Generac Reports Second Quarter 2026 Results
Rhea-AI Summary
Generac (NYSE: GNRC) reported second quarter 2026 net sales of $1.17 billion, up 11% year over year, driven by a 29% increase in Commercial & Industrial (C&I) sales to $556 million, while Residential sales declined 2% to $617 million.
Net income attributable to the company rose to $143 million ($2.40 per diluted share) from $74 million ($1.25). Adjusted net income was $174 million ($2.91 per share), and adjusted EBITDA reached $291 million, or 24.8% of sales, versus 17.7% a year ago, including a pre-tax $71 million benefit from tariff refunds. Operating cash flow increased to $121 million and free cash flow to $63 million.
Generac highlighted rapid growth in data center demand, citing a global supply agreement with a hyperscale customer that commits nearly $700 million of 2027 volume and a second global supply agreement signed June 24. Data center product backlog has expanded to approximately $1.6 billion. For 2026, the company maintained net sales growth guidance in the mid-to-high teens and raised net income margin guidance to 9.0–10.0% and adjusted EBITDA margin guidance to 20.0–21.0%, largely reflecting tariff refunds.
Positive
- Net sales +11% to $1.17 billion in Q2 2026
- Adjusted EBITDA margin rose to 24.8% from 17.7% year over year
- Net income increased to $143 million from $74 million
- Data center backlog approximately $1.6 billion as of the update
- 2027 hyperscale commitment of nearly $700 million under a global supply agreement
- Raised 2026 margin guidance to 9–10% net income and 20–21% adjusted EBITDA
Negative
- Residential segment sales declined ~2% to $621.3 million in Q2 2026
- Higher effective tax rate of 24.6% versus 17.2% in prior-year quarter
- Loss on business dispositions of $13.5 million recorded in the quarter
- Margin and earnings benefited from a non-recurring ~$71 million tariff refund
- Operating expenses increased 2% year over year to $311.4 million
News Explained
Generac says it completed its previously disclosed Enercon acquisition and acquired a Belvidere facility during the quarter, expanding large-megawatt generator packaging capacity.
Market reaction after 2Q26 earnings report: GNRC +9.15%
Following this news, GNRC has gained 9.15%, reflecting a notable positive market reaction. Our momentum scanner has triggered 5 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $213.50.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 29 | Q1 earnings report | Positive | +16.5% | Sales growth, higher EBITDA, and raised full-year margin guidance |
| Oct 29 | Q3 earnings report | Negative | -4.9% | Sales decline, weaker residential demand, and reduced 2025 guidance |
| Jul 30 | Q2 earnings report | Positive | +19.6% | Sales growth, improved margins, and raised EBITDA guidance |
| Apr 30 | Q1 earnings report | Positive | +1.0% | Higher sales, earnings growth, and updated full-year outlook |
| Feb 12 | Q4 earnings report | Positive | +7.6% | Record adjusted earnings, EBITDA, free cash flow, and debt repayment |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
All five tag-matched earnings events had price reactions aligned with the reported earnings sentiment, with an average move of 7.96%.
Key Terms
adjusted ebitda financial
free cash flow financial
hyperscale technical
operating leverage financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Further C&I segment acceleration drives robust sales increase and operating leverage during the quarter; Rapidly increasing data center backlog provides visibility to significant 2027 growth
WAUKESHA, Wis., July 29, 2026 (GLOBE NEWSWIRE) -- Generac Holdings Inc. (NYSE: GNRC) (“Generac” or the “Company”), a leading global designer and manufacturer of energy technology solutions and other power products, today reported financial results for its second quarter ended June 30, 2026, and provided an update on its outlook for the full year 2026.
Second Quarter 2026 Highlights
- Net sales increased
11% to$1.17 billion during the second quarter of 2026 as compared to$1.06 billion in the prior year second quarter. Acquisitions, divestitures and foreign currency had a net favorable impact of2% to sales growth during the quarter.- Commercial & Industrial (“C&I”) segment external net sales increased approximately
29% to$556 million as compared to$431 million in the prior year. - Residential segment external net sales decreased approximately
2% to$617 million as compared to$631 million in the prior year.
