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Jun 30, 2021
Generac Q2 2021 Earnings Report
Achieved record revenue and earnings growth, driven by continued elevated demand and strong execution across the business.
Key Takeaways
Generac reported exceptional second-quarter results with a 68% increase in net sales, reaching a record $920 million. The company also achieved record adjusted EBITDA and increased its full-year 2021 net sales growth guidance.
Net sales increased 68% to a record $920 million compared to the prior-year second quarter.
Net income attributable to the Company during the second quarter was $127 million, or $2.01 per share.
Adjusted EBITDA was a record $218 million, or 23.7% of net sales.
Cash flow from operations was $122 million, a record for the second quarter, and free cash flow was $96 million, also a second-quarter record.
Generac
Generac
Generac Revenue by Segment
Generac Revenue by Geographic Location
Revenue by Segment
Residential Products Revenue
CapyFin.comCommercial & Industrial Products Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The Company is increasing its full-year 2021 net sales growth guidance to now be approximately 47 to 50% compared to the prior year. Net income margin is now expected to be approximately 15.5 to 16.0% for the full-year 2021. The corresponding adjusted EBITDA margin is now expected to be 24.5 to 25.0%. Operating and free cash flow generation is still expected to be strong.
Positive Outlook
- Production of home standby generators is expanding at a better-than-expected rate.
- Demand for PWRcell® energy storage systems continues to increase.
- Additional supply chain execution is leading to a further increase in the shipment outlook for these products for the full-year 2021.
- The outlook for C&I products has also improved due to a further broad-based rebound in demand.
- Continued pickup in activity from telecom national account customers and overall stronger outlooks for domestic and international markets.
Challenges Ahead
- The Company continues to experience higher input costs relative to our previous guidance due to rising commodities.
- Significantly higher logistics costs are impacting the guidance.
- Net income margin, before deducting for non-controlling interests, is now expected to be approximately 15.5 to 16.0% for the full-year 2021 as compared to the prior expectation of between 16.0 to 17.0%.
- The corresponding adjusted EBITDA margin is now expected to be 24.5 to 25.0%, as compared to the previous guidance range of approximately 24.5 to 25.5%.
- The conversion of adjusted net income to free cash flow is still expected to be approximately 90%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income