Generac

“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.”

Annual report 2025A · The company itself

“At the same time, power demand is expected to meaningfully accelerate due to (i) the rapid adoption of artificial intelligence and related data center energy requirements, (ii) the re-industrialization of North America, and (iii) the electrification of a wide range of consumer and commercial products, including transportation, HVAC systems, and other major appliances.”

Annual report 2025A · The company itself

“Substantial capital investments in new data centers and accelerating adoption of artificial intelligence. As a result of the development of artificial intelligence and the expected benefits of this technology, there is significant capital investment being made to build out data center infrastructure, which is expected to further accelerate adoption of artificial intelligence capabilities. Backup power solutions are a necessary part of this substantial investment in data centers.”

Annual report 2025A · The company itself

“As society becomes increasingly dependent on digital products, services, and capabilities, data centers and their related infrastructure are becoming mission-critical in nature and will therefore require complete resiliency coverage for their power utilization, making backup power generation equipment an essential component of these systems.”

Annual report 2025A · The company itself

“Given the significant data center opportunity, we expect to increase our manufacturing, test cell, and packaging capacity even further to be able to win market share and serve data center customers globally.”

Annual report 2025A · The company itself

“This includes data centers, telecommunication, retail, banking, energy, healthcare, convenience stores, grocery stores, restaurants, governments, and other commercial & industrial applications.”

Annual report 2025A · The company itself

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

Annual report 2025A · The company itself

“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.”

Annual report 2025A · The company itself

“At the same time, power demand is expected to meaningfully accelerate due to (i) the rapid adoption of artificial intelligence and related data center energy requirements, (ii) the re-industrialization of North America, and (iii) the electrification of a wide range of consumer and commercial products, including transportation, HVAC systems, and other major appliances.”

Annual report 2025A · The company itself

“Substantial capital investments in new data centers and accelerating adoption of artificial intelligence. As a result of the development of artificial intelligence and the expected benefits of this technology, there is significant capital investment being made to build out data center infrastructure, which is expected to further accelerate adoption of artificial intelligence capabilities. Backup power solutions are a necessary part of this substantial investment in data centers.”

Annual report 2025A · The company itself

“The increasing use and development of artificial intelligence has created significant demand for the build out of data center infrastructure, which includes backup power generation. While we believe the potential for this business is very promising, the growth and development of this rapidly evolving industry is difficult to project.”

Annual report 2025A · The company itself

“There is also increasing use of data analytics, machine learning, and artificial intelligence software, which our competitors may be able to use or implement more effectively than we are able to do.”

Annual report 2025A · The company itself

“We have made significant investments in developing a common connectivity and data platform to advance our energy management ecosystems for both residential and C&I markets. Combining advanced software development with our broad engineering capabilities will enable us to develop innovative solutions and ultimately compete in energy technology markets.”

Annual report 2025A · The company itself

“With only approximately 6.75% penetration of the addressable market of homes in the United States (which we define as single-family detached, owner-occupied households with a home value of over $175,000, as defined by the U.S. Census Bureau's 2023 American Housing Survey for the United States), we believe there are significant opportunities to further penetrate the residential standby generator market both domestically and internationally.”

Annual report 2025A · The company itself

“In addition, consumer confidence and home remodeling expenditures have a significant impact on sales of our residential products, and prolonged periods of weakness in consumer durable goods spending has previously had, and could again have a material impact on our business.”

Annual report 2025A · The company itself

“The Company's product offerings consist primarily of power generation equipment, energy storage systems, energy management devices & solutions, and other power products geared for varying end customer uses.”

Annual report 2025A · The company itself

“Residential Products Our residential automatic standby generators, which predominantly operate on natural gas and liquid propane, range in output from 7.5kW to 150kW and are permanently installed with an automatic transfer switch, which we also manufacture. Air-cooled engine home standby generators range in outputs from 7.5kW to 28kW and serve as an emergency backup for small to medium-sized homes.”