- Commercial & Industrial (“C&I”) segment external net sales increased approximately
- Net income attributable to the Company during the second quarter was
$143 million , or$2.40 per share, as compared to$74 million , or$1.25 per share, for the same period of 2025. - Adjusted net income attributable to the Company, as defined in the accompanying reconciliation schedules, was
$174 million , or$2.91 per share, as compared to$97 million , or$1.65 per share, in the second quarter of 2025. - Adjusted EBITDA before deducting for noncontrolling interests, as defined in the accompanying reconciliation schedules, was
$291 million , or24.8% of net sales, as compared to$188 million , or17.7% of net sales, in the prior year. - Net income, adjusted net income, and adjusted EBITDA all include a pre-tax impact of approximately
$71 million related to tariff refunds that were recorded during the current year quarter. - Cash flow from operations was
$121 million as compared to$72 million in the prior year. Free cash flow, as defined in the accompanying reconciliation schedules, was$63 million as compared to$14 million in the second quarter of 2025. - As previously disclosed during the quarter, the Company signed a global supply agreement with a leading hyperscale data center operator to supply backup power generators for the company's data center infrastructure. In addition, product specific terms related to this agreement were recently finalized, which committed nearly
$700 million of volume for 2027. - On June 24th, the Company secured a global supply agreement with a second hyperscale customer and is currently negotiating final product specific terms for 2027 and 2028 volumes.
- During the quarter, the Company completed the previously disclosed acquisition of Enercon, headquartered in East Peoria, Illinois, and acquired an additional facility in Belvidere, Illinois, significantly expanding capacity for large megawatt generator packaging.
- The Company is maintaining its full-year 2026 net sales growth guidance of mid-to-high teens percent range as compared to the prior year. Adjusted EBITDA margin, before deducting for non-controlling interests, is now expected to be approximately 20.0 to
21.0% , reflecting an approximate1.5% impact from tariff refunds for the full year 2026. This is an increase from the previous guidance range of 18.5 to19.5% .
“Second quarter results reflect continued momentum in our C&I segment driven by strong data center market revenue as we continue to ramp production for large megawatt backup generators,” said Aaron Jagdfeld, President and Chief Executive Officer. “We continued to solidify our position as a leading provider to the data center market by securing a global supply agreement with a second hyperscale customer during the quarter. In addition, we increased our backlog for both hyperscale and non-hyperscale customers as we have received approximately
Additional Second Quarter 2026 Consolidated Highlights
Gross profit margin was
Operating expenses increased by
Provision for income taxes for the current year quarter was
Cash flow from operations was
Second Quarter Business Segment Results
Commercial & Industrial Segment
Commercial & Industrial segment total sales increased approximately
Adjusted EBITDA for the segment, before deducting for noncontrolling interests, was
Residential Segment
Residential segment total sales decreased approximately
Adjusted EBITDA for the segment was
2026 Outlook
Total net sales growth is still expected to be in the mid-to-high teens percent range as compared to the prior year, which includes an approximate
Additionally, the Company now expects net income margin, before deducting for non-controlling interests, to be approximately 9.0 to
Conference Call and Webcast
Generac management will hold a conference call at 10:00 a.m. EDT on Wednesday, July 29, 2026 to discuss second quarter 2026 operating results. A webcast of the conference call can be accessed at the following link: https://edge.media-server.com/mmc/p/zrzjabf4
The webcast of the conference call is also available on Generac's website (http://www.generac.com), accessed under the Investor Relations link. The webcast link will be made available on the Company’s website prior to the start of the call within the Events section of the Investor Relations website.
Following the live webcast, a replay will be available on the Company’s website for 12 months.
About Generac
Generac is a total energy solutions company that empowers people to use energy on their own terms. Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products and services serving the residential, commercial, data center, telecom, rental, and industrial markets. The Company’s broad portfolio of energy technology offerings for homes and businesses enables its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and innovative energy solutions.
