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Mar 31, 2025
Generac Q1 2025 Earnings Report
Reported financial results for its first quarter ended March 31, 2025
Key Takeaways
Generac reported a 6% increase in net sales for the first quarter of 2025, driven primarily by strong growth in residential product sales. Adjusted EBITDA margin improved significantly compared to the prior year. The company updated its full-year 2025 guidance for net sales and adjusted EBITDA margin, slightly lowering the ranges due to external uncertainties.
Net sales increased by 6% to $942.1 million in Q1 2025 compared to the prior year.
Residential product sales grew robustly by 15% to $494.2 million, while Commercial & Industrial sales decreased by 5% to $337.4 million.
Adjusted EBITDA margin improved to 15.9% from 14.3% in the prior year, primarily due to favorable sales mix and lower input costs.
Full-year 2025 guidance for net sales growth was updated to 0-7% and adjusted EBITDA margin to 17.0-19.0%, reflecting potential impacts from tariffs and macroeconomic conditions.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the full year 2025, Generac updated its net sales growth guidance to 0% to 7% and its Adjusted EBITDA margin guidance to 17.0% to 19.0%, citing impacts from higher tariffs, uncertain government policy actions, and a potentially softer global macroeconomic environment. The company still expects strong free cash flow conversion of 70% to 90%.
Positive Outlook
- Continued strong growth expected in residential product sales.
- Confidence in the enterprise strategy.
- Belief that secular trends of lower power quality and higher power prices will continue.
- Actions being taken (pricing, supply chain initiatives, cost reduction) to mitigate tariff impact.
- Expectation of strong free cash flow conversion (70-90%).
Challenges Ahead
- Higher tariff levels impacting the near-term outlook.
- Uncertain government policy actions.
- Potentially softer global macroeconomic environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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