Archive photo: Generac headquarters, Waukesha, Wisconsin. Generac media kit (cropped)
Generac reported record third-quarter sales Wednesday and said its backlog for data-center products had reached about $4.5 billion, while raising the lower end of its full-year adjusted profit-margin forecast.
Net sales increased 16% to $1.29 billion, compared with $1.11 billion a year earlier, according to the company’s results announcement. Net income attributable to Generac rose to $109 million, or $1.83 a share, from $66 million, or $1.12 a share.
Data-center orders support expansion
Chief Executive Aaron Jagdfeld said new and existing customer wins, including the previously announced Amazon agreement, had helped lift the data-center backlog to approximately $4.5 billion. The company is continuing capacity-expansion plans to serve that demand.
Generac said initial deliveries under its previously disclosed long-term agreement to supply backup generators for Amazon data centers are expected to total a combined $2.4 billion in 2027 and 2028. That is an expectation for future deliveries, not revenue recognized in the third quarter.
Commercial and Industrial external net sales rose about 28% to $552 million, while Residential external net sales increased about 9% to $743 million. The company cited higher shipments of home standby and portable generators in the residential business, partly offset by lower energy-storage shipments.
Margin outlook improves
Generac maintained its forecast for full-year sales growth in the mid-to-high teens percentage range. It now expects an adjusted EBITDA margin, before noncontrolling interests, of 20.5% to 21.0%, compared with its previous range of 20.0% to 21.0%. The forecast is non-GAAP.
Its forecast for net income margin before noncontrolling interests remains 9.0% to 10.0%.
Quarterly adjusted net income was $151 million, or $2.54 a share, up from $108 million, or $1.83 a share. Adjusted EBITDA before noncontrolling interests rose to $256 million, or 19.8% of sales, from $193 million, or 17.3%. These adjusted figures are non-GAAP measures, and the release provides reconciliations to GAAP results.
Operating cash flow increased to $171 million from $118 million. The company’s forecast remains subject to risks including demand, tariffs, supply chains and execution of its growth plans.
JBizNews Desk | Waukesha, Wisconsin
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