Latest news with #GNRC
Yahoo
14-05-2025
- Business
- Yahoo
GNRC Q1 Earnings Call: Home Standby Demand and Tariff Mitigation Shape Outlook
Power generation products company Generac (NYSE:GNRC) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 5.9% year on year to $942.1 million. Its non-GAAP profit of $1.26 per share was 30.5% above analysts' consensus estimates. Is now the time to buy GNRC? Find out in our full research report (it's free). Revenue: $942.1 million vs analyst estimates of $921.1 million (5.9% year-on-year growth, 2.3% beat) Adjusted EPS: $1.26 vs analyst estimates of $0.97 (30.5% beat) Adjusted EBITDA: $149.5 million vs analyst estimates of $129.2 million (15.9% margin, 15.8% beat) Operating Margin: 8.9%, up from 7.5% in the same quarter last year Free Cash Flow Margin: 2.9%, down from 9.6% in the same quarter last year Market Capitalization: $7.52 billion Generac's first quarter results were largely driven by elevated shipments of home standby generators, with management attributing this to ongoing power outages—particularly from wildfires in California—and increased consumer interest. CEO Aaron Jagdfeld noted that residential product sales, including the ecobee smart thermostat line and energy storage systems, outperformed internal expectations. The company highlighted both supply chain optimization and favorable sales mix as key contributors to improved gross margins. Looking ahead, Generac's forward guidance reflects heightened uncertainty from evolving tariff policies and potential shifts in consumer spending. Management emphasized that current price increases and ongoing cost reduction initiatives are intended to fully offset the anticipated impact of tariffs. Jagdfeld explained, 'Our updated outlook assumes that current tariff levels hold for the remainder of the year,' and noted that a more cautious economic environment is likely, but the company does not foresee a full recession in 2025. Generac's management identified home standby generator demand and residential energy technology momentum as primary drivers of first quarter performance. The company also highlighted the impact of tariffs, proactive pricing actions, and new product launches as shaping both current results and future expectations. Home Standby Generators Surge: Shipments rose at a mid-teens rate year-over-year, fueled by increased power outages, especially in underpenetrated markets like California. However, close rates remained pressured due to demand exceeding sales and installation capacity. Residential Energy Technology Growth: Ecobee's smart thermostats and energy storage systems saw strong sales, with ecobee connected homes rising 17% year-over-year. Management believes the new entry-level thermostat will help capture value-seeking customers. Tariffs and Pricing Actions: Management described the current 145% China tariff and other trade measures as creating a $125 million cost headwind in the second half. To mitigate this, Generac implemented broad price increases of 7%–8% across products, aiming to offset the impact dollar-for-dollar at the EBITDA margin level. Supply Chain Diversification: Less than 10% of materials are now sourced from China, down from prior years, and new product lines are expected to further reduce this exposure. The company is leveraging its international manufacturing footprint and automation investments to enhance flexibility and resilience. C&I Product Dynamics: Commercial and industrial product sales declined due to softness in rental and non-standby applications, partially offset by gains in telecom and industrial distribution. The upcoming launch of large megawatt diesel generators is expected to address new market segments, including data centers. Management's full-year outlook is shaped by the interplay between tariff-driven cost pressures, pricing actions, and evolving consumer demand, with an emphasis on maintaining margins and supporting product launches. Tariff Uncertainty and Mitigation: The company's guidance assumes tariffs remain at current levels, with any changes posing both risk and opportunity. Generac expects price increases and cost reduction programs to fully offset tariff-related expenses at the EBITDA margin. Residential Demand and Outage Activity: Management is watching for continued elevated power outages and associated generator demand, especially in less mature regions like California. Should outage activity return to baseline, shipment volumes could decline. New Product Launches and Channel Expansion: The second half of the year will see the launch of next-generation home standby generators and energy storage systems, expected to broaden appeal and improve installation efficiency. Growth in the residential dealer network and enhanced marketing are seen as supporting long-term sales and close rates. Tommy Moll (Stephens): Asked about the go-to-market approach for new large-scale diesel generators targeting data centers. Management confirmed they will leverage their nationwide service network, mirroring their telecom strategy, and highlighted in-house customization as a key differentiator. George Gianarikas (Canaccord): Inquired about indications of softening demand due to higher prices or macro uncertainty. CEO Jagdfeld explained that while higher prices can dampen demand, generator sales historically remain resilient during outages, and current consumer spending appears steady. Mike Halloran (Baird): Sought clarity on the drivers behind the widened guidance range and tariff exposure. Management stated the lower end reflects potential demand softness, but expects price and cost actions to offset tariff impacts at the EBITDA margin. Jerry Revich (Goldman Sachs): Asked about trends in lead-to-order conversion rates following elevated interest. Jagdfeld said close rates were under pressure but should recover over the year as distribution and marketing efforts ramp up. Jordan Levy (Truist Securities): Queried about residential energy technology, particularly the rollout of PWRcell 2 and ecobee's progress. Management reported strong initial interest and sees consolidation in the storage supplier market as an opportunity for further growth. In the next few quarters, the StockStory team will be monitoring (1) the impact of new home standby generator and energy storage product launches on sales and installation efficiency, (2) the effectiveness of tariff mitigation measures, including further supply chain diversification and pricing strategies, and (3) trends in power outage activity—especially in emerging markets like California. The progression of government policies on tariffs and energy incentives will also be critical in shaping demand and profitability. Generac currently trades at a forward P/E ratio of 15.7×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
