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Generac Holdings (GNRC) FY2025 results: revenue $4.2 billion, down 2.0% on the year

Generac Holdings Inc. (GNRC) reported revenue of $4.2 billion for fiscal 2025, the year ended 31 December 2025, down 2.0% on the year before. Net income was $160 million, down 49.6%, and diluted earnings per share $2.69. The figures are the company's own, from the 10-K it filed with the SEC on 18 February 2026.

Revenue
$4.2 billion
-2.0% on the year
FY2018FY2025
Operating margin
6.9%
12.5% a year earlier
FY2018FY2025
Net income
$160 million
-49.6% on the year
FY2018FY2025
Diluted EPS
$2.69
-50.1% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 4 new.

  • Fourth-quarter sales fell 12%: Net sales were $1.09 billion. Acquisitions and foreign currency added about 1%.
  • Quarter swung to net loss: Net loss attributable to the company was ($24) million, or ($0.42) per share, against net income of $117 million, or $2.15 per diluted share, a year earlier.
  • Residential sales fell 23%: Residential product sales decreased to $572 million from $743 million, as lower outage activity cut home standby and portable generator shipments.
  • C&I sales rose 10% on data centers: C&I product sales rose to $400 million from $363 million, mainly from higher revenue on products sold to data center customers.
  • Operating expenses rose 34%: Operating expenses reached $405.4 million, driven mainly by a $104.5 million provision for the settlement of a legal matter.
Read the Q4 FY2025 earnings call summary

From this 10-K

Generac was founded in 1959 to sell portable generators and now makes power generation equipment, energy storage systems, energy management devices and other power products and services for residential, commercial, data centre, telecom, rental and industrial customers. It moved into industrial power generation in the 1980s with stationary generators up to 200kW, introduced its first residential standby line in 1989, widened its industrial range and distribution in the 1990s and listed in February 2010. Sales split into residential products at 53.9% of net sales in 2025, commercial and industrial products at 34.6%, and other products and services at 11.5%.

Generac Holdings Inc., the 10-K for 2025

Generac was founded in 1959 to sell portable generators and now makes power generation equipment, energy storage systems, energy management devices and other power products and services for residential, commercial, data centre, telecom, rental and industrial customers. It moved into industrial power generation in the 1980s with stationary generators up to 200kW, introduced its first residential standby line in 1989, widened its industrial range and distribution in the 1990s and listed in February 2010. Sales split into residential products at 53.9% of net sales in 2025, commercial and industrial products at 34.6%, and other products and services at 11.5%.

Residential generators

Residential automatic standby generators run mostly on natural gas and liquid propane, range from 7.5kW to 150kW and are permanently installed with an automatic transfer switch the company also makes. Air-cooled units from 7.5kW to 28kW back up small and medium homes, and the company launched a new generation of that line in 2025; liquid-cooled units from 22kW to 150kW back up larger homes and small businesses. Every home standby generator carries Mobile Link remote monitoring as standard, so owners can check status from a phone and receive service alerts, dealers can watch their installed base, and the company can see how products behave in the field. It also sells portable and inverter generators from 800W to 18kW and portable battery products, aimed at homeowners, contractors and recreational users from the value end of the market to the premium end, with manual transfer switches.

The home ecosystem

The 2021 purchase of ecobee added smart thermostats and home monitoring products, whose devices and sensors tune heating and cooling systems, often the largest energy user in a home; home standby generators and propane tank monitors now run through the ecobee interface, which the company is building into a common platform. The PWRcell home energy storage system, launched in 2020, stores electricity from solar panels or other sources, in sizes from 9kWh up to 72kWh depending on the number of battery modules; the PWRcell 2 Series arrived in 2025 and integrates with the generators. Also in 2025 it introduced PWRmicro, its first branded microinverter, converting direct current from solar panels into alternating current for the home and taking it into the solar-only market.

