What factors drove the changes in Generac Holdings's revenue and profit?

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What is Generac Holdings's latest dividend and current dividend yield?

Did Generac Holdings beat or miss consensus estimates last quarter?

What does Generac Holdings do and what are its main business segments?

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What guidance did Generac Holdings's management provide for the next earnings period?

What were the key takeaways from Generac Holdings's earnings call?

- **Data Center Growth**: $300M+ backlog for 2026, with investments to double C&I sales over 3-5 years.
- **Residential Recovery**: 2026 outlook for normalized outages and dealer network expansion to drive home standby growth.
- **Financial Discipline**: 2025 adjusted EBITDA margin ~17%, with 2026 recovery driven by residential mix and operating leverage.
- **Strategic Moves**: New product launches, capacity expansion, and M&A to capitalize on data center and C&I trends.

**【CEO Summary Section】**
- **Residential Sales Decline**: Residential product sales decreased 13% YoY due to historically low outage activity, while energy storage and ecobee solutions grew strongly. Dealer count expanded to nearly 9,400, reflecting growing demand for backup power solutions.
- **C&I Growth**: Commercial & Industrial (C&I) sales rose 9% YoY, driven by telecom and international markets. Shipments of large megawatt generators to data centers reached $300M in backlog, with first domestic shipments beginning in October.
- **Data Center Expansion**: Generac is investing in capacity to double C&I product sales over 3-5 years, targeting $500M+ in 2026. New product launches include 28kW home standby generators and PowerCell 2 energy storage systems.
- **2026 Outlook**: Expect residential recovery with normalized outages, while recalibrating solar/storage investments amid reduced federal incentives.

**【CFO Financial Commentary】**
- **Q3 Financials**: Net sales $1.11B (-5% YoY), adjusted EBITDA $193M (17.3% of sales). Gross margin 38.3% vs. 40.2% YoY, due to unfavorable mix and manufacturing costs.
- **2025 Guidance**: Full-year net sales flat vs. prior year, with adjusted EBITDA margin ~17% (vs. prior 18-19%). Free cash flow ~$300M, supporting growth investments.
- **2026 Margin Recovery**: EBITDA margin expected to improve with residential recovery, operating leverage, and reduced transitory costs.

**【Q&A Highlights】**
- **Data Center Contracts**: Actively pursuing hyperscale contracts, with $300M backlog for 2026 shipments. Capacity expansion plans include new facilities and M&A to meet demand.
- **Supply Chain Confidence**: Engine supplier has global manufacturing scale, and alternator partnerships ensure component availability.
- **Energy Tech Recalibration**: Puerto Rico grant program winding down, but long-term solar/storage growth driven by rising electricity costs and declining tech prices.

Generac Holdings Inc. (GNRC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GNRC

GNRC fundamentals

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