NYSE$GNRC
Generac Holdings Inc · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Generac's Q3 2024 earnings report showed a return to robust overall sales growth with continued margin expansion, leading to an increased 2024 outlook due to recent major outage events.
Generac reported net sales of $1.17 billion, a 10% increase compared to the prior-year third quarter. Net income attributable to the company was $114 million, or $1.89 per share, compared to $60 million, or $0.97 per share, for the same period in 2023. Adjusted EBITDA was $232 million, representing 19.8% of net sales, compared to $189 million, or 17.6% of net sales, in the prior year. The company updated its full-year 2024 net sales growth guidance to 5 to 9% and adjusted EBITDA margin to 17.5 to 18.5%.
- Net sales increased by approximately 10% to $1.17 billion compared to the prior-year third quarter.
- Residential product sales increased approximately 28% to $723 million, while Commercial & Industrial product sales decreased approximately 15% to $328 million.
- Net income attributable to the company during the third quarter was $114 million, or $1.89 per share, as compared to $60 million, or $0.97 per share, for the same period of 2023.
- Adjusted EBITDA was $232 million, or 19.8% of net sales, as compared to $189 million, or 17.6% of net sales, in the prior year.
Headline financials
Revenue & EPS history
Generac · Revenue · Quarterly
$1.17B
Revenue by segment
Generac · $950M total across 2 segments · Q3 2023
- Residential Products$565M-14.9%59.5%
- C&I Products$385M+23.8%40.5%
Forward guidance
The Company is increasing its full-year 2024 net sales guidance to 5 to 9% compared to the prior year and expects adjusted EBITDA margin to be 17.5 to 18.5%.
Tailwinds
- Net sales growth is expected between 5 to 9% for the full year 2024.
- Residential product sales are expected to increase.
- Adjusted EBITDA margin is expected to be approximately 17.5 to 18.5%.
- Strong operating cash flow generation is expected for the full year.
- Free cash flow conversion from adjusted net income is expected to be well above 100%.
Headwinds
- Softer market conditions are expected for C&I product sales in certain end markets and geographies.
- Softer market conditions are expected for Other product sales in certain end markets and geographies.
- The guidance considers an outsized increase in Residential product sales, partially offset by softer market conditions for C&I and Other product sales in certain end markets and geographies.
- The rapid adoption of renewable, intermittent power generation sources and accelerating demand for electricity will likely lead to additional stresses on our aging grid.
- Elevated outage activity and growing grid related supply-demand imbalances are expected to drive both continued near-term demand as well as long-term awareness of the growing need for backup power products.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2024
+2.2%
Avg return
Earnings day
+1.3%
Avg return
5 days after
+3.8%
Avg return
30 days after
53%
34 / 64 earnings
Positive
+20.5%
Q3 2013
Best reaction
-27.8%
Q2 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +18.4% | +18.4% | +28.1% | |
| Q4 2025 | +17.9% | +23.1% | +10.0% | |
| Q3 2025 | -5.0% | -13.9% | -20.3% | |
| Q1 2025 | +1.0% | +3.0% | +7.9% | |
| Q4 2024 | +7.6% | +3.6% | -8.0% | |
| Q3 2024 | +2.3% | +10.1% | +14.0% | |
| Q2 2024 | -6.5% | -8.5% | +0.6% | |
| Q1 2024 | -5.4% | +0.3% | +8.3% | |
| Q4 2023 | -2.5% | -5.3% | -9.6% | |
| Q3 2023 | +18.2% | +21.9% | +45.5% | |
| Q2 2023 | -27.8% | -27.9% | -22.5% | |
| Q1 2023 | +6.1% | +7.5% | +11.7% | |
| Q4 2022 | +3.8% | +1.2% | -9.6% | |
| Q3 2022 | -11.6% | -14.6% | -12.2% | |
| Q2 2022 | -8.6% | -5.5% | -16.2% | |
| Q1 2022 | +11.3% | -2.9% | +14.8% | |
| Q4 2021 | +9.4% | +6.5% | +15.4% | |
| Q3 2021 | -10.4% | -12.4% | -19.6% | |
| Q2 2021 | -4.5% | -8.9% | -0.4% | |
| Q1 2021 | +2.5% | -1.0% | +4.0% | |
| Q4 2020 | +17.8% | +26.3% | +18.6% | |
| Q3 2020 | +4.3% | +2.3% | +6.6% | |
| Q2 2020 | +12.8% | +17.8% | +35.3% | |
| Q1 2020 | -10.0% | -4.1% | +7.3% | |
| Q4 2019 | -0.4% | -2.3% | -12.5% | |
| Q3 2019 | -0.9% | +1.0% | +6.3% | |
| Q2 2019 | -1.8% | -0.3% | +7.9% | |
| Q1 2019 | +9.4% | +7.2% | +0.6% | |
| Q4 2018 | +2.9% | +3.1% | +3.4% | |
| Q3 2018 | +3.0% | +6.7% | +12.2% | |
| Q2 2018 | +3.1% | +2.6% | +3.2% | |
| Q1 2018 | -0.1% | +4.6% | +12.2% | |
| Q4 2017 | -2.9% | -4.8% | -3.5% | |
| Q3 2017 | -1.5% | -2.9% | -6.5% | |
| Q2 2017 | +2.5% | +4.1% | +10.3% | |
| Q1 2017 | -5.7% | -4.0% | -6.6% | |
| Q4 2016 | -5.0% | -5.1% | -9.7% | |
| Q3 2016 | +5.1% | +4.6% | +15.3% | |
| Q2 2016 | -5.1% | +0.8% | +6.4% | |
| Q1 2016 | -7.4% | — | — | |
| Q4 2015 | +17.1% | — | — | |
| Q3 2015 | +19.0% | — | — | |
| Q2 2015 | -17.6% | — | — | |
| Q1 2015 | -14.0% | — | — | |
| Q4 2014 | +4.2% | — | — | |
| Q3 2014 | -6.1% | — | — | |
| Q2 2014 | -4.8% | — | — | |
| Q1 2014 | -6.6% | — | — | |
| Q4 2013 | +13.4% | — | — | |
| Q3 2013 | +20.5% | — | — | |
| Q2 2013 | +5.7% | — | — | |
| Q1 2013 | +11.1% | — | — | |
| Q4 2012 | -5.7% | — | — | |
| Q3 2012 | +20.5% | — | — | |
| Q4 2011 | -1.4% | — | — | |
| Q2 2012 | -0.3% | — | — | |
| Q1 2011 | +17.1% | — | — | |
| Q1 2012 | +17.1% | — | — | |
| Q3 2011 | -2.9% | — | — | |
| Q2 2011 | +7.8% | — | — | |
| Q2 2010 | +7.8% | — | — | |
| Q4 2010 | +3.5% | — | — | |
| Q3 2010 | +3.4% | — | — | |
| Q1 2010 | -4.8% | — | — |
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