April 30 (Reuters) - Power equipment maker Generac

Holdings ( GNRC ) reported better-than-expected first-quarter

profit on Wednesday, but trimmed its annual forecast as

uncertainty from tariffs clouded its demand outlook.

The company forecast its full-year net income margin to be

between 6.5% and 8.5%, compared with its previous view of 8% to

9%. It expects annual net sales to remain flat or grow up to 7%,

compared with its prior projection of 3% to 7%.

"As a result of higher tariff levels, uncertain government

policy actions, and a potentially softer global macroeconomic

environment, the range of forecasted outcomes for our business

has expanded relative to our prior guidance," the company said.

Generac ( GNRC ) plans to mitigate the effects of the tariffs through

higher pricing, supply chain initiatives and other

cost-reduction efforts over the coming quarters, CEO Aaron

Jagdfeld said.

Meanwhile, demand for generators surged during the first

quarter as adverse weather conditions left homes in the U.S.

without power, benefiting home standby generator makers such as

Generac ( GNRC ).

The company's adjusted net income came in at $1.26 per share

for the three months ended March 31, beating analysts' average

estimate of $0.97 per share, according to data compiled by LSEG.

Its quarterly revenue of $942 million also topped

expectations of $919.0 million.

First-quarter sales at the residential product segment,

Generac's ( GNRC ) top money-making business, rose 15% to $494 million

from a year ago, boosted by strong growth.

However, quarterly sales at its commercial and industrial

(C&I) unit slipped 5% to $337 million.