The earnings call reflected a strong performance driven by increased demand due to elevated power outages. Residential sales saw significant growth, and gross margins improved markedly. However, challenges remain in the C&I and European markets, and energy technology investments continue to weigh on margins.

Company Guidance

During the Generac Holdings Third Quarter 2024 Earnings Call, the company provided an optimistic outlook for the year, driven by increased power outage activity, including the impacts of Hurricanes Helen and Milton. As a result, Generac raised its 2024 net sales growth projection to 5% to 9% year-over-year, up from the previous 4% to 8% range. Residential product sales are expected to increase by approximately $100 million, totaling a high teens percentage growth, driven by a 28% year-over-year rise in residential product sales, reaching $723 million. In contrast, commercial and industrial (C&I) product sales decreased by 15% to $328 million due to weaker market conditions in the U.S. and Europe. The company also reported its highest gross margins since 2010 at 40.2%, up from 35.1% in the prior year, attributed to a favorable sales mix, lower input and logistics costs, and improved production efficiencies. Adjusted EBITDA margins are projected to be between 17.5% and 18.5% for the full year 2024. The company highlighted robust free cash flow generation, expecting approximately $500 million for the full year, and continued to execute its strategic vision with notable growth in its home standby and portable generator segments.

Elevated Power Outage Activity Drives Growth

Power outage hours through September reached the highest level since 2010, leading to robust growth in net sales and significant margin expansion.

Increased Residential Product Sales

Residential product sales increased 28% year-over-year, driven by demand for home standby and portable generators.

Significant Margin Expansion

Gross margins reached their highest level since 2010, improving by approximately 450 basis points year-over-year.

Strong Free Cash Flow

Free cash flow for Q3 2024 was $184 million, up from $117 million in the previous year.

Department of Energy Grant for Microgrids

Generac was selected for negotiations to receive a $50 million DOE grant for deploying microgrid solutions in California.

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Generac Holdings (GNRC) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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GNRC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 12, 2025	2024 (Q4)	2.52 / -	2.07	―	―	―
Oct 31, 2024	2024 (Q3)	1.95 / 2.25	1.64	37.20% (+0.61)	―
Jul 31, 2024	2024 (Q2)	1.20 / 1.35	1.08	25.00% (+0.27)	―
May 01, 2024	2024 (Q1)	0.76 / 0.88	0.63	39.68% (+0.25)	―
Feb 14, 2024	2023 (Q4)	2.09 / 2.07	1.78	16.29% (+0.29)	―
Nov 01, 2023	2023 (Q3)	1.55 / 1.64	1.75	-6.29% (-0.11)	―
Aug 02, 2023	2023 (Q2)	1.16 / 1.08	2.99	-63.88% (-1.91)	―
May 03, 2023	2023 (Q1)	0.48 / 0.63	2.09	-69.86% (-1.46)	―
Feb 15, 2023	2022 (Q4)	1.75 / 1.78	2.51	-29.08% (-0.73)	―
Nov 02, 2022	2022 (Q3)	2.03 / 1.75	2.35	-25.53% (-0.60)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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GNRC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 31, 2024	$165.15	$165.55	+0.24%
Jul 31, 2024	$155.57	$155.68	+0.07%
May 01, 2024	$135.96	$127.63	-6.13%
Feb 14, 2024	$123.79	$123.44	-0.28%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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