Generac Holdings 2025 Q1 Earnings Net Income Surges 67%
Thursday, May 1, 2025 1:09 am ET
GNRC Trend
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?