Generac Holdings Inc.

“Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions.”

“This omni-channel distribution network includes independent residential dealers and contractors, industrial distributors and dealers, national and regional retailers, e-commerce partners, electrical/HVAC/solar wholesalers, solar installers, catalogs, equipment rental companies, and other equipment distributors.”

“Our mobile products are typically sold globally to national and regional rental companies who then rent the equipment to the end user.”

“C&I products consist of larger output stationary generators used in C&I applications, with power outputs up to 3,250kW.”

“C&I also provides back-up power solutions for data centers including delivery of large backup power generators, project management, installation commissioning and training.”

“Our “Other products and services” category primarily consists of aftermarket service parts and product accessories sold to our customers, installation and maintenance services, extended warranty revenue, grid services and other software-related subscription revenue, remote monitoring subscription revenue, and other project management service offerings provided by our owned industrial distributors.”

“We believe we have one of the widest ranges of products in the power generation marketplace, including residential, commercial, and industrial standby generators, as well as portable and mobile generators used in a variety of applications.”

“External net sales $3,470,966 $738,181 $4,209,147 $3,599,149 $696,685 $4,295,834 $3,276,324 $746,343 $4,022,667”

“The Company’s sales in the United States represent approximately 78%, 79%, and 77% of total sales for the years ended December 31, 2025, 2024 and 2023, respectively.”

“Adjusted EBITDA by reportable segment $597,915 $117,627 $715,542 $693,203 $95,898 $789,101 $523,337 $114,522 $637,859”

“"Other products and services" comprised 11.5%, 11.1% and 11.5%, respectively, of total net sales in 2025, 2024 and 2023.”

“C&I products comprised 34.6%, 32.3% and 37.2%, respectively, of total net sales in 2025, 2024 and 2023.”

“The principal raw materials that we use to produce our products include steel, copper and aluminum as well as batteries and advanced electronic components.”

“We source a significant portion of our purchased components overseas, primarily in Asia and Europe.”

“For certain products we rely upon outside manufacturers to build these products or supply these components, including but not limited to certain clean energy products or components and large engines used in data center backup applications.”

“In 2023, we acquired REFU, a European based provider of stationary C&I BESS solutions and related inverter products, which expanded our product offering to enter certain C&I BESS markets around the world. In 2024, we strengthened our position in the North American C&I BESS market with the acquisition of SunGrid’s C&I BESS product offering, based out of Canada.”

“Capital Expenditures ... Domestic $143,056 $117,836 $103,036 International 26,794 18,897 26,024 Total $169,850 $136,733 $129,060”

“We believe our global distribution network is a competitive advantage that has strengthened over the years as we continue to add, expand and develop the various distribution channels through which we sell our products.”

“The recent introduction of our large-megawatt diesel generator line-up has substantially increased our served addressable market, allowing us to participate in the supply-constrained data center market which is expected to grow significantly over the coming years due to the mass adoption of artificial intelligence.”

“Lower power quality continuing to drive demand for backup power solutions:”

“We have a long history of providing power generation products across a variety of applications, and we maintain one of the leading positions in the North American market for power equipment with an expanding presence internationally.”

“including the 2025 launches of our next-generation home standby generator, our large mega-watt diesel generators for higher power applications such as data centers, our new PWRcell 2 energy storage system, and our new Generac-branded microinverters.”

“These factors, along with increased demand from data centers, have contributed to heightened volatility in commodity prices, particularly for raw materials such as steel, copper, and aluminum.”

“On July 1, 2025, we amended our Term Loan A Facility and Revolving Credit Facility, extending the maturity of both to July 1, 2030, revising the Term Loan A Facility outstanding principal balance to $700,000, reducing the Revolving Credit Facility borrowing capacity to $1,000,000”

“geopolitical conflicts (such as conflicts in the Ukraine or the Middle East), terrorism, civil unrest, disease or natural disasters”

“including by the U.S. Department of Justice (DOJ), CPSC and EPA, which could lead to enforcement actions, fines and penalties or the assertion of private litigation claims.”

“Demand for the majority of our products is significantly affected by unpredictable power outage activity that can lead to substantial variations in, and uncertainties regarding, our financial results from period to period.”

“We typically do not have long-term supply contracts in place to ensure the raw materials and components we use are available in necessary amounts or at fixed prices.”

“The “One Big Beautiful Bill Act” (OBBBA) that was enacted in the United States in July 2025 accelerated the phase out of certain investment tax credits, resulting in a negative impact to the solar & storage market thereafter.”

“these tariff actions and resulting price increases have created inflationary pressures for consumers, negatively impacting demand and margins for certain of our products.”

“We have recently been subject to adverse rulings or have settled claims for significant amounts related to the infringement of third-party intellectual property rights”