Key Points Demand for power generation equipment and ongoing infrastructure spending support the buy case. The company faces notable cost increases due to tariff actions and is struggling with pricing. Caterpillar remains a cyclical stock, and the stock's valuation must be considered within that context. 10 stocks we like better than Caterpillar › Caterpillar (NYSE: CAT) stock has been on a strong run recently, up almost 32% year to date. The move reflects solid underlying demand, optimism over lo ...

Industrial stocks have quietly become this year’s biggest winners, and most investors don’t even realize it. While everyone’s been talking about tech and artificial intelligence (AI), the companies that actually build the infrastructure for our economy have been crushing it. Fidelity’s industrial fund managers said this sector is the top performer of 2025 so far, and they don’t think the party’s over. Here’s why these stocks are surging and which ones Fidelity is betting on. Check Out: Self-Made Millionair ...

Financial Data and Key Metrics Changes - The company reported second quarter earnings per share of $1.67, a 17% increase year over year from $1.43 in 2024 [5] - Total Marine revenues increased by $7.8 million or 2% compared to 2024, and operating income increased by $4.2 million or 4% [13] - Distribution and Services segment revenues were $363 million with operating income of $35 million and operating margin of 9.8% [19] Business Line Data and Key Metrics Changes - Inland marine transportation saw barge utilization rates in the low to mid 90% range, with pricing gains and operating margins in the low 20% range [6][7] - Coastal marine transportation revenues increased 3% year over year and 14% sequentially, with operating margins in the high teens [17] - Power generation revenues increased 31% year over year, driven by robust demand from data centers and industrial customers [9] Market Data and Key Metrics Changes - Spot market rates increased in the low single digits sequentially and in the mid single digits year over year [7] - Average coastal barge utilization was in the mid to high 90% range, reflecting strong customer demand [8] - The oil and gas segment experienced a 27% year over year decline in revenues, although operating income increased significantly due to cost management [22] Company Strategy and Development Direction - The company aims to maintain capital discipline while pursuing long-term value creation through strategic investments and acquisitions [30] - There is a focus on adapting to macroeconomic conditions and maintaining strong operational performance despite challenges [28] - The company anticipates continued growth in inland marine revenues in the low to mid single digits for the full year [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has become more complex, with trade policy shifts introducing uncertainty [28] - Despite some demand softness, the company expects 15% to 25% year over year growth in earnings for 2025 [29] - The outlook for the power generation segment remains strong, with a growing backlog and increased orders [53] Other Important Information - The company expects to generate cash flow from operations of $620 million to $720 million for 2025 [25] - Capital expenditures are projected to range between $60 million and $290 million for the year, with some growth initiatives deferred to 2026 [26] - The company has a strong balance sheet with $68 million in cash and total debt of approximately $1.12 billion [23] Q&A Session Summary Question: Update on inland business demand and spot pricing - Management indicated that while the second quarter was strong, there are signs of demand pullback in July, particularly from chemical customers [40][41] Question: Clarification on growth guidance and margin impacts - Management stated that if demand remains muted, they may finish closer to the lower end of their guidance range, but there is potential for recovery [61][62] Question: Insights on power generation segment and backlog - Management confirmed that the power generation segment is seeing strong demand, with a backlog increase of 15% to 20% [52][105] Question: Discussion on capital allocation between M&A and stock buybacks - Management expressed a preference for stock buybacks in the absence of acquisitions, while remaining open to potential M&A opportunities [78][80] Question: Inquiry about the frac market and power generation quotes - Management noted that most power generation orders are now coming from data centers, with a significant increase in inquiries compared to previous periods [104][106]

Core Insights - Generac Holdings Inc. reported strong second-quarter results, with significant growth in both residential and commercial & industrial (C&I) product sales, leading to an increase in the full-year margin outlook range [1][3][14] Financial Performance - Net sales for the second quarter of 2025 increased by 6% to $1,061 million compared to $998 million in the prior year [5] - Gross profit margin improved to 39.3% from 37.6% in the previous year, driven by favorable pricing and lower input costs [4] - Net income attributable to the company rose to $74 million, or $1.25 per share, compared to $59 million, or $0.97 per share, in the same period of 2024 [5][34] Product Segment Performance - Residential product sales increased approximately 7% to $574 million, while C&I product sales rose about 5% to $362 million compared to the prior year [5][10] - The domestic segment total sales increased approximately 7% to $884.5 million, driven by strong growth in residential energy technology solutions and portable generators [10] - International segment total sales also saw a 7% increase to $197.2 million, primarily due to higher C&I product shipments in Europe [12] Operational Highlights - Adjusted EBITDA for the second quarter was $188 million, representing 17.7% of net sales, up from $165 million or 16.5% of net sales in the prior year [5][11] - Operating expenses increased by 12% to $305 million, primarily due to higher variable costs and increased employee costs [6] Guidance and Outlook - The company updated its full-year net sales growth guidance to 2% to 5%, narrowing from the previous range of 0% to 7% [14][15] - Adjusted EBITDA margin is now expected to be approximately 18.0% to 19.0%, an increase from the previous expectation of 17.0% to 19.0% [15][16] Shareholder Actions - The company repurchased 392,521 shares for approximately $50 million during the second quarter, with about $200 million remaining under the current repurchase program [5][8]

Company Overview - Generac Holdings Inc. is a leading global designer, manufacturer, and provider of energy technology solutions and power products, founded in 1959 [3] - The company specializes in power generation equipment, energy storage systems, and energy management devices, serving residential, light commercial, and industrial markets [3] - Generac aims to empower users to utilize energy on their own terms and is committed to leading the evolution towards more resilient, efficient, and sustainable energy solutions [3] Upcoming Financial Results - Generac plans to release its second quarter 2025 financial results before the market opens on July 30, 2025 [1] - A conference call will be held at 10:00 a.m. EDT on the same day to discuss the highlights of the earnings release [1] Webcast Information - A webcast of the conference call will be accessible via a provided link and will also be available on Generac's website under the Investor Relations section [2] - A replay of the webcast will be available on the company's website following the live event [2]

