Generac (GNRC) FY2025 10-K Annual Report
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 MetricsXBRL
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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