Generac Holdings posted a 2 percent net sales increase during the third quarter of 2015 with $359.3 million compared to $352.3 million in the third quarter of 2014. The third quarter numbers were a 24.6-percent sequential boost compared to $288.4 million in the second quarter.
Residential product sales increased slightly from $183.7 million in Q314 to $185 million this year. Commercial and Industrial product sales increased 1.2 percent to $148 million during the third quarter compared to $146.4 million a year ago, with contributions coming from recent acquisitions as well as increased shipments to industry distributors, mostly offset by a drop in shipments into oil and gas markets.
“We are pleased with our overall financial results for the quarter as we saw strong sequential improvement in both sales and margins, which were in line with our expectations,” said Aaron Jagdfeld, president and CEO. “Despite the ongoing low power outage environment, shipments of home standby generators increased significantly relative to the first half of 2015 as field inventory returned to a more normalized level. Contributions from C&I-related acquisitions in recent years had a positive impact on the quarter as we further expanded and diversified our industrial product offering. However, lower energy prices continued to have a negative impact on year-over-year growth for certain mobile products. We were also active on our recently announced share repurchase program, which we believe is an attractive use of capital for shareholders given our long-term growth opportunities.”
The company is expecting net sales for the full year 2015 of about $1.3 billion, because of continued softness in the oil and gas markets.
“We remain focused on the things we can control including driving awareness for our products, developing and expanding our distribution, launching innovative new products and controlling costs,” added Jagdfeld.