Key Takeaways For 2025, GNRC now expects revenues to increase 2-5% compared with the 0-7% rise guided earlier. Net income margin (before deducting for non-controlling interests) is now expected to be in the range of 7.5-8.5% compared with the 6.5-8.5% guided earlier. Adjusted EBITDA margin is estimated to be between 18% and 19% (previous projection being 17-19%). Due to the enactment of the One Big Beautiful Bill Act on federal income tax payments, GNRC now expects free cash flow conversion from adjusted ne ...

Key Takeaways Generac Holdings Inc. (GNRC) will report second-quarter 2025 results on July 30, before market open. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.02 billion, up 2.6% from the prior- year reported number. GNRC expects second-quarter net sales growth in the low single-digit range. The consensus estimate for earnings is pinned at $1.33 per share, down 1.5% year over year. The estimate has moved down 2 cents in the past seven days. GNRC beat the Zacks Consensus Estimate ...

Core Insights - Generac Holdings Inc (GNRC) reported first-quarter 2025 adjusted earnings per share (EPS) of $1.26, exceeding the Zacks Consensus Estimate of 99 cents and up from 88 cents in the prior-year quarter [1] - Net sales reached $942 million, a 6% increase from $889 million in the prior-year quarter, also surpassing the consensus estimate of $918.7 million [2] Financial Performance - The increase in Residential product sales was a key driver, compensating for weaker Commercial & Industrial (C&I) product sales, with higher demand for home standby generators amid rising power outages [2] - Management revised its 2025 revenue expectations to a growth range of 0-7%, down from the previous guidance of 3-7%, with net income margin expectations adjusted to 6.5-8.5% from 8-9% [3][4] - Gross profit rose to $372 million from $316.4 million year-over-year, with gross profit margins improving to 39.5% from 35.6% [10] Segment Analysis - Domestic revenues increased by 9% year-over-year to $782.3 million, aided by acquisitions contributing a 2% increase, while core sales rose by 7% [5] - International revenues decreased by 0.6% year-over-year to $185.5 million, impacted by a 5% unfavorable effect from foreign currency fluctuations [6] - Residential product revenues surged by 15% year-over-year to $494 million, while C&I revenues fell by 5% to $337 million [7] Cash Flow and Liquidity - In the first quarter, GNRC generated $58 million in net cash from operating activities, with free cash flow totaling $27 million [12] - As of March 31, 2025, GNRC had $187.5 million in cash and cash equivalents, alongside nearly $1.19 billion in long-term borrowings [12] Share Buyback Program - GNRC approved a new share buyback authorization of up to $500 million over the next 24 months, replacing the remaining balance of the previous program [13]

Core Viewpoint - Generac Holdings Inc. is set to report its first-quarter 2025 results on April 30, with expectations of revenue growth driven by strong residential product sales, despite challenges in the commercial and industrial (C&I) segment [1][3][4]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for first-quarter revenues is $918.7 million, reflecting a 3.3% increase year-over-year, while earnings are estimated at 99 cents per share, up 12.5% year-over-year [1]. - Generac has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average earnings surprise of 14.2% [2]. - The company's shares have declined 17.8% over the past year, compared to a 9.3% loss in the Zacks Manufacturing-General Industrial industry [2]. Group 2: Key Factors Influencing Performance - The residential segment, particularly home standby generators, is expected to be a significant growth driver, with a 28% year-over-year increase in residential product sales in Q4 2024, reaching $743 million [3]. - Demand for Generac's products has been bolstered by extreme weather events leading to power outages, with 2024 recording the highest number of outage hours since 2010 [4]. - The first quarter typically sees less impact from hurricanes, but unexpected severe weather could positively influence sales [4]. Group 3: Product Developments and Market Position - Generac's expansion into the data center market with new high-capacity generators (2.25 MW to 3.25 MW) is aimed at meeting rising electricity needs and enhancing reliability [11]. - The ecobee smart thermostat line is gaining traction, with the launch of the Smart Thermostat Essential expected to contribute to top-line growth [12]. - The introduction of the 28kW home standby generator model enhances Generac's product offerings, providing a comprehensive home energy solution [13]. Group 4: Segment Performance Insights - The Zacks Consensus Estimate for residential products' revenues is $483.5 million, while C&I products' revenues are estimated at $324.6 million [8]. - There is concern over prolonged weakness in C&I revenues, with expectations of flat year-over-year sales and a high single-digit decline in the first quarter [7].