Annual report 2025A · The company itself

“The retail channel primarily sells our residential standby and portable generators, as well as our outdoor power equipment and ecobee products.”

Annual report 2025A · The company itself

“Solar, storage, and energy management markets will continue to develop despite phasing out of government subsidies and incentives.”

Annual report 2025A · The company itself

“In addition, batteries are a significant supply chain input for our energy storage systems for residential and C&I behind-the-meter applications.”

Annual report 2025A · The company itself

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

Annual report 2025A · The company itself

“We expect to leverage our leading position as a provider of traditional stationary generators to gain share in the global C&I BESS market.”

Annual report 2025A · The company itself

“More recently, we have also built out engineering expertise in BESS and power conversion that we are leveraging to compete in clean energy markets. In addition, we have significantly increased our software development capabilities across a variety of applications, including energy management, system-level microgrid controls, and remote monitoring.”

Annual report 2025A · The company itself

“In addition, we believe we can increase mindshare with additional solar installers by enhancing our marketing efforts to drive incremental leads, expanding our clean energy product offering, and integrating our full suite of residential products into a common energy management ecosystem.”

Annual report 2025A · The company itself

“We have developed a line of energy storage systems for use in residential solar-plus-storage applications, as well as microinverters for residential solar energy production.”

Annual report 2025A · The company itself

“In 2020, we launched a line of home energy storage systems marketed under the Generac brand and using the PWRcell™ brand name.”

Annual report 2025A · The company itself

“In 2021, we acquired Off Grid Energy, a European based manufacturer of mobile energy storage systems predominantly used in the rental markets.”

Annual report 2025A · The company itself

“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.”

Annual report 2025A · The company itself

“In recent years, we have been establishing a base of solar contractors that sell, install and service our PWRcell energy storage systems.”

Annual report 2025A · The company itself

“o Increasing deployment of intermittent renewable generation sources coupled with accelerating electricity demand trends driving supply/demand imbalances for utilities and grid operators. ● Higher power prices driving the need for energy management solutions: o Electrification trends causing power demand to exceed supply, driving up power prices. o Investment required to upgrade grid infrastructure and transition to renewable power sources, pushing prices higher. o Higher power prices result in shorter paybacks for solar & storage systems. ● Artificial intelligence adoption accelerating, creating a large market opportunity for backup power: o Significant power requirements for the buildout of data centers to enable AI adoption could drive further grid instability and higher power prices. o Massive capital investment into hyperscale and edge data centers has created a very large market for back-up power that is supply-constrained, providing a significant growth opportunity for our newly introduced large-megawatt C&I products.”

Annual report 2025A · The company itself

“Solar, storage, and energy management markets will continue to develop despite phasing out of government subsidies and incentives.”

Annual report 2025A · The company itself

“In addition, we believe we can increase mindshare with additional solar installers by enhancing our marketing efforts to drive incremental leads, expanding our clean energy product offering, and integrating our full suite of residential products into a common energy management ecosystem.”

Annual report 2025A · The company itself

“We have developed a line of energy storage systems for use in residential solar-plus-storage applications, as well as microinverters for residential solar energy production.”

Annual report 2025A · The company itself

“In 2025, we also introduced the PWRmicro, our first Generac branded microinverter that enables on-site solar power generation by converting DC power output from solar panels to AC power that can be used in the home.”

Annual report 2025A · The company itself

“The retail channel primarily sells our residential standby and portable generators, as well as our outdoor power equipment and ecobee products.”

Annual report 2025A · The company itself

“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.”

Annual report 2025A · The company itself

“In recent years, we have been establishing a base of solar contractors that sell, install and service our PWRcell energy storage systems. We believe we will continue to build out this distribution channel over time by leveraging our decades of expertise in growing our residential generator dealer network.”

Annual report 2025A · The company itself

“We have also been leveraging our leading position in the growing market for natural gas fueled generators, which we believe represents a cleaner fuel compared to diesel, to develop solutions for applications beyond standby power, allowing us to participate in multi-purpose microgrid projects for C&I customers.”

