Cash conversion efficiency remains inconsistent, evidenced by an operating cash flow to net income ratio that swung from a peak of 4.75 in 2024Q1 to a negative 7.74 in 2025Q4, highlighting the lumpy nature of working capital management.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Cash from Operations | 499.11M | 437.98M | 741.3M | 521.67M | 58.52M | 411.16M | 486.53M | 308.89M | 247.23M | 261.12M | 253.41M | 188.62M | 252.99M | 259.94M | 235.59M | 169.71M | 114.48M | 74.61M | 10.22M | 38.51M |
| Operating CF Margin % | - | 10.41% | 17.26% | 12.97% | 1.28% | 11% | 19.58% | 14.01% | 12.22% | 15.61% | 17.54% | 14.32% | 17.32% | 17.5% | 20.03% | 21.43% | 19.31% | 12.68% | 1.78% | 6.93% |
| Operating CF Growth % | 9.59% | -40.92% | 42.1% | 791.5% | -85.77% | -15.49% | 57.51% | 24.94% | -5.32% | 3.04% | 34.35% | -25.44% | -2.68% | 10.34% | 38.82% | 48.24% | 53.45% | 629.65% | -73.45% | - |
| Net Income | 188.97M | 161.35M | 316.98M | 217.12M | 408.87M | 556.57M | 347.22M | 252.31M | 241.22M | 161.13M | 98.81M | 77.75M | 174.61M | 174.54M | 93.22M | 324.64M | 56.91M | 43.05M | -555.96M | -9.71M |
| Depreciation & Amortization | 204.67M | 194.84M | 171.77M | 166.6M | 156.14M | 92.04M | 68.77M | 60.91M | 47.41M | 51.99M | 54.42M | 40.33M | 34.73M | 36.77M | 54.16M | 56.12M | 59.44M | 59.67M | 54.77M | 53.78M |
| Stock-Based Compensation | 51.78M | 49.95M | 51.24M | 37.34M | 31.37M | 23.95M | 20.88M | 16.69M | 14.56M | 10.21M | 9.49M | 8.24M | 12.61M | 12.37M | 10.78M | 8.65M | 6.36M | 38K | 40K | 357K |
| Deferred Taxes | -14.45M | 15.08M | -60.62M | -34.48M | -95.47M | -2.1M | 21.2M | 18.73M | 23.6M | 21.44M | 39.35M | 26.95M | 37.88M | 82.67M | 62.43M | -238.17M | 0 | 9.44M | 0 | 0 |
| Other Non-Cash Items | 61.62M | 29.89M | 50.03M | 7.68M | 22.84M | -767K | 9.74M | 17.64M | 8.55M | 3.93M | 7.6M | 53.83M | -10.94M | 23.9M | 20.61M | 11.76M | 7.18M | 3.72M | 522.57M | -13.54M |
| Working Capital Changes | 6.26M | -13.12M | 211.9M | 127.41M | -465.24M | -258.55M | 18.72M | -57.4M | -88.12M | 12.42M | 43.74M | -18.49M | 4.1M | -70.31M | -5.61M | 6.71M | -15.41M | -41.32M | -11.2M | 7.63M |
| Change in Receivables | -17.82M | 45.64M | -82.82M | -18.27M | 6.55M | -131.86M | -55.98M | 8.23M | -43.24M | -29.77M | -9.08M | 9.61M | -2.99M | -5.26M | -137K | -22.23M | -8.62M | 11.78M | -20.77M | 4.81M |
| Change in Inventory | -91.98M | -163.12M | 122.95M | 262.67M | -319.27M | -470.99M | -77.98M | 26.37M | -152.59M | -16.28M | 15.51M | 9.08M | 3.51M | -52.49M | -31.66M | -11.22M | -3.15M | 280K | -26.37M | 21.37M |
| Change in Payables | 32.39M | -40.7M | 123.57M | -120.9M | -223.03M | 297.32M | 66.04M | -69.4M | 86.36M | 42.79M | 32.91M | -27.77M | 15.27M | -5.85M | -3.9M | 18.52M | 7.9M | -20.89M | 34.45M | -3.37M |
| Cash from Investing | -292.14M | -172.9M | -208.71M | -178.06M | -134.23M | -817.29M | -124.09M | -170.08M | -108.89M | -31.92M | -105.82M | -104.33M | -95.49M | -144.55M | -69.34M | -95.95M | -11.2M | -4.35M | -5.04M | -12.73M |
| Capital Expenditures | -79.66M | 0 | -136.73M | -129.06M | -86.19M | -109.99M | -62.13M | -60.8M | -47.6M | -33.26M | -30.47M | -30.65M | -34.69M | -30.77M | -22.39M | -12.06M | -9.63M | -4.53M | -5.19M | -13.19M |
