Power product supplier Generac upgraded its forecast for 2021 after reporting an “exceptional” set of Q2 2021 results, boosted by strong sales growth in its residential and commercial and industrial (C&I) markets.
Energy storage and solar inverter provider Generac increased its net sales to US$920 million in Q2 2021 from US$547 million the year before, a year-on-year increase of 68%. Residential product sales grew by 76% to US$600 million, up from US$341 million last year, while C&I sales rose by 64% to US$254 million from US$155 million in 2020.
As a result the company is increasing its full-year net sales growth guidance to be between 47-50%, an upgrade from the previously expected 40-45%.
“Second quarter results were again exceptional with broad-based growth of 68% leading to all-time record revenue of $920 million,” said Generac president and CEO Aaron Jagdfeld. “Shipments of home standby generators were almost double compared to the prior year due to incredible demand for these products and our successful capacity-expansion efforts.”
In a conference call with analysts yesterday, CFO York Ragen said that the company was witnessing surging demand for its PWRcell energy storage product, while the addition of microinverters from Chilicon Power was also expected to contribute strongly to sales throughout the rest of the year.
On 2 July, Generac acquired Chilicon Power, a US-based microinverter and solar monitoring solutions provider, in a deal which will see the company take aim at the solar microinverter market.
With regards the Chilicon Power acquisition, president and CEO Aaron Jagdfeld said the company was excited about the acquisition and the addition of Chilicon’s technology to its product line up. Jagdfeld said the plan was to scale Chilicon’s operations and Generac was to put together a “playbook” to turn the company into a growth engine for Generac.
Net income attributable to the company during Q2 was US$127 million, or US$2.01 per share, as compared to US$66 million, or US$1.02 per share, for the same period of 2020.
In the opening quarter of 2021 Generac’s C&I division, which bore the brunt of the company’s lockdown-associated losses in 2020, bounced back with a 70% jump in sales.
Generac’s cash flow from operations in Q2 was US$122 million, a “record for the second quarter of a year”, compared with US$102 million in the prior year.