Generac Q1 2024 Earnings Report
Key Takeaways
Generac reported a slight increase in net sales to $889 million, alongside a significant rise in net income to $26 million, or $0.39 per share. Adjusted EBITDA improved to $127 million, representing 14.3% of net sales. The company also generated substantial free cash flow of $85 million, reflecting improved operational efficiency and working capital management.
Net sales increased slightly to $889 million, with core sales down approximately 1% year-over-year.
Net income rose to $26 million, or $0.39 per share, compared to $12 million, or $0.05 per share, in the prior year.
Adjusted EBITDA reached $127 million, or 14.3% of net sales, up from $100 million, or 11.3% of net sales, in the previous year.
Free cash flow significantly improved to $85 million, compared to $(42) million in the first quarter of 2023.
Generac
Generac
Generac Revenue by Segment
Generac Revenue by Geographic Location
Forward Guidance
Generac is maintaining its full-year 2024 net sales guidance of 3 to 7% growth compared to the prior year. The company now expects net income margin to be approximately 6.0 to 7.0% for the full year 2024. The adjusted EBITDA margin is still expected to be approximately 16.5 to 17.5%.
Positive Outlook
- Maintaining full-year 2024 net sales growth guidance of 3-7%.
- Expecting a slight favorable impact from foreign currency and acquisitions.
- Net income margin expected to be approximately 6.0 to 7.0% for the full year 2024.
- Adjusted EBITDA margin still expected to be approximately 16.5 to 17.5%.
- Continuing to expect strong operating and free cash flow generation for the full year.