Generac Holdings 10-Q 2026-06-30

Filed 2026-08-04. 2 sections, 215K characters. Original on sec.gov · Markdown · JSON

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended June 30, 2026

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from to

Commission File Number 001-34627

GENERAC HOLDINGS INC.

(Exact name of registrant as specified in its charter)

Delaware	20-5654756
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

S45 W29290 Hwy 59, Waukesha, WI	53189
(Address of principal executive offices)	(Zip Code)

(262) 544-4811

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	GNRC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of July 31, 2026, there were 59,006,361 shares of registrant's common stock outstanding.

GENERAC HOLDINGS INC.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025	1

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30 , 2026 and 2025	2

	Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2026 and 2025	3

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	34

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	34

Item 1A.	Risk Factors	34

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34

Item 3.	Defaults Upon Senior Securities	34

Item 4.	Mine Safety Disclosures	34

Item 5.	Other Information	35

Item 6.	Exhibits	35

	Signatures	36

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

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 $33,767 and $34,504 at June 30, 2026 and December 31, 2025, respectively		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 non-controlling interest		367			742

Stockholders’ equity:
Common stock, par value $0.01, 500,000,000 shares authorized, 74,234,629 and 74,050,753 shares issued at June 30, 2026 and December 31, 2025, respectively		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

See notes to condensed consolidated financial statements.

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 Generac Holdings Inc. 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 Generac Holdings Inc. 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

Comprehensive income attributable to Generac Holdings Inc.	$	143,217		$	137,561		$	198,066		$	206,360

See notes to condensed consolidated financial statements.

Generac Holdings Inc.
Condensed Consolidated Statements of Stockholders' Equity
(U.S. Dollars in Thousands, Except Share Data)
(Unaudited)

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