Generac stock jumps as strong shipments help Q2 earnings beat expectations

Published 30/07/2025, 11:34
© Reuters

Investing.com -- Generac Holdings Inc. shares jumped 5.7% premarket on Wednesday after the power equipment manufacturer reported second-quarter earnings that exceeded analyst expectations.

The energy technology solutions provider posted adjusted earnings of $1.65 per share for the second quarter, handily beating the analyst consensus of $1.35. Revenue came in at $1.06 billion, surpassing the $1.03 billion estimate and representing a 6% increase from $998 million in the same period last year.

Generac narrowed its full-year 2025 net sales growth guidance to 2-5% from the previous range of 0-7%, while raising the low end of its adjusted EBITDA margin forecast to 18.0-19.0%, up from the previous guidance of 17.0-19.0%.

"Agile execution in a dynamic operating environment helped drive second quarter results ahead of our expectations with outperformance across both Residential and C&I product sales," said Aaron Jagdfeld, President and CEO of Generac.

Residential product sales increased 7% to $574 million compared to $538 million in the prior-year period, driven by strong shipments of energy storage systems to Puerto Rico and significant growth in home energy management solutions. Commercial and Industrial product sales rose 5% to $362 million, up from $344 million a year earlier.

The company’s gross profit margin improved to 39.3% from 37.6% in the prior-year quarter, primarily due to favorable pricing and lower input costs, partially offset by unfavorable sales mix.

The company noted it has begun building a pipeline of opportunities in the data center market following its formal entrance into this sector during the quarter.

"We experienced a strong initial reception to our formal entrance into the data center market during the second quarter as we developed a significant global pipeline of opportunities and began building backlog for our new high-output diesel generator product offering," said Jagdfeld.

"We expect this large and rapidly expanding market to provide meaningful secular growth for our C&I products in the years ahead given the substantial level of investment going into data centers and the accelerating adoption of artificial intelligence.”

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.