02/21/2025•2 min read

Generac: Industry Impact and Market Trends Analysis

by monexa-ai

Generac's Q4 earnings beat estimates, driven by strong residential sales, but C&I softness persists. Expansion into clean energy and market dynamics shape its outlook.

Generac (GNRC) Q4 Earnings: In-depth analysis of financial performance, residential sales, and market dynamics.

Generac Holdings Inc.

GNRC

Generac Holdings Inc. designs, manufactures, and sells power generation equipment, energy storage systems, and other power products for the residential, and light commercial and industrial markets worldwide. The company offers engines, alternators, batteries, electronic controls, steel enclosures, and other components. It also provides residential automatic standby generators ranging in output from 7.5kW to 150kW; air-cooled engine residential standby generators ranging from 7.5kW to 26kW; liquid-cooled engine generators with outputs ranging from 22kW to 150kW; and Mobile Link, a remote monitoring system for home standby generators. In addition, the company offers various portable generators ranging in size from 800W to 17.5kW; outdoor power equipment, such as trimmers, field and brush mowers, log splitters, stump grinders, chipper shredders, lawn and leaf vacuums, pressure washers, and water pumps; and clean energy solution under the PWRcell and PWRview brands. Further, it provides light towers, mobile generators, and mobile energy storage systems; commercial mobile pumps and dust-suppression equipment; various gaseous-engine control systems and accessories; light-commercial standby generators ranging from 22kW to 150kW and related transfer switches providing three-phase power for small and mid-sized businesses; and industrial generators ranging in output from 10kW to 3,250kW used as emergency backup for healthcare, telecom, datacom, commercial office, retail, municipal, and manufacturing markets. Additionally, the company sells aftermarket service parts and product accessories to dealers. It distributes its products through independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce partners, electrical, HVAC and solar wholesalers, catalogs, equipment rental companies and distributors, and solar installers; and directly to end users. The company was founded in 1959 and is headquartered in Waukesha, Wisconsin.

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GNRC Stock Performance

Quick Stats

Latest Price: $130.89
Market Cap: $N/A
30d Change: -8.19%
ROE: 13.01%
ROA: 6.14%
Current Ratio: 1.97
Earnings Yield: 4.05%

Company Details

Sector: Industrials
Industry: Industrial - Machinery
Exchange: NYSE
Country: US

Generac (GNRC) Posts Strong Q4 Earnings Amidst Evolving Energy Landscape: An In-Depth Analysis#

Generac Holdings Inc. (GNRC), a leading global designer, manufacturer, and provider of energy technology solutions, recently announced its fourth-quarter and full-year 2024 results, revealing a mixed performance landscape. While the company showcased robust residential product sales, challenges persist in the Commercial & Industrial (C&I) sector. This analysis delves into GNRC's latest financial performance, dissects the key drivers behind its success, and explores the evolving market dynamics shaping its future. According to Monexa AI, the latest stock quote shows GNRC is trading at $138.57, with a -2.7% change as of February 20, 2025.

Generac's Q4 2024 Financial Highlights#

GNRC reported a strong finish to 2024, exceeding analyst expectations in several key areas. The company's fourth-quarter earnings per share (EPS) reached $2.80, surpassing the Zacks Consensus Estimate of $2.50. This represents a significant increase compared to the $2.07 EPS reported in the same quarter last year, according to Zacks.com. This earnings beat was primarily fueled by robust demand for residential products, underscoring the company's strength in the home standby generator market.

Net sales for the fourth quarter reached $1.2 billion, matching Wall Street estimates as reported by Barrons.com. This figure reflects a +16% increase compared to the same period in the previous year, highlighting the company's ability to capitalize on favorable market conditions. A key driver of this growth was the +28% surge in residential product sales, demonstrating the continued demand for home standby and portable generators.

Furthermore, GNRC demonstrated strong financial management, achieving significant margin expansion and all-time record free cash flow generation during the fourth quarter. This positive financial performance underscores the company's operational efficiency and its ability to generate substantial cash flow, providing flexibility for future investments and strategic initiatives. This is according to a press release on GlobeNewswire.

Key Financial Metrics#

Metric	Value	Source
Q4 2024 EPS	$2.80	[Zacks.com](https://www.zacks.com/stock/news/2414267/generac-holdings-gnrc-tops-q4-earnings-and-revenue-estimates?cid=CS-STOCKNEWSAPI-FT-tale_of_the_tape
Q4 2024 Net Sales	$1.2 billion	Barrons.com ]