Generac Q3 Misses, Cuts 2025 Sales and Margin Guidance

Generac reported Q3 adjusted EPS of $1.83 (vs. expectations around $2.20–$2.25) and revenue of $1.11 billion, down about 5% year‑over‑year. The miss was driven by much weaker residential demand — shipments of home‑standby and portable generators were hit by a significantly below‑average outage environment (the lowest third‑quarter outage hours since 2015) and consumer pullback amid inflation — while the commercial & industrial segment grew roughly 9%. Management cut full‑year 2025 sales guidance to roughly flat (from a prior 2–5% target) and trimmed net‑income margin guidance to about 6% (from 7.5–8.5%), citing higher tariffs and increased operating expenses in part tied to legal and regulatory charges. Investors reacted sharply in premarket trading, sending the stock down roughly 7–13% after the company warned of lower near‑term margins and cash‑flow versus last year. CEO Aaron Jagdfeld said long‑term growth drivers — grid stress, higher power prices, electrification and rising data‑center demand — remain intact, but near‑term cyclicality and macro headwinds have dimmed the outlook.