GNRC Generac Holding Inc

Delaware	001-34627	20-5654756
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

S45 W29290 Hwy 59
Waukesha, Wisconsin	53189
(Address of principal executive offices)	(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	GNRC	New York Stock Exchange

Item 2.02

Results of Operations and Financial Condition

●

for planning purposes, including the preparation of our annual operating budget and developing and refining our internal projections for future periods;

●

to evaluate the effectiveness of our business strategies and as a supplemental tool in evaluating our performance against our budget for each period;

●

in communications with our board of directors and investors concerning our financial performance;

●

to evaluate prior acquisitions in relation to the existing business; and

●

to evaluate comparative net sales performance in prior and future periods.

●

Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Core Sales, and similar non-GAAP measures are widely used by investors to measure a company’s operating performance without regard to items that can vary substantially from company to company depending upon financing and accounting methods, book values of assets, tax jurisdictions, capital structures and the methods by which assets were acquired; and

●

by comparing our Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, and Core Sales in different historical periods, our investors can evaluate our operating performance excluding the impact of certain items.

Item 9.01

Financial Statements and Exhibits

Exhibit No.		Description
99.1		Press Release, dated February 12, 2025.
104		Cover Page Interactive Data File (embedded within the inline XBRL document)

	GENERAC HOLDINGS INC.
	Name:	Raj Kanuru
Date: February 12, 2025	Title:	EVP, General Counsel & Secretary

Exhibit 99.1

 Generac Reports Fourth Quarter and Full-Year 2024 Results

 

Strong execution drives record fourth quarter net sales, significant margin expansion, and all-time record free cash flow generation; 2025 outlook anticipates continued net sales growth

 

WAUKESHA, WISCONSIN (February 12, 2025) – Generac Holdings Inc. (NYSE: GNRC) (“Generac” or the “Company”), a leading global designer and manufacturer of energy technology solutions and other power products, today reported financial results for its fourth quarter and full-year ended December 31, 2024 and initiated its outlook for the full-year 2025.

 

Fourth Quarter 2024 Highlights

 

●	Net sales increased 16% to $1.23 billion during the fourth quarter of 2024 as compared to $1.06 billion in the prior-year fourth quarter. The net effect of acquisitions and foreign currency had a slight favorable impact during the quarter.

 

-

Residential product sales increased 28% to $743 million as compared to $580 million last year.

 

-

Commercial & Industrial (“C&I”) product sales were approximately flat as compared to the prior year at $363 million.

 

●	Net income attributable to the Company during the fourth quarter was $117 million, or $2.15 per share, as compared to $97 million, or $1.57 per share, for the same period of 2023.

 

●	Adjusted net income attributable to the Company, as defined in the accompanying reconciliation schedules, was a fourth quarter record $168 million, or $2.80 per share, as compared to $126 million, or $2.07 per share, in the fourth quarter of 2023.

 

●	Adjusted EBITDA before deducting for noncontrolling interests, as defined in the accompanying reconciliation schedules, was a fourth quarter record $265 million, or 21.5% of net sales, as compared to $213 million, or 20.0% of net sales, in the prior year.

 

●	Cash flow from operations was an all-time record $339 million as compared to $317 million in the prior year. Free cash flow, as defined in the accompanying reconciliation schedules, was an all-time record $286 million as compared to $266 million in the fourth quarter of 2023.

 

Full-Year 2024 Highlights

 

●	Net sales increased 7% to $4.30 billion during 2024 as compared to $4.02 billion in 2023. Core sales, which excludes both the impact of acquisitions and foreign currency, increased approximately 6%.

 

-

Residential product sales increased 18% to $2.43 billion as compared to $2.06 billion last year.

 

-

C&I product sales decreased 7% to $1.39 billion as compared to $1.49 billion in the prior year.

 

●	Net income attributable to the Company during 2024 was $316 million, or $5.39 per share, as compared to $215 million, or $3.27 per share for 2023.

 

●	Adjusted net income attributable to the Company, as defined in the accompanying reconciliation schedules, was $438 million, or $7.27 per share, as compared to $335 million, or $5.40 per share, in 2023.

