Generac misses quarterly estimates as weaker outage activity hits generator demand
Generac Holdings Inc. GNRC | 194.09 | -2.49% |
Feb 11 (Reuters) - Power equipment maker Generac GNRC.N reported fourth-quarter profit and sales below Wall Street expectations on Wednesday, as demand for home standby and portable generators weakened due to a drop in power-outage activity.
Fewer power outages have softened demand for generators, while persistent inflation is leading households to delay energy-efficiency upgrades, putting further strain on Generac's residential market.
CEO Aaron Jagdfeld said fourth-quarter results were hurt by a softer outage environment and lower shipments of home standby and portable generators.
But he said demand from data-center customers continues to strengthen, with rising orders from hyperscale clients expected to lift the company's backlog in the coming quarters.
Its commercial and industrial business segment posted a 10% rise in sales.
Sales in the company's residential segment, its biggest in terms of sales, were down 23% at $571.87 million.
The company said it expects 2026 net sales to grow in the mid-teens percent range from a year ago, sending shares of the company up nearly 4% in premarket trading.
Adjusted profit per share for the quarter ended December 31 came in at $1.61 per share, below analysts' expectations of $1.77, according to data compiled by LSEG.
Revenue for the fourth quarter was down 12% to $1.09 billion from a year ago, missing estimates of $1.16 billion.
