Operating margins have shown significant sensitivity to product mix, fluctuating from a negative 0.9% in 2025Q4 to 11.1% in 2026Q1 as management struggles to align its $319.0 million peak SG&A expense structure with shifting demand.
| 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 |
|---|
| Sales/Revenue | 4.33B | 4.21B | 4.3B | 4.02B | 4.56B | 3.74B | 2.49B | 2.2B | 2.02B | 1.67B | 1.44B | 1.32B | 1.46B | 1.49B | 1.18B | 791.98M | 592.88M | 588.25M | 574.23M | 555.71M |
| Revenue Growth % | -0.51% | -2.02% | 6.79% | -11.88% | 22.14% | 50.38% | 12.74% | 8.94% | 20.99% | 15.78% | 9.65% | -9.83% | -1.67% | 26.31% | 48.53% | 33.58% | 0.79% | 2.44% | 3.33% | - |
| Cost of Goods Sold | 2.68B | 2.6B | 2.63B | 2.66B | 3.04B | 2.38B | 1.53B | 1.41B | 1.3B | 1.09B | 930.35M | 857.35M | 944.7M | 916.21M | 735.91M | 497.32M | 355.52M | 352.4M | 372.2M | 333.43M |
| COGS % of Revenue | - | 61.71% | 61.23% | 66.06% | 66.66% | 63.61% | 61.47% | 63.81% | 64.17% | 65.19% | 64.41% | 65.08% | 64.66% | 61.67% | 62.56% | 62.8% | 59.97% | 59.91% | 64.82% | 60% |
| Gross Profit | 1.65B | 1.61B | 1.67B | 1.37B | 1.52B | 1.36B | 957.65M | 797.75M | 725.04M | 582.12M | 514.11M | 459.95M | 516.22M | 569.56M | 440.4M | 294.65M | 237.36M | 235.85M | 202.03M | 222.28M |
| Gross Margin % | 38.14% | 38.29% | 38.77% | 33.94% | 33.34% | 36.39% | 38.53% | 36.19% | 35.83% | 34.81% | 35.59% | 34.92% | 35.34% | 38.33% | 37.44% | 37.2% | 40.03% | 40.09% | 35.18% | 40% |
| Gross Profit Growth % | - | -3.24% | 21.99% | -10.29% | 11.91% | 42.02% | 20.04% | 10.03% | 24.55% | 13.23% | 11.77% | -10.9% | -9.37% | 29.33% | 49.46% | 24.14% | 0.64% | 16.74% | -9.11% | - |
| Operating Expenses | 1.33B | 1.32B | 1.13B | 979.23M | 955.67M | 638.95M | 478.55M | 425.59M | 367.86M | 334.15M | 309.67M | 280.39M | 222.84M | 218.09M | 216.84M | 181.67M | 147.06M | 235.85M | 202.03M | 222.28M |
| OpEx % of Revenue | - | 31.42% | 26.28% | 24.34% | 20.94% | 17.1% | 19.26% | 19.31% | 18.18% | 19.98% | 21.44% | 21.29% | 15.25% | 14.68% | 18.43% | 22.94% | 24.8% | 40.09% | 35.18% | 40% |
| Selling, General & Admin | 976.67M | 977.57M | 811.54M | 701.6M | 692.58M | 463.29M | 364.61M | 326.7M | 295.73M | 262.42M | 239.55M | 183.19M | 175.2M | 163M | 147.48M | 107.79M | 80.55M | 74.54M | 73.32M | 70.23M |
| SG&A % of Revenue | - | 23.22% | 18.89% | 17.44% | 15.17% | 12.4% | 14.67% | 14.82% | 14.61% | 15.69% | 16.58% | 13.91% | 11.99% | 10.97% | 12.54% | 13.61% | 13.59% | 12.67% | 12.77% | 12.64% |
| Research & Development | 244.08M | 243.47M | 219.6M | 173.44M | 159.77M | 104.3M | 80.25M | 68.39M | 50.02M | 42.92M | 37.23M | 32.92M | 31.49M | 29.27M | 23.5M | 16.48M | 14.7M | 10.84M | 9.93M | 9.61M |
| R&D % of Revenue | - | 5.78% | 5.11% | 4.31% | 3.5% | 2.79% | 3.23% | 3.1% | 2.47% | 2.57% | 2.58% | 2.5% | 2.16% | 1.97% | 2% | 2.08% | 2.48% | 1.84% | 1.73% | 1.73% |