 

●	Adjusted EBITDA before deducting for noncontrolling interests, as defined in the accompanying reconciliation schedules, for 2024 was $789 million, or 18.4% of net sales, as compared to $638 million, or 15.9% of net sales, in the prior year.

 

●	Cash flow from operations was a record $741 million as compared to $522 million in the prior year. Free cash flow, as defined in the accompanying reconciliation schedules, was a record $605 million as compared to $396 million for 2023.

 

●

The Company repurchased approximately 1.05 million shares of its common stock during 2024 for $153 million. There is approximately $347 million remaining under the current repurchase program as of December 31, 2024. In addition, the Company repaid approximately $278 million of debt on a net basis during the year.

 

●

The Company is initiating its full-year 2025 net sales growth guidance to be approximately 3 to 7% as compared to the prior year, which includes a slight unfavorable impact from the net effect of foreign currency and completed acquisitions. Adjusted EBITDA margin, before deducting for non-controlling interests, is expected to be approximately 18.0 to 19.0%.

 

“Our fourth quarter results highlight our ability to rapidly increase production and execute on the strong demand for home standby and portable generators resulting from elevated outage activity in the second half of the year,” said Aaron Jagdfeld, President and Chief Executive Officer. “The mega-trends that support our long-term expectations were on full display in 2024 as power quality continued to deteriorate and power prices continued to increase. Power outage hours in the U.S. during the year were the highest since we began tracking the measure in 2010, while power demand expectations accelerated and efforts to decarbonize the power grid with intermittent generation sources continued. We believe the strategic investments we have made position Generac for sustained success as we provide innovative energy resiliency and efficiency solutions for homes, businesses, and critical infrastructure.”

 

 

Additional Fourth Quarter 2024 Consolidated Highlights

 

Gross profit margin was 40.6% as compared to 36.5% in the prior-year fourth quarter. The increase in gross margin was primarily driven by favorable sales mix and lower input costs.

 

Operating expenses increased $65.6 million, or 27.6%, as compared to the fourth quarter of 2023. The increase in operating expenses was primarily driven by increased employee costs to support future growth across the business, additional marketing spend to drive incremental awareness for our products, and increased incentive compensation and variable expenses given higher shipment volumes and profitability.

 

Provision for income taxes for the current year quarter was $27.3 million, or an effective tax rate of 18.9%, as compared to $30.0 million, or a 23.7% effective tax rate, for the prior year. The decrease in effective tax rate was primarily driven by the positive impact from earnings mix with higher earnings in lower tax jurisdictions, as well as certain unfavorable discrete tax items in the prior year that did not repeat.

 

Cash flow from operations was very strong at $339.5 million during the fourth quarter, as compared to $316.9 million in the prior year. Free cash flow, as defined in the accompanying reconciliation schedules, was $286.1 million as compared to $266.4 million in the fourth quarter of 2023. This significant free cash flow generation was primarily driven by record fourth quarter operating earnings as well as a meaningful reduction in working capital during the quarter.

 

Fourth Quarter Business Segment Results

 

Domestic Segment

 

Domestic segment total sales (including inter-segment sales) increased 20% to $1.07 billion as compared to $891.0 million in the prior year, including approximately 1% sales growth contribution from acquisitions. The strong increase in core domestic sales was driven primarily by significant growth in shipments of home standby and portable generators as we executed on the demand resulting from the elevated power outage activity in the second half of the year. In addition, higher shipments of residential energy storage systems and ecobee products also contributed to the domestic sales increase.

 

Adjusted EBITDA for the segment was an all-time record $242.8 million, or 22.7% of domestic segment total sales, as compared to $192.2 million in the prior year, or 21.6% of total sales. This margin improvement was primarily driven by favorable sales mix and lower input costs, partially offset by higher operating expense investments to support future growth initiatives.

 

International Segment

 

International segment total sales (including inter-segment sales) decreased 1% to $187.5 million as compared to $190.1 million in the prior year quarter, including an approximate 2% unfavorable impact from foreign currency. Core total sales growth for the segment was primarily driven by strength in Latin America, mostly offset by softness in certain European markets.

