Company Overview

Generac Holdings Inc. (NYSE: GNRC) ("Generac" or the "Company") is a leading global designer and manufacturer of energy technology solutions and other power products. Since its founding in 1959, headquartered in Waukesha, WI, the company has evolved from a traditional generator manufacturer into a comprehensive energy solutions provider. Generac achieved 6.8% revenue growth and a 3% EBITDA margin increase in 2024.

Founded with a strong engineering and manufacturing foundation, Generac introduced the first affordable backup generator and pioneered the entire automatic home standby generator category. Today, Generac is a total energy solutions company. As a globally leading designer, manufacturer, and provider of a wide range of energy technologies, it offers power generation equipment, energy storage systems, energy management solutions, and other power products for residential, commercial, and industrial markets worldwide.

Business Segments and Operations

Generac operates through two primary business segments:

Domestic Segment

This segment includes the legacy Generac business and acquisitions based in the United States and Canada.

International Segment

This segment focuses on Generac's Latin American export operations.

The company's extensive product portfolio includes:

#### Residential Solutions

- Residential automatic standby generators, automatic transfer switches, air-cooled engine residential standby generators, and liquid-cooled engine generators.

- Mobile Link, a remote monitoring system for home standby generators.

- Residential battery storage systems.

- Smart home solutions, including smart thermostats and a suite of home monitoring products.

#### Commercial and Industrial Products

- Commercial and industrial products comprising cleaner-burning natural gas fueled generators.

- Light-commercial standby generators and related transfer switches.

- Stationary generators, single-engine industrial generators, and industrial standby generators.

- Industrial transfer switches, light towers, mobile generators, commercial mobile pumps, heaters, dust-suppression equipment, and mobile energy storage systems.

- Battery energy storage systems and related inverter products.

- Concerto energy-balancing software platform for controlling and dispatching distributed energy resources.

Financial Performance

2024 Full-Year Results

In 2024, Generac Holdings reported total revenue of $4.30 billion, an increase of 6.79% compared to the previous year's $4.02 billion. Net earnings saw a significant increase of 60.15%, reaching $325.26 million.

Key financial highlights for 2024:

- Net sales rose by 7% to $4.3 billion, primarily driven by an 18% growth in residential product sales, despite a decline in commercial and industrial product sales.

- Adjusted EBITDA (before noncontrolling interests) was $789 million, representing 18.4% of net sales, up from $638 million (15.9% of net sales) in the prior year.

Q4 2024 Performance

The fourth quarter of 2024 demonstrated strong financial momentum:

- Generac reported a 16% increase in fourth-quarter net sales, reaching $1.23 billion, with residential product sales surging by 28%.

- Gross profit margin improved to 40.6% compared to 36.5% in the prior-year fourth quarter, attributed to a favorable sales mix and lower input costs.

- The company's adjusted net income for the quarter reached a record $168 million, a notable increase from the previous year.

Capital Management

- During 2024, the Company repurchased approximately 1.05 million shares of its common stock for $153 million. Approximately $347 million remained under the current repurchase program as of December 31, 2024.

- The Company repaid approximately $278 million of debt on a net basis during the year.

Market Position and Growth Strategy

Generac Holdings possesses a long history of providing power generation products across various applications and maintains a leading position in the North American market for power equipment, with an expanding international presence. The company offers 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 for diverse applications.

The company is strategically positioned to capitalize on several key market trends:

- Given its competitive strengths in traditional power generation markets, Generac is well-positioned to execute on the growing opportunity for backup power for homes and businesses. Increased penetration is being driven by multiple mega-trends resulting in poorer power quality for end-users.

Product Innovation and Expansion

Generac is evolving its product portfolio by building ecosystems of energy technology products, solutions, and services for homes and businesses. This enables end-users to better manage their energy costs and needs. As part of this evolution, significant investments have been made in developing markets such as residential and commercial & industrial (C&I) energy storage, solar power inverters, energy monitoring & management devices, and electric vehicle (EV) charging.

Future Outlook

2025 Guidance

The Company is initiating its full-year 2025 guidance with net sales growth expected to be approximately 3% to 7% compared to the prior year. Generac anticipates continued net sales growth within this range, primarily fueled by residential product sales, despite a flat outlook for commercial and industrial product sales.

Market Capitalization and Stock Information

As of the most recent data, Generac Holdings Inc. has a market capitalization of $10.91 Billion. The company trades on the NYSE under the ticker symbol GNRC. Generac employs approximately 5,400 individuals and its shares are a component of the S&P 500.

Generac Holdings Inc. represents a well-positioned energy technology company with diversified revenue streams, strong market leadership in power generation equipment, and strategic investments in emerging energy solutions. The company's focus on energy resilience, combined with its expanding product portfolio and robust financial performance, positions it to capitalize on the growing demand for backup power and clean energy solutions across residential and commercial markets.