Generac Holdings Reports 47.4% Increase in Net Income to $316.3 Million for Fiscal Year 2024

Generac Holdings Inc. reported a net income of $316.3 million for the fiscal year ending December 31, 2024, a significant increase of 47.4% compared to $214.6 million in 2023. The company's total revenue reached $4.3 billion, reflecting a 6.8% growth from $4.0 billion in the previous year. This growth was primarily driven by a surge in residential product sales, particularly home standby and portable generators, which benefited from increased power outage activity in the latter half of the year. However, the commercial and industrial (C&I) segment experienced a decline in sales, particularly in telecom and rental applications.

In terms of operational metrics, Generac's domestic sales rose by 9.9% to $3.6 billion, while international sales fell by 6.7% to $696.7 million. The gross profit margin improved to 38.8%, up from 33.9% in 2023, attributed to a favorable sales mix and lower input costs. Operating expenses increased by 15.3% to $1.1 billion, driven by higher employee costs and marketing expenses, as well as legal provisions related to ongoing litigation. The company also reported an Adjusted EBITDA of $789.1 million, a 23.7% increase from the previous year.

Generac has been actively expanding its product offerings and market presence through strategic acquisitions. In 2024, the company acquired several businesses, including Wolverine Power Systems and Ageto, enhancing its capabilities in the residential and commercial energy sectors. These acquisitions are part of Generac's broader strategy to evolve into a comprehensive energy technology solutions provider, focusing on energy management and storage systems alongside traditional power generation products.

The company’s workforce has also seen growth, with a total employee count of 9,239 as of December 31, 2024. Generac continues to invest in research and development, with R&D expenses increasing by 26.6% to $219.6 million, reflecting its commitment to innovation in energy technology. The company is optimistic about future growth, citing ongoing demand for backup power solutions driven by increasing power quality issues and rising energy costs.

Looking ahead, Generac anticipates continued growth in its residential and C&I markets, supported by its strategic investments and acquisitions. The company is well-positioned to capitalize on the evolving energy landscape, particularly as it integrates new technologies and expands its product ecosystem to meet the growing demand for resilient and sustainable energy solutions.