Generac sales continue to rise in Q1
By Mike Brezonick04 May 2022
Generac, the Waukesha, Wis.-headquartered supplier of power generation and engine and battery powered equipment, finished 2021 with record sales and revenues and the upward momentum has continued, according to the company’s first quarter financial reporting.
Net sales in the first three months of 2022 increased 41% to a record $1.14 billion as compared to $807 million in the prior-year first quarter. Core sales growth, which excludes both the impact of acquisitions and foreign currency, increased approximately 33%. Residential product sales grew 43% to $777 million as compared to $542 million last year, while Commercial & Industrial (C&I) product sales increased 38% to $279 million compared to $202 million in the prior year.
Net income attributable to the company during the first quarter was $114 million as compared to $149 million for the same period of 2021.
“We continued to experience robust and broad-based growth during the first quarter, and strong execution pushed shipments to new records,” said Aaron Jagdfeld, president and chief executive officer. “We made better-than-expected progress towards our production targets, which helped drive our top line beyond expectations during the quarter despite the ongoing challenging operating environment. We are focused on building out our energy technology solutions portfolio as the decarbonization, digitization, and decentralization of the power grid will create further growth opportunities for our business in the years ahead. In addition, we are making great progress on the integration of our recently closed acquisitions as we expect to further scale these businesses and execute on our overall ‘Powering a Smarter World’ enterprise strategy.”
Business segment results
Generac’s Domestic segment sales increased 39% to $964.7 million as compared to $692.7 million in the prior year quarter, with the impact of acquisitions contributing approximately 5% of the revenue growth for the quarter. The sales growth was led by home standby generators and PWRcell energy storage systems, while C&I channels also experienced significant year-over-year growth in the quarter, highlighted by national rental equipment and telecom customers, the company said.
Generac’s International segment sales increased 49% to $171.2 million as compared to $114.7 million in the prior year quarter, with the net impact of acquisitions and foreign currency contributing approximately 22% of the revenue growth for the quarter. The sales growth for the segment was driven by strength across all regions as compared to the prior year, most notably in Europe and Latin America, the company said.
Updated 2022 outlook
As a result of better-than-expected production output in the first quarter and additional price actions being taken in the second quarter, Generac is increasing its full-year 2022 net sales guidance to be approximately 36 to 40%, which includes approximately 5 to 7% of net impact from acquisitions and foreign currency. This is an increase from the previous growth guidance of approximately 32 to 36%.
To see an interview with Generac CEO Aaron Jagdfeld that is appearing in the May issue of Diesel Progress, click here.