Annual report 2025A · The company itself

“We believe natural gas will continue to be an important and cleaner transition fuel of the future, compared to diesel, as the world continues to shift towards lower emission power generation sources.”

Annual report 2025A · The company itself

“We have one of the broadest offerings of stationary, portable, and mobile power generators with single-engine outputs ranging between 800W and 3,250kW.”

Annual report 2025A · The company itself

“In recent years, we have seen interest in utilizing our gaseous-fueled generators in "beyond standby" applications, including distributed generation and microgrid projects, and have developed purpose-built products for these applications that have grid-connected capability.”

Annual report 2025A · The company itself

“In addition, our natural gas C&I stationary generators have grid-connection capabilities, enabling our customers to generate an incremental return-on-investment by connecting and enrolling their generator as a DER in grid services applications where available.”

Annual report 2025A · The company itself

“Our sales of light-commercial and industrial generators are affected by conditions in the non-residential construction sector and by the capital investment trends for small and large businesses and municipalities.”

Annual report 2025A · The company itself

“In addition, our broad offering of C&I mobile products (including mobile light towers, mobile power generators, mobile heaters, mobile energy storage systems and hybrid generators) plays a key role in the completion of infrastructure construction projects, such as roads, highways, bridges, and airports.”

Annual report 2025A · The company itself

“We design and manufacture a broad product line of C&I mobile products such as light towers and mobile generators, which provide temporary lighting and power for various end markets around the world (such as road and commercial construction, energy, mining, military, and special events).”

Annual report 2025A · The company itself

“The distribution for our C&I mobile products includes global, national, regional, and specialty equipment rental companies, equipment distributors, and construction companies which primarily serve non-residential building construction, road construction, energy, special events, municipal, and general rents & hire markets around the world.”

Annual report 2025A · The company itself

“Our light-commercial standby generators and related transfer switches include a full range of affordable systems from 22kW to 150kW, providing three-phase power sufficient for most small and mid-sized businesses such as grocery stores, convenience stores, restaurants, gas stations, pharmacies, retail banks, smaller health care facilities, and other small-footprint retail applications. Our light-commercial generators predominantly run on natural gas and liquid propane.”

Annual report 2025A · The company itself

“The retail channel primarily sells our residential standby and portable generators, as well as our outdoor power equipment and ecobee products.”

Annual report 2025A · The company itself

“Table of Contents Our retail distribution channel includes thousands of locations across the globe and includes a variety of national and regional home improvement chains, electronics retailers, clubs, buying groups, hardware & farm supply stores, and outdoor power equipment dealers.”

Annual report 2025A · The company itself

“These products are predominantly sold through independent residential dealers, national and regional retailers, e-commerce merchants, electrical/HVAC/solar wholesalers, solar installers, and outdoor power equipment dealers. The residential products revenue consists of the sale of the product to the Company's distribution partners, who in turn sell the product to the end consumer, including installation and maintenance services.”

Annual report 2025A · The company itself

“Finally, our C&I products are also commonly used to provide backup power to a variety of other critical infrastructure that are vital for a safe and healthy society, such as water and wastewater systems, healthcare facilities, and other municipal infrastructure.”

Annual report 2025A · The company itself

“Our industrial standby generators are primarily used as emergency backup for larger applications such as data centers, healthcare, telecom, datacom, commercial office, retail, distribution centers, manufacturing, and municipal, among others.”

Annual report 2025A · The company itself

“This includes data centers, telecommunication, retail, banking, energy, healthcare, convenience stores, grocery stores, restaurants, governments, and other commercial & industrial applications.”

Annual report 2025A · The company itself

“Our industrial standby generators are primarily used as emergency backup for larger applications such as data centers, healthcare, telecom, datacom, commercial office, retail, distribution centers, manufacturing, and municipal, among others.”