| Other Operating Expenses | 4M | 101.51M | 97.74M | 104.19M | 103.32M | 71.35M | 33.69M | 30.5M | 22.11M | 28.86M | 32.95M | 64.28M | 16.15M | 25.82M | 45.87M | 57.41M | 51.81M | 150.47M | 118.79M | 142.44M |
| Operating Income | 322.84M | 289.19M | 536.74M | 386.2M | 566.33M | 721.14M | 479.11M | 372.16M | 357.18M | 251.06M | 204.62M | 179.56M | 293.38M | 351.46M | 223.56M | 112.98M | 90.3M | 98.51M | 71.19M | 94.84M |
| Operating Margin % | 7.46% | 6.87% | 12.49% | 9.6% | 12.41% | 19.3% | 19.28% | 16.88% | 17.65% | 15.01% | 14.17% | 13.63% | 20.08% | 23.66% | 19% | 14.27% | 15.23% | 16.75% | 12.4% | 17.07% |
| Operating Income Growth % | - | -46.12% | 38.98% | -31.81% | -21.47% | 50.52% | 28.74% | 4.19% | 42.27% | 22.7% | 13.95% | -38.79% | -16.53% | 57.22% | 97.87% | 25.12% | -8.34% | 38.39% | -24.94% | - |
| EBITDA | 471.54M | 484.03M | 708.51M | 552.8M | 722.47M | 813.18M | 547.88M | 433.07M | 404.59M | 303.05M | 259.04M | 219.89M | 328.11M | 388.24M | 277.71M | 169.1M | 149.74M | 158.19M | 125.95M | 148.62M |
| EBITDA Margin % | 10.9% | 11.5% | 16.49% | 13.74% | 15.83% | 21.76% | 22.05% | 19.65% | 19.99% | 18.12% | 17.93% | 16.69% | 22.46% | 26.13% | 23.61% | 21.35% | 25.26% | 26.89% | 21.93% | 26.74% |
| EBITDA Growth % | -35.36% | -31.68% | 28.17% | -23.48% | -11.15% | 48.42% | 26.51% | 7.04% | 33.5% | 16.99% | 17.8% | -32.98% | -15.49% | 39.8% | 64.23% | 12.93% | -5.34% | 25.59% | -15.25% | - |
| D&A (Non-Cash Add-back) | 148.69M | 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 |
| EBIT | 312.87M | 289.19M | 499.15M | 387.93M | 563.29M | 724.48M | 479.18M | 361.15M | 352.03M | 246.37M | 198.26M | 165.83M | 305.58M | 333.15M | 205.47M | 110.68M | 84.62M | 114.26M | -447.53M | 115.08M |
| Net Interest Income | -65.16M | -63.02M | -89.71M | -97.63M | -54.83M | -32.95M | -32.99M | -41.54M | -40.96M | -42.67M | -44.52M | -42.72M | -31.2M | -54.44M | -49.11M | -23.72M | -27.4M | -68.66M | -107.42M | -125.37M |
| Interest Income | 3.8M | 7.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16.01M | 0 | 0 | 0 | 0 | 2.21M | 600K | 0 |
| Interest Expense | 68.96M | 70.7M | 89.71M | 97.63M | 54.83M | 32.95M | 32.99M | 41.54M | 40.96M | 42.67M | 44.52M | 42.72M | 47.22M | 54.44M | 49.11M | 23.72M | 27.4M | 70.86M | 108.02M | 125.37M |
| Other Income/Expense | -85.54M | -90.13M | -127.3M | -95.9M | -57.86M | -29.61M | -32.91M | -52.56M | -46.1M | -46.94M | -48.23M | -56.58M | -35.01M | -72.75M | -67.2M | -26.02M | -33.08M | -55.12M | -626.74M | -105.12M |
| Pretax Income | 237.31M | 199.06M | 409.44M | 290.3M | 508.47M | 691.53M | 446.19M | 319.61M | 311.08M | 204.69M | 156.38M | 122.98M | 258.36M | 278.72M | 156.35M | 86.97M | 57.22M | 43.39M | -555.55M | -10.29M |
| Pretax Margin % | 5.49% | 4.73% | 9.53% | 7.22% | 11.14% | 18.5% | 17.95% | 14.5% | 15.37% | 12.24% | 10.83% | 9.34% | 17.68% | 18.76% | 13.29% | 10.98% | 9.65% | 7.38% | -96.75% | -1.85% |