 

Adjusted EBITDA for the segment, before deducting for noncontrolling interests, was $22.5 million, or 12.0% of international segment total sales, as compared to $20.4 million, or 10.7% of total sales, in the prior year. This margin improvement was primarily driven by favorable sales mix and lower input costs.

 

2025 Outlook

 

The Company is initiating guidance for full-year 2025 that anticipates continued net sales growth as compared to the prior year. This is expected to be driven primarily by residential product sales growth in the mid-to-high single digit range, primarily led by shipments of home standby generators and residential energy technology solutions. C&I product sales are expected to be approximately flat as compared to the prior year. As a result of these factors, full-year net sales are expected to increase between 3 to 7% as compared to the prior year, which includes a slight unfavorable impact from the net effect of foreign currency and completed acquisitions.

 

Additionally, the Company expects net income margin, before deducting for non-controlling interests, to be approximately 8.0 to 9.0% for the full-year 2025. The corresponding adjusted EBITDA margin is expected to be approximately 18.0 to 19.0%.

 

The Company expects to generate strong levels of operating and free cash flow for the full year, with free cash flow conversion from adjusted net income between 80 to 90%.

 

Conference Call and Webcast

 

Generac management will hold a conference call at 10:00 a.m. EST on Wednesday, February 12, 2025 to discuss fourth quarter and full-year 2024 operating results. A webcast of the conference call can be accessed at the following link: https://edge.media-server.com/mmc/p/axz3e8r5.

 

The webcast of the conference call is also available on Generac's website (http://www.generac.com), accessed under the Investor Relations link. The webcast link will be made available on the Company’s website prior to the start of the call within the Events section of the Investor Relations website.

Following the live webcast, a replay will be available on the Company’s website for 12 months.

 

 

 

About Generac

 

Generac is a total energy solutions company that empowers people to use energy on their own terms. Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products serving the residential, light commercial, and industrial markets. Generac introduced the first affordable backup generator and later created the automatic home standby generator category. The Company continues to expand its energy technology offerings for homes and businesses in its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and sustainable energy solutions.

 

Forward-looking Information

 

Certain statements contained in this news release, as well as other information provided from time to time by Generac Holdings Inc. or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements give Generac's current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "forecast," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future," "optimistic" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.

 

Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Generac believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Generac's actual financial results and cause them to differ materially from those anticipated in any forward-looking statements, including:

 

●	fluctuations in cost, availability, and quality of raw materials, key components and labor required to manufacture our products;
●	our dependence on a small number of contract manufacturers and component suppliers, including single-source suppliers;
●	our ability to protect our intellectual property rights or successfully defend against third party infringement claims;
●	increase in product and other liability claims, warranty costs, recalls, or other claims;
●	significant legal proceedings, claims, fines, penalties, tax assessments, lawsuits or government investigations;
●	changes in U.S. trade policy, including the imposition of new or increased tariffs;
●	our ability to consummate our share repurchase programs;
●	our failure or inability to adapt to, or comply with, current or future changes in applicable laws, regulations, and product standards;
●	scrutiny regarding our sustainability practices;
●	our ability to develop and enhance products and gain customer acceptance for our products;
●	frequency and duration of power outages impacting demand for our products;
●	changes in durable goods spending by consumers and businesses or other macroeconomic conditions, impacting demand for our products;
●	our ability to accurately forecast demand for our products and effectively manage inventory levels relative to such forecast;
●	our ability to remain competitive;
●	our dependence on our dealer and distribution network;
●	market reaction to changes in selling prices or mix of products;
●	loss of our key management and employees;
●	disruptions from labor disputes or organized labor activities;
●	our ability to attract and retain employees;
●	disruptions in our manufacturing operations;
●	the possibility that the expected synergies, efficiencies and cost savings of our acquisitions, divestitures, restructurings, or realignments will not be realized, or will not be realized within the expected time period;
●	risks related to sourcing components in foreign countries;
●	compliance with environmental, health and safety laws and regulations;
●	government regulation of our products;
●	failures or security breaches of our networks, information technology systems, or connected products;
●	our ability to make payments on our indebtedness;
●	terms of our credit facilities that may restrict our operations;
●	our potential need for additional capital to finance our growth or refinancing our existing credit facilities;
●	risks of impairment of the value of our goodwill and other indefinite-lived assets;
●	volatility of our stock price; and
●	potential tax liabilities.