Annual report 2025A · The company itself

“We also sell our industrial products direct to certain end-user customers of our products covering a variety of end market verticals both domestically and internationally. This includes data centers, telecommunication, retail, banking, energy, healthcare, convenience stores, grocery stores, restaurants, governments, and other commercial & industrial applications.”

Annual report 2025A · The company itself

“These products are sold globally through industrial distributors and dealers, Engineering, Procurement, and Construction (EPC) companies, equipment rental companies, and equipment distributors.”

Annual report 2025A · The company itself

“Generac is the leading supplier of backup power to the telecommunications market in the United States.”

Annual report 2025A · The company itself

“As a leader in providing backup power generators for wireless cell towers around the world, we believe we can play an important role in helping to protect and build this critical telecommunications infrastructure.”

Annual report 2025A · The company itself

“Our industrial standby generators are primarily used as emergency backup for larger applications such as data centers, healthcare, telecom, datacom, commercial office, retail, distribution centers, manufacturing, and municipal, among others.”

Annual report 2025A · The company itself

“In recent years, we have added manufacturing capacity through significant investments in automation, including alternator production, engine assembly, robotic lasers & welding, sheet metal fabrication, and other assembly line automation. We have also increased capacity by starting up new manufacturing facilities and adding on to existing locations, helping to expand our manufacturing footprint and meet increased demand for our products around the world.”

Annual report 2025A · The company itself

“We also continue to develop other energy technology products, including mobile battery-powered light towers and hybrid mobile solutions that pair a battery with a diesel engine to reduce emissions and noise pollution.”

Annual report 2025A · The company itself

“Table of Contents In 2021, we acquired ecobee, a leader in sustainable smart home solutions such as smart thermostats and home monitoring products, all designed with a focus on energy conservation, convenience, peace of mind and comfort. ecobee’s smart home energy management devices and complementary sensors intelligently optimize heating and cooling systems, often the largest energy consuming system within a home, to deliver significant energy savings for homeowners. ecobee also offers a line of smart doorbell cameras, which are fully integrated with ecobee’s products and help to drive increased consumer engagement with their platform.”

Annual report 2025A · The company itself

“Our C&I BESS solutions are primarily targeted at “behind-the-meter” applications for on-site energy storage.”

Annual report 2025A · The company itself

“Our light-commercial standby generators and related transfer switches include a full range of affordable systems from 22kW to 150kW, providing three-phase power sufficient for most small and mid-sized businesses such as grocery stores, convenience stores, restaurants, gas stations, pharmacies, retail banks, smaller health care facilities, and other small-footprint retail applications. Our light-commercial generators predominantly run on natural gas and liquid propane.”

Annual report 2025A · The company itself

“This includes data centers, telecommunication, retail, banking, energy, healthcare, convenience stores, grocery stores, restaurants, governments, and other commercial & industrial applications.”

Annual report 2025A · The company itself

“This presents a very large incremental opportunity for our recently introduced large-megawatt diesel generator offering.”

Annual report 2025A · The company itself

“We have one of the broadest offerings of stationary, portable, and mobile power generators with single-engine outputs ranging between 800W and 3,250kW.”

Annual report 2025A · The company itself

“We also manufacture a broad product line of outdoor power equipment referred to as “chore products”, which are used in property maintenance applications for larger-acreage residences, commercial properties, municipalities, and farms.”

Annual report 2025A · The company itself

“This includes data centers, telecommunication, retail, banking, energy, healthcare, convenience stores, grocery stores, restaurants, governments, and other commercial & industrial applications.”

Annual report 2025A · The company itself

“These physical “brick & mortar” retail locations are supplemented by a large presence of e-commerce retailers that also sell our products online.”

Annual report 2025A · The company itself

“This includes data centers, telecommunication, retail, banking, energy, healthcare, convenience stores, grocery stores, restaurants, governments, and other commercial & industrial applications.”

Annual report 2025A · The company itself

“We also have engineering and product management resources focused on evaluating and developing alternative technologies that are emerging and could become commercially viable over the long-term, such as fuel cells and hydrogen-fueled products.”