| Income Tax | 47.12M | 37.71M | 92.46M | 73.18M | 99.6M | 134.96M | 98.97M | 67.3M | 69.86M | 43.55M | 57.57M | 45.24M | 83.75M | 104.18M | 63.13M | -237.68M | 307K | 339K | 400K | -571K |
| Effective Tax Rate % | 19.86% | 18.94% | 22.58% | 25.21% | 19.59% | 19.52% | 22.18% | 21.06% | 22.46% | 21.28% | 36.81% | 36.78% | 32.42% | 37.38% | 40.38% | -273.3% | 0.54% | 0.78% | -0.07% | 5.55% |
| Net Income | 188.97M | 159.55M | 325.26M | 203.09M | 350.27M | 533.39M | 349.33M | 253.26M | 238.26M | 159.39M | 98.79M | 77.75M | 174.61M | 174.54M | 93.22M | 324.64M | 56.91M | 43.05M | -555.96M | -9.71M |
| Net Margin % | 4.37% | 3.79% | 7.57% | 5.05% | 7.67% | 14.27% | 14.06% | 11.49% | 11.77% | 9.53% | 6.84% | 5.9% | 11.95% | 11.75% | 7.93% | 40.99% | 9.6% | 7.32% | -96.82% | -1.75% |
| Net Income Growth % | -45.31% | -50.95% | 60.15% | -42.02% | -34.33% | 52.69% | 37.93% | 6.3% | 49.48% | 61.34% | 27.06% | -55.47% | 0.04% | 87.23% | -71.28% | 470.42% | 32.19% | 107.74% | -5623.23% | - |
| Net Income (Continuing) | 190.19M | 161.35M | 316.98M | 217.12M | 408.87M | 556.57M | 347.22M | 252.31M | 241.22M | 159.56M | 97.18M | 77.75M | 174.61M | 174.54M | 93.22M | 324.64M | 56.91M | 43.05M | -555.96M | -9.71M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 608K | 6.62M | 3.17M | 9.37M | 112.34M | 58.36M | 66.12M | 61.7M | 61.72M | 44.21M | 33.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.19 | 2.69 | 5.39 | 3.27 | 5.42 | 8.30 | 5.48 | 4.03 | 3.83 | 2.56 | 1.50 | 1.12 | 2.49 | 2.51 | 1.35 | 4.79 | -1.65 | 0.85 | -8.48 | -0.15 |
| EPS Growth % | -44.43% | -50.09% | 64.83% | -39.67% | -34.7% | 51.46% | 35.98% | 5.22% | 49.61% | 70.67% | 33.93% | -55.02% | -0.8% | 85.93% | -71.82% | 390.3% | -294.12% | 110.02% | -5553.33% | - |
| EPS (Basic) | - | 2.73 | 5.46 | 3.31 | 5.55 | 8.51 | 5.61 | 4.09 | 3.86 | 2.58 | 1.51 | 1.14 | 2.55 | 2.56 | 1.38 | 4.84 | -1.65 | -3.58 | -27.93 | -0.49 |
| Diluted Shares Outstanding | 59.23M | 59.28M | 60.35M | 62.06M | 64.68M | 64.25M | 63.74M | 62.87M | 62.23M | 62.64M | 65.38M | 69.2M | 70.17M | 69.67M | 69.19M | 67.8M | 59.36M | 50.66M | 65.58M | 65.58M |
| Basic Shares Outstanding | 58.41M | 58.52M | 59.56M | 61.27M | 63.12M | 62.69M | 62.28M | 61.93M | 61.66M | 62.04M | 64.91M | 68.1M | 68.54M | 68.08M | 67.36M | 67.13M | 59.36M | 19.91M | 19.91M | 19.91M |
| Dividend Payout Ratio | - | 0.18% | 0.08% | - | 0.09% | - | - | 0.11% | 0.13% | - | 0.08% | 1.85% | 0.52% | 196.76% | 433.73% | - | - | - | - | - |
Cyclical demand and inventory
As indicated by the provided quarterly data, Generac's revenue growth has exhibited significant volatility, oscillating between a 12.4% expansion in 2026Q1 and an 11.6% contraction in 2025Q4, reflecting the company's heavy reliance on seasonal weather events and the inherent lumpiness of its residential standby unit sales.
