Generac (GNRC) investor relations material

Executive summary

• Net sales for Q2 2026 rose 11% year-over-year to $1.17 billion, driven by a 29% surge in C&I segment sales and robust data center demand, with favorable impacts from acquisitions, currency, and tariff refunds.

• Net income attributable to shareholders more than doubled to $143 million ($2.40 per share), with adjusted net income at $174 million ($2.91 per share).

• Adjusted EBITDA for Q2 2026 was $291 million (24.8% margin), up from $188 million (17.7%), reflecting improved margins and $71 million in tariff refunds.

• Secured two multi-year hyperscale supply agreements, increasing data center backlog to $1.6 billion and $1 billion in new orders over the last 90 days.

• Completed acquisition of Enercon and expanded production and packaging capacity, including new facilities and acquisitions.

Financial highlights

• Gross profit margin expanded to 44.5% from 39.3%, primarily due to $71 million in tariff refunds.

• Operating income increased 88.2% to $210.4 million.

• Free cash flow increased to $63 million from $14 million year-over-year; cash flow from operations was $121 million.

• Six-month net sales reached $2.23 billion, up 11.5% year-over-year; net income for the period was $216.5 million, up 83.7%.

• Operating expenses rose 2% to $311 million, mainly from investments in C&I growth and higher intangible amortization.

Outlook and guidance

• Full-year 2026 consolidated net sales expected to increase mid to high teens percent, with C&I segment net sales growth raised to low 30s% range.

• Residential segment net sales now expected to grow at a high single-digit rate, slightly reduced from prior guidance.

• Adjusted EBITDA margin guidance for 2026 is 18.5%-19.5% (excluding tariff refunds), or 20%-21% including refunds.

• Gross margins for 2026 expected near low end of 38.5%-39.5% range (excluding tariff recovery); including tariff refunds, gross margin expected around 40%.

• Free cash flow for 2026 projected at ~$350 million.