Generac posts quarterly profit beat, but cuts 2025 forecast on tariff uncertainty

April 30 (Reuters) - Power equipment maker Generac Holdings GNRC.N reported better-than-expected first-quarter profit on Wednesday, but trimmed its annual forecast as uncertainty from tariffs clouded its demand outlook.

The company forecast its full-year net income margin to be between 6.5% and 8.5%, compared with its previous view of 8% to 9%. It expects annual net sales to remain flat or grow up to 7%, compared with its prior projection of 3% to 7%.

"As a result of higher tariff levels, uncertain government policy actions, and a potentially softer global macroeconomic environment, the range of forecasted outcomes for our business has expanded relative to our prior guidance," the company said.

Generac plans to mitigate the effects of the tariffs through higher pricing, supply chain initiatives and other cost-reduction efforts over the coming quarters, CEO Aaron Jagdfeld said.

Meanwhile, demand for generators surged during the first quarter as adverse weather conditions left homes in the U.S. without power, benefiting home standby generator makers such as Generac.

The company's adjusted net income came in at $1.26 per share for the three months ended March 31, beating analysts' average estimate of $0.97 per share, according to data compiled by LSEG.

Its quarterly revenue of $942 million also topped expectations of $919.0 million.

First-quarter sales at the residential product segment, Generac's top money-making business, rose 15% to $494 million from a year ago, boosted by strong growth.

However, quarterly sales at its commercial and industrial (C&I) unit slipped 5% to $337 million.