Dec 31, 2020

Generac Q4 2020 Earnings Report

Generac reported record fourth quarter results driven by robust residential product demand and strategic acquisitions.

Key Takeaways

Generac's Q4 2020 net sales increased by 29% to a record $761 million, driven by strong residential product sales. The company's net income attributable to the company was $125 million, or $1.97 per share, compared to $70 million, or $1.12 per share, for the same period of 2019.

Net sales increased 29% to a record $761 million.

Residential product sales increased 55% to $499 million.

Net income attributable to the Company during the fourth quarter was $125 million, or $1.97 per share.

Cash flow from operations was a record $218 million.

Total Revenue
$761M
Previous year: $591M
+28.8%
EPS
$2.12
Previous year: $1.53
+38.6%
Gross Profit Margin
39.4%
Previous year: 37.6%
+4.8%
Adjusted EBITDA Margin
25.7%
Previous year: 21.9%
+17.4%
Cash Flow from Operations
$218M
Previous year: $175M
+24.5%
Gross Profit
$300M
Previous year: $222M
+35.0%
Cash and Equivalents
$396M
Previous year: $323M
+22.6%
Free Cash Flow
$191M
Previous year: $160M
+19.2%
Total Assets
$3.51B
Previous year: $2.67B
+31.6%

Generac

Generac

Generac Revenue by Segment

Generac Revenue by Geographic Location

Forward Guidance

The Company is initiating its full-year 2021 net sales growth guidance to be approximately 25 to 30% compared to the prior year on an as-reported basis. Adjusted EBITDA margin is expected to be approximately 24.0 to 25.0%.

Positive Outlook

  • Key demand metrics for home standby generators continued to trend much higher.
  • The solar plus storage market is projected to experience significant year-over-year growth during 2021.
  • Shipments for C&I products are expected to return to growth across a number of key end markets and geographies.
  • Net sales are expected to increase between 25 to 30%.
  • Adjusted EBITDA margin expected to be approximately 24.0 to 25.0%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income