 

Should one or more of these risks or uncertainties materialize, Generac's actual results may vary in material respects from those projected in any forward-looking statements. A detailed discussion of these and other factors that may affect future results is contained in Generac's filings with the U.S. Securities and Exchange Commission (“SEC”), particularly in the Risk Factors section of the Annual Report on Form 10-K and in its periodic reports on Form 10-Q. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.

 

Any forward-looking statement made by Generac in this press release speaks only as of the date on which it is made.  Generac undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

 

 

Non-GAAP Financial Metrics

 

Core Sales

 

The Company references core sales to further supplement Generac's consolidated financial statements presented in accordance with U.S. GAAP. Core sales excludes the impact of acquisitions and fluctuations in foreign currency translation. Management believes that core sales facilitates easier and more meaningful comparison of net sales performance with prior and future periods.

 

Adjusted EBITDA

 

To supplement Generac’s consolidated financial statements presented in accordance with U.S. GAAP, the Company provides the computation of Adjusted EBITDA attributable to the Company, which is defined as net income before noncontrolling interests adjusted for the following items: interest expense, depreciation expense, amortization of intangible assets, income tax expense, certain non-cash gains and losses including certain purchase accounting adjustments and contingent consideration adjustments, share-based compensation expense, certain transaction costs and credit facility fees, business optimization expenses, provision for certain legal and regulatory charges, certain specific provisions, mark-to-market gains and losses on a minority investment, and Adjusted EBITDA attributable to noncontrolling interests. The provision for legal and regulatory charges adjusts for matters that are not part of the ordinary routine litigation or regulatory matters incidental to the Company’s business, such as class action lawsuits, government inquiries, and certain intellectual property litigation. The adjustments to net income in computing Adjusted EBITDA are set forth in the reconciliation table below. The computation of Adjusted EBITDA is based primarily on the definition included in our Credit Agreement.

 

Adjusted Net Income

 

To further supplement Generac's consolidated financial statements presented in accordance with U.S. GAAP, the Company provides a summary to show the computation of adjusted net income attributable to the Company. Adjusted net income attributable to the Company is defined as net income before noncontrolling interests adjusted for the following items: amortization of intangible assets, amortization of deferred financing costs and original issue discount related to the Company's debt, intangible impairment charges, certain transaction costs and other purchase accounting adjustments, business optimization expenses, provision for certain legal and regulatory charges, certain specific provisions, mark-to-market gains and losses on a minority investment, other non-cash gains and losses, and adjusted net income attributable to non-controlling interests.

 

Free Cash Flow

 

In addition, the Company references free cash flow to further supplement Generac's consolidated financial statements presented in accordance with U.S. GAAP. Free cash flow is defined as net cash provided by operating activities, plus proceeds from beneficial interests in securitization transactions, less expenditures for property and equipment, and is intended to be a measure of operational cash flow taking into account additional capital expenditure investment into the business.

 

The presentation of this additional information is not meant to be considered in isolation of, or as a substitute for, results prepared in accordance with U.S. GAAP.  Please see the accompanying Reconciliation Schedules and our SEC filings for additional discussion of the basis for Generac's reporting of Non-GAAP financial measures, which includes why the Company believes these measures provide useful information to investors and the additional purposes for which management uses the non-GAAP financial information.

 

SOURCE: Generac Holdings Inc.

 

CONTACT:

 

Kris Rosemann

Director – Corporate Development & Investor Relations
(262) 506-6064
InvestorRelations@generac.com

 

 

Generac Holdings Inc.

