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.
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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.
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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.
Generac Holdings Inc. (NYSE:GNRC ) Q2 2025 Earnings Conference Call July 30, 2025 10:00 AM ET Company Participants Aaron P. Jagdfeld - Chairman, President & CEO Kris Rosemann - Senior Manager—Corporate Development & Investor Relations York A.
GNRC second-quarter earnings beat estimates with 6% revenue growth and gains across Residential and C&I segments.
While the top- and bottom-line numbers for Generac Holdings (GNRC) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.