| CapEx % of Revenue | 1.84% | 4.04% | 3.18% | 3.21% | 1.89% | 2.94% | 2.5% | 2.76% | 2.35% | 1.99% | 2.11% | 2.33% | 2.37% | 2.07% | 1.9% | 1.52% | 1.62% | 0.77% | 0.9% | 2.37% |
| Acquisitions | -119.53M | -762K | -34.74M | -15.97M | -39.99M | -713.47M | -64.8M | -112M | -65.44M | 1.26M | -76.72M | -73.78M | -61.2M | -113.86M | -47.04M | -83.91M | -1.65M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -92.57M | -169.11M | 211K | 2.9M | 2.08M | -3.4M | 179K | 95K | 214K | 82K | 1.36M | 105K | 394K | 80K | 91K | 14K | 76K | 174K | 148K | 459K |
| Cash from Financing | -135.36M | -212.72M | -448.83M | -277.14M | 64.04M | -102.97M | -30.43M | -41.92M | -52.03M | -160.14M | -195.71M | -154.48M | -116.02M | -73.4M | -151.35M | -59.22M | -186M | 9.82M | 4.73M | -8.94M |
| Debt Issued (Net) | -54.11M | -52.76M | -278.45M | 87.28M | 464.17M | 75.24M | -24.61M | -37.57M | -24.32M | -127.29M | -36.67M | -47.59M | -113.93M | 295.84M | 280.51M | -59.35M | -434.31M | -9.5M | -10.4M | -9.5M |
| Equity Issued (Net) | -38.95M | -143.06M | -125.19M | -243.7M | -332.05M | -87.2M | 13.09M | 9.39M | -20.04M | -23.06M | -148.31M | -99.94M | 21K | 32K | 0 | 310K | 248.31M | 0 | -413K | -904K |
| Dividends Paid | -293K | -293K | -273K | 0 | -309K | 0 | 0 | -285K | -314K | 0 | -76K | -1.44M | -902K | -343.43M | -404.33M | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -50.46M | -147.92M | -152.74M | -251.51M | -345.84M | -125.99M | 0 | 0 | -25.66M | -30.01M | -149.94M | -99.94M | 0 | 0 | 0 | 0 | 0 | 0 | -413K | -904K |
| Other Financing | -42.01M | -16.61M | -44.92M | -120.72M | -67.76M | -91M | -18.91M | -13.46M | -7.36M | -9.79M | -10.64M | -5.51M | -1.21M | -25.84M | -27.53M | -171K | 0 | 19.32M | 15.54M | 1.47M |
| Net Change in Cash | 78.07M | 60.14M | 80.28M | 68.27M | -14.62M | -507.79M | 332.25M | 98.4M | 86.01M | 71.2M | -48.59M | -73.9M | 39.61M | 42.12M | 14.9M | 14.54M | -82.72M | 80.08M | 9.91M | 16.84M |
| Free Cash Flow | 419.45M | 268.13M | 604.57M | 392.61M | -27.67M | 301.16M | 424.4M | 248.09M | 199.63M | 227.85M | 222.94M | 157.97M | 218.3M | 229.17M | 213.2M | 157.65M | 104.85M | 70.08M | 5.04M | 25.32M |
| FCF Margin % | 9.7% | 6.37% | 14.07% | 9.76% | -0.61% | 8.06% | 17.08% | 11.25% | 9.87% | 13.62% | 15.43% | 11.99% | 14.94% | 15.42% | 18.12% | 19.91% | 17.68% | 11.91% | 0.88% | 4.56% |
| FCF Growth % | -33.43% | -55.65% | 53.99% | 1518.8% | -109.19% | -29.04% | 71.07% | 24.27% | -12.39% | 2.2% | 41.13% | -27.64% | -4.75% | 7.49% | 35.24% | 50.36% | 49.61% | 1290.79% | -80.1% | - |
| FCF per Share | 7.08 | 4.52 | 10.02 | 6.33 | -0.43 | 4.69 | 6.66 | 3.95 | 3.21 | 3.64 | 3.41 | 2.28 | 3.11 | 3.29 | 3.08 | 2.33 | 1.77 | 1.38 | 0.08 | 0.39 |
| FCF Conversion (FCF/Net Income) | 2.22x | 2.75x | 2.28x | 2.57x | 0.17x | 0.77x | 1.39x | 1.22x | 1.04x | 1.64x | 2.57x | 2.43x | 1.45x | 1.49x | 2.53x | 0.52x | 2.01x | 1.73x | -0.02x | -3.96x |
| Interest Paid | 0 | 0 | 89.42M | 84.03M | 48.91M | 27.84M | 28.77M | 35.47M | 41.01M | 41.1M | 42.46M | 39.52M | 42.59M | 55.83M | 33.08M | 24.26M | 36.8M | 75.6M | 109.43M | 101.63M |
