Generac Reports Second Quarter 2025 Results

Generac Holdings Inc., a leading global designer and manufacturer of energy technology solutions and other power products, has released its financial results for the second quarter ended June 30, 2025. The company has also provided an updated outlook for the full year 2025.

Financial Highlights

Generac reported a 6% increase in net sales, reaching $1.061 billion in Q2 2025 compared to $998 million in the same period last year. The company's net income attributable to shareholders was $74 million, or $1.25 per share, up from $59 million, or $0.97 per share, in Q2 2024. Adjusted net income was $97 million, or $1.65 per share, compared to $82 million, or $1.35 per share, in the previous year. Adjusted EBITDA was $188 million, representing 17.7% of net sales, compared to $165 million, or 16.5% of net sales, in Q2 2024.

Business and Operational Highlights

Residential product sales increased by approximately 7% to $574 million, while Commercial & Industrial (C&I) product sales grew by 5% to $362 million. The company also reported a gross profit margin of 39.3%, up from 37.6% in the prior-year quarter. Operating expenses increased by 12% to $32.6 million, driven by higher variable costs and increased employee costs.

Strategic Initiatives and Corporate Developments

Generac repurchased 392,521 shares of its common stock for approximately $50 million during the second quarter. The company has approximately $200 million remaining under the current repurchase program. Additionally, Generac amended and extended its existing term loan A and revolving credit facility, resulting in a new maturity date of July 1, 2030.

Management's Perspective

Aaron Jagdfeld, President and CEO, highlighted the company's agile execution in a dynamic operating environment, which helped drive results ahead of expectations. He noted strong growth in residential energy technology solutions and a significant increase in shipments of energy storage systems to Puerto Rico. Jagdfeld also mentioned the company's formal entrance into the data center market, which is expected to provide meaningful growth for C&I products.

Future Outlook

Generac has updated its full-year 2025 net sales growth guidance to 2-5% over the prior year, compared to the previous range of 0-7%. The adjusted EBITDA margin is now expected to be 18.0-19.0%, up from the previous expectation of 17.0-19.0%. The company also increased its outlook for free cash flow conversion from adjusted net income to 90-100%, compared to the previous range of 70-90%.

SEC Filing: GENERAC HOLDINGS INC. [ GNRC ] - 8-K - Jul. 30, 2025