Generac Holdings ( (GNRC) ) has released its Q1 earnings. Here is a breakdown of the information Generac Holdings presented to its investors.
Generac Holdings Inc., a prominent player in the energy technology sector, specializes in designing and manufacturing power generation equipment and energy solutions for residential, commercial, and industrial markets worldwide. Founded in 1959, the company is recognized for pioneering the automatic home standby generator category and continues to innovate in energy technology solutions.
In its first quarter of 2025, Generac reported a notable increase in net sales, reaching $942 million, a 6% rise from the previous year. The company highlighted strong growth in residential product sales, which saw a 15% increase, while commercial and industrial product sales experienced a slight decline. Net income also saw a significant boost, climbing to $44 million, or $0.73 per share, compared to $26 million, or $0.39 per share, in the first quarter of 2024.
Key financial metrics from the quarter include an adjusted net income of $75 million, or $1.26 per share, and an adjusted EBITDA of $150 million, representing 15.9% of net sales. Despite the positive sales growth, cash flow from operations decreased to $58 million from $112 million in the previous year, primarily due to increased working capital needs. The company also repurchased approximately $97 million worth of its common stock during the quarter.
Looking ahead, Generac has adjusted its full-year 2025 net sales growth guidance to a range of 0 to 7%, reflecting the potential impact of tariffs and macroeconomic uncertainties. The company remains optimistic about its strategic initiatives aimed at mitigating these challenges through pricing adjustments and supply chain improvements.
Generac’s management expresses confidence in the company’s long-term strategy, emphasizing the ongoing demand for reliable energy solutions amid fluctuating power quality and prices. The company is committed to navigating near-term challenges while continuing to drive growth and innovation in the energy technology sector.