Financial Data and Key Metrics Changes - Overall net sales decreased 5% year-over-year to $1.11 billion from $1.17 billion [4][24] - Residential net sales declined 13% to $627 million compared to $723 million in the prior year [24] - Commercial and industrial (C&I) product sales increased 9% to $358 million from $328 million in the prior year [25] - Gross profit margin was 38.3%, down from 40.2% in the prior year [26] - Adjusted EBITDA was $193 million, representing 17.3% of net sales, compared to $232 million or 19.8% in the prior year [27] - GAAP net income was $66 million, down from $114 million in the prior year [28] - Diluted net income per share was $1.12, compared to $1.89 in the prior year [31] Business Line Data and Key Metrics Changes - Home standby and portable generator shipments grew sequentially but were below seasonal expectations due to a low power outage environment [4][5] - Global C&I product sales increased 9%, driven by domestic telecom and industrial distributor channels [4] - Sales of residential energy technology solutions grew significantly, led by energy storage systems in Puerto Rico [12] Market Data and Key Metrics Changes - International sales increased 11%, benefiting from strong C&I product shipments in Europe and initial shipments to data center customers in Australia [17] - The backlog for large megawatt generators doubled to over $300 million in the last 90 days, indicating strong demand in the data center market [5][18] Company Strategy and Development Direction - The company is focused on leveraging new products and marketing capabilities to drive market share gains and significant sales growth [14] - Plans to recalibrate investment levels in response to a contracting market environment expected in 2026 due to reduced federal incentives [14] - The company aims to expand capacity and capabilities for C&I products, particularly in the data center market, with expectations of doubling C&I product sales over the next three to five years [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the low outage environment has negatively impacted demand for home standby and portable generators, but structural trends indicate ongoing challenges with power reliability [21][22] - The company anticipates a contraction in the solar and storage market in 2026 but remains optimistic about long-term growth due to rising electricity prices and declining component costs [14][59] - Management expressed confidence in the data center market's growth potential, with significant backlog and ongoing discussions with hyperscalers [19][46] Other Important Information - The company expects consolidated net sales for the full year 2025 to be approximately flat compared to the prior year, with a shift in sales mix impacting gross and adjusted EBITDA margins [32][33] - Free cash flow is projected to be approximately $300 million for fiscal 2025, providing flexibility for future investments [35] Q&A Session Summary Question: What have you learned about the data center market opportunity? - The company sees a unique opportunity in the data center market due to supply constraints and ongoing demand for backup power solutions [44][45] - Conversations with hyperscalers are productive, and the company is optimistic about becoming an approved supplier [46] Question: How should we think about 2026 with the current moving parts? - Management indicated that the weak outage environment is temporary and expects a return to growth in residential products if outages normalize [53][55] - The company anticipates a contraction in the solar and storage market but remains confident in long-term growth potential [59][60] Question: What are the biggest challenges in adding capacity quickly? - The company is confident in its ability to bring new products online and has made significant upgrades to its facilities to support this [87] - Supply chain constraints are not expected to be a major issue, as the engine partner has ample capacity [88]

Core Viewpoint - Power equipment maker Generac has lowered its full-year net sales growth forecast due to weaker demand for home standby and portable generators, attributed to a decline in power outages, resulting in a 9% drop in shares [1] Company Summary - Generac has revised its net sales growth forecast downward, indicating challenges in the market for home standby and portable generators [1] - The decline in power outages has significantly impacted demand for Generac's products, leading to the forecast adjustment [1] Industry Summary - The overall market for power equipment, particularly in the home standby and portable generator segment, is experiencing reduced demand due to fewer power outages [1]

WAUKESHA, Wisc., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Generac Holdings Inc. (NYSE: GNRC) (“Generac” or the “Company”), a leading global designer and manufacturer of energy technology solutions and other power products, today reported financial results for its third quarter ended September 30, 2025 and provided an update on its outlook for the full-year 2025. Third Quarter 2025 Highlights Net sales decreased 5% to $1.11 billion during the third quarter of 2025 as compared to $1.17 billion in the prior-year thir ...