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Sep 30, 2020
Generac Q3 2020 Earnings Report
Reported record results driven by unprecedented residential product demand, increasing 2020 outlook due to continued strength from key mega-trends.
Key Takeaways
Generac Holdings Inc. reported record third quarter results with net sales increasing approximately 17% to $701 million compared to the prior-year. Net income attributable to the Company during the third quarter was $115 million, or $1.82 per share, as compared to $76 million, or $1.18 per share, for the same period of 2019.
Net sales increased approximately 17% to $701 million during the third quarter of 2020 as compared to $601 million in the prior-year third quarter.
Residential product sales increased 37% to $459 million as compared to $335 million last year.
Net income attributable to the Company during the third quarter was $115 million, or $1.82 per share, as compared to $76 million, or $1.18 per share, for the same period of 2019.
Adjusted EBITDA was $179 million, or 25.5% of net sales, as compared to $126 million, or 21.0% of net sales, in the prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company is raising its prior guidance for revenue growth for full-year 2020, and now expects an increase of approximately 10 to 12% compared to the prior year. The corresponding adjusted EBITDA margin is now expected to be approximately 22.5 to 23.0%.
Positive Outlook
- Revenue growth for full-year 2020 is now expected to increase approximately 10 to 12% compared to the prior year.
- Net income margin, before deducting for non-controlling interests, is now expected to be approximately 13.0 to 13.5% for the full-year 2020
- Adjusted EBITDA margin is now expected to be approximately 22.5 to 23.0%.
- Increased production rates in the fourth quarter for home standby generators.
- Higher power outage environment thus far in second half of 2020.
Challenges Ahead
- Uncertainty in the duration and scope of the impacts of the COVID-19 pandemic.
- Potential adverse effects on operations, supply chain, distribution.
- Possible impact on demand for certain products and services.
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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