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]