Annual report 2025A · The company itself

“This includes data centers, telecommunication, retail, banking, energy, healthcare, convenience stores, grocery stores, restaurants, governments, and other commercial & industrial applications.”

Annual report 2025A · The company itself

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

Annual report 2025A · The company itself

“Our wholesale network distributes our residential and light-commercial generators, as well as our residential energy storage systems, on a two-step basis. The channel consists of selling branches of both national and local distribution houses for electrical, HVAC, and solar equipment on a wholesale basis.”

Annual report 2025A · The company itself

“This includes data centers, telecommunication, retail, banking, energy, healthcare, convenience stores, grocery stores, restaurants, governments, and other commercial & industrial applications.”

Annual report 2025A · The company itself

“Given our competitive strengths in our traditional power generation markets, we believe we are well-positioned to execute on the growing opportunity for backup power for homes and businesses, where increased penetration is being driven by multiple mega-trends that are resulting in poorer power quality for end users.”

Annual report 2025A · The company itself

“Those mega-trends and growth themes are as follows: Key Mega-Trends: ● Lower power quality continuing to drive demand for backup power solutions: o More frequent, severe, and volatile weather impacting an aging grid, causing increased power outage activity.”

Annual report 2025A · The company itself

“The impact of climate change has received increased global focus in recent years, and an aging and under-invested electrical grid infrastructure remains highly vulnerable to potentially more severe and volatile weather.”

Annual report 2025A · The company itself

“Homes, businesses, and communities are experiencing a deterioration in the reliable supply of electricity due to a number of factors including: climate change impacts driving more severe and volatile weather leading to increased power outages; a capacity constrained legacy power infrastructure that’s still predominantly a one-way system; power infrastructure being impaired by under-investment making it more susceptible to power outages; regulatory and legislative actions focused on carbon intensity, coupled with the continued adoption of more intermittent renewable power sources; and a dramatic increase in power demand that could outpace supply growth due to accelerating power requirements of data centers and artificial intelligence, electrification trends, and the re-industrialization of North America.”

Annual report 2025A · The company itself

“Sales of our residential products are subject to consumer buying patterns, and demand for the majority of our products is affected by power outage events caused by thunderstorms, hurricanes, wildfires, ice storms, blackouts, public safety power shutoffs, and other power grid reliability issues, all of which affect our ability to accurately manage our business and forecast future results. The impact of these outage events on our sales can vary depending on the location, frequency and severity of the outages.”

Annual report 2025A · The company itself

“Sustained periods without major power disruptions can lead, and in the past have led, to reduced consumer awareness of the benefits of standby and portable generator products and can result and have previously resulted in reduced sales growth rates and excess inventory.”

Annual report 2025A · The company itself

“This process requires us to make multiple forecasts and assumptions relating to the demand of our distributors, their end customers, general market conditions, and other macroeconomic conditions. The frequency and duration of power outages also affects demand for our products as described above.”

Annual report 2025A · The company itself

“While we seek to operate our facilities in compliance with applicable rules and regulations and take measures to minimize the risks of disruption at our facilities, a material disruption at one of our manufacturing facilities could prevent us from meeting customer demand, reduce our sales and/or negatively impact our financial results. Any of our manufacturing facilities, or any of our equipment within an otherwise operational facility, could cease operations unexpectedly due to a number of events, including: ● equipment or information technology infrastructure failure; ● disruptions in the transportation infrastructure including roads, bridges, railroad tracks and container ports; ● fires, floods, tornadoes, earthquakes, disease, pandemics, acts of violence, or other catastrophes; and ● other operational problems.”

Annual report 2025A · The company itself

“More recently, we have evolved this global supply chain in order to partially mitigate the impact of certain trade tariffs that have been assessed on imports coming into the United States. This will continue to be a focus in the future as we take actions to offset the impact of these tariffs, and we will continue to monitor ongoing developments with any new trade tariffs that may be implemented.”

