’Reddit is built for this moment’ - Stock soars on crushed earnings
Investing.com -- Generac Holdings Inc. reported first-quarter earnings that surpassed analyst expectations, but lowered its full-year 2025 outlook due to macroeconomic uncertainties and tariff concerns. The power generator manufacturer’s stock slipped 1.5% following the announcement.
Generac posted adjusted earnings per share of $1.26, beating the analyst estimate of $1.02. Revenue for the quarter came in at $942 million, exceeding the consensus estimate of $923.37 million and representing a 6% YoY increase.
Residential product sales were a bright spot, rising 15% YoY to $494 million. However, Commercial & Industrial product sales declined 5% to $337 million compared to the prior year.
"First quarter results exceeded our expectations as a result of continued strong growth in residential product sales," said Aaron Jagdfeld, President and CEO of Generac. "Home standby generator shipments increased at a robust rate during the quarter as we executed on the continued higher demand created by elevated outage activity in 2024."
Despite the strong quarter, Generac adjusted its previously provided full-year 2025 guidance range lower. The company now expects net sales growth of 0% to 7%, compared to its previous forecast of 3% to 7%. Adjusted EBITDA margin is now projected to be 17.0% to 19.0%, down from the earlier guidance of 18.0% to 19.0%.
Jagdfeld cited "higher tariff levels, uncertain government policy actions, and a potentially softer global macroeconomic environment" as reasons for the lowered outlook. The company plans to mitigate these challenges through pricing actions, supply chain initiatives, and cost reduction efforts.