Sep 30, 2021

Generac Q3 2021 Earnings Report

Generac experienced exceptional demand, driving record quarterly revenue and increasing backlog.

Key Takeaways

Generac reported a record revenue of $943 million, a 34% increase compared to the prior-year quarter. Net income was $132 million, or $1.93 per share, compared to $115 million, or $1.82 per share, for the same period in 2020.

Net sales increased 34% to a record $943 million.

Residential product sales grew 33% to $609 million.

Commercial & Industrial product sales increased 47% to $258 million.

Net income attributable to the Company during the third quarter was $132 million, or $1.93 per share.

Total Revenue
$943M
Previous year: $701M
+34.4%
EPS
$2.35
Previous year: $2.08
+13.0%
Gross Profit Margin
35.6%
Previous year: 39.4%
-9.6%
Adjusted EBITDA Margin
22.2%
Previous year: 25.5%
-12.9%
Gross Profit
$336M
Previous year: $276M
+21.7%
Cash and Equivalents
$424M
Previous year: $514M
-17.6%
Free Cash Flow
$42M
Previous year: $148M
-71.6%
Total Assets
$4.1B
Previous year: $2.97B
+37.9%

Generac

Generac

Generac Revenue by Segment

Generac Revenue by Geographic Location

Forward Guidance

The Company is maintaining its full-year 2021 net sales growth guidance range of approximately 47 to 50% compared to the prior year.

Challenges Ahead

  • Additional supply chain constraints
  • Escalating logistics challenges
  • Rising input costs are increasingly impacting the business leading to further margin pressures
  • Net income margin, before deducting for non-controlling interests, is now expected to be approximately 15.0% for the full-year 2021 as compared to the prior expectation of between 15.5 to 16.0%.
  • Adjusted EBITDA margin is now expected to be approximately 23.5%, as compared to the previous guidance range of approximately 24.5 to 25.0%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income