In This Article:
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Net Sales: Increased 6% year-over-year to $942 million.
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Residential Product Sales: Increased 15% to $494 million.
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Commercial and Industrial Product Sales: Declined 5% to $337 million.
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Gross Margin: Expanded nearly 400 basis points to 39.5%.
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Adjusted EBITDA Margin: Increased to nearly 16%.
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GAAP Net Income: $44 million, up from $26 million in the prior year.
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Diluted Net Income Per Share (GAAP): $0.73, compared to $0.39 in the prior year.
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Adjusted Net Income: $75 million or $1.26 per share.
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Cash Flow from Operations: $58 million, down from $112 million in the prior year.
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Free Cash Flow: $27 million, compared to $85 million in the prior year.
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Total Debt Outstanding: $1.3 billion.
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Residential Dealers: Over 9,200, an increase of more than 400 from the prior year.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Generac Holdings Inc (NYSE:GNRC) exceeded expectations in Q1 2025, driven by strong shipments of home standby generators and residential energy technology sales.
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Residential product sales increased by 15% year-over-year, supported by strong demand for home standby generators and energy technology solutions.
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Gross margins expanded by nearly 400 basis points to 39.5%, marking the highest first-quarter gross margin level since 2021.
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The company is on track to launch its next-generation home standby generator lineup in the second half of 2025, offering improved features and efficiencies.
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Generac Holdings Inc (NYSE:GNRC) continues to expand its residential dealer network, adding over 400 dealers year-over-year, enhancing sales, installation, and service capacity.
Negative Points
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Commercial and industrial (CNI) product sales declined by 5% year-over-year, with softness in domestic rental and certain international markets.
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The company faces potential cost increases of approximately $125 million in the second half of 2025 due to tariffs, impacting product costs.
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Generac Holdings Inc (NYSE:GNRC) anticipates a more cautious economic environment, potentially affecting consumer spending and demand.
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Close rates for home standby generators remained under pressure due to elevated demand and limited sales and installation capacity.
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The company widened its guidance ranges for 2025, reflecting uncertainty in tariffs and federal policy actions, which could impact end markets.
Q & A Highlights
Q: Can you provide details on the new product launches for the data center market and how you plan to service this market? A: Aaron Jagdfeld, CEO, highlighted the excitement around the new large megawatt diesel lineup targeting data centers. The company plans to leverage its nationwide service network, built over 40 years, to support direct sales to data centers. This network includes technicians from industrial distributor customers and company stores, ensuring coast-to-coast service. The product line will offer customization done at the factory, differentiating Generac from competitors.