Generac (GNRC) investor relations material

Strategic vision and market positioning

• Aims to lead the evolution toward resilient, efficient, and innovative energy solutions, focusing on energy resilience, efficiency, and critical infrastructure protection.

• Industry leader in backup power with a broad product portfolio spanning residential, commercial, and industrial energy management.

• Capitalizes on mega-trends such as grid instability, higher power prices, electrification, and AI-driven data center growth.

• Global manufacturing and distribution footprint with 19 facilities and thousands of dealers, wholesalers, and retail partners.

Financial performance and outlook

• 2025 net sales reached $4.2B with adjusted EBITDA of $716M; 2025 sales mix: 54% residential, 35% commercial & industrial, 11% other.

• 2026 guidance projects mid-teens % consolidated revenue growth, 10% residential, and 30% C&I product growth.

• Adjusted EBITDA margin expected between 18.0% and 19.0%, with free cash flow around $350M.

• Maintains a disciplined capital allocation strategy, investing in R&D, strategic M&A, and share repurchases, with a target leverage ratio of 1-2x.

• Q4 2025 LTM net sales were $4.2B, gross margin 38.3%, adjusted EPS $6.34, and free cash flow $268M.

Growth drivers and market opportunities

• C&I segment net sales grew at a 13% CAGR (2016–2026F), driven by data center demand and global infrastructure investment.

• Data center product backlog at $400M, with pilot programs and preferred supplier status for major colocators.

• Residential market supported by low home standby penetration (~6.75% US), rising power prices (+39% since 2020), and declining equipment costs.

• Differentiated home energy ecosystem integrates solar, storage, smart thermostats, and energy management for resilience and efficiency.

• Expanding microgrid and energy technology solutions for both residential and C&I markets.