Condensed Consolidated Balance Sheets

(U.S. Dollars in Thousands, Except Share and Per Share Data)

(Unaudited)

         

		December 31,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	281,277			$	200,994
Accounts receivable, less allowance for credit losses of $35,465 and $33,925 as of December 31, 2024 and December 31, 2023, respectively			612,107				537,316
Inventories			1,031,647				1,167,484
Prepaid expenses and other current assets			107,139				91,898
Total current assets			2,032,170				1,997,692
Property and equipment, net			690,023				598,577
Customer lists, net			152,737				184,513
Patents and technology, net			379,095				417,441
Other intangible assets, net			20,026				27,127
Tradenames, net			206,664				216,995
Goodwill			1,436,261				1,432,384
Deferred income taxes			24,132				15,532
Operating lease and other assets			168,223				203,051
Total assets		$	5,109,331			$	5,093,312
Liabilities and stockholders’ equity
Current liabilities:
Short-term borrowings		$	55,848			$	81,769
Accounts payable			458,693				340,719
Accrued wages and employee benefits			81,485				54,970
Accrued product warranty			56,127				65,298
Other accrued liabilities			313,401				292,120
Current portion of long-term borrowings and finance lease obligations			67,598				45,895
Total current liabilities			1,033,152				880,771
Long-term borrowings and finance lease obligations			1,210,776				1,447,553
Deferred income taxes			33,185				90,012
Deferred revenue			193,260				167,008
Operating lease and other long-term liabilities			141,515				158,349
Total liabilities			2,611,888				2,743,693
Redeemable noncontrolling interest			-				6,549
Stockholders’ equity:
Common stock, par value $0.01, 500,000,000 shares authorized, 73,785,631 and 73,195,055 shares issued as of December 31, 2024 and December 31, 2023, respectively			738				733
Additional paid-in capital			1,133,756				1,070,386
Treasury stock, at cost, 14,173,697 and 13,057,298 shares at December 31, 2024 and December 31, 2023, respectively			(1,196,997	)			(1,032,921	)
Excess purchase price over predecessor basis			(202,116	)			(202,116	)
Retained earnings			2,844,296				2,519,313
Accumulated other comprehensive loss			(85,399	)			(15,143	)
Stockholders’ equity attributable to Generac Holdings Inc.			2,494,278				2,340,252
Noncontrolling interests			3,165				2,818
Total stockholders’ equity			2,497,443				2,343,070
Total liabilities and stockholders’ equity		$	5,109,331			$	5,093,312

 

 

Generac Holdings Inc.

Condensed Consolidated Statements of Comprehensive Income

(U.S. Dollars in Thousands, Except Share and Per Share Data)

(Unaudited)

                 

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net sales		$	1,234,801			$	1,063,670			$	4,295,834			$	4,022,667
Costs of goods sold			733,384				674,946				2,630,208				2,657,236
Gross profit			501,417				388,724				1,665,626				1,365,431
Operating expenses:
Selling and service			144,397				113,839				526,446				448,199
Research and development			59,258				44,369				219,600				173,443
General and administrative			75,703				54,288				285,095				253,396
Amortization of intangibles			24,045				25,260				97,743				104,194
Total operating expenses			303,403				237,756				1,128,884				979,232
Income from operations			198,014				150,968				536,742				386,199
Other (expense) income:
Interest expense			(19,880	)			(24,765	)			(89,713	)			(97,627	)
Investment income			2,319				1,483				7,605				4,272
Change in fair value of investment			(35,068	)			-				(38,006	)			-
Loss on extinguishment of debt			-				-				(4,861	)			-
Other, net			(380	)			(880	)			(2,329	)			(2,544	)
Total other expense, net			(53,009	)			(24,162	)			(127,304	)			(95,899	)
Income before provision for income taxes			145,005				126,806				409,438				290,300
Provision for income taxes			27,336				29,996				92,460				73,180
Net income			117,669				96,810				316,978				217,120
Net income attributable to noncontrolling interests			443				209				663				2,514
Net income attributable to Generac Holdings Inc.			117,226				96,601				316,315				214,606
Other comprehensive income (loss):
Foreign currency translation adjustment			(59,923	)			36,784				(62,842	)			57,963
Net unrealized (loss) gain on derivatives			2,253				(10,313	)			(7,672	)			(8,004	)
Other comprehensive income (loss)			(57,670	)			26,471				(70,514	)			49,959
Total comprehensive income:			59,999				123,281				246,464				267,079
Comprehensive income attributable to noncontrolling interests			200				246				405				2,581
Comprehensive income attributable to Generac Holdings Inc.		$	59,799			$	123,035			$	246,059			$	264,498
Net income attributable to common shareholders per common share - basic:		$	2.18			$	1.59			$	5.46			$	3.31
Weighted average common shares outstanding - basic:			59,122,093				60,391,678				59,559,797				61,265,060
Net income attributable to common shareholders per common share - diluted:		$	2.15			$	1.57			$	5.39			$	3.27
Weighted average common shares outstanding - diluted:			60,012,948				61,038,694				60,350,412				62,058,387

