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Generac to Report Q2 Earnings: What Should Investors Expect?

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Key Takeaways

  • GNRC is set to report Q2 2025 results on July 30, with revenues estimated at $1.02B, up 2.6% year over year.
  • Strong demand for home standby generators is likely to have driven top-line growth.
  • C&I sales softness and rising operating expenses remain key concerns for GNRC.

Generac Holdings Inc. (GNRC - Free Report) will report second-quarter 2025 results on July 30, before market open. 

The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.02 billion, up 2.6% from the prior-year reported number. GNRC expects second-quarter net sales growth in the low single-digit range. 

The consensus estimate for earnings is pinned at $1.33 per share, down 1.5% year over year. The estimate has moved down 2 cents in the past seven days.

Zacks Investment Research
Image Source: Zacks Investment Research

GNRC beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 15.45%. In the past year, shares of the company have gained 1% compared with the Zacks Manufacturing-General Industrial industry’s growth of 6.9%.

Factors Influencing GNRC’s Q2 Performance

Strength in the Residential segment, particularly home standby generators, is likely to have acted as a key catalyst. In the first quarter of 2025, Residential product sales surged 15% year over year, reaching $494 million, fueled by increased power outages and a growing demand for reliable backup power solutions. 

In addition to demand for home standby generators, the adoption of residential-energy technology products (ecobee and Energy Storage systems) is likely to have driven top-line momentum in the to be reported quarter. New product launches (including PWRcell 2 MAX and our next-generation home standby generators), along with significant investments in boosting manufacturing capacity, remain other catalysts. 

Margin performance is likely to have been buoyed by a favorable sales mix (due to solid home standby shipments), enhanced production efficiencies and reduced input costs. 

Softness in C&I sales remains concerning. C&I’s first-quarter revenues totaled $337 million, down 5% year over year. Increases in the domestic industrial, distributor and telecom channels were offset by weakness in other C&I end markets. Further, management expects C&I sales to be flat year over year in the second quarter. Generac also expects industrial distributor sales to remain softer in 2025, due to a lower starting backlog entering the year. 

Generac Holdings Inc. Price and EPS Surprise

Generac Holdings Inc. Price and EPS Surprise

Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. Quote

Volatile macroeconomic conditions, including tariff troubles, stiff competition and increasing operating costs (mainly due to higher marketing spending), remain concerning for Generac. For the second quarter of 2025, GNRC expects Residential product sales to experience modest year-over-year growth. 

The Zacks Consensus Estimate for Residential products' revenues is pegged at $557 million. The consensus estimate for C&I products' revenues is pinned at $343 million.

What Does Our Model Unveil for GNRC?

Our proven model does not predict an earnings beat for Generac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

Generac has an Earnings ESP of -0.19% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.

Meta Platforms, Inc. (META - Free Report) currently has an Earnings ESP of +2.91% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. 

META is scheduled to report quarterly earnings on July 30. The Zacks Consensus Estimate for META’s to-be-reported quarter’s earnings and revenues is pegged at $5.83 per share and $44.84 billion, respectively. Shares of META have gained 5.3% in the past year.

Amazon.com, Inc. (AMZN - Free Report) has an Earnings ESP of +7.37% and a Zacks Rank #1 at present. AMZN is scheduled to report quarterly figures on July 31. The Zacks Consensus Estimate for AMZN’s to-be-reported quarter’s earnings and revenues is pegged at $1.33 per share and $162.28 billion, respectively. Shares of AMZN have declined 2.4% in the past year.

Sprouts Farmers Market, Inc. (SFM - Free Report) currently has an Earnings ESP of +0.27% and a Zacks Rank #2. SFM is scheduled to report quarterly earnings on July 30. The Zacks Consensus Estimate for Sprouts Farmers Market’s to-be-reported quarter’s earnings and revenues is pegged at $1.23 per share and $2.17 billion, respectively. Shares of SFM have gained 3.9% in the past year.

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