Generac reported higher third-quarter sales and profit on October 28 and raised the lower end of its annual adjusted earnings margin forecast, according to its company release.
Sales for the quarter ended September 30 increased 16% to $1.29 billion. Acquisitions, divestitures and foreign exchange together contributed one percentage point to growth.
External sales in Commercial & Industrial rose 28% to $552 million. Residential external sales increased 9% to $743 million. The company attributed the industrial division's core growth primarily to rising revenue from data center products.
Net income attributable to Generac reached $109 million, or $1.83 per share, compared with $66 million, or $1.12 per share, a year earlier. Adjusted earnings were $2.54 per share, up from $1.83.
Chief Executive Aaron Jagdfeld said the company's data center product backlog had reached about $4.5 billion.
Generac maintained its annual sales growth forecast in the mid-to-high teens. Its adjusted EBITDA margin forecast is now 20.5%–21%, compared with 20%–21% previously. This measure excludes specified costs and supplements reported accounting results; the outlook is a projection.
Sources: Generac third-quarter results release.