 

 

Generac Holdings Inc.

Condensed Consolidated Statements of Cash Flows

(U.S. Dollars in Thousands)

(Unaudited)

 

		Year Ended December 31,
		2024				2023
Operating activities
Net income		$	316,978			$	217,120
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and finance lease amortization			74,025				62,408
Amortization of intangible assets			97,743				104,194
Amortization of deferred financing costs and original issue discount			3,242				3,885
Change in fair value of investment			38,006				-
Loss on extinguishment of debt			4,861				-
Deferred income taxes			(60,615	)			(34,478	)
Share-based compensation expense			49,248				35,492
Loss (gain) on disposal of assets			138				(285	)
Other noncash charges			5,780				5,922
Excess tax benefits from equity awards			(5,069	)			(977	)
Net changes in operating assets and liabilities, net of acquisitions:
Accounts receivable			(82,816	)			(18,272	)
Inventories			122,952				262,670
Other assets			546				24,266
Accounts payable			123,571				(120,900	)
Accrued wages and employee benefits			26,870				7,962
Other accrued liabilities			25,841				(27,337	)
Net cash provided by operating activities			741,301				521,670
Investing activities
Proceeds from sale of property and equipment			211				2,896
Proceeds from beneficial interests in securitization transactions			-				3,294
Contribution to tax equity investment			(1,629	)			(6,627	)
Purchase of long-term investments			(37,821	)			(32,592	)
Proceeds from sale of long-term investments			2,000				-
Expenditures for property and equipment			(136,733	)			(129,060	)
Acquisition of businesses, net of cash acquired			(34,740	)			(15,974	)
Net cash used in investing activities			(208,712	)			(178,063	)
Financing activities
Proceeds from short-term borrowings			29,219				64,257
Proceeds from long-term borrowings			541,475				348,827
Repayments of short-term borrowings			(54,548	)			(37,104	)
Repayments of long-term borrowings and finance lease obligations			(794,600	)			(288,699	)
Stock repurchases			(152,743	)			(251,513	)
Payment of debt issuance costs			(3,616	)			-
Payment of contingent acquisition consideration			-				(4,979	)
Payment of deferred acquisition consideration			(7,421	)			-
Purchase of additional ownership interest			(9,117	)			(104,844	)
Cash dividends paid to noncontrolling interest of subsidiary			(273	)			-
Taxes paid related to equity awards			(24,769	)			(10,897	)
Proceeds from the exercise of stock options			27,558				7,815
Net cash used in financing activities			(448,835	)			(277,137	)
Effect of foreign exchange rate changes on cash and cash equivalents			(3,471	)			1,801
Net increase in cash and cash equivalents			80,283				68,271
Cash and cash equivalents at beginning of period			200,994				132,723
Cash and cash equivalents at end of period		$	281,277			$	200,994
Supplemental disclosure of cash flow information
Cash paid during the period
Interest		$	89,420			$	84,027
Income taxes			148,828				100,082

 

 

Generac Holdings Inc.

