Q2 2024 Generac Holdings Inc Earnings Call Transcript
Key Points
- Generac Holdings Inc (GNRC) exceeded expectations for adjusted EBITDA and adjusted EPS due to lower input costs and operating expenses.
- Residential product sales increased by 8% year-over-year, driven by strong growth in home standby generator shipments.
- Gross and adjusted EBITDA margins expanded significantly from the previous year, benefiting from a favorable sales mix and lower input costs.
- The company raised its 2024 full-year outlook due to increased demand for home standby and portable generators following recent power outage activity.
- Generac Holdings Inc (GNRC) continues to invest in expanding its dealer and aligned contractor networks, which is seen as a competitive advantage.
- Global C&I product sales decreased by 10% year-over-year, impacted by softness in the telecom and rental markets.
- Residential energy technology products and solutions are negatively impacted by structural changes to California's net metering program and higher borrowing costs.
- Activations or installations of home standby generators were down modestly during the first half of 2024.
- International sales declined year-over-year, primarily due to lower shipments in Europe and intercompany shipments from Mexican operations.
- Operating expenses increased by 12% compared to the previous year, driven by investments in resources for future growth.
Good day, and thank you for standing by. Welcome to the second quarter 2024 Generac Holdings Inc. conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Kris Rosemann. Please go ahead.
Good morning, and welcome to our second quarter 2024 earnings call. I'd like to thank everyone for joining us this morning. With me today is Aaron Jagdfeld, President and Chief Executive Officer; and York Ragen, Chief Financial Officer.
We will begin our call today by commenting on forward-looking statements. Certain statements made during this presentation as well as other information provided from time to time by Generac or its employees, may contain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements.
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