Generac Holdings Inc. (NYSE: GNRC) reported fourth-quarter earnings that fell short of analyst expectations as reduced power outage activity weighed heavily on residential generator demand, although shares jumped more than 17% intra-day on Wednesday following an upbeat outlook.
The power equipment manufacturer posted adjusted earnings of $1.61 per share for the quarter, missing the analyst consensus of $1.77. Revenue declined 12% year over year to $1.09 billion, below expectations of $1.16 billion.
Residential product sales, the company’s largest segment, dropped 23% to $572 million from $743 million in the prior-year period. Generac attributed the decline to continued weakness in power outage activity, which resulted in lower shipments of home standby and portable generators compared with the significantly stronger outage environment a year earlier.
Commercial and Industrial (C&I) product sales provided a partial offset, increasing 10% to $400 million, primarily driven by stronger demand from data center customers.
Looking ahead, Generac initiated fiscal 2026 guidance, projecting net sales growth in the mid-teens percentage range compared to 2025. The company expects adjusted EBITDA margins of approximately 18.0% to 19.0%.
The board also approved a new $500 million share repurchase authorization to be executed over the next 24 months, replacing the remaining balance of its prior program.
For full-year 2025, Generac reported net sales of $4.21 billion, down 2% from $4.30 billion in 2024. Adjusted earnings were $6.34 per share, compared to $7.27 in the previous year.
