Generac Shares Surge on Strong Earnings and Raised Guidance
Generac Holdings Inc. (GNRC) rallied 16.2% after reporting second-quarter earnings that exceeded analyst expectations. Revenue grew 6.2%, driven by a 7% increase in residential sales and 5% growth in commercial and industrial segments. Adjusted EBITDA margins expanded to 17.7%, up from 16.5% a year earlier, while share repurchases helped boost non-GAAP EPS by 22.2% to $1.65.
The company tightened its full-year revenue guidance to 2%-5% growth, up from the prior 0%-7% range, and raised the low end of its EBITDA margin forecast to 18%-19%. Management's conservative outlook and the quarter's outperformance suggest potential for future beats, with analysts noting resilience in demand for backup power solutions amid growing concerns over grid reliability.
