Generac posted $920 million in net sales in the second quarter of 2021 compared to $546.8 million in the second quarter of 2020, a 68.3-percent year-over-year increase. Gross profit was $339.7 million in Q221 compared to $209 million in the same period a year ago, a 62.5-percent hike.
For the first six months of 2021, net sales were $1,727.4 million compared to $1,022.8 million in the first six months of 2020, a 68.9-percent jump.
In the second quarter, residential product sales grew 76 percent to $600 million, compared to $341 million last year. Commercial & Industrial product sales increased 64 percent to $254 million, compared to $155 million in the year-ago period.
On June 1, General closed on the acquisition of Deep Sea Electronics Ltd., an advanced controls designer and manufacturer headquartered in Humanby, U.K. On July 2, Generac closed on the acquisition of Chilicon Power LLC, based in California. Chilicon is a designer and provider of grid-interactive microinverter and monitoring solutions of the solar market.
Also in early July, Generac began production of home standby generators at its new manufacturing facility in Trenton, S.C.
“Second quarter results were again exceptional with broad-based growth of 68 percent leading to all-time record revenue of $920 million,” said Aaron Jagdfeld, president and CEO. “We are particularly proud of achieving this tremendous top-line growth along with a record level of adjusted EBITDA despite numerous supply chain challenges. 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. Our PWRcell energy storage systems were also up dramatically compared to the prior year as well as sequentially as these products continued to gain important traction in the rapidly expanding clean energy market. Additionally, shipments of C&I products were up significantly over the prior year as we continue to see demand recover across a number of markets and geographies from the prior-year pandemic lows, with growth of these products now solidly above 2019 levels.
“We recently announced two strategic acquisitions we believe will enable us to expand our capabilities and accelerate our strategy to continue Generac’s transition into an energy technology solutions company. In June, we closed on the acquisition of Deep Sea Electronics, which will improve our expertise and bandwidth for advanced systems controls and help us more quickly develop our product roadmap for the future. In early July, we further added to our suite of clean energy solutions by entering the large and growing microinverter market for solar applications with the acquisition of Chilicon Power.”
Domestic segment sales increased 70 percent to $784.1 million as compared to $460.8 million in the prior year quarter, with the impact of acquisitions contributing approximately 2 percent of the revenue growth for the quarter. The core sales growth was driven by broad-based strength across both residential and C&I products highlighted by very strong growth with home standby generators, PWRcell energy storage systems, telecom national account customers and C&I mobile products.
Adjusted EBITDA for the segment was $203.9 million, or 26.0 percent of net sales, as compared to $121.3 million in the prior year, or 26.3 percent of net sales. This margin performance was impacted by higher input costs in the current year quarter, which were mostly offset by improved pricing and higher operating leverage from the substantial revenue growth for the segment during the quarter.
International segment sales increased 58 percent to $135.8 million as compared to $86.1 million in the prior year quarter, with the impact of acquisitions and foreign currency contributing approximately 13 percent of the revenue growth for the quarter. The core sales growth for the segment was primarily because of strength in the European and Latin American regions that are seeing a sharp increase in demand as end markets recover off the prior-year COVID lows.
Adjusted EBITDA for the segment, before deducting for noncontrolling interests, was $13.7 million, or 10.1 percent of net sales, as compared to $1.9 million, or 2.2 percent of net sales, in the prior year. The increase in margin was primarily because of improved operating leverage on the higher sales volumes and the impact of the Deep Sea Electronics acquisition.
The company continues to expand its production of home standby generators at a better-than-expected rate, and demand for PWRcell energy storage systems continues to increase combined with additional supply chain execution, which is leading to further increase in the shipment outlook for these products for the full-year 2021. The outlook for C&I products has also improved due to a further broad-based rebound in demand highlighted by a continued pickup in activity from telecom national account customers, overall stronger outlooks for domestic and international markets and the closing of the Deep Sea Electronics acquisition. However, Generac continues to experience higher input costs relative to its previous guidance because of rising commodities and significantly higher logistics costs.
As a result of these factors, Generac is increasing its full-year 2021 net sales growth guidance to now be approximately 47 to 50 percent compared to the prior year, which includes approximately 3 percent of favorable impact from acquisitions and foreign currency. This is an increase from the as-reported growth guidance of 40 to 45 percent previously expected.
