Generac lowers FY25 adjusted EBITDA margin view to 17% from 18.0%-19.0%

The company said, “As a result of the significantly weaker power outage environment in recent months impacting seasonal demand for home standby and portable generators, the Company is lowering its full-year net sales growth guidance to be approximately flat as compared to the prior year. This compares to the previous guidance range of an increase between 2%-5%. Additionally, net income margin, before deducting for non-controlling interests, is now projected to be approximately 6.0% for the FY25 compared to the previous guidance range of 7.5%-8.5%. The corresponding adjusted EBITDA margin is now expected to be approximately 17.0% compared to the previous guidance range of 18.0%-19.0%. Free cash flow conversion from adjusted net income is now expected to be approximately 80% as compared to the previous guidance range of 90%-100%.” Aaron Jagdfeld, President and CEO, said, “The mega-trends that support our future growth potential remain intact as lower power quality and higher power prices will be an ongoing challenge given the more frequent and severe weather patterns and broader electrification trends. Importantly, the massive increase in data center power demand is expected to further stress the already fragile power grid by amplifying the growing electricity supply/demand imbalance. As a leading energy technology company, we believe Generac (GNRC) is uniquely positioned at the center of these numerous mega-trends that have the potential to drive substantial and sustainable growth in the years ahead.”