Commercial and industrial

The commercial and industrial line runs from 10kW up to 3,250kW on natural gas, diesel or the company's Bi-Fuel system, and in 2025 it added large megawatt diesel generators aimed at the data centre market and others with larger-scale backup needs. Light-commercial standby systems from 22kW to 150kW give three-phase power to grocery and convenience stores, restaurants, petrol stations, pharmacies, retail banks and smaller health care sites. Industrial generators come as stationary and containerised mobile packages and can use Modular Power Systems technology, which parallels several smaller units into the output of a larger one, so individual units can be taken offline for maintenance while critical circuits stay covered. Industrial standby units back up data centres, healthcare, telecom, commercial offices, retail, distribution centres, manufacturing and municipal sites, and gaseous-fuelled units are increasingly used beyond standby in distributed generation and microgrid projects.

Other products and services

This category is mostly aftermarket parts and accessories, installation and maintenance, extended warranties, grid services and other software subscriptions, remote monitoring and project management by the company's own industrial distributors. ecobee earns service fees when a homeowner enrols a smart thermostat in a utility grid services programme, giving the utility a direct connection to much of the home's electrical load. Blue Pillar, bought in 2022, brought connectivity hardware for commercial and industrial products plus software subscriptions, and Ageto, bought in 2024, added microgrid controls hardware and software contracts for site-level control of customer energy assets.

Selling and supply

Distribution runs through independent residential dealers and contractors, industrial distributors, national and regional retailers, e-commerce partners, electrical, heating and solar wholesalers, solar installers, catalogues and equipment rental companies, alongside direct sales to national accounts and end users. No single customer was more than 4% of net sales in 2025. Primary raw material inputs are steel, copper and aluminium, often bought as machined components, with diesel engines, cooling packages and alternators for larger units sourced worldwide, electronic components and microprocessors now a larger consideration, and batteries a major input for storage systems. At 31 December 2025 the company employed 9,400 people including part-time and temporary staff, approximately 4,200 of them directly or indirectly in manufacturing.

From Generac's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 18 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue4,2094,2964,023-2.0%
Cost of revenue2,5972,6302,657-1.2%
Gross profit1,6121,6661,365-3.2%
Gross margin38.3%38.8%33.9%
Research and development243220173+10.9%
Operating income289537386-46.1%
Operating margin6.9%12.5%9.6%
Interest expense70.789.797.6-21.2%
Pre-tax income199409290-51.4%
Income tax37.792.573.2-59.2%
Effective tax rate18.9%22.6%25.2%
Net income160316215-49.6%
Net margin3.8%7.4%5.3%
Diluted EPS$2.69$5.39$3.27-50.1%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow438741522-40.9%
Capital expenditure170137129+24.2%
Free cash flow268605393-55.6%
Free cash flow margin6.4%14.1%9.8%
Cash from investing-173-209-178
Cash from financing-213-449-277
Depreciation and amortisation195172167+13.4%
Share-based compensation49.949.235.5+1.4%
Buybacks148153252-3.2%
Dividends paid0.30.30.0+7.3%
Diluted shares, weighted59m60m62m-1.8%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity2,6322,4942,340+5.5%
Non-controlling interest5.93.22.8+85.8%
Redeemable equity0.70.06.5
Debt1,3331,3341,575-0.1%
Operating lease liabilities36.129.244.8+23.9%
Finance lease liabilities81.559.567.5+36.9%
Other liabilities1,4841,1891,056+24.8%
Total liabilities and equity5,5745,1095,093+9.1%
Fixed assets814690599+17.9%
Goodwill1,4671,4361,432+2.1%
Intangible assets675759846-11.0%
Cash and equivalents341281201+21.4%
Receivables603612537-1.5%
Inventory1,2491,0321,167+21.1%
Other assets425299310+41.8%
Total assets5,5745,1095,093+9.1%

10-K for the year ended 31 December 2025, filed 18 February 2026: the filing.