Jun 30, 2024

Generac Q2 2024 Earnings Report

Generac's Q2 2024 earnings were marked by significant margin expansion driving strong earnings growth, leading to an increased 2024 outlook due to recent power outages.

Key Takeaways

Generac Holdings Inc. reported net sales of $998 million, with residential product sales up 8% and commercial & industrial product sales down 10%. Net income was $59 million, or $0.97 per share, while adjusted net income was $82 million, or $1.35 per share. The company updated its full-year 2024 net sales growth guidance to 4 to 8% and adjusted EBITDA margin to 17.0 to 18.0%.

Net sales were $998 million, slightly down from $1.00 billion in the prior-year quarter.

Residential product sales increased by approximately 8% to $538 million.

Net income attributable to the Company was $59 million, or $0.97 per share, compared to $45 million, or $0.70 per share, for the same period of 2023.

Adjusted EBITDA was $165 million, or 16.5% of net sales, compared to $137 million, or 13.6% of net sales, in the prior year.

Total Revenue
$998M
Previous year: $1B
-0.2%
EPS
$1.35
Previous year: $1.08
+25.0%
Gross Margin
37.6%
Previous year: 32.8%
+14.6%
Adjusted EBITDA Margin
16.5%
Previous year: 13.6%
+21.3%
Cash Flow from Operations
$77.7M
Gross Profit
$351M
Previous year: $328M
+6.8%
Cash and Equivalents
$218M
Previous year: $193M
+13.3%
Free Cash Flow
$49.7M
Previous year: $54M
-8.0%
Total Assets
$5.12B
Previous year: $5.32B
-3.8%

Generac

Generac

Generac Revenue by Segment

Generac Revenue by Geographic Location

Forward Guidance

The Company is updating its overall net sales growth guidance for the full-year 2024 to be 4 to 8% compared to the prior year on an as-reported basis, an increase from the previous guidance range of 3 to 7%. Adjusted EBITDA margin, before deducting for non-controlling interests, is now expected to be 17.0 to 18.0% as compared to the previous expectation of 16.5 to 17.5%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income