Generac (GNRC) FY2025 10-K Annual Report

Filed: Feb 18, 2026
Information Technology
Motors & GeneratorsSEC EDGAR

Generac (GNRC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 18, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Generac FY2025 10-K Analysis

Business Overview

  • Core business: Power generation equipment and energy technology solutions
  • No new products, services, or segments introduced or emphasized this year
  • No strategic shifts or changes in competitive positioning disclosed
  • Extensive referencing of credit agreements and amendments covering 2012-2025, indicating active debt management focus
  • Filing heavily incorporates prior documents by reference; lacks standalone Business section details for FY 2026

Management Discussion & Analysis

  • Revenue $4.21B in 2025, down 2% YoY from $4.30B in 2024, driven by Domestic sales decline ($3.47B vs $3.60B) partially offset by International growth ($738M vs $697M)
  • Adjusted EBITDA $716M in 2025, down 9% YoY from $789M, Domestic segment EBITDA $598M vs $693M, International $118M vs $96M
  • Operating expenses $1.32B in 2025, up from $1.13B in 2024; margins contracted reflected in lower EBITDA despite revenue decline
  • Best performing segment International with EBITDA growth to $118M (+23% YoY), worst Domestic with EBITDA decline to $598M (-14% YoY)
  • Capital expenditures $170M in 2025, increased from $137M in 2024; stock repurchases $148M in 2025; dividends not specified
  • Management notes significant legal provisions totaling $105M in Q4 2025 related to product liability and contract disputes
  • Net secured leverage ratio improved to 1.32x, total leverage ratio 1.39x, interest coverage robust at 11.76x, all debt covenants met
  • New stock repurchase program authorized for $500M over 24 months starting February 2026
  • Forward outlook implies continued focus on deleveraging, managing legal risks, and capital allocation toward buybacks and capex

Risk Factors

  • Supply chain risk from reliance on single-source suppliers for clean energy products and large engines; delays cause impaired product delivery and lost sales
  • Geopolitical exposure to Ukraine and Middle East conflicts disrupting suppliers and logistics, threatening component availability and manufacturing schedules
  • Raw material cost inflation in steel, copper, aluminum, batteries; no long-term contracts lead to margin pressure and potential availability shortages
  • Intellectual property litigation risk with past adverse rulings; costly disputes risk damages, injunctions, and reputational harm
  • Sales volatility tied to unpredictable power outages from hurricanes, wildfires, and PSPS events driving uneven demand and inventory fluctuations

Generac FY2025 Key Financial Metrics
XBRL

Revenue

$4.2B

-2.0% YoY

Net Income

$160M

-49.6% YoY

Gross Margin

38.3%

-48bp YoY

Operating Margin

6.9%

-562bp YoY

Net Margin

3.8%

-357bp YoY

ROE

6.1%

-662bp YoY

Total Assets

$5.6B

+9.1% YoY

EPS (Diluted)

$2.69

-50.1% YoY

Operating Cash Flow

$438M

-40.9% YoY

Source: XBRL data from Generac FY2025 10-K filing on SEC EDGAR. All figures in USD.

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