Generac posted third quarter net sales of $601.1 million compared to $562.4 million in the third quarter of 2018, a 6.9-percent increase. Core sales growth, excluding the impact of acquisition and foreign currency was also about 7 percent. Residential product sales increased to $335 million compared to $311.9 million a year ago, a 7.4percent hike. Core sales growth in the residential segment was also about 7 percent.
Commercial & Industrial sales totaled $214.9 million compared to $206.4 million last year, a 4.1-percent hike, while core sales jumped 5 percent in the segment. Cash flow from operations was $111.2 million as compared to $59.3 million in the prior year quarter. Free cash flow, as defined in the accompanying reconciliation schedules, was $100.8 million as compared to $47.0 million in the third quarter of 2018.
The company is increasing its full-year 2019 sales growth guidance to approximately 8 to 9 percent with adjusted EBITDA margins, before deducting for non-controlling interests, of approximately 20.5 percent.
“We are pleased with our results for the third quarter of 2019 as we posted all-time record net sales and adjusted EBITDA as a result of continued strong growth across various product categories,” said Aaron Jagdfeld, president and CEO. “Our performance in 2019 demonstrates the powerful secular growth opportunities around an aging electrical grid in the United States that is more susceptible to power outages due to a changing climate, the increasing penetration of natural gas power generation globally, and the importance of reliable telecommunication networks.
“In addition, with the growing threat of utility shut-offs in California, interest in our back-up power solutions is at all-time high. Finally, we are quickly scaling our Clean Energy product portfolio, supply chain, and go-to-market strategies to take advantage of the rapidly developing markets for energy monitoring, management and storage, and intend to launch our new product line in the fourth quarter.”