Forward-looking Information
Certain statements contained in this news release, as well as other information provided from time to time by Generac Holdings Inc. or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements give Generac's current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "forecast," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future," "optimistic" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Generac believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Generac's actual financial results and cause them to differ materially from those anticipated in any forward- looking statements, including:
- frequency and duration of power outages impacting demand for our products;
- fluctuations in cost, availability, and quality of raw materials, key components and labor required to manufacture our products;
- our dependence on a small number of contract manufacturers and component suppliers, including single-source suppliers;
- changes and volatility with respect to the trade policies of various countries, which may result in new or increased tariffs, trade restrictions, or other unfavorable trade actions;
- our ability to protect our intellectual property rights or successfully defend against third party infringement claims;
- changes in durable goods spending by consumers and businesses or other global macroeconomic conditions, impacting demand for our products;
- changes in governmental policies, particularly with respect to tax incentives, tax credits, or grant programs, which could: (i) affect the demand for certain of our products; or (ii) result in a withdrawal or reduction of grants previously awarded to the Company;
- increase in product and other liability claims, warranty costs, recalls, or other claims;
- significant legal proceedings, claims, fines, penalties, tax assessments, lawsuits or government investigations;
- our ability to consummate our share repurchase programs;
- our failure or inability to adapt to, or comply with, current or future changes in applicable laws, regulations, and product standards;
- our ability to develop and enhance products and gain customer acceptance including our offerings that serve the data center and energy technology markets;
- uncertainty regarding the growth of the data center market;
- increase in contract risk related to terms with certain data center customers, including cancellation rights, delivery requirements, and potential liability exposure tied to our performance obligations or other claimed damages;
- our ability to accurately forecast demand for our products and effectively manage inventory levels relative to such forecast;
- our ability to remain competitive;
- our dependence on our dealer and distribution network;
- market reaction to changes in selling prices or mix of products;
- loss of our key management and employees;
- disruptions from labor disputes or organized labor activities;
- our ability to attract and retain employees;
- disruptions in our manufacturing operations;
- the possibility that the expected synergies, efficiencies and cost savings of our acquisitions, divestitures, restructurings, or realignments will not be realized, or will not be realized within the expected time period;
- risks related to sourcing components in foreign countries;
- compliance with environmental, health and safety laws and regulations;
- scrutiny regarding our sustainability practices;
- government regulation of our products;
- failures or security breaches of our networks, information technology systems, or connected products;
- risks due to instability caused by geopolitical conflicts;
- our ability to make payments on our indebtedness;
- terms of our credit facilities that may restrict our operations;
- our potential need for additional capital to finance our growth or refinancing our existing credit facilities;
- risks of impairment of the value of our goodwill and other indefinite-lived assets;
- volatility of our stock price; and
- potential tax liabilities.
Should one or more of these risks or uncertainties materialize, Generac's actual results may vary in material respects from those projected in any forward-looking statements. A detailed discussion of these and other factors that may affect future results is contained in Generac's filings with the U.S. Securities and Exchange Commission ("SEC"), particularly in the Risk Factors section of the Annual Report on Form 10-K and in its periodic reports on Form 10-Q. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.
Any forward-looking statement made by Generac in this press release speaks only as of the date on which it is made. Generac undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Non-GAAP Financial Metrics
Core Sales
The Company references core sales to further supplement Generac's consolidated financial statements presented in accordance with U.S. GAAP. Core sales excludes the impact of acquisitions and fluctuations in foreign currency translation. Management believes that core sales facilitates easier and more meaningful comparison of net sales performance with prior and future periods.
Adjusted EBITDA
To supplement Generac’s consolidated financial statements presented in accordance with U.S. GAAP, the Company provides the computation of Adjusted EBITDA attributable to the Company, which is defined as net income (loss) before noncontrolling interests adjusted for the following items: interest expense, depreciation expense, amortization of intangible assets, income tax expense (benefit), certain non-cash gains and losses including certain purchase accounting adjustments and contingent consideration adjustments, share-based compensation expense, certain transaction costs and credit facility fees, business optimization expenses, provision for certain legal and regulatory charges, certain specific provisions, mark-to-market gains and losses on a minority investment, and Adjusted EBITDA attributable to noncontrolling interests. The provision for legal and regulatory charges adjusts for matters that are significant and not part of the ordinary routine litigation or regulatory matters incidental to the Company’s business, such as large suits and settlements, class action lawsuits, government inquiries and certain intellectual property litigation. The adjustments to net income (loss) in computing Adjusted EBITDA are set forth in the reconciliation table below. The computation of Adjusted EBITDA is based primarily on the definition included in our Credit Agreement.
