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Sep 30, 2024
Generac Q3 2024 Earnings Report
Generac's Q3 2024 earnings report showed a return to robust overall sales growth with continued margin expansion, leading to an increased 2024 outlook due to recent major outage events.
Key Takeaways
Generac reported net sales of $1.17 billion, a 10% increase compared to the prior-year third quarter. Net income attributable to the company was $114 million, or $1.89 per share, compared to $60 million, or $0.97 per share, for the same period in 2023. Adjusted EBITDA was $232 million, representing 19.8% of net sales, compared to $189 million, or 17.6% of net sales, in the prior year. The company updated its full-year 2024 net sales growth guidance to 5 to 9% and adjusted EBITDA margin to 17.5 to 18.5%.
Net sales increased by approximately 10% to $1.17 billion compared to the prior-year third quarter.
Residential product sales increased approximately 28% to $723 million, while Commercial & Industrial product sales decreased approximately 15% to $328 million.
Net income attributable to the company during the third quarter was $114 million, or $1.89 per share, as compared to $60 million, or $0.97 per share, for the same period of 2023.
Adjusted EBITDA was $232 million, or 19.8% of net sales, as compared to $189 million, or 17.6% of net sales, in the prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company is increasing its full-year 2024 net sales guidance to 5 to 9% compared to the prior year and expects adjusted EBITDA margin to be 17.5 to 18.5%.
Positive Outlook
- Net sales growth is expected between 5 to 9% for the full year 2024.
- Residential product sales are expected to increase.
- Adjusted EBITDA margin is expected to be approximately 17.5 to 18.5%.
- Strong operating cash flow generation is expected for the full year.
- Free cash flow conversion from adjusted net income is expected to be well above 100%.
Challenges Ahead
- Softer market conditions are expected for C&I product sales in certain end markets and geographies.
- Softer market conditions are expected for Other product sales in certain end markets and geographies.
- The guidance considers an outsized increase in Residential product sales, partially offset by softer market conditions for C&I and Other product sales in certain end markets and geographies.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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