Improved margins for Generac in Q1

|About: Generac Holdings Inc. (GNRC)|By:, SA News Editor

Generac (NYSE:GNRC) reports core sales growth of ~17% in Q1.

Domestic sales increased 21.5% to $300.2M.

International sales up 16.9% to $97.4M, primarily due to the favorable impact of the stronger Euro along with some broad organic growth from the Pramac, Ottomotores and Motortech businesses.

Residential product sales expanded 23.5% to $190.5M and Commercial & Industrial product sales grew 16.2% to $175.1M.

Gross margin rate improved 230 bps to 35.2%.

Operating margin rate advanced 490 bps to 14.2%.

Adjusted EBITDA up 53.7% to $71.78M.

FY2018 Guidance: Net sales: +6% to +8%; Core sales: +5% to +6%; Net margin rate : 9.5% to 10%; Adjusted EBITDA margin: 19% to 19.5.

Previously: Generac beats by $0.11, beats on revenue (May 2)

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