Town of Genesee-based
Generac is deepening its partnership and investment in Barcelona-based
Wallbox, a manufacturer of electric vehicle charging systems and energy management systems.
Wallbox received a $45 million investment from several shareholders, including a $35 million investment from Generac, the companies announced earlier this month.
The funding was needed to support Wallbox’s growth and to ensure the company’s balance sheet “remains strong,” said
Enric Escorsa, chief executive officer of Wallbox, during the company’s second quarter earnings call.
Wallbox is growing almost 50% year-over-year, he said.
Last year, Generac and Wallbox
entered into a global commercial agreement in which Wallbox would provide Generac’s residential and commercial customers with the company’s next generation of energy management systems.
The commercial agreement between both companies has been expanded globally.
“Out of the competition, Generac chose Wallbox’s award-winning products and solutions to lead their efforts in the EV charging space,” said Escorsa.
Generac now has the right to buy an additional 5% of Wallbox at a price of $3.05 per share. Wallbox aims to be profitable by the end of 2024.
“We believe that the ability to manage EV charging as part of our residential and C&I energy technology ecosystems will become increasingly important as growing electrical vehicle penetration and the resulting increased demand for electricity have a rising impact on home and business owners, as well as grid operators around the world,” said
Aaron Jagdfeld, chief executive officer of Generac, during the company’s second quarter earnings call.
Generac recorded net sales of $998 million during the second quarter of 2024 as compared to $1 billion last year.
Residential product sales increased approximately 8% to $538 million in the second quarter of 2024 compared to $499 million last year.
Generac’s C&I segment saw sales decrease 10% to $334 million in the second quarter, compared to $384 million last year. The company had been anticipating a decrease in C&I sales due to “weakness” in its telecom and rental markets.
Generac updated its full-year sales guidance to between 4% and 8% growth compared to the prior year, an increase from the previous guidance of 3% to 7%. The update is due to recent power outage activity, including outages caused by Hurricane Beryl.
“Early in the third quarter, Hurricane Beryl highlighted the rising threat of severe and volatile weather as millions of Texans experienced power outages in the aftermath of the storm," said Jagdfeld. "This major power outage event is expected to drive incremental demand for home standby and portable generators in the current year, while also driving higher levels of awareness for backup power longer-term as home and business owners seek protection from future power outages."
Generac still plans to unveil its “next generation” energy storage system later this year.