Adjusted Net Income
To further supplement Generac's consolidated financial statements presented in accordance with U.S. GAAP, the Company provides a summary to show the computation of adjusted net income attributable to the Company. Adjusted net income attributable to the Company is defined as net income (loss) before noncontrolling interests adjusted for the following items: amortization of intangible assets, amortization of deferred financing costs and original issue discount related to the Company's debt, intangible impairment charges, certain transaction costs and other purchase accounting adjustments, business optimization expenses, provision for certain legal and regulatory charges, certain specific provisions, mark-to-market gains and losses on a minority investment, other non-cash gains and losses, and adjusted net income attributable to non-controlling interests.
Free Cash Flow
In addition, the Company references free cash flow to further supplement Generac's consolidated financial statements presented in accordance with U.S. GAAP. Free cash flow is defined as net cash provided by operating activities, less expenditures for property and equipment, and is intended to be a measure of operational cash flow taking into account additional capital expenditure investment into the business.
The presentation of this additional information is not meant to be considered in isolation of, or as a substitute for, results prepared in accordance with U.S. GAAP. Please see the accompanying Reconciliation Schedules and our SEC filings for additional discussion of the basis for Generac's reporting of Non-GAAP financial measures, which includes why the Company believes these measures provide useful information to investors and the additional purposes for which management uses the non-GAAP financial information.
SOURCE: Generac Holdings Inc.
CONTACT:
Kris Rosemann
Director – Corporate Finance & Investor Relations
(262) 506-6064
InvestorRelations@generac.com
| Generac Holdings Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (U.S. Dollars in Thousands, Except Share and Per Share Data) | |||||||
| (Unaudited) | |||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 264,921 | $ | 341,413 | |||
| Accounts receivable, less allowance for credit losses of | 669,204 | 602,739 | |||||
| Inventories | 1,238,871 | 1,248,867 | |||||
| Prepaid expenses and other current assets | 260,381 | 269,459 | |||||
| Total current assets | 2,433,377 | 2,462,478 | |||||
| Property and equipment, net | 862,578 | 813,605 | |||||
| Customer lists, net | 159,251 | 127,517 | |||||
| Patents and technology, net | 313,682 | 338,308 | |||||
| Other intangible assets, net | 7,375 | 10,011 | |||||
| Tradenames, net | 221,107 | 199,430 | |||||
| Goodwill | 1,651,751 | 1,467,094 | |||||
| Deferred income taxes | 8,107 | 41,949 | |||||
| Operating lease and other assets | 114,923 | 113,287 | |||||
| Total assets | $ | 5,772,151 | $ | 5,573,679 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Short-term borrowings | $ | 48,318 | $ | 50,618 | |||
| Accounts payable | 556,088 | 436,583 | |||||
| Accrued wages and employee benefits | 62,360 | 69,850 | |||||
| Accrued product warranty | 43,473 | 44,716 | |||||
| Other accrued liabilities | 447,770 | 591,387 | |||||
| Current portion of long-term borrowings and finance lease obligations | 32,052 | 22,192 | |||||
| Total current liabilities | 1,190,061 | 1,215,346 | |||||
| Long-term borrowings and finance lease obligations | 1,248,958 | 1,260,256 | |||||
| Deferred income taxes | 54,270 | 60,913 | |||||
| Deferred revenue | 227,820 | 232,921 | |||||
| Operating lease and other long-term liabilities | 173,047 | 165,197 | |||||
| Total liabilities | 2,894,156 | 2,934,633 | |||||
