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Sep 30
Generac Q3 2025 Earnings Report
Generac reported lower year-over-year earnings in Q3 2025 as residential sales weakened, partially offset by C&I growth and data center demand.
Key Takeaways
Generac posted Q3 2025 revenue of $1.11 billion, a 5% decline from the prior year. EPS dropped to $1.12 from $1.89, while adjusted EPS was $1.83. Residential product sales fell 13%, but C&I products saw a 9% increase, supported by demand in the data center segment.
Revenue fell 5% YoY to $1.11 billion due to weaker residential sales.
EPS declined to $1.12, while adjusted EPS was $1.83.
Commercial & industrial sales rose 9%, driven by data center demand.
Free cash flow dropped to $96 million, down from $184 million a year ago.
Generac
Generac
Generac Revenue by Segment
Generac Revenue by Geographic Location
Revenue by Segment
Residential Products Revenue
CapyFin.comCommercial & Industrial Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Generac lowered full-year 2025 guidance, now expecting flat revenue and adjusted EBITDA margin around 17%, due to lower power outages and seasonal demand softness.
Positive Outlook
- Strong growth in C&I product sales, especially in data center market.
- Initial shipments of large-megawatt generators delivered.
- Residential energy tech product shipments increased.
- Adjusted EBITDA margin remains above 17%.
- Data center pipeline backlog doubled over past 90 days.
Challenges Ahead
- Revenue guidance lowered to flat vs. prior year.
- Net income margin guidance reduced to 6.0%.
- Home standby and portable generator demand below expectations.
- Free cash flow guidance reduced to ~80% conversion.
- Gross margin compressed due to tariffs and unfavorable sales mix.
Revenue & Expenses
Visualization of income flow from segment revenue to net income