Generac Holdings (NYSE:GNRC) saw its shares climb 7% intra-day today after reporting better-than-expected fourth-quarter earnings, driven by strong residential demand for backup power solutions.

For Q4, Generac posted adjusted earnings per share of $2.80, easily surpassing analyst estimates of $2.52. While revenue of $1.23 billion came in slightly below the expected $1.25 billion, it still marked a 16% year-over-year increase.

The standout performer was residential product sales, which jumped 28% to $743 million as demand surged for home standby and portable generators following widespread power outages in the second half of 2024. This surge helped offset softer trends in commercial and industrial segments.

Profitability also improved, with gross profit margin expanding to 40.6% from 36.5% a year earlier, benefiting from a more favorable product mix and lower input costs.

Looking ahead, Generac provided an optimistic full-year 2025 outlook, expecting net sales growth of 3% to 7%. The company anticipates mid-to-high single-digit growth in residential product sales, while commercial and industrial sales are projected to remain stable.