GNRC's third-quarter earnings and sales fall short of estimates, with weaker generator demand prompting it to cut the 2025 revenue outlook.
Although the revenue and EPS for Generac Holdings (GNRC) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Generac Holdings (GNRC) came out with quarterly earnings of $1.83 per share, missing the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $2.25 per share a year ago.
Power equipment maker Generac lowered its full-year net sales growth forecast, citing weaker demand for home standby and portable generators due to a decline in power outages, sending shares down 9% in premarket trading.
GNRC's 24% year-to-date surge is powered by strong residential demand and product innovation, but near-term headwinds may limit further gains.
Generac Holdings has only expanded by 7% this year, underperforming other industrial and Russell 1000 stocks by a large margin. GNRC's EBITDA margins are set to expand by 120bps over two years, supported by strong pricing, operating leverage, supply chain improvements, and high-margin recurring revenue. Despite witnessing a steep contraction in Q2, the current FCF yield is already above average at mid-single-digits, and a marked improvement in H2 will lift buyback momentum.
GNRC stock surged 39% in three months as residential and C&I momentum, plus new product launches, fuel long-term growth potential.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
From a technical perspective, Generac Holdings (GNRC) is looking like an interesting pick, as it just reached a key level of support. GNRC recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
One of investors' most challenging questions is when to sell a winning stock. No one ever went broke taking profits, but exiting a high-flying stock too early can cause FOMO and create the temptation to chase.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Generac delivered a strong Q2 earnings beat and raised guidance, driven by robust residential and data center demand, especially in hurricane-prone US regions. Gross margins improved despite tariffs, as Generac successfully passed higher costs to customers without hurting demand, supporting continued earnings outperformance. Risks include ongoing tariff uncertainty and a contraction in the solar segment, but climate-driven demand and data center growth remain tailwinds.