Generac Surpasses Q3 Estimates, Raises Full-Year Guidance Amid Increasing Power Outages

WAUKESHA, Wis. - Generac Holdings Inc. (NYSE:GNRC) reported third-quarter earnings that exceeded analyst expectations due to increased demand for residential products resulting from heightened power outage activity. The company also raised its full-year 2024 guidance.
Shares rose 2% in pre-market trading on Thursday.
The power equipment manufacturer reported adjusted earnings per share of $2.25, surpassing the analyst consensus of $1.95. Revenue for the quarter came in at $1.17 billion, slightly above expectations of $1.16 billion and representing a 10% increase compared to the same period last year.
Sales of residential products, the main driver of growth, rose by 28% to $723 million, compared to $565 million in the same quarter last year. However, Commercial and Industrial (C&I) product sales fell 15% to $328 million.
Generac CEO Aaron Jagdfeld attributed the strong performance to "high levels of power outage activity," which he stated "have increased shipments of our residential products." He noted that the U.S. has experienced the highest power outage hours in the first nine months of the year since it began tracking outage data in 2010.
The company raised its full-year 2024 net sales growth guidance from the previous range of 4-8% to 5-9%. It also increased its adjusted EBITDA margin forecast from the prior range of 17-18% to 17.5-18.5%.
During the quarter, Generac repurchased 690,711 shares of common stock for approximately $102 million. The company reported strong cash flow generation, with cash flow from operations totaling $212 million compared to $140 million in the previous year.