Generac cuts full-year sales forecast on weak residential demand for generators
29/10/2025 11:25
Oct 29 (Reuters) - Power equipment maker Generac GNRC.N lowered its full-year net sales growth forecast, citing weaker demand for home standby and portable generators due to a decline in power outages, sending shares down 9% in premarket trading. The company also reported third-quarter profit below Wall Street expectations. A reduction in power outages has dented demand for generators, with households also deciding against spending on energy-efficient upgrades as persistent inflation eats into savings. Shipments of the company's home standby and portable generator fell short of expectations for the reported quarter, which had the third lowest number total outage hours since 2015, CEO Aaron Jagfeld said. "The mega-trends that support our future growth potential remain intact as lower power quality and higher power prices will be an ongoing challenge given the more frequent and severe weather patterns and broader electrification trends." Generac now expects flat full-year sales growth, down from prior forecast of 2% to 5%. The company's commercial and industrial (C&I) business segment posted a 9.2% rise in sales, which came at $358.3 million. Sales in Generac's residential segment, its biggest in terms of sales, were down 13.3% at $626.7 million. Adjusted profit per share for the quarter ended September 30, came in at $1.83, below analysts' expectations of $2.20, according to data compiled by LSEG. Revenue was $1.11 billion, missing estimates of $1.19 billion. (Reporting by Anshuman Tripathy and Apratim Sarkar in Bengaluru; Editing by Leroy Leo) ((Anshuman.Tripathy@thomsonreuters.com;))