Generac Q3 Earnings & Revenues Miss Estimates, 2025 Outlook Revised

Generac Holdings Inc.  GNRC reported third-quarter 2025 adjusted earnings per share (EPS) of $1.83, which missed the Zacks Consensus Estimate of $2.25. GNRC reported adjusted EPS of $2.25 in the prior-year quarter.Net sales were $1.11 billion, down 5% compared with $1.17 billion reported in the prior-year quarter. The figure also missed the consensus estimate of $1.2 billion. Weaker seasonal demand for home standby and portable generators offset increases in sales for global C&I products and higher shipments of residential energy technology products. Although home standby and portable generator shipments were up sequentially in the quarter, they came in below expectations due to a power outage environment that was considerably below the baseline average, as highlighted by GNRC. As a result of a weak power outage environment, management has revised its expectations for 2025. For 2025, GNRC now expects revenues to be flat compared with an increase of 2-5% guided earlier. Net income margin (before deducting for non-controlling interests) is now expected to be 6% compared with 7.5-8.5% guided earlier. Adjusted EBITDA margin is now estimated to be 17% compared with the previous range of 18% to 19%. GNRC now expects free cash flow conversion from adjusted net income to be 80% compared with the previous guided range of 90% to 100%.  Image Source: Zacks Investment ResearchGNRC is down 10.1% in the pre-market trading today. The stock has gained 15.1% compared with the Manufacturing-General Industrial industry’s growth of 4.6% in the past year.GNRC’s Segments in DetailSegment-wise, domestic revenues fell 8% year over year to $938.1 million. Results were supported by acquisitions, which contributed 1% benefit. Core sales were impacted by lower home standby and portable generator sales, and tough year-over-year comparisons. International revenues surged 11% year over year to $185.5 million, which includes a 3% favorable impact from foreign currency fluctuations. Core revenue growth was mainly due to strength in C&I product shipments in Europe and initial shipments of large-megawatt generators to data centers. Product-wise, revenues from Residential were down 13% year over year to $627 million. C&I revenues totaled $358 million, up 9% year over year. Revenues from the Other product class totaled $129.4 million, up 5.3% year over year.Generac Holdings Inc. Price, Consensus and EPS Surprise Generac Holdings Inc. price-consensus-eps-surprise-chart | Generac Holdings Inc. QuoteThe Zacks Consensus Estimate for Residential and C&I products’ third-quarter revenues was pegged at $714 million and $353 million, respectively.GNRC’s Margin PerformanceGross profit was $426.9 million, down from $472.3 million in the prior-year quarter, with respective margins of 38.3% and 40.2%. The performance was impacted by unfavorable sales mix, higher tariffs and lower manufacturing absorption, which offset higher price realization.Total operating expenses were $323.8 million, up 6.7% year over year, caused by certain legal and regulatory charges. Operating income was $103.1 million, down 38.9% year over year. Adjusted EBITDA, before deducting for non-controlling interests, was $193 million compared with $232 million a year ago.GNRC’s Cash Flow & LiquidityIn the third quarter, the company generated $118.4 million of net cash from operating activities. Free cash flow totaled $96.5 million.As of Sept. 30, 2025, GNRC had $300 million of cash and cash equivalents, with nearly $1.36 billion of long-term borrowings and finance-lease obligations.In the reported quarter, the company did not buy back shares. GNRC had shares worth $200 million left under its buyback authorization as of June 30, 2025.  In February 2024, GNRC approved a new share buyback authorization that allows for a repurchase of up to $500 million in the next 24 months. It replaced the remaining balance on the earlier program.GNRC’s Zacks RankGenerac currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Performance of Other Companies in the Same SpaceIllinois Tool Works Inc. ITW reported third-quarter 2025 adjusted earnings of $2.81 per share, which surpassed the Zacks Consensus Estimate of $2.56. Earnings increased 6% year over year. Illinois Tool’s revenues of $4.06 billion missed the consensus estimate of $4.08 billion. However, the top line increased 2% year over year, driven by a favorable foreign currency translation of 2%. Organic sales increased 1% in the quarter, while product line simplification had an adverse impact of 1%. At the end of the third quarter, Illinois Tool had cash and equivalents of $924 million compared with $948 million at the end of December 2024.Dover Corporation DOV reported third-quarter 2025 adjusted EPS from continuing operations of $2.62, beating the Zacks Consensus Estimate of $2.50. In the year-ago quarter, the company reported an adjusted EPS of $2.27. On a reported basis, Dover Corporation has delivered an EPS (from continuing operations) of $2.20 in the quarter, down 3% year over year. Total revenues in the third quarter were $2.08 billion, up 4.8% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.09 billion.Organic growth was 0.5% in the quarter. DOV’s bookings at the end of the third quarter were around $2 billion compared with the prior-year quarter’s $1.85 billion. Graco Inc.’s GGG third-quarter 2025 adjusted earnings of 73 cents per share missed the Zacks Consensus Estimate of 75 cents. The bottom line increased 3% year over year. Graco’s net sales of $543.4 million lagged the consensus estimate of $562 million. However, the top line increased 5% year over year due to incremental sales from acquired operations and sales growth across the Americas, EMEA and Asia Pacific regions. On a regional basis, quarterly sales generated from the Americas increased 2% year over year. In EMEA, sales increased 12% year over year. Sales from the Asia Pacific increased 7% year over year.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Graco Inc. (GGG): Free Stock Analysis Report Generac Holdings Inc. (GNRC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks