Generator maker Generac's Q3 sales miss on lower power outage environment

Generac Holdings

29/10/2025 10:12

Overview

Generac Q3 net sales decrease 5% yr/yr, missing analyst expectations

Adjusted EPS for Q3 misses consensus, reflecting challenges in power outage environment

Commercial & Industrial product sales increase 9% yr/yr, offsetting residential decline

Outlook

Company lowers full-year net sales growth guidance to be approximately flat

Generac expects full-year net income margin to be approximately 6.0%

Adjusted EBITDA margin for 2025 now expected to be approximately 17.0%

Result Drivers

RESIDENTIAL SALES DECLINE - Residential product sales fell 13% due to a lower power outage environment, impacting demand for home standby and portable generators

C&I SALES GROWTH - Commercial & Industrial product sales rose 9%, supported by shipments to the data center market

ENERGY TECH GROWTH - Robust growth in residential energy technology shipments partially offset weaker generator sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$1.11 bln
$1.20 bln (19 Analysts)
Q3 Adjusted EPS
Miss
$1.83
$2.26 (18 Analysts)
Q3 EPS
$1.12
Q3 Adjusted Net Income
Miss
$108 mln
$131.60 mln (16 Analysts)
Q3 Net Income
$66 mln
Q3 Adjusted EBITDA
Miss
$193 mln
$234.10 mln (18 Analysts)
Q3 Free Cash Flow
$96 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy"

Wall Street's median 12-month price target for Generac Holdings Inc is $210.00, about 9.5% above its October 28 closing price of $190.15

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX2xprR

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)