03-05-2025
- Business
- Yahoo
Here's Why Generac Holdings (GNRC) Fell in Q1
Conestoga Capital Advisors, an asset management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets started the year with a rally due to optimism about a strong economy and expectations of moderating inflation and lower interest rates. However, concerns over slowing earnings from major Technology companies, geopolitical tensions, and an upcoming announcement on tariffs led to a sharp decline in equities by the end of the first quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) in the first quarter compared to the Russell 2000 Growth Index's -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index's -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index's return of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index's -7.12% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025. In its first-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Generac Holdings Inc. (NYSE:GNRC). Generac Holdings Inc. (NYSE:GNRC) is a power generation equipment, energy storage systems, and other power products manufacturer and supplier. The one-month return of Generac Holdings Inc. (NYSE:GNRC) was -2.57%, and its shares lost 12.43% of their value over the last 52 weeks. On May 1, 2025, Generac Holdings Inc. (NYSE:GNRC) stock closed at $112.67 per share with a market capitalization of $6.68 billion. Conestoga Capital Advisors stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its Q1 2025 investor letter: "Generac Holdings Inc. (NYSE:GNRC) is a market leader in the design and manufacturing of backup generators for the residential and commercial markets. GNRC delivered solid Q4 results with both revenue and EBITDA above consensus. FY2025 guidance was slightly below street estimates. GNRC does not include any major weather events in its guidance." A technician in protective gear repairing a huge generator at a power plant. Generac Holdings Inc. (NYSE:GNRC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Generac Holdings Inc. (NYSE:GNRC) at the end of the fourth quarter, compared to 40 in the third quarter. Generac Holdings Inc.'s (NYSE:GNRC) net sales increased 6% year-over-year to $942 million in the first quarter of 2025. While we acknowledge the potential of Generac Holdings Inc. (NYSE:GNRC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Generac Holdings Inc. (NYSE:GNRC) and shared SouthernSun SMID Cap Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
1 Profitable Stock to Consider Right Now and 2 to Question
A company with profits isn't always a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential. Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here is one profitable company that generates reliable profits without sacrificing growth and two best left off your watchlist. Trailing 12-Month GAAP Operating Margin: 12.5% With its name deriving from a combination of 'generating' and 'AC', Generac (NYSE:GNRC) offers generators and other power products for residential, industrial, and commercial use. Why Are We Out on GNRC? Products and services are facing significant end-market challenges during this cycle as sales have declined by 3% annually over the last two years Earnings per share have dipped by 1.2% annually over the past two years, which is concerning because stock prices follow EPS over the long term Shrinking returns on capital suggest that increasing competition is eating into the company's profitability At $112.45 per share, Generac trades at 13.5x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than GNRC. Trailing 12-Month GAAP Operating Margin: 8.6% With roots dating back to 1944 and a significant acquisition of Kimball International in 2023, HNI (NYSE:HNI) manufactures and sells office furniture systems, seating, and storage solutions, as well as residential fireplaces and heating products. Why Are We Hesitant About HNI? 3.4% annual revenue growth over the last two years was slower than its business services peers Flat earnings per share over the last five years lagged its peers Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.3 percentage points HNI's stock price of $40.81 implies a valuation ratio of 11.9x forward price-to-earnings. To fully understand why you should be careful with HNI, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: 36.9% Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications. Why Does OLED Stand Out? Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 75.1% Excellent operating margin of 37.3% highlights the efficiency of its business model Stellar returns on capital showcase management's ability to surface highly profitable business ventures Universal Display is trading at $118.48 per share, or 22.8x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
07-03-2025
- Yahoo
Greeneville teens working to improve their neighborhood's reputation