Annual report 2025A · The company itself

“The prices of those raw materials and components are susceptible to significant fluctuations due to trends in supply and demand, commodity prices, currency rate changes, transportation costs, government regulations and tariffs, price controls, economic conditions and other unforeseen circumstances beyond our control.”

Annual report 2025A · The company itself

“In particular, during 2025, the U.S. imposed new or increased tariffs and other countries, resulting in the imposition of retaliatory tariffs on the U.S., which increased costs in our supply chain.”

Annual report 2025A · The company itself

“In addition, certain of our products or key components or raw materials have and may continue to be subject to the imposition of higher duties as a result of anti-dumping and countervailing duties applied against them.”

Annual report 2025A · The company itself

“o Increasing deployment of intermittent renewable generation sources coupled with accelerating electricity demand trends driving supply/demand imbalances for utilities and grid operators. ● Higher power prices driving the need for energy management solutions: o Electrification trends causing power demand to exceed supply, driving up power prices. o Investment required to upgrade grid infrastructure and transition to renewable power sources, pushing prices higher. o Higher power prices result in shorter paybacks for solar & storage systems. ● Artificial intelligence adoption accelerating, creating a large market opportunity for backup power: o Significant power requirements for the buildout of data centers to enable AI adoption could drive further grid instability and higher power prices. o Massive capital investment into hyperscale and edge data centers has created a very large market for back-up power that is supply-constrained, providing a significant growth opportunity for our newly introduced large-megawatt C&I products.”

Annual report 2025A · The company itself

“Homes, businesses, and communities are experiencing a deterioration in the reliable supply of electricity due to a number of factors including: climate change impacts driving more severe and volatile weather leading to increased power outages; a capacity constrained legacy power infrastructure that’s still predominantly a one-way system; power infrastructure being impaired by under-investment making it more susceptible to power outages; regulatory and legislative actions focused on carbon intensity, coupled with the continued adoption of more intermittent renewable power sources; and a dramatic increase in power demand that could outpace supply growth due to accelerating power requirements of data centers and artificial intelligence, electrification trends, and the re-industrialization of North America.”

Annual report 2025A · The company itself

“Generac has developed a full ecosystem of energy management products and solutions to address the challenges of higher power prices by generating power on-site, improving energy efficiency, and optimizing energy consumption for end users.”

Annual report 2025A · The company itself

“Suppliers of Raw Materials, Components and Equipment Our primary raw material inputs are steel, copper and aluminum, all of which are purchased from third parties and, in many cases, are part of machined or manufactured components.”

Annual report 2025A · The company itself

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

Annual report 2025A · The company itself

“Also, as we increase our connectivity with our products and customers, we may be required to comply with additional data privacy and cybersecurity regulations. For example, personal privacy and data security have become significant issues in the United States, Europe, and in many other jurisdictions in which we operate.”

Annual report 2025A · The company itself

“Risk factors related to cybersecurity Failures or security breaches of our networks or information technology systems could have an adverse effect on our business. We rely heavily on technology both in our products and services for customers and in our IT systems used to run our business.”

Annual report 2025A · The company itself

“A wide variety of factors could cause such delays including, but not limited to, lack of capacity, economic downturns, availability of credit, logistical challenges, labor or material shortages, trade restrictions, weather events, political instability, geopolitical conflicts (such as conflicts in the Ukraine or the Middle East), terrorism, civil unrest, disease or natural disasters.”

Annual report 2025A · The company itself

“Such risks include: ● inflation or changes in political and economic conditions; ● logistical challenges, including extended container port congestion, and higher logistics costs; ● unstable regulatory environments; ● changes in import and export duties; ● domestic and foreign customs and tariffs; ● currency rate fluctuations; ● trade restrictions; ● labor or civil unrest; ● geopolitical conflict such as that experienced in Ukraine or the Middle East; ● disputes in our relationships with certain contract manufacturers or suppliers; ● communications challenges; and ● other restraints and burdensome taxes.”