Segment Reporting and Product Class Information

(U.S. Dollars in Thousands)

(Unaudited)

 

		Total Sales by Reportable Segment
		Three Months Ended December 31, 2024												Three Months Ended December 31, 2023
		External Net Sales				Intersegment Sales				Total Sales				External Net Sales				Intersegment Sales				Total Sales
Domestic		$	1,057,907			$	9,361			$	1,067,268			$	881,033			$	9,977			$	891,010
International			176,894				10,572				187,466				182,637				7,474				190,111
Intercompany elimination			-				(19,933	)			(19,933	)			-				(17,451	)			(17,451	)
Total net sales		$	1,234,801			$	-			$	1,234,801			$	1,063,670			$	-			$	1,063,670

 

		Total Sales by Reportable Segment
		Year Ended December 31, 2024												Year Ended December 31, 2023
		External Net Sales				Intersegment Sales				Total Sales				External Net Sales				Intersegment Sales				Total Sales
Domestic		$	3,599,149			$	35,932			$	3,635,081			$	3,276,324			$	43,937			$	3,320,261
International			696,685				28,700				725,385				746,343				91,552				837,895
Intercompany elimination			-				(64,632	)			(64,632	)			-				(135,489	)			(135,489	)
Total net sales		$	4,295,834			$	-			$	4,295,834			$	4,022,667			$	-			$	4,022,667

 

		External Net Sales by Product Class
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Residential products		$	743,336			$	580,391			$	2,433,474			$	2,062,929
Commercial & industrial products			363,376				362,923				1,389,469				1,494,799
Other			128,089				120,356				472,891				464,939
Total net sales		$	1,234,801			$	1,063,670			$	4,295,834			$	4,022,667

 

		Adjusted EBITDA by Reportable Segment
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Domestic		$	242,787			$	192,203			$	693,203			$	523,337
International			22,527				20,434				95,898				114,522
Total adjusted EBITDA (1)		$	265,314			$	212,637			$	789,101			$	637,859

 

 

(1) See reconciliation of Adjusted EBITDA to Net income attributable to Generac Holdings Inc. on the following reconciliation schedule. 

 

 

Generac Holdings Inc.

Reconciliation Schedules

(U.S. Dollars in Thousands, Except Share and Per Share Data)

(Unaudited)

 

Net income to Adjusted EBITDA reconciliation

 

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net income attributable to Generac Holdings Inc.		$	117,226			$	96,601			$	316,315			$	214,606
Net income attributable to noncontrolling interests			443				209				663				2,514
Net income			117,669				96,810				316,978				217,120
Interest expense			19,880				24,765				89,713				97,627
Depreciation and amortization			43,834				42,453				171,768				166,602
Provision for income taxes			27,336				29,996				92,460				73,180
Non-cash write-down and other adjustments (1)			1,894				(696	)			4,757				(5,953	)
Non-cash share-based compensation expense (2)			10,978				5,186				49,248				35,492
Transaction costs and credit facility fees (3)			1,068				893				5,097				4,054
Business optimization and other charges (4)			1,562				2,400				4,752				10,551
Provision for legal, regulatory, and clean energy product charges (5)			5,651				10,577				10,931				38,490
Change in fair value of investment (6)			35,068				-				38,006				-
Loss on extinguishment of debt (7)			-				-				4,861				-
Other			374				253				530				696
Adjusted EBITDA			265,314				212,637				789,101				637,859
Adjusted EBITDA attributable to noncontrolling interests			654				541				1,175				4,687
Adjusted EBITDA attributable to Generac Holdings Inc.		$	264,660			$	212,096			$	787,926			$	633,172

 

Net income to Adjusted net income reconciliation

 

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net income attributable to Generac Holdings Inc.		$	117,226			$	96,601			$	316,315			$	214,606
Net income attributable to noncontrolling interests			443				209				663				2,514
Net income			117,669				96,810				316,978				217,120
Amortization of intangible assets			24,045				25,260				97,743				104,194
Amortization of deferred financing costs and original issue discount			650				983				3,242				3,885
Transaction costs and other purchase accounting adjustments (8)			445				346				2,717				2,089
Loss/(gain) attributable to business or asset dispositions (9)			-				-				65				(119	)
Business optimization and other charges (4)			1,562				2,400				4,752				10,551
Provision for legal, regulatory, and clean energy product charges (5)			5,651				10,577				10,931				38,490
Change in fair value of investment (6)			35,068				-				38,006				-
Loss on extinguishment of debt (7)			-				-				4,861				-
Tax effect of add backs			(16,411	)			(9,908	)			(40,173	)			(38,384	)
Adjusted net income			168,679				126,468				439,122				337,826
Adjusted net income attributable to noncontrolling interests			443				209				663				2,514
Adjusted net income attributable to Generac Holdings Inc.		$	168,236			$	126,259			$	438,459			$	335,312
Adjusted net income attributable to Generac Holdings Inc. per common share - diluted:		$	2.80			$	2.07			$	7.27			$	5.40
Weighted average common shares outstanding - diluted:			60,012,948				61,038,694				60,350,412				62,058,387

