Shares of Generac Holdings Inc. (NYSE:GNRC) fell 3.46% on Wednesday after the backup power equipment maker reported fourth-quarter results that came in below expectations, weighed down by reduced power outage activity and weaker residential generator sales.
The company posted adjusted earnings of $1.61 per share for the quarter, missing the $1.77 consensus forecast. Revenue declined 12% year over year to $1.09 billion, also below analysts’ expectations of $1.16 billion.
Sales in the residential segment — Generac’s largest business — dropped sharply, falling 23% to $572 million from $743 million in the same period last year. The company cited “continued weakness in power outage activity” as a key factor, noting that shipments of home standby and portable generators were lower compared with a significantly stronger outage backdrop a year ago.
In contrast, Commercial & Industrial (C&I) product sales rose 10% to $400 million, supported largely by increased demand from data center customers.
“Although our fourth quarter results reflect a softer outage environment and lower shipments of home standby and portable generators, our momentum in the data center end market has further accelerated,” said Aaron Jagdfeld, President and Chief Executive Officer.
Looking ahead, Generac introduced its outlook for 2026, projecting net sales growth in the “mid-teens percent range” compared with 2025. The company expects adjusted EBITDA margins to land between 18.0% and 19.0%.
Generac also announced that its board approved a new $500 million share repurchase program to be executed over the next 24 months, replacing the remaining authorization under its previous buyback plan.
For full-year 2025, the company reported net sales of $4.21 billion, down 2% from $4.30 billion in 2024. Adjusted earnings came in at $6.34 per share, compared with $7.27 in the prior year.