| Redeemable noncontrolling interest | 367 | 742 | |||||
| Stockholders’ equity: | |||||||
| Common stock, par value | 742 | 741 | |||||
| Additional paid-in capital | 1,211,335 | 1,187,419 | |||||
| Treasury stock, at cost, 15,228,990, and 15,373,990 shares at June 30, 2026 and December 31, 2025, respectively | (1,334,835 | ) | (1,358,053 | ) | |||
| Excess purchase price over predecessor basis | (202,116 | ) | (202,116 | ) | |||
| Retained earnings | 3,220,054 | 3,003,557 | |||||
| Accumulated other comprehensive (loss) income | (17,557 | ) | 874 | ||||
| Stockholders’ equity attributable to Generac Holdings Inc. | 2,877,623 | 2,632,422 | |||||
| Noncontrolling interests | 5 | 5,882 | |||||
| Total stockholders’ equity | 2,877,628 | 2,638,304 | |||||
| Total liabilities and stockholders’ equity | $ | 5,772,151 | $ | 5,573,679 | |||
| Generac Holdings Inc. | |||||||||||||||
| Condensed Consolidated Statements of Comprehensive Income | |||||||||||||||
| (U.S. Dollars in Thousands, Except Share and Per Share Data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net sales | $ | 1,173,510 | $ | 1,061,169 | $ | 2,232,875 | $ | 2,003,290 | |||||||
| Costs of goods sold | 651,699 | 644,420 | 1,300,828 | 1,214,555 | |||||||||||
| Gross profit | 521,811 | 416,749 | 932,047 | 788,735 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling and service | 141,627 | 139,495 | 265,251 | 265,560 | |||||||||||
| Research and development | 65,781 | 60,354 | 128,437 | 122,402 | |||||||||||
| General and administrative | 73,155 | 79,430 | 149,440 | 154,176 | |||||||||||
| Amortization of intangibles | 30,815 | 25,681 | 61,195 | 51,170 | |||||||||||
| Total operating expenses | 311,378 | 304,960 | 604,323 | 593,308 | |||||||||||
| Income from operations | 210,433 | 111,789 | 327,724 | 195,427 | |||||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense | (16,787 | ) | (18,242 | ) | (32,163 | ) | (35,352 | ) | |||||||
| Investment income | 3,561 | 1,747 | 5,244 | 3,972 | |||||||||||
| Change in fair value of investments | 5,916 | (1,524 | ) | 4,542 | (11,471 | ) | |||||||||
| Loss attributable to business dispositions | (13,456 | ) | (3,905 | ) | (18,238 | ) | (3,905 | ) | |||||||
| Other, net | 39 | (13 | ) | (644 | ) | (305 | ) | ||||||||
| Total other expense, net | (20,727 | ) | (21,937 | ) | (41,259 | ) | (47,061 | ) | |||||||
| Income before provision for income taxes | 189,706 | 89,852 | 286,465 | 148,366 | |||||||||||
| Provision for income taxes | 46,696 | 15,422 | 70,343 | 29,658 | |||||||||||
| Net income | 143,010 | 74,430 | 216,122 | 118,708 | |||||||||||
| Net (loss) income attributable to noncontrolling interests | (234 | ) | 414 | (375 | ) | 852 | |||||||||
| Net income attributable to Generac Holdings Inc. | $ | 143,244 | $ | 74,016 | $ | 216,497 | $ | 117,856 | |||||||
| Net income attributable to common shareholders per common share - basic: | $ | 2.44 | $ | 1.27 | $ | 3.69 | $ | 2.01 | |||||||
| Weighted average common shares outstanding - basic: | 58,822,634 | 58,496,998 | 58,615,919 | 58,771,818 | |||||||||||
| Net income attributable to common shareholders per common share - diluted: | $ | 2.40 | $ | 1.25 | $ | 3.64 | $ | 1.98 | |||||||
| Weighted average common shares outstanding - diluted: | 59,635,447 | 59,017,823 | 59,436,379 | 59,385,907 | |||||||||||
| Generac Holdings Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (U.S. Dollars in Thousands) | |||||||
| (Unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| Operating activities | |||||||
| Net income | $ | 216,122 | $ | 118,708 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and finance lease amortization | 53,189 | 43,292 | |||||
| Amortization of intangible assets | 61,195 | 51,170 | |||||