 

(1) Includes (gains)/losses on the disposition of assets other than in the ordinary course of business, (gains)/losses on sales of certain investments, unrealized mark-to-market adjustments on commodity contracts, certain foreign currency related adjustments, and certain purchase accounting and contingent consideration adjustments. A full description of these and the other reconciliation adjustments contained in these schedules is included in Generac's SEC filings. 

 

(2) Represents share-based compensation expense to account for stock options, restricted stock, and other stock awards over their respective vesting periods.

 

(3) Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance or debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities, such as administrative agent fees and credit facility commitment fees under our Amended Credit Agreement.

 

(4) Represents severance and other restructuring charges related to the consolidation of certain operating facilities and organizational functions.

 

 

(5) Represents the following litigation, regulatory, and other matters that are not indicative of our ongoing operations:

•

A provision for judgments, settlements, and legal expenses related to certain patent lawsuits - $5.4 million in the fourth quarter of 2024; $9.2 million for the full year 2024; $5.2 million in the fourth quarter of 2023; and $27.3 million for the full year 2023.

•

Legal expenses related to certain class action lawsuits - $0.3 million in the fourth quarter of 2024; $1.3 million for the full year 2024; $1.0 million in the fourth quarter of 2023 and for the full year 2023;

•

Additional customer support costs related to a clean energy product customer that filed for bankruptcy in 2022 – $0.4 million for the full year 2024; and $4.4 million in the fourth quarter and for the full year 2023.

•

A provision for a matter with the Consumer Product Safety Commission (CPSC) concerning the imposition of civil fines for allegedly failing to timely submit a report under the Consumer Product Safety Act (CPSA) in relation to certain portable generators that were subject to a voluntary recall previously announced on July 29, 2021 - $5.8 million for the full year 2023.

 

(6) Represents non-cash losses from changes in the fair value of the Company's investment in Wallbox N.V. warrants and equity securities.

 

(7) Represents fees paid to creditors and the write-off of the unamortized original issue discount and deferred financing costs in connection with the refinancing of the Company's Tranche B Term Loan Facility. 

 

(8) Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance or debt issuance or refinancing, and certain purchase accounting and contingent consideration adjustments.

 

(9) Represents losses/(gains) attributable to the disposition of a business or assets occurring in other than ordinary course, as defined in our credit agreement.  

 

Free Cash Flow Reconciliation

 

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net cash provided by operating activities		$	339,454			$	316,946			$	741,301			$	521,670
Proceeds from beneficial interests in securitization transactions			-				761				-				3,294
Expenditures for property and equipment			(53,334	)			(51,342	)			(136,733	)			(129,060	)
Free cash flow		$	286,120			$	266,365			$	604,568			$	395,904

 

v3.25.0.1

Document And Entity Information	Feb. 12, 2025
Document Information [Line Items]
Entity, Registrant Name	Generac Holdings Inc.
Document, Type	8-K
Document, Period End Date	Feb. 12, 2025
Entity, Incorporation, State or Country Code	DE
Entity, File Number	001-34627
Entity, Tax Identification Number	20-5654756
Entity, Address, Address Line One	S45 W29290 Hwy 59
Entity, Address, City or Town	Waukesha
Entity, Address, State or Province	WI
Entity, Address, Postal Zip Code	53189
City Area Code	262
Local Phone Number	544-4811
Title of 12(b) Security	Common Stock
Trading Symbol	GNRC
Security Exchange Name	NYSE
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0001474735

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