Generac Holdings Inc. reported a sharp increase in fourth-quarter profit, helped by increased demand for backup generators as severe weather and power outages across the U.S. became more frequent. The company’s strong performance highlights its increasingly important role in addressing the nation’s strained power grid and increased electricity demand.
Generac’s earnings per share came in at $2.80, beating analysts’ expectations of $2.50. Net sales rose 16% year-over-year to $1.23 billion, though that number was slightly below expectations. Still, the company showed resilience in a challenging environment, with domestic sales soaring to $201.07 billion. The surge was driven primarily by extreme weather events, including Hurricanes Helene and Milton, which prompted homeowners and businesses to invest in reliable backup power solutions.
Demand for Generac generators reflects a broader trend: The number of power outages in the U.S. has reached its highest level since 2010. As the grid faces pressure from increasing power consumption (driven by artificial intelligence data centers and broader energy use), Generac’s products have become key to ensuring energy reliability.
The company’s strong quarterly results also boosted investor confidence, with its shares rising 3.1% to $146.20 in premarket trading. The rise highlights the market’s confidence in Generac’s potential to capitalize on growing energy challenges.
Looking ahead, Generac expects sales to grow 3% to 7% in 2025, suggesting continued demand for its products. As climate change makes weather more unpredictable and the grid struggles to meet growing energy demands, Generac is well-positioned to play a key role in providing reliable power solutions to residential and commercial customers.
The company’s success not only highlights the urgent need for energy resiliency, but also positions Generac as a key player in reshaping how homes and businesses manage energy needs in an increasingly volatile world.