| Amortization of deferred financing costs and original issue discount | 1,081 | 1,278 | |||||
| Change in fair value of investments | (4,542 | ) | 11,471 | ||||
| Deferred income tax expense (benefit) | 26,447 | (18,668 | ) | ||||
| Share-based compensation expense | 27,447 | 26,360 | |||||
| Loss on disposal of assets | 211 | 602 | |||||
| Loss attributable to business dispositions | 18,238 | 3,905 | |||||
| Other noncash charges | 2,159 | 1,513 | |||||
| Excess tax benefits from equity awards | (3,447 | ) | 90 | ||||
| Net changes in operating assets and liabilities: | |||||||
| Accounts receivable | (64,430 | ) | (485 | ) | |||
| Inventories | 14,869 | (199,279 | ) | ||||
| Other assets | (105,336 | ) | 7,990 | ||||
| Accounts payable | 116,387 | 129,489 | |||||
| Accrued wages and employee benefits | (8,098 | ) | (28,297 | ) | |||
| Other accrued liabilities | (110,996 | ) | (18,798 | ) | |||
| Net cash provided by operating activities | 240,496 | 130,341 | |||||
| Investing activities | |||||||
| Proceeds from sale of property and equipment | 10 | - | |||||
| Purchase of long-term investments | - | (2,656 | ) | ||||
| Expenditures for property and equipment | (87,687 | ) | (88,653 | ) | |||
| Acquisition of business, net of cash acquired | (211,820 | ) | - | ||||
| Proceeds (payments) from sale of business, net of cash disposed | 23,654 | (1,999 | ) | ||||
| Net cash used in investing activities | (275,843 | ) | (93,308 | ) | |||
| Financing activities | |||||||
| Proceeds from short-term borrowings | 22,736 | 21,860 | |||||
| Proceeds from long-term borrowings | 82,538 | 92,585 | |||||
| Repayments of short-term borrowings | (25,571 | ) | (30,171 | ) | |||
| Repayments of long-term borrowings and finance lease obligations | (93,096 | ) | (29,032 | ) | |||
| Stock repurchases | - | (147,917 | ) | ||||
| Payment of deferred acquisition consideration | (958 | ) | - | ||||
| Cash dividends paid to noncontrolling interest of subsidiary | - | (293 | ) | ||||
| Taxes paid related to equity awards | (36,702 | ) | (9,393 | ) | |||
| Proceeds from the exercise of stock options | 10,275 | 1,043 | |||||
| Net cash used in financing activities | (40,778 | ) | (101,318 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (367 | ) | 6,539 | ||||
| Net decrease in cash and cash equivalents | (76,492 | ) | (57,746 | ) | |||
| Cash and cash equivalents at beginning of period | 341,413 | 281,277 | |||||
| Cash and cash equivalents at end of period | $ | 264,921 | $ | 223,531 | |||
| Generac Holdings Inc. | ||||||||||||||||||||||||
| Segment Reporting and Product Class Information | ||||||||||||||||||||||||
| (U.S. Dollars in Thousands) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| Total Sales by Reportable Segment | ||||||||||||||||||||||||
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | |||||||||||||||||||||||
| External Net Sales | Intersegment Sales | Total Sales | External Net Sales | Intersegment Sales | Total Sales | |||||||||||||||||||
| Residential | $ | 617,022 | $ | 4,241 | $ | 621,263 | $ | 630,594 | $ | 4,124 | $ | 634,718 | ||||||||||||
| Commercial & Industrial | 556,488 | 2 | 556,490 | 430,575 | - | 430,575 | ||||||||||||||||||
| Corporate and eliminations | - | (4,243 | ) | (4,243 | ) | - | (4,124 | ) | (4,124 | ) | ||||||||||||||
| Total net sales | $ | 1,173,510 | $ | - | $ | 1,173,510 | $ | 1,061,169 | $ | - | $ | 1,061,169 | ||||||||||||
| Total Sales by Reportable Segment | ||||||||||||||||||||||||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |||||||||||||||||||||||
| External Net Sales | Intersegment Sales | Total Sales | External Net Sales | Intersegment Sales | Total Sales | |||||||||||||||||||
