Revenue rebounded to $1.2B in Q2 2026 (up 10.6% YoY) with gross margin expanding 890 bps to 44.5%, driving operating income up 88% YoY to $210.4M.
Generac Holdings Inc. (GNRC) annual income statement — 19-year revenue, gross profit & net income history
| 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 | 4.44B | 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 % | 0.61% | -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 | 1.76B | 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 % | 39.54% | 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 | 972.52M | 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 | 249.5M | 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 | 421.49M | 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 % | 9.5% | 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 | 573.89M | 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 % | 12.93% | 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 % | -22.81% | -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) | 156.35M | 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 | 404.67M | 269.76M | 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 | -61.89M | -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 | 5.62M | 7.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16.01M | 0 | 0 | 0 | 0 | 2.21M | 600K | 0 |
| Interest Expense | 67.51M | 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 | -84.33M | -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 | 337.16M | 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 % | 7.6% | 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 | 78.39M | 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 % | 23.25% | 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 | 258.19M | 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 % | 5.82% | 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 % | -28.37% | -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) | 258.77M | 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 | 367K | 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) | 4.34 | 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 % | -27.91% | -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 | 59.44M | 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 | 58.62M | 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% | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Demand cyclicality and margin volatility
Metrics are mathematically derived from official filings.
Revenue Rebound After Cyclical Dip
Generac's revenue growth turned positive in 2026, with Q2 2026 up 10.6% year-over-year to $1.2B, recovering from a contraction in late 2025, as reported in the latest quarterly statements.
The revenue trajectory shows a clear V-shaped recovery: after a -11.6% decline in Q4 2025, growth accelerated to +12.4% in Q1 2026 and +10.6% in Q2 2026. This suggests the destocking cycle that pressured 2025 is easing, and demand is normalizing. However, the growth is still below the double-digit rates seen in 2024, indicating a gradual recovery rather than a sharp rebound. Investors should monitor whether this acceleration is sustainable or a temporary catch-up effect.
Gross Margin Expansion Drives Profitability
Gross margin improved from 35.6% in Q1 2024 to 44.5% in Q2 2026, a 890 basis point expansion, according to financial statements, reflecting pricing power and cost efficiencies.
The gross margin expansion is notable, with Q2 2026 reaching 44.5%, well above the peer average of around 32%. This suggests Generac has pricing power and is benefiting from favorable product mix and lower input costs. However, margins have been volatile, dipping to 36.3% in Q4 2025, indicating sensitivity to volume and mix shifts. The sustainability of this margin level depends on competitive dynamics and commodity prices, which warrant close monitoring.
Operating Leverage Amplifies Earnings Swings
Operating leverage is evident as Q2 2026 operating income surged 88% year-over-year to $210.4M, with operating margin expanding to 17.9% from 10.5% a year earlier, per reported figures.
The operating income growth outpaced revenue growth significantly, demonstrating high operating leverage. In Q2 2026, revenue grew 10.6% while operating income grew 88%, driven by gross margin expansion and controlled SG&A. However, this leverage cuts both ways: in Q4 2025, a -11.6% revenue decline led to an operating loss, highlighting the fixed cost base. This cyclicality suggests that earnings are highly sensitive to demand fluctuations, which could lead to volatile results.
Earnings Quality Boosted by Tax and SBC
Net income in Q2 2026 reached $143.2M with EPS of $2.40, up 92% year-over-year, but stock-based compensation of $14M and a low effective tax rate may inflate reported earnings.
The EPS growth of 92% in Q2 2026 is impressive, but the effective tax rate appears low (net income is 68% of pre-tax income, implying a tax rate around 32%, which is not unusually low). SBC of $14M is modest relative to net income, but it still reduces economic earnings. The quality of earnings is supported by strong operating cash flow, but investors should note that non-operating items could distort quarterly comparisons. The tax rate has been relatively stable, so no anomaly is apparent.
SG&A Spike in Q4 2025 Raises Questions
SG&A jumped to $319M in Q4 2025, a 45% increase from the prior quarter, causing an operating loss, as per income statement data, suggesting unusual expenses or restructuring.
The SG&A spike in Q4 2025 is a red flag, as it drove the operating loss despite stable gross profit. This could indicate one-time charges, such as restructuring or litigation, which are not recurring. In subsequent quarters, SG&A returned to normal levels around $200M, suggesting the Q4 spike was temporary. However, the lack of disclosure on the nature of these costs warrants further investigation, as it may signal underlying cost control issues.
Cyclicality and Margin Sustainability Risks
Generac's revenue and margins are highly cyclical, as evidenced by the 2025 downturn, and the recent recovery may not be durable if demand normalizes or competition intensifies.
Short-sellers would argue that the current margin expansion is unsustainable, given the historical volatility and the mature nature of the backup generator market. The 2025 revenue decline and Q4 2025 operating loss highlight the company's sensitivity to housing and weather-related demand. Additionally, the gross margin of 44.5% is well above peers, which could attract competition and pressure pricing. If the recovery is driven by inventory restocking rather than end-demand, growth could decelerate sharply. Investors should monitor channel inventory and competitive responses.