Generator manufacturer Generac posted $494.9 million in net sales in the second quarter compared to $394.9 million in the second quarter of 2017, a 25.3-percent increase, including $4 million of contribution from the acquisition of Selmec, which closed June 1. Core sales growth, excluding the favorable impact of acquisitions and foreign currency, was about 23 percent.
Gross profit margin improved 190 basis points to 35.6 percent compared to 33.7 percent in the second quarter of 2017.
Net income attributable to the company during the second quarter was $53.3 million, or $0.82 per share, compared to $25.3 million, or $0.41 per share, for the same period a year ago.
“Our second quarter results further demonstrate the tremendous earnings power of Generac as solid execution across our entire business helped drive a 300-basis point expansion in EBITDA margins over the prior year,” said Aaron Jagfeld, president and CEO. “We continue to see robust demand across all of our end markets and geographies, with particular strength coming from residential products as power outages over the last 12 months have been well above the long-term average. Global interest for our C&I mobile and stationary products have also been strong primarily driven by an increase in telecom, healthcare and other large projects, as well as the continued investment in fleet equipment by our rental account customers. Lastly, on June 1st, we closed on the acquisition of Selmec, further expanding our presence in the important Latin American backup power market.”
Domestic segment sales increased 24.8 percent to $381 million as compared to $305.4 million in the prior-year quarter. The current year quarter experienced strong growth in shipments of home standby and portable generators and also benefitted from robust commercial and industrial shipments driven by mobile products fleet replacement and strength in stationary generators through national accounts. Increased service part sales also contributed to the year-over-year growth.
International segment sales jumped 27.3 percent to $113.9 million compared to $89.5 million in the year-ago quarter, including $4 million from the Selmec acquisition. Core sales growth was approximately 16 percent, primarily from broad-based growth of C&I products in Europe, Asia and Latin America.