Lisa Cook sues Trump over firing attempt, emergency hearing set
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.”