Core Insights - Generac Holdings Inc. (GNRC) is set to report its third-quarter 2025 results on October 29, with revenue expectations of $1.2 billion, reflecting a 2.6% increase year-over-year [1] - The consensus estimate for earnings is $2.25 per share, remaining flat compared to the previous year, although it has decreased by 2 cents in the past week [1] Financial Performance - GNRC has consistently exceeded the Zacks Consensus Estimate for earnings in the last four quarters, achieving an average surprise of 19.24% [2] - Over the past year, GNRC shares have increased by 15.8%, outperforming the Zacks Manufacturing-General Industrial industry's growth of 5.9% [3] Factors Influencing Q3 Results - Strong demand for portable generators and increased shipments of residential-energy technology products are expected to enhance the Residential segment's performance [4] - The number of connected ecobee homes has surpassed 4.5 million, driven by rising energy services and subscription rates [4] - New product launches, including PWRcell 2 MAX and next-generation home standby generators, along with investments in manufacturing capacity, are anticipated to be growth catalysts [5] Segment Performance - Residential Product sales are projected to be slightly lower than previous guidance due to revised pricing assumptions and subdued installation activity [9] - The consensus estimate for Residential products' revenues is $714 million [9] - Commercial & Industrial (C&I) sales are expected to grow, with a 5% increase noted in the second quarter, supported by domestic industrial distributors and telecom spending [10] - The consensus estimate for C&I products' revenues is $353 million [10] New Developments - Generac's entry into large megawatt backup generator solutions for hyperscale and AI-driven data centers is a significant development, with a global backlog exceeding $150 million [11] - The company anticipates a sequential increase in EBITDA margins by 150-200 basis points due to higher seasonal sales volumes [12] Market Conditions - Despite positive trends, there are concerns regarding soft shipments to rental equipment customers and ongoing macroeconomic challenges, including tariff issues and rising operating costs [12] - Current earnings expectations indicate a negative Earnings ESP of -6.79% and a Zacks Rank of 4 (Sell), suggesting a lower likelihood of an earnings beat this quarter [13]

Core Insights - Generac Holdings Inc. (GNRC) is set to report its second-quarter 2025 results on July 30, with expected revenues of $1.02 billion, reflecting a 2.6% increase year over year. The consensus estimate for earnings is $1.33 per share, down 1.5% from the previous year [1][7]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for second-quarter revenues is $1.02 billion, which is a 2.6% increase from the prior year's reported figure [1]. - The consensus estimate for earnings per share is $1.33, indicating a 1.5% decline year over year, with a recent downward adjustment of 2 cents in the past week [1][2]. Recent Performance - GNRC has consistently exceeded the Zacks Consensus Estimate in the last four quarters, achieving an average earnings surprise of 15.45%. Over the past year, GNRC shares have increased by 1%, while the Zacks Manufacturing-General Industrial industry has grown by 6.9% [2]. Factors Influencing Q2 Performance - The Residential segment, particularly home standby generators, is expected to be a significant growth driver, with Residential product sales increasing by 15% year over year to $494 million in Q1 2025, driven by rising power outages and demand for reliable backup power solutions [3]. - The adoption of residential-energy technology products, including ecobee and Energy Storage systems, is anticipated to contribute positively to revenue growth. New product launches and investments in manufacturing capacity are also expected to support top-line momentum [4]. Margin Performance - Margin performance is likely to benefit from a favorable sales mix due to strong home standby shipments, improved production efficiencies, and reduced input costs [5]. - However, there are concerns regarding softness in Commercial & Industrial (C&I) sales, which saw a 5% year-over-year decline in Q1 2025, totaling $337 million. Management anticipates flat C&I sales year over year for Q2 [5][8]. Market Conditions - The company faces challenges from volatile macroeconomic conditions, including tariff issues, intense competition, and rising operating costs, particularly due to increased marketing expenditures. For Q2 2025, Residential product sales are expected to show modest growth, with estimates of $557 million, while C&I product revenues are projected at $343 million [9]. Earnings Prediction Model - Current models do not predict an earnings beat for Generac, as the company has an Earnings ESP of -0.19% and a Zacks Rank of 3 (Hold) [10].