Generac Holdings Inc. (NYSE:GNRC) Q4 2023 Earnings Conference Call February 14, 2024 10:00 AM ET

Company Participants

Kris Rosemann - Senior Manager-Corporate Development & Investor Relations

Aaron Jagdfeld - President & Chief Executive Officer

York Ragen - Chief Financial Officer

Conference Call Participants

George Gianarikas - Canaccord Genuity

Michael Halloran - Baird

David Tarantino - KeyBanc Capital Markets

Brian Drab - William Blair

Christopher Glynn - Oppenheimer & Co.

Jerry Revich - Goldman Sachs

Stephen Gengaro - Stifel

Mark Strouse - JPMorgan

Donovan Schafer - Northland Capital Markets

Kashy Harrison - Piper Sandler

Joseph Osha - Guggenheim

Chip Moore - ROTH MKM

Keith Housum - Northcoast Research

Operator

Good day, and welcome to Generac Holdings Fourth Quarter and Full Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Kris Rosemann, Senior Manager, Corporate Development and Investor Relations. Please go ahead.

Kris Rosemann

Good morning, and welcome to our fourth quarter and full year 2023 earnings call. I'd like to thank everyone for joining us this morning. With me today is Aaron Jagdfeld, President and Chief Executive Officer; and York Ragen, Chief Financial Officer. We will begin our call today by commenting on forward-looking statements.

Certain statements made during this presentation as well as other information provided from time to time by Generac or its employees may contain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements. Please see our earnings release or SEC filings for a list of words or expressions that identify such statements and the associated risk factors. In addition, we will make reference to certain non-GAAP measures during today's call. Additional information regarding these measures, including reconciliation to comparable US GAAP measures, is available in our earnings release and SEC filings.

I will now turn the call over to Aaron.

Aaron Jagdfeld

Thanks, Kris. Good morning, everyone, and thank you for joining us today. Happy Valentine's Day. I think I can say that. Our fourth quarter results reflect continued improvement in operating performance as shipments of home standby generators returned to strong year-over-year growth in the quarter, despite a softer-than-expected power outage environment.

We also experienced significant margin expansion in the quarter, driven by favorable mix and price cost tailwinds on both a year-over-year and sequential basis. In addition, we generated record free cash flow in the quarter on the continued reduction of our inventory levels.