Generac Q4 revenue, EPS miss estimates due to fewer power outages
Overview
Energy technology firm's Q4 revenue fell 12%, missing analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Company announced a new $500 mln stock repurchase program
Outlook
Generac expects 2026 net sales growth in mid-teens percent range
C&I product sales expected to increase 30% in 2026
Residential product sales projected to rise 10% in 2026
Result Drivers
RESIDENTIAL SALES DECLINE - Weak power outage activity led to a 23% drop in residential product sales, impacting overall revenue
C&I SALES GROWTH - Increased demand from data center customers drove a 10% rise in commercial and industrial product sales
LEGAL SETTLEMENT IMPACT - A $104.5 mln provision for a legal settlement significantly affected net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Miss | $1.09 bln | $1.16 bln (19 Analysts) |
Q4 Adjusted EPS | Miss | $1.61 | $1.77 (18 Analysts) |
Q4 EPS |
| -$0.42 |
|
Q4 Adjusted Net Income | Miss | $95 mln | $104.94 mln (16 Analysts) |
Q4 Net Income |
| -$24 mln |
|
Q4 Adjusted EBITDA | Miss | $185 mln | $197.68 mln (18 Analysts) |
Q4 Free Cash Flow |
| $130 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Generac Holdings Inc is $202.00, about 10.8% above its February 10 closing price of $182.30
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 21 three months ago
Press Release: ID:nGNX4qNnp8
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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