Generac Holdings Inc
NYSE:GNRC

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Generac Holdings Inc
NYSE:GNRC
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Price: 164.32 USD 0.66% Market Closed
Market Cap: 9.6B USD

Generac Holdings Inc
Investor Relations

Generac Holdings Inc. stands as a dominant figure in the world of power generation, having carved out a reputation as a leading designer and manufacturer of backup power systems. Founded in 1959, Generac started its journey by capitalizing on the growing need for reliable power solutions. Its initial focus on backup generators for residential markets eventually expanded to include commercial, industrial, and portable products. As a company, Generac is synonymous with reliability, ensuring that homes, businesses, and even entire regions remain powered during outages caused by natural disasters or grid failures. The company's product line-up is extensive, ranging from small portable generators that can power a few essential appliances to large stationary units capable of keeping entire facilities operational.

The profitability of Generac is primarily driven by its innovative product offerings and its strategic ability to tap into emerging markets and trends. The increasing frequency of severe weather events and an aging power infrastructure have heightened the demand for backup power solutions in recent years. Generac has responded by continually expanding its product range to include scalable systems for various needs, emphasizing eco-friendly solutions such as solar power storage. The company not only generates revenue through sales of its generators, but it also benefits from post-sale services and maintenance contracts, ensuring long-term customer engagement. By leveraging a robust distribution network and a commitment to innovation, Generac has positioned itself as a critical player in the global power equipment industry.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 29, 2025
AI Summary
Q3 2025

Revenue Decline: Net sales fell 5% year-over-year to $1.11 billion, with residential sales down 13% due to historically low power outages.

Guidance Lowered: Full-year 2025 revenue is now expected to be flat versus last year, down from prior guidance of 2–5% growth; gross margin and EBITDA margin guidance also reduced.

Data Center Momentum: Backlog for large megawatt generators doubled to $300 million in 90 days, with most scheduled to ship in 2026 and capacity expansion planned.

C&I Strength: Commercial & Industrial sales rose 9%, led by strong performance in telecom and international markets, offsetting weaker residential demand.

Margin Pressure: Gross margin decreased to 38.3% (from 40.2%) and EBITDA margin guidance cut to 17% for 2025 due to unfavorable sales mix and lower residential volumes.

Residential Outlook: Home standby and portable generator demand is expected to rebound in 2026 if outages normalize; dealer network continues to expand.

Energy Tech Transition: Strong energy storage and ecobee sales, but Puerto Rico grant program ending and US solar/storage market expected to decline in 2026 as incentives roll off.

CapEx & Investment: Capital expenditures increased to support data center generator growth, with further investment and possible M&A under consideration.

Key Financials
Net Sales
$1.11 billion
Residential Product Sales
$627 million
Commercial & Industrial Product Sales
$358 million
Gross Margin
38.3%
Adjusted EBITDA
$193 million
Adjusted EBITDA Margin
17.3%
Net Income
$66 million
Diluted EPS
$1.12
Adjusted Net Income
$108 million
Adjusted EPS
$1.83
Cash Flow from Operations
$118 million
Free Cash Flow
$96 million
Total Debt Outstanding
$1.4 billion
Gross Debt Leverage Ratio
1.8x
Home Standby Dealer Count
nearly 9,400
ecobee Connected Homes
4.75 million
Full-Year 2025 Guidance: Net Sales
approximately flat versus prior year
Full-Year 2025 Guidance: Residential Product Sales
mid-single-digit percent decline
Full-Year 2025 Guidance: C&I Product Sales
mid-single-digit percent growth
Full-Year 2025 Guidance: Gross Margin
flat to slightly down vs 2024; nearly 1% decrease from prior expectation of ~39.5%
Full-Year 2025 Guidance: Adjusted EBITDA Margin
approximately 17%
Full-Year 2025 Guidance: Free Cash Flow Conversion
approximately 80% of adjusted net income (~$300 million)
Full-Year 2025 Guidance: GAAP Effective Tax Rate
20% to 20.5%
Q3 2025 Effective Tax Rate
15%
Q4 2025 Guidance: Effective Tax Rate
approximately 25%
Full-Year 2025 Guidance: Interest Expense
$70 million to $74 million
Full-Year 2025 Guidance: Capital Expenditures
3.5% of forecasted net sales
Full-Year 2025 Guidance: Weighted Average Diluted Share Count
59.4 million to 59.5 million
Earnings Call Recording
Other Earnings Calls

Management

Mr. Aaron P. Jagdfeld
Chairman, President & CEO
No Bio Available
Mr. York A. Ragen
Chief Financial Officer
No Bio Available
Mr. Erik Wilde
Executive Vice President of Industrial Americas
No Bio Available
Mr. Kyle Andrew Raabe
President of Consumer Power
No Bio Available
Mr. Norman P. Taffe
President of Energy Technology
No Bio Available
Mr. Talal Butt
Chief Information Officer
No Bio Available
Kris Rosemann
Senior Manager - Corporate Development & Investor Relations
No Bio Available
Mr. Rajendra Kumar Kanuru J.D.
Executive VP, General Counsel & Secretary
No Bio Available
Ms. Amanda Teder
Executive Vice President of Marketing
No Bio Available
Ms. Rhonda Matschke
Executive Vice President of Human Resources
No Bio Available

Contacts

Address
WISCONSIN
Waukesha
S45 W29290 Highway 59
Contacts