Annual report 2025A · The company itself

“Suppliers of Raw Materials, Components and Equipment Our primary raw material inputs are steel, copper and aluminum, all of which are purchased from third parties and, in many cases, are part of machined or manufactured components.”

Annual report 2025A · The company itself

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

Annual report 2025A · The company itself

“Suppliers of Raw Materials, Components and Equipment Our primary raw material inputs are steel, copper and aluminum, all of which are purchased from third parties and, in many cases, are part of machined or manufactured components.”

Annual report 2025A · The company itself

“At the same time, power demand is expected to meaningfully accelerate due to (i) the rapid adoption of artificial intelligence and related data center energy requirements, (ii) the re-industrialization of North America, and (iii) the electrification of a wide range of consumer and commercial products, including transportation, HVAC systems, and other major appliances.”

Annual report 2025A · The company itself

“Our business is affected by general economic conditions, and uncertainty or adverse changes, such as the prolonged downturn in U.S. residential investment and the impact of more stringent credit standards and rising interest rates or inflation. These have previously led and could lead again to a decline in demand for our products and increase pressure to reduce our prices.”

Annual report 2025A · The company itself

“As of December 31, 2025, we had total indebtedness of $1,333.1 million.”

Annual report 2025A · The company itself

“While we maintain interest rate swaps covering a portion of our outstanding debt, our interest expense could increase if interest rates increase because debt under our credit facilities bears interest at a variable rate based on Secured Overnight Financing Rate (SOFR) or other base rate.”

Annual report 2025A · The company itself

“We depend on the services of independent distributors and dealers to sell and install our products and provide service and aftermarket support to our end customers. Their capacity constraints and/or inability to install and service our products, including their inability to hire, develop, or retain qualified technicians or other labor, could limit our ability to maintain and grow our sales.”

Annual report 2025A · The company itself

“We have seen such trends significantly impact our business in the past resulting in higher costs and shortages in materials, components and labor, and such impacts may continue or arise again in the foreseeable future.”

Annual report 2025A · The company itself

“In addition, union activity could result in higher labor costs, which could harm our financial condition, results of operations and competitive position.”

Annual report 2025A · The company itself

“On July 4, 2025, the United States signed into law the One Big Beautiful Bill Act (OBBBA). The OBBBA accelerates the phase-out of tax incentives for the solar market and includes certain domestic supply chain requirements to qualify for these incentives.”

Annual report 2025A · The company itself

“Government Incentives and Regulation, including Environmental Matters Generac’s presence in energy technology solutions has increased our exposure to renewable energy mandates and investment tax credits from certain government incentives. These incentives cover a wide range of clean energy products and solutions, including solar inverters, battery storage systems, grid services, and grid-edge devices.”

Annual report 2025A · The company itself

“In July 2025, the United States passed the One Big Beautiful Bill Act that accelerates the phase-out of tax incentives for the solar market and includes certain domestic supply chain requirements to qualify for these incentives. While this phase-out of tax incentives will negatively impact the solar and storage markets in the near term, we believe the overall mega-trends that drive the solar, storage, and energy management markets will continue, supporting customer interest and demand for these products over the long-term as grid capacity is strained and energy costs rise.”

Annual report 2025A · The company itself

“The prices of those raw materials and components are susceptible to significant fluctuations due to trends in supply and demand, commodity prices, currency rate changes, transportation costs, government regulations and tariffs, price controls, economic conditions and other unforeseen circumstances beyond our control. We have seen such trends significantly impact our business in the past resulting in higher costs and shortages in materials, components and labor, and such impacts may continue or arise again in the foreseeable future.”

Annual report 2025A · The company itself

“Our business is affected by general economic conditions, and uncertainty or adverse changes, such as the prolonged downturn in U.S. residential investment and the impact of more stringent credit standards and rising interest rates or inflation. These have previously led and could lead again to a decline in demand for our products and increase pressure to reduce our prices.”

