Generac Holdings reported better-than-expected second-quarter profit and revenue on Wednesday, as frequent power outages lifted sales of its backup generators, batteries and solar equipment.\n\nDemand for the company's home standby generators has risen in tandem with power outages caused by winter storms and hurricanes last year.\n\nCEO Aaron Jagdfeld said there was a \"dramatic\" increase in the sales of Generac's residential segment after shipments to Puerto Rico rose following widespread blackouts.\n\nSales in the residential segment, its biggest in terms of sales, were up 6.6% from a year ago.\n\nJagdfeld also said demand from the company's industrial and telecom customers remains strong and that there was a \"strong initial reception\" to its entry into the power-hungry data centre market during the quarter.\n\nThe Waukesha, Wisconsin-based company's commercial and industrial (C&I) business segment posted a 5.2% rise in quarterly sales from a year ago.\n\nIts total net sales for the quarter ended June 30 was $1.06 billion, beating estimates of $1.03 billion, according to data compiled by LSEG.\n\nGross profit margin in the second quarter was 39.3%, compared with 37.6% a year ago.\n\nIt expects full-year net income margin to range between 7.5% and 8.5%, compared with previous guidance range of 6.5% to 8.5%.\n\nBut Generac narrowed its annual net sales growth forecast to between 2% and 5%, from its prior guidance of flat to 7%, citing lower than anticipated price increases in the second half of the year due to tariffs.\n\nAdjusted quarterly net income per share came in at $1.65, above analysts' expectations of $1.32.

Generac beats quarterly estimates on robust sales of power backup equipment

Generac Holdings reported better-than-expected second-quarter profit and revenue, driven by increased sales of backup generators, batteries, and solar equipment. Residential segment sales rose 6.6% year-over-year, while commercial and industrial sales grew 5.2%. Total net sales reached $1.06 billion, surpassing estimates, and adjusted net income per share hit $1.65. The company expanded into the data center market and revised its annual sales growth forecast due to tariff-related pricing challenges.