Generac (US:GNRC)2025-06-24 09:54Company Overview and Strategy - Generac's purpose is to lead the evolution to more resilient, efficient, and sustainable energy solutions[1] - The company is focused on building energy ecosystems by aggregating Distributed Energy Resources (DERs) to support the next-generation grid, emphasizing decarbonization, digitalization, and decentralization[35, 36] - The company's strategy evolution unlocks a massive and growing Served Addressable Market (SAM), projected to expand approximately 5X since 2018, reaching $72 billion in 2025[33, 34] Market Trends and Opportunities - There's a growing electricity supply/demand imbalance due to deteriorating supply reliability and rapidly increasing demand, driven by factors like climate change and electrification[24, 26, 27] - The home standby (HSB) penetration opportunity is significant, with the three largest markets (CA, TX, & FL) representing approximately 25% of addressable households but are significantly underpenetrated at approximately 3.5%[40] - Telecom infrastructure is shifting to the next generation, with 5G rollout requiring improved network quality and backup power solutions, presenting a global opportunity[22, 93] Financial Performance and Outlook - The company's LTM (Last Twelve Months) net sales through Q3 2022 were $45826 million, with domestic sales accounting for 85% and international sales for 15%[9, 13, 102] - The LTM adjusted EBITDA was $8720 million, representing a 190% margin[57, 102] - The company anticipates consolidated net sales to increase between 22% to 24% in 2023[64]