenues fell 17% year over year to $889 million, impacted by lower home standby and portable generator sales [9] - International revenues increased 12% year over year to $209.2 million, aided by a 6% favorable impact from foreign currency fluctuations [9] Product Segment Analysis - Revenues from Residential products decreased 23% year over year to $572 million, while C&I revenues totaled $400 million, up 10% year over year [10] - Revenues from the Other product class totaled $120.1 million, down 6.2% year over year [10] Margin and Operating Performance - Gross profit was $396.1 million, down from $501.4 million in the prior-year quarter, with respective margins of 36.3% and 40.6% [11] - Total operating expenses rose 34% year over year to $405.4 million, driven by a provision for the settlement of a legal matter [11] - The operating loss was $9.3 million compared to an operating income of $198 million in the prior-year quarter [12] Future Outlook - For 2026, GNRC expects revenues to grow in the mid-teens percent range, with C&I product sales anticipated to grow in the 30% range due to data center momentum and the Allmand acquisition [4] - Residential product sales are expected to increase in the 10% range for 2026, assuming a return to power outage activity [5] Cash Flow and Share Repurchase - In the fourth quarter, GNRC generated $189 million of net cash from operating activities, with free cash flow totaling $130 million [13] - The company repurchased 1.1 million shares for $148 million in 2025 and announced a new share repurchase authorization of up to $500 million over the next 24 months [14]