Overview

* Generac ( GNRC ) Q3 net sales decrease 5% yr/yr, missing analyst expectations

* Adjusted EPS for Q3 misses consensus, reflecting challenges in power outage environment

* Commercial & Industrial product sales increase 9% yr/yr, offsetting residential decline

Outlook

* Company lowers full-year net sales growth guidance to be approximately flat

* Generac ( GNRC ) expects full-year net income margin to be approximately 6.0%

* Adjusted EBITDA margin for 2025 now expected to be approximately 17.0%

Result Drivers

* RESIDENTIAL SALES DECLINE - Residential product sales fell 13% due to a lower power outage environment, impacting demand for home standby and portable generators

* C&I SALES GROWTH - Commercial & Industrial product sales rose 9%, supported by shipments to the data center market

* ENERGY TECH GROWTH - Robust growth in residential energy technology shipments partially offset weaker generator sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $1.11 $1.20

bln bln (19

Analysts

)

Q3 Miss $1.83 $2.26

Adjusted (18

EPS Analysts

)

Q3 EPS $1.12

Q3 Miss $108 mln $131.60

Adjusted mln (16

Net Analysts

Income )

Q3 Net $66 mln

Income

Q3 Miss $193 mln $234.10

Adjusted mln (18

EBITDA Analysts

)

Q3 Free $96 mln

Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electrical components & equipment peer group is "buy"

* Wall Street's median 12-month price target for Generac Holdings Inc ( GNRC ) is $210.00, about 9.5% above its October 28 closing price of $190.15

* The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)