Generac Grows Second Quarter Revenue 6.3 Percent
Generator manufacturer Generac posted $1,061.2 million in second quarter 2025 net sales compared to $998.2 in net sales in second quarter 2024 net sales, a 6.3-percent increase. For the first six months of 2025, net sales totaled $2,003.3 million compared to $1,887.5 million in the first six months of 2024, a 6.1-percent boost.
The effect of acquisitions and foreign currency had a slight favorable impact during the quarter. Residential product sales increased approximately 7 percent to $574 million as compared to $538 million last year. Commercial & Industrial product sales increased approximately 5 percent to $362 million as compared to $344 million in the prior year. Net income attributable to the Company during the second quarter was $74 million, or $1.25 per share, as compared to $59 million, or $0.97 per share, for the same period of 2024.
“Agile execution in a dynamic operating environment helped drive second quarter results ahead of our expectations with outperformance across both Residential and C&I product sales,” said Aaron Jagdfeld, president and CEO. “Sales of residential energy technology solutions exceeded expectations and increased at a dramatic rate from the prior year as we ramped shipments of energy storage systems to Puerto Rico, and continued to see significant growth with their home energy management solutions. In addition, we continued to take share in the portable generator market while also holding a new and higher baseline level of demand for home standby generators following strong outage activity in the second half of last year.”
“Second quarter sales of Domestic C&I products also outperformed expectations and increased from the prior year as we saw strong growth in shipments to our industrial distributor and telecom customers. Additionally, we experienced a strong initial reception to our formal entrance into the data center market during the second quarter as we developed a significant global pipeline of opportunities and began building backlog for our new high-output diesel generator product offering. We expect this large and rapidly expanding market to provide meaningful secular growth for our C&I products in the years ahead given the substantial level of investment going into data centers and the accelerating adoption of artificial intelligence.”
Domestic Segment
Domestic segment total sales (including inter-segment sales) increased approximately 7 percent to $884.5 million compared to $827.1 million in the prior year, including an approximate 1 percent benefit from acquisitions. The core total sales increase was primarily driven by strong growth in sales of residential energy technology solutions, portable generators, and C&I products to industrial distributors and national telecom customers. This growth was partially offset by continued softness in C&I product shipments to national rental accounts.
Adjusted EBITDA for the segment was $158.1 million, or 17.9 percent of domestic segment total sales, as compared to $139.7 million, or 16.9 percent of total sales, in the prior year. This margin improvement was primarily driven by favorable price realization and lower input costs, partially offset by unfavorable sales mix and increased operating expense investments to support future growth.
International Segment
International segment total sales (including inter-segment sales) increased approximately 7 percent to $197.2 million from $184.5 million in the prior year quarter, including an approximate 1 percent favorable impact from foreign currency. The core total sales growth for the segment was primarily driven by higher inter-segment sales and strength in C&I product shipments in Europe, partially offset by softer shipments in other regions.
Adjusted EBITDA for the segment, before deducting for noncontrolling interests, was $29.5 million, or 15 percent of international segment total sales, as compared to $25.0 million, or 13.6 percent of total sales, in the prior year.
Outlook
Given increased visibility to expected full year 2025 net sales, including the second quarter outperformance, and lower than previously anticipated price increases in the second half primarily resulting from lower tariff assumptions, Generac is narrowing its full-year net sales growth guidance range to be 2 to 5 percent as compared to the prior year. This compares to the previous guidance range of 0 to 7 percent.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.