Generac Holdings, global designer and manufacturer of power generation equipment and other engine-powered products posted $559.5 million in third quarter sales compared to $455.8 million in last year’s third quarter, a 22.7-percent hike. The revenue includes $13.4 million of contribution from the acquisition of Selmec, which closed June 1. Core sales growth, excluding the impact of acquisitions and foreign currency, was about 20 percent.
Gross profit margin improved 110 basis points in the third quarter to 35.4 percent compared to 34.3 percent in the third quarter of 2017.
Net income for the third quarter nearly doubled with $75.8 million, $1.11 per share, compared to $39.4 million or $0.63 per share a year ago.
The company is increasing its full-year 2018 sales growth guidance to about 20 percent with adjusted EBITDA margins.
“Our third quarter results were a record for Generac as we experienced broad-based growth across all of our end markets,” said Aaron Jagdfeld, president and CEO. “Shipments of residential products were again particularly strong with demand climbing to record levels as disruptions from power outages continued to drive awareness around the home standby category and the need for homeowners to have back-up power. Sales of our C&I mobile and stationary products were also strong during the quarter with rental telecom and healthcare verticals experiencing outsized growth. With a healthy backlog entering the fourth quarter, the fundaments of our business have never been stronger and we remain focused on execution as we further drive shareholder value.”
Generac’s domestic segment sales increased 24.9 percent to $453.3 million, compared to $362.9 million in the prior-year quarter. The current-year quarter is experiencing strong growth in shipments of home standby generators. Construction and industrial mobile products, C&I stationary generators and service parts are all contributing to growth.
The international segment increased sales 14.3 percent to $106.3 million compared to $929 million a year ago. Core sales growth was about 3 percent with the Selmec acquisition contributing $13.4 million.
Generac is increasing its prior guidance for revenue growth for full-year 2018, reflecting the favorable end market conditions primarily driven by higher than expected power outage activity experienced during the second half of 2018. Full year net sales are now expected to grow by approximately 19 to 20 percent year over year, an increase from the 13- to 14-percent growth previously expected. Core sales growth is expected to be about 16 to 17 percent, up from the approximately 10 percent core growth previously expected.