| Residential | $ | 1,166,338 | $ | 7,108 | $ | 1,173,446 | $ | 1,173,709 | $ | 9,672 | $ | 1,183,381 | ||||||||||||
| Commercial & Industrial | 1,066,537 | 51 | 1,066,588 | 829,581 | - | 829,581 | ||||||||||||||||||
| Corporate and eliminations | - | (7,159 | ) | (7,159 | ) | - | (9,672 | ) | (9,672 | ) | ||||||||||||||
| Total net sales | $ | 2,232,875 | $ | - | $ | 2,232,875 | $ | 2,003,290 | $ | - | $ | 2,003,290 | ||||||||||||
| Adjusted EBITDA by Reportable Segment | Adjusted EBITDA by Reportable Segment | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||
| Residential | $ | 215,389 | $ | 146,424 | $ | 353,974 | $ | 258,013 | ||||||||||||||||
| Commercial & Industrial | 81,484 | 53,342 | 148,016 | 98,688 | ||||||||||||||||||||
| Corporate and eliminations | (6,149 | ) | (12,137 | ) | (17,785 | ) | (19,526 | ) | ||||||||||||||||
| Total adjusted EBITDA (1) | $ | 290,724 | $ | 187,629 | $ | 484,205 | $ | 337,175 | ||||||||||||||||
| Generac Holdings Inc. | |||||||||||||||
| Reconciliation Schedules | |||||||||||||||
| (U.S. Dollars in Thousands, Except Share and Per Share Data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Net income to Adjusted EBITDA reconciliation | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income attributable to Generac Holdings Inc. | $ | 143,244 | $ | 74,016 | $ | 216,497 | $ | 117,856 | |||||||
| Net (loss) income attributable to noncontrolling interests | (234 | ) | 414 | (375 | ) | 852 | |||||||||
| Net income | 143,010 | 74,430 | 216,122 | 118,708 | |||||||||||
| Interest expense | 16,787 | 18,242 | 32,163 | 35,352 | |||||||||||
| Depreciation and amortization | 58,410 | 48,321 | 114,384 | 94,462 | |||||||||||
| Provision for income taxes | 46,696 | 15,422 | 70,343 | 29,658 | |||||||||||
| Non-cash write-down and other adjustments (1) | 2,515 | 2,155 | 1,072 | 2,142 | |||||||||||
| Non-cash share-based compensation expense (2) | 14,005 | 14,752 | 27,447 | 26,360 | |||||||||||
| Transaction costs and credit facility fees (3) | 1,115 | 1,004 | 3,825 | 1,764 | |||||||||||
| Business optimization and other charges (4) | 2,351 | 3,442 | 3,504 | 5,017 | |||||||||||
| Provision for legal, regulatory, and other costs (5) | (951 | ) | 4,911 | 2,255 | 8,662 | ||||||||||
| Change in fair value of investments (6) | (5,916 | ) | 1,524 | (4,542 | ) | 11,471 | |||||||||
| Other (8) | 12,702 | 3,426 | 17,632 | 3,579 | |||||||||||
| Adjusted EBITDA | 290,724 | 187,629 | 484,205 | 337,175 | |||||||||||
| Adjusted EBITDA attributable to noncontrolling interests | (237 | ) | 612 | (383 | ) | 1,244 | |||||||||
| Adjusted EBITDA attributable to Generac Holdings Inc. | $ | 290,961 | $ | 187,017 | $ | 484,588 | $ | 335,931 | |||||||
| Net income to Adjusted net income reconciliation | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income attributable to Generac Holdings Inc. | $ | 143,244 | $ | 74,016 | $ | 216,497 | $ | 117,856 | |||||||
| Net income attributable to noncontrolling interests | (234 | ) | 414 | (375 | ) | 852 | |||||||||
| Net income | 143,010 | 74,430 | 216,122 | 118,708 | |||||||||||
| Amortization of intangible assets | 30,815 | 25,681 | 61,195 | 51,170 | |||||||||||
| Amortization of deferred financing costs and original issue discount | 546 | 642 | 1,081 | 1,278 | |||||||||||
| Transaction costs and other purchase accounting adjustments (7) | 712 | 345 | 3,260 | 452 | |||||||||||
| Loss attributable to business or asset dispositions (8) | 13,456 | 3,905 | 18,238 | 4,295 | |||||||||||
| Business optimization and other charges (4) | 2,351 | 3,442 | 3,504 | 5,017 | |||||||||||
| Provision for legal, regulatory and other costs (5) | (951 | ) | 4,911 | 2,255 | 8,662 | ||||||||||
