Generac sees FY24 net sales up 3%-7% from last year

The Company is initiating guidance for FY24 that anticipates a return to net sales growth as compared to the prior year. This growth is expected to be driven primarily by residential product sales growth in the mid-teens range, led by shipments of home standby generators and residential energy technology products. Partially offsetting this projected strength, C&I product sales are expected to decline at a rate of approximately 10%, primarily due to weakness with certain direct telecom, rental, and “beyond standby” customers. As a result of these factors, full-year net sales are expected to increase between 3%-7% as compared to the prior year, which includes a slight favorable impact from foreign currency. Additionally, the Company expects net income margin, before deducting for non-controlling interests, to be approximately 6.5%-7.5% for the FY24. The corresponding adjusted EBITDA margin is expected to be approximately 16.5%-17.5%. The Company expects to maintain strong levels of operating and free cash flow generation for the full year, with free cash flow conversion from adjusted net income expected to be approximately 100%. Aaron Jagdfeld, CEO, concluded, “In 2024, we expect to return to consolidated sales growth and year-over-year margin expansion for the full year period while also continuing to invest for future growth. Importantly, the mega-trends that support these expectations as well as our robust long-term growth outlook remain firmly intact. As reliance on electricity continues to increase and supply-demand imbalances remain a challenge for grid operators, we will continue to execute our strategic plan to lead the evolution to more resilient, efficient, and sustainable energy solutions.”