The inconsistent top-line performance suggests that the company struggles to maintain a steady organic growth trajectory outside of major weather-driven demand spikes. Investors should monitor whether the strategic pivot toward Commercial & Industrial segments can successfully dampen this cyclicality and provide a more predictable revenue base.
Based on reported financial statements, Generac's operating margins have faced notable pressure, dropping to a negative 0.9% in 2025Q4 before recovering to 11.1% in 2026Q1, highlighting the sensitivity of the company's profitability to product mix shifts and the high fixed costs associated with its manufacturing footprint.
The fluctuation in operating margins suggests that the company lacks the structural cost flexibility to maintain profitability during periods of lower volume. The inability to consistently sustain operating margins in the mid-teens, unlike peers such as Hubbell or Caterpillar, warrants further investigation into the efficiency of recent clean energy investments.
According to the income statement data, SG&A expenses reached a peak of $319.0M in 2025Q4, a period where revenue growth was negative, which suggests that management has struggled to align its overhead structure with the realities of a softening residential demand environment during that specific quarter.
The disproportionate rise in SG&A relative to gross profit in recent periods indicates a potential lack of expense discipline or the presence of integration costs from the clean energy segment. This trend appears to be a primary driver of the company's inconsistent bottom-line performance and requires closer scrutiny.
As reported in the financial filings, the sharp 69.9% EPS growth in 2026Q1 against a backdrop of moderate revenue expansion suggests that earnings quality may be heavily influenced by non-operating items or tax anomalies rather than pure operational efficiency, which investors should view with a degree of caution.
The wide variance in EPS growth rates, ranging from a 119.5% decline to a 95% increase, implies that the bottom line is highly sensitive to factors beyond core operational performance. This volatility may indicate that the company's reported net income is not a reliable proxy for underlying cash-generating capability.
Quick answers to the most common questions about buying GNRC stock.
For fiscal year 2025, Generac Holdings Inc. (GNRC) reported total revenue of $4.21B. This represents a 657.4% increase compared to $555.7M in 2007.
Generac Holdings Inc. (GNRC) is profitable, generating $159.6M in net income for the fiscal year ending 2025 with a net profit margin of 3.8%.
Generac Holdings Inc. (GNRC) reported an operating income of $289.2M, resulting in an operating profit margin of 6.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Generac Holdings Inc. (GNRC) generated $1.61B in gross profit for the year, representing a gross profit margin of 38.3%. This demonstrates the company's core pricing power and production efficiency.