Jun 30, 2022

Generac Q2 2022 Earnings Report

Generac's Q2 2022 results were marked by record sales and significant margin improvement, driven by increased capacity and strong execution.

Key Takeaways

Generac Holdings Inc. reported record second-quarter results, with net sales increasing by 40% to $1.29 billion. The company experienced significant sequential margin improvement and is maintaining its full-year 2022 net sales growth guidance of approximately 36 to 40%.

Net sales increased 40% to a record $1.29 billion compared to the prior-year second quarter.

Residential product sales grew 49% to $896 million, while Commercial & Industrial product sales increased 22% to $309 million.

Net income attributable to the company was $156 million, or $2.21 per share, compared to $127 million, or $2.01 per share, for the same period of 2021.

Adjusted EBITDA was a record $271 million, or 21.0% of net sales, compared to $218 million, or 23.7% of net sales, in the prior year.

Total Revenue
$1.29B
Previous year: $920M
+40.3%
EPS
$2.99
Previous year: $2.39
+25.1%
Gross Margin
35.4%
Adjusted EBITDA Margin
21%
Previous year: 23.7%
-11.4%
Gross Profit
$457M
Previous year: $340M
+34.5%
Cash and Equivalents
$467M
Previous year: $390M
+19.8%
Free Cash Flow
$5.8M
Previous year: $96M
-94.0%
Total Assets
$5.47B
Previous year: $3.71B
+47.6%

Generac

Generac

Generac Revenue by Segment

Generac Revenue by Geographic Location

Forward Guidance

The Company is maintaining its full-year 2022 net sales growth guidance range of approximately 36 to 40% compared to the prior year. The corresponding adjusted EBITDA margin is still expected to be approximately 21.5 to 22.5%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income