Annual report 2025A · The company itself

“Our business is affected by general economic conditions, and uncertainty or adverse changes, such as the prolonged downturn in U.S. residential investment and the impact of more stringent credit standards and rising interest rates or inflation. These have previously led and could lead again to a decline in demand for our products and increase pressure to reduce our prices.”

Annual report 2025A · The company itself

“We depend upon a small number of outside manufacturers and component suppliers, as well as other single-source suppliers, for certain products and components, and our business and operations could be disrupted if we encounter problems with these parties. 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.”

Annual report 2025A · The company itself

“Such risks include: ● inflation or changes in political and economic conditions; ● logistical challenges, including extended container port congestion, and higher logistics costs; ● unstable regulatory environments; ● changes in import and export duties; ● domestic and foreign customs and tariffs; ● currency rate fluctuations; ● trade restrictions; ● labor or civil unrest; ● geopolitical conflict such as that experienced in Ukraine or the Middle East; ● disputes in our relationships with certain contract manufacturers or suppliers; ● communications challenges; and ● other restraints and burdensome taxes.”

Annual report 2025A · The company itself

“The prices of those raw materials and components are susceptible to significant fluctuations due to trends in supply and demand, commodity prices, currency rate changes, transportation costs, government regulations and tariffs, price controls, economic conditions and other unforeseen circumstances beyond our control.”

Annual report 2025A · The company itself

“Given our broad offering of energy technology solutions, advanced electronic components and micro-processors are now a larger supply chain consideration.”

Annual report 2025A · The company itself

“Additionally, if the U.S. dollar were to depreciate significantly against the currencies in which we purchase raw materials from foreign suppliers, our cost of goods sold could increase materially, which would adversely affect our results of operations.”

Annual report 2025A · The company itself

“o Increasing deployment of intermittent renewable generation sources coupled with accelerating electricity demand trends driving supply/demand imbalances for utilities and grid operators. ● Higher power prices driving the need for energy management solutions: o Electrification trends causing power demand to exceed supply, driving up power prices. o Investment required to upgrade grid infrastructure and transition to renewable power sources, pushing prices higher. o Higher power prices result in shorter paybacks for solar & storage systems. ● Artificial intelligence adoption accelerating, creating a large market opportunity for backup power: o Significant power requirements for the buildout of data centers to enable AI adoption could drive further grid instability and higher power prices. o Massive capital investment into hyperscale and edge data centers has created a very large market for back-up power that is supply-constrained, providing a significant growth opportunity for our newly introduced large-megawatt C&I products.”

Annual report 2025A · The company itself

“It was during this time in the 2010’s that we formed and built out our International segment, which expanded our operations and capabilities globally to gain access to power generation markets outside the United States.”

Annual report 2025A · The company itself

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

Annual report 2025A · The company itself

“The international segment includes all historical acquisitions not based in the U.S and Canada, all of which have revenues substantially derived from outside the U.S and Canada.”

Annual report 2025A · The company itself

“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.”

Annual report 2025A · The company itself

“For over two decades, we have established the industry's largest network of factory direct independent generator dealers in North America.”

Annual report 2025A · The company itself

“The domestic segment includes the legacy Generac business and all historical acquisitions based in the U.S. and Canada, all of which have revenues substantially derived from the U.S. and Canada.”

Annual report 2025A · The company itself

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

Annual report 2025A · The company itself

“The international segment includes all historical acquisitions not based in the U.S and Canada, all of which have revenues substantially derived from outside the U.S and Canada.”

Annual report 2025A · The company itself

“In addition, a significant portion of our manufacturing and production facilities are in Wisconsin within a 100-mile radius of each other.”

Annual report 2025A · The company itself

“The domestic segment includes the legacy Generac business and all historical acquisitions based in the U.S. and Canada, all of which have revenues substantially derived from the U.S. and Canada.”

Annual report 2025A · The company itself

“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.”

Annual report 2025A · The company itself

“For over two decades, we have established the industry's largest network of factory direct independent generator dealers in North America.”

Annual report 2025A · The company itself