| Taxes Paid | 0 | 0 | 148.83M | 100.08M | 150.89M | 156.73M | 61.86M | 61.77M | 41.04M | 23.84M | 8.89M | 6.09M | 34.28M | 25.82M | 2.81M | 437K | 322K | 383K | 295K | 4.78M |
Cyclical demand and inventory
As reported in financial statements, Generac's operating cash flow to net income ratio has fluctuated wildly, reaching a peak of 4.75 in 2024Q1 and a low of -7.74 in 2025Q4, suggesting that reported earnings are frequently decoupled from the actual cash generated by core operations.
The extreme variance in the OCF/NI ratio indicates that net income is a poor proxy for the company's underlying cash-generating ability. Investors should monitor whether this divergence stems from non-cash charges or aggressive revenue recognition practices that fail to translate into immediate liquidity.
Based on recent SEC filings, Generac's free cash flow margins have exhibited significant instability, ranging from a high of 25.0% in 2023Q4 to a low of 2.9% in 2025Q1, reflecting the company's sensitivity to seasonal demand and the lumpy nature of its capital expenditure requirements.
The lack of a consistent FCF trajectory suggests that the business model remains highly susceptible to external shocks and inventory cycles. This volatility complicates long-term valuation models and may indicate that the company struggles to maintain cash flow efficiency during periods of lower residential demand.
According to the provided cash flow data, working capital changes have been a primary driver of liquidity, with a massive $181.5M inflow in 2023Q4 contrasting with significant outflows in other periods, highlighting the company's reliance on inventory management to stabilize its quarterly cash position.
The frequent swings in working capital suggest that Generac is managing its inventory levels aggressively to offset operational volatility. This pattern warrants further investigation into whether these fluctuations represent genuine efficiency gains or merely the deferral of cash outflows to manage quarterly reporting optics.
As indicated by the financial data, Generac has prioritized share repurchases, notably spending $102.1M in 2024Q3 and $97.5M in 2025Q1, while simultaneously engaging in net acquisitions, which suggests a management strategy focused on returning capital to shareholders despite the inherent cyclicality of the core business.
The commitment to buybacks during periods of variable cash flow may indicate management's confidence in the long-term demand floor, yet it also limits the liquidity buffer available for potential downturns. Investors should evaluate if these repurchases are effectively creating value or if they are merely offsetting dilution from stock-based compensation.
Quick answers to the most common questions about buying GNRC stock.
Generac Holdings Inc. (GNRC) generated $438.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Generac Holdings Inc. (GNRC) generated $268.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Generac Holdings Inc. (GNRC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Generac Holdings Inc. (GNRC) returned $0.3M to shareholders via cash dividends and spent $147.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.