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Generac Holdings 2025 Q1 Earnings Net Income Surges 67%

Daily EarningsThursday, May 1, 2025 1:09 am ET
27min read
GNRC Trend
Generac Holdings (GNRC) reported its fiscal 2025 Q1 earnings on April 30th, 2025. The company's performance exceeded expectations, with a notable rise in net income by 67.2% to $44.28 million compared to the same period in 2024. Revenue growth was 5.9%, reaching $942.12 million. Despite an optimistic outlook, generac adjusted its full-year 2025 net sales growth guidance to a range of 0% to 7%, reflecting current market conditions. Investors should note the revised adjusted EBITDA margin expectations, down to 17.0% to 19.0%.

Revenue
Generac Holdings saw its total revenue increase by 5.9% to $942.12 million. Residential product sales contributed significantly with $494.15 million, marking robust growth. However, the commercial and industrial products segment experienced a slight decline, generating $337.37 million. The 'Other' category added $110.60 million to the total net sales.

Earnings/Net Income
Generac's earnings per share (EPS) saw a substantial increase of 89.7%, rising from $0.39 in 2024 Q1 to $0.74 in 2025 Q1. This growth reflects a stronger profitability stance, with net income reaching $44.28 million, a 67.2% rise from $26.48 million in the previous year. The EPS performance indicates a favorable outcome for investors.

Post-Earnings Price Action Review
Post-earnings, Generac Holdings' stock performance showed mixed results across short-term periods. While specific impacts of revenue, net income, and EPS on the stock price weren't detailed, a 3-Day win rate of 38.10% implies moderate short-term gains. In contrast, the 10-Day win rate was more promising at 52.38%, suggesting a higher likelihood of stock appreciation. Over 30 days, the win rate stood at 47.62%, indicating moderate medium-term potential. The highest return observed was 8.18% on day 72 post-release. Despite this data, investors should remain cautious as past performance doesn't guarantee future results and other market factors could influence stock movements.

CEO Commentary
"First quarter results exceeded our expectations as a result of continued strong growth in residential product sales," said Aaron Jagdfeld, President and Chief Executive Officer. He noted robust home standby generator shipments driven by elevated demand from 2024 outage activity, alongside significant growth in residential energy technology sales. Jagdfeld acknowledged the impact of trade policy and macroeconomic uncertainty on near-term visibility but expressed confidence in the enterprise strategy, highlighting ongoing challenges from tariffs. The CEO emphasized actions to mitigate these impacts through price adjustments, supply chain initiatives, and cost reduction efforts.

Guidance
Generac updated its full-year 2025 net sales growth guidance to a range of 0% to 7%, down from the previous 3% to 7%. The company also revised its adjusted EBITDA margin expectations to 17.0% to 19.0%, compared to the prior guidance of 18.0% to 19.0%. The adjustments reflect the company's response to current market conditions while maintaining an optimistic outlook on long-term trends related to power quality and pricing.

Additional News
Generac Holdings has announced a significant share repurchase program, acquiring 716,685 shares for approximately $97 million during the first quarter of 2025. The company still has $250 million remaining under its current repurchase authorization as of March 31, 2025. This move indicates Generac's commitment to returning value to its shareholders and reflects confidence in the company's future performance. Additionally, Norges Bank recently acquired a new position in Generac, purchasing 586,344 shares, valued at approximately $90.9 million, during the fourth quarter. This acquisition underscores institutional interest in Generac as a key player in energy solutions.

Ask Aime: What impact will Generac's Q1 earnings have on its stock price?

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turkeychicken
05/01
Generac's EPS pump is sick! 🚀 89.7% up? I'm riding this wave until it crashes or my portfolio does.
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BeeBaBoop
05/01
Holding $GNRC long-term, residential growth looks solid.
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22linesdeep
05/01
@BeeBaBoop How long you planning to hold $GNRC? Curious if you're thinking years or just riding the trend.
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Kooky-Information-40
05/01
Generac's EPS pump is 🔥 but watch the guidance
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ExeusV
05/01
Generac's buyback program is solid. $250M left? They're all about rewarding shareholders while they can.
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fit_steve
05/01
@ExeusV How long do you think Generac will keep buying back shares?
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serenity561
05/01
Generac's residential surge is 🔥, but those tariffs are a sneaky drag. Supply chain wizards to the rescue?
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C40E
05/01
@serenity561 Supply chain wizards? More like magic with those margins.
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godson__1029
05/01
@serenity561 Tariffs r rough, but Generac's got skills 2 beat 'em.
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Holiday_Context5033
05/01
Commercial segment lagging, but residential more than picks up the slack. Mixed bag but overall bullish on 'em.
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nick313
05/01
@Holiday_Context5033 Commercial drag, but residential saves the day.
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sniper459
05/01
Residential sales on fire! $494M and counting. I bet they're grinning in Wisconsin. 😎
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Phuffu
05/01
Earnings up, stock action mixed. What's your take?
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Bitter_Face8790
05/01
Norges Bank jumping on the $GNRC train. Institutional backing means serious confidence in Generac's energy game.
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Surfin_Birb_09
05/01
@Bitter_Face8790 What do you think about Norges Bank's move?
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xcrowsx
05/01
Energy tech growth is the real deal.
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CaseEnvironmental824
05/01
Tariffs biting? Adjust and overcome, Generac.
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UpbeatBase7935
05/01
Holding $GNRC long-term. Diversifying with renewables is smart. Think long-term growth, not just quarterlies.
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KookyPossibleTheme
05/01
$GNRC guidance adjusted, but still optimistic. Earnings call should be juicy. Risk and reward, folks.
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LurkerMcLurkington
05/01
$GNRC EPS pop is sweet, but that commercial segment dip has me pondering...
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vanilica00
05/01
67% net income boost? Generac flexing on the sector. Those tariffs can't keep a good company down.
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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