| Change in fair value of investments (6) | (5,916 | ) | 1,524 | (4,542 | ) | 11,471 | |||||||||
| Tax effect of add backs | (10,150 | ) | (17,138 | ) | (21,035 | ) | (27,507 | ) | |||||||
| Adjusted net income | 173,873 | 97,742 | 280,078 | 173,546 | |||||||||||
| Adjusted net income attributable to noncontrolling interests | (234 | ) | 414 | (375 | ) | 852 | |||||||||
| Adjusted net income attributable to Generac Holdings Inc. | $ | 173,639 | $ | 97,328 | $ | 279,703 | $ | 172,694 | |||||||
| Adjusted net income attributable to Generac Holdings Inc. per | |||||||||||||||
| common share - diluted: | $ | 2.91 | $ | 1.65 | $ | 4.71 | $ | 2.91 | |||||||
| Weighted average common shares outstanding - diluted: | 59,635,447 | 59,017,823 | 59,436,379 | 59,385,907 | |||||||||||
| (1) Includes (gains)/losses on the disposition of assets other than in the ordinary course of business, (gains)/losses on sales of certain investments, unrealized mark-to-market adjustments on commodity contracts, certain foreign currency related adjustments, and certain purchase accounting and contingent consideration adjustments. A full description of these and the other reconciliation adjustments contained in these schedules is included in Generac's SEC filings. | |||||||||||||||
| (2) Represents share-based compensation expense to account for stock options, restricted stock, and other stock awards over their respective vesting periods. | |||||||||||||||
| (3) Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance or debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities, such as administrative agent fees and credit facility commitment fees under our Amended Credit Agreement. | |||||||||||||||
| (4) Represents severance and other restructuring charges related to the consolidation of certain operating facilities and organizational functions. | |||||||||||||||
| (5) Represents the following significant litigation, regulatory, and other matters that are not indicative of our ongoing operations: | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Legal expenses, judgements and settlements related to certain patent lawsuits | $ | (3,485 | ) | $ | 1,696 | $ | (1,038 | ) | $ | 3,188 | |||||
| Legal expenses, judgements and settlements related to certain class action lawsuits | 1,262 | 2,540 | 2,288 | 3,883 | |||||||||||
| Legal expenses related to certain government inquiries and other significant matters | 1,272 | 675 | 2,134 | 1,591 | |||||||||||
| Release of warranty provision recorded in 2022 to address clean energy warranty-related matters | - | - | (1,129 | ) | - | ||||||||||
| Total provision for legal, regulatory and other matters | $ | (951 | ) | $ | 4,911 | $ | 2,255 | $ | 8,662 | ||||||
| (6) Represents non-cash (gains) losses primarily from changes in the fair value of the Company's investment in Wallbox N.V. warrants and equity securities. | |||||||||||||||
| (7) Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance or debt issuance or refinancing, and certain purchase accounting and contingent consideration adjustments. | |||||||||||||||
| (8) The current year loss relates primarily to four immaterial business dispositions with two closing in the first quarter and two closing in the second quarter of 2026. The prior year loss relates primarily to one immaterial business disposition that closed in the second quarter of 2025. | |||||||||||||||
| Free Cash Flow Reconciliation | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net cash provided by operating activities | $ | 121,211 | $ | 72,189 | $ | 240,496 | $ | 130,341 | |||||||
| Expenditures for property and equipment | (58,290 | ) | (57,716 | ) | (87,687 | ) | (88,653 | ) | |||||||
| Free cash flow | $ | 62,921 | $ | 14,473 | $ | 152,809 | $ | 41,688 | |||||||