Core Insights - Generac Holdings achieved a record fundraising total of $94,000 for ToolBank Disaster Services through its "Power Up With Purpose" initiative in 2025 [1][4] - The funds will be utilized to purchase and equip a mobile disaster-response tool trailer for ToolBank, which aids communities affected by natural disasters [2] - The "Power Up with Purpose" initiative has raised a total of $233,078 since its inception in 2023, with different charities benefiting each year [3] Fundraising Details - Generac surpassed its initial fundraising goal of $50,000 within the first two weeks of Summerfest, which took place from June 19 to July 5 [4] - The initiative is supported through the sale of "Power Up with Purpose" pit passes at the Generac Power Stage during Summerfest [3] - This year's partnership with ToolBank is significant as it enhances Generac's role in disaster response, aiding communities in recovery from severe weather events [4] Company Background - Generac is a leading global designer, manufacturer, and provider of energy technology solutions, founded in 1959 [6] - The company specializes in power generation equipment, energy storage systems, and energy management solutions for residential, light commercial, and industrial markets [6] - Generac aims to lead the evolution towards more resilient, efficient, and sustainable energy solutions [6]

Company Overview - In 2024, Marine Transportation accounted for 59% of Kirby's revenues, totaling $1.913 billion[5] - Distribution and Services contributed 41% of the 2024 revenues, amounting to $1.353 billion[7] - As of March 31, 2025, Kirby's market capitalization stood at $5.889 billion, with net debt at $1.047 billion, resulting in an enterprise value of $6.936 billion[13] Marine Transportation - Kirby's inland share of the barge market is 28% as of March 31, 2025[48] - Petrochemicals and Chemicals account for 50% of Marine Transportation revenue, followed by Black Oil at 25%, Refined Petroleum Products at 22%, and Agricultural Chemicals at 3%[49] - The inland tank barge fleet has grown annually at approximately 2% over the last 20 years but has remained flat over the last 5 years[59] - In 2024, Kirby achieved 99.95% Safe Watches[40] Distribution & Services - Power Generation accounts for 34% of Distribution & Services segment revenues, while Commercial & Industrial contributes 52%, and Oil & Gas accounts for 14%[93, 95] - Power Generation is expected to be approximately 40% of the segment revenues in 2025[122] - Commercial and industrial is expected to be approximately 40-45% of the segment revenues in 2025[122] - Oil and gas is expected to be approximately 15-20% of the segment revenues in 2025[122] Financial Performance - In Q1 2025, Kirby's revenues were $785.7 million, a 3% decrease compared to $808.0 million in Q1 2024[113] - Q1 2025 earnings per share were $1.33, a 12% increase compared to $1.19 in Q1 2024[113]

Business Overview - Generac's LTM sales as of 12/31/14 were $1.461 billion[13] - The company holds approximately 75% share of the domestic HSB market[16] - The home standby generator market has a low penetration rate of approximately 3.5%[16,67] Growth & Strategy - The company experienced approximately 12% organic revenue CAGR from 2004 to 2014[17,67] - Every 1% increase in home standby penetration represents approximately $2 billion of market opportunity[31,67] - The company anticipates approximately flat organic sales growth in 2015, despite headwinds from oil & gas, telecom, and foreign currency[64] - Acquisition growth is expected to add approximately 3% to growth[64] Financial Performance & Outlook - The company's 2015 adjusted EBITDA margins are expected to range from 23.5% to 24.0%[63] - The cash tax rate for full-year 2015 is anticipated to be approximately 18% of pretax income[65] - The company has favorable tax attributes worth an estimated $3.50 to $4.25 per share in present value tax savings[67,71]

Company Overview - Generac's 2015 sales reached $1.317 billion[8] - The company has achieved approximately 7% organic revenue CAGR from 2005 to 2015[9] - The company has approximately 3,200 employees as of December 31, 2015[8] Growth Strategies & Market Opportunities - Every 1% increase in North American home standby generator penetration represents approximately $2 billion of market opportunity[18] - The annual market for Engine Powered Tools (EPT) is estimated to be between $1.1 billion and $1.4 billion[24] - The global market for C&I stationary products is estimated to be over $16 billion, with the domestic market at approximately $3 billion[30] - The overall rental industry is projected to grow at approximately 6% CAGR from 2015-2019[41] Financial Performance & Outlook - The company anticipates a cash tax rate for full-year 2016 to be approximately 10% of pretax income[64] - The company expects cash taxes going forward to be approximately 36% tax rate on pre-tax profits less approximately $50 million annual tax shield[64] - The company's tax attributes and 338(h)10 election overview results in present value tax savings of approximately $200-$250 million, or $300-$375 per share[77]

Core Insights - Generac Holdings Inc. has announced the promotion of Jim Barnes to Executive Vice President – Global Supply Chain, following the planned retirement of Roger Pascavis on June 27, 2025 [1][2] - Roger Pascavis has had a 30-year career with Generac, playing a crucial role in shaping the company's global sourcing strategy and supplier relationships [2][3] - Jim Barnes joined Generac in 2022 and brings over 20 years of experience in electronics and global supply chain strategy, and will also lead Strategic Global Sourcing and Controls & Automation efforts [3][4] Company Overview - Generac Holdings, Inc. is a total energy solutions company founded in 1959, specializing in energy technology solutions, power generation equipment, energy storage systems, and energy management devices [5] - The company aims to empower users to manage energy on their own terms and has been a pioneer in the backup generator market [5]