Norwich — Anybody notice anything that you want to change about Greeneville?" That question was posed by 16-year-old Caroline Forvilus, at the first official meeting Thursday of the new Greeneville Youth Group — a collection of five Greeneville teenagers who are seeking to change the perception of their neighborhood. The five members included Forvilus, Senjianah Noze, 16, Jeremiah Noze, 17, Serge Fabre, 17 and Sobrina Jeanty, 15. Forvilus' question then led to a discussion about the perception of Greeneville starting with the swing sets at the Greenville Playground. Jeanty said she had not been there since she was a child. Senjianah Noze asked her why. "Well, I stopped because — well, when I was a child, my sister used to bring me there," said Jeanty. "But now, whenever I want to go there by myself, my parents say it's, you know, dangerous over there. So they don't want me to walk by myself." Fabre, the group's president, asked her why her parents thought it's too dangerous. She said her parents had heard about criminal activity in the area. "What do you think would have to happen for your parents to trust that the neighborhood was safe?" Fabre asked her. Group members mentioned neighborhood watches, patrols and curfews. But Senjianah Noze said people won't obey curfews, and will be out no matter what. Fabre asked Nancy Procko, a long-time member of the Greeneville Neighborhood Revitalization Committee who was moderating the meeting, if there was a neighborhood watch in Greeneville. Proclo told her there was and it meets the second Tuesday of every month. "So if you ever have a concern about something in the neighborhood, either you can attend the meeting, or you can report it to me, and I will bring it up at the meeting. But it's important for you to also keep up on the safety of the neighborhood. Let everybody know what's going on," she added. Procko said the 25-year-old GNRC has made the city aware of sidewalks, blight, and been involved in the planned demolition of the deteriorating Capehart Mill to create a park. Greeneville has other neighborhood groups such as the Greeneville Neighborhood Committee and Greeneville Neighborhood Watch. But she said most of the GNRC members are older, and has had trouble attracting new members. Fabre, after working with Nancy Procko on Sparkle, a GNRC annual events in which flowers are placed in front of Greeneville businesses, talked with her about what else needed to be done to help the community. That led him to form his group with local teens. "For me, I just joined because I want to actually help out the community," Noze said. "Because personally, I've never helped or volunteered within a community." At Thursday's meeting, the members and Procko went over upcoming community events and how they could raise awareness of them, including an annual Earth Day cleanup on April 26 and Sparkle in May. They discussed making posters, creating a website for the GNRC, recording a video for social media, and advertising on the student news program at Norwich Free Academy, which they all attend. Fabre said the group's goal is to increase participation in the various organizations and events in the community, which Fabre said has a poor reputation. "Our primary goal is to make Greeneville a better place," he said. "And give it a good reputation, Forvilus added. The group is scheduled to hold its next meeting March 26 at 3 p.m. at the Greeneville fire station, 446 North Main St.
Yahoo
12-02-2025
- Business
- Yahoo
Meeting of the Supervisory Board of Unibail-Rodamco-Westfield on February 12, 2025
Paris, February 12, 2025 Press release Meeting of the Supervisory Board of Unibail-Rodamco-Westfield on February 12, 2025 At a meeting held on February 12, 2025, the Supervisory Board ('SB') of Unibail-Rodamco-Westfield SE ('URW') took note of the resignation of Ms. Cécile Cabanis effective today further to her appointment in LVMH group as executive. Both the SB and the Management Board underscored the contribution and dedication of Cécile Cabanis since her appointment in December 2020. On behalf of the URW Group and the SB, Mr Jacques Richier, SB Chairman, pays particular tribute to Ms. Cabanis for her tireless work over the past few years and wishes her every success. The SB, upon the recommendation of its Governance, Nomination and Remuneration Committee ('GNRC'), decided some evolutions at its committees' level by appointing effective today: Mr Roderick Munsters as Audit Committee Chairman and SB Vice-Chairman. Independent member, Mr Roderick Munsters, Dutch and Canadian, has been member of the SB since April 2017. Previously member of the Audit Committee from 2017 to 2019 and of the GNRC from 2019 to 2021, he has been GNRC Chair since January 2021. Ms. Aline Sylla-Walbaum as GNRC Chair, replacing Mr Roderick Munsters. Independent member, Ms. Aline Sylla-Walbaum, French, has been member of the GNRC since May 12, 2021. With 9 members, the SB will maintain the strength of the collective competencies of the SB members and the agile functioning of the SB. For more information, please contact: Investor Relations Meriem Delfi +33 7 63 45 59 77 Gonzague Montigny+33 6 10 95 85 Media Relations UK/Global:Cornelia Schnepf – FinElk+44 7387 108 France:Etienne Dubanchet – PLEAD +33 6 62 70 09 About Unibail-Rodamco-Westfield Unibail-Rodamco-Westfield is an owner, developer and operator of sustainable, high-quality real estate assets in the most dynamic cities in Europe and the United States. The Group operates 71 shopping centres in 12 countries, including 39 which carry the iconic Westfield brand. These centres attract over 900 million visits annually and provide a unique platform for retailers and brands to connect with consumers. URW also has a portfolio of high-quality offices, 10 convention and exhibition venues in Paris, and a €2.9 Bn development pipeline of mainly mixed-use assets. Its €50 Bn portfolio is 86% in retail, 6% in offices, 5% in convention and exhibition venues, and 2% in services (as at June 30, 2024). URW is a committed partner to major cities on urban regeneration projects, through both mixed-use development and the retrofitting of buildings to industry-leading sustainability standards. These commitments are enhanced by the Group's Better Places plan, which strives to make a positive environmental, social and economic impact on the cities and communities where URW operates. URW's stapled shares are listed on Euronext Paris (Ticker: URW), with a secondary listing in Australia through Chess Depositary Interests. The Group benefits from a BBB+ rating from Standard & Poor's and from a Baa2 rating from Moody's. For more information, please visit Attachment Meeting of the Supervisory Board of Unibail-Rodamco-Westfield on February 12, 2025Sign in to access your portfolio
