Sep 30, 2022

Generac Q3 2022 Earnings Report

Generac's Q3 2022 results reflected a 15% increase in net sales, driven by growth in both Residential and Commercial & Industrial products, but profitability was impacted by charges related to a clean energy product customer bankruptcy and warranty matters.

Key Takeaways

Generac's third quarter 2022 results showed a 15% increase in net sales to $1.09 billion compared to the prior year. However, net income decreased to $58 million, or $0.83 per share, due to pre-tax charges of $55.3 million. Adjusted EBITDA was $184 million, or 16.9% of net sales.

Net sales increased 15% to $1.09 billion, with core sales growth of approximately 10%.

Residential product sales grew 9% to $664 million.

Commercial & Industrial product sales increased 20% to $311 million.

Net income attributable to the Company was $58 million, or $0.83 per share, impacted by $55.3 million in pre-tax charges.

Total Revenue
$1.09B
Previous year: $943M
+15.4%
EPS
$1.75
Previous year: $2.35
-25.5%
Gross Margin
33.2%
Previous year: 35.6%
-6.7%
Adjusted EBITDA Margin
16.9%
Previous year: 22.2%
-23.9%
Gross Profit
$0
Previous year: $336M
-100.0%
Cash and Equivalents
$0
Previous year: $424M
-100.0%
Free Cash Flow
-$73.5M
Previous year: $42M
-275.0%
Total Assets
$0
Previous year: $4.1B
-100.0%

Generac

Generac

Generac Revenue by Segment

Forward Guidance

Generac expects full-year 2022 net sales growth to be approximately 22 to 24% as compared to the prior year, which includes approximately 5 to 7% net impact from acquisitions and foreign currency. Additionally, the Company expects net income margin, before deducting for non-controlling interests, to be approximately 9.0 to 10.0% for the full-year 2022. The corresponding adjusted EBITDA margin is expected to be approximately 18.0 to 19.0%.