Generac Holdings Inc. specializes in the engineering, manufacturing, and global distribution of diverse power generation systems, energy storage solutions, and related electrical ...
Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer
Operator: Good day, and thank you for standing by. Welcome to the Second Quarter 2026 Generac Holdings, Inc. Earnings Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kris Rosemann, Director of Corporate Finance and Investor Relations. Please go ahead. Kris Rosemann: Good morning, and welcome to our second quarter 2026 earnings call. I'd like to thank everyone for joining us this morning. With me today is Aaron Jagdfeld, President and Chief Executive Officer; and York Ragen, Chief Financial Officer. We will begin our call today by commenting on forward-looking statements. Certain statements made during this presentation as well as other information provided from time to time by Generac or its employees may contain certain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements. Please see our earnings release or SEC filings for a list of words or expressions that identify such statements and the associated risk factors. In addition, we will make reference to certain non-GAAP measures during today's call. Additional information regarding these measures, including reconciliation to comparable U.S. GAAP measures, is available in our earnings release and SEC filings. I'll now turn the call over to Aaron. Aaron P. Jagdfeld: Thanks, Kris. Good morning, everyone, and thank you for joining us today. Our second quarter results reflect continued momentum in our Commercial & Industrial segment, which drove 11% growth in overall net sales from the prior year. Highlighting the quarter was revenue from products sold to the data center market, which underpinned a 29% increase in C&I segment sales on a year-over-year basis as well as the return of solid growth for sales of our home standby generators during the quarter. Consolidated adjusted EBITDA margins also expanded during the quarter to 24.8%, primarily due to tariff refunds and strong operating leverage. During the quarter, we made significant progress in solidifying our position in the data center market as we recognized more than $100 million of revenue and secured 2 multiyear supply agreements with hyperscale customers. The first agreement, which we announced in early June, now includes -- now includes commitments totaling nearly $700 million for product to be delivered in 2027. In late June, we officially signed our second hyperscale supply agreement, and we are now in the final stages of negotiations with this customer on terms, conditions, volumes and time lines for 2027 and 2028 deliveries. These agreements provide ongoing validation of our status as a top-tier supplier of C&I backup power generators and reaffirm our strong reputation as an engineering-driven organization with a unique focus on backup power, a customer-centric approach and global service and production capabilities. With …
Est. EPS $9.72 · Revenue $4.94B · 14 analysts
Est. EPS $11.76 · Revenue $5.98B · 14 analysts
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| The total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Aaron Jagdfeld | Chairman, President & Chief Executive Officer | USD 1,809,574 | Male | 1972 | Active |
Kyle Andrew Raabe | Executive VP & President of Home Power Generation |
| USD 1,027,804 |
| Male |
| 1975 |
| Active |
Norman Taffe | Executive VP & President of Generac Home | USD 866,483 | Male | 1966 | Active |
Erik Wilde | President of Domestic C&I | USD 843,881 | Male | 1975 | Active |
York A. Ragen | Chief Financial Officer | USD 821,524 | Male | 1971 | Active |
Rajendra Kumar Kanuru | Executive Vice President, General Counsel & Secretary | USD 648,488 | Male | 1971 | Active |
James E. Barnes | Executive Vice President of Global Supply Chain | USD 327,663 | Male | 1983 | Active |
Tim Hearden | Chief Operations Officer | — | Male | — | Active |
Talal Butt | Chief Information Officer | — | Male | — | Active |
Niccolò Borracchini | Executive Vice President of International | — | Male | — | Active |
Amanda Teder | Chief Marketing Officer | — | Female | — | Active |
Rhonda Matschke | Executive Vice President of Human Resources | — | Female | — | Active |
Shree Dandekar | Executive Vice President of Corporate Engineering | — | Male | — | Active |
Jennifer Anderson | Executive Vice President of Corporate Strategy and Development | — | Female | — | Active |
Kris Rosemann | Director of Corporate Finance & Investor Relations | — | — | — | Active |
Paolo Campinoti | Executive Vice President International | — | Male | — | Active |
Est. EPS $4.02 · Revenue $1.79B · 6 analysts
Est. EPS $4.03 · Revenue $1.82B · 6 analysts
| $4.2B |
| -2.0% |
| +10.8% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $159.6M | -50.9% | +95.5% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +38.3% | -1.2% | +14.8% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +6.9% | -45.0% | +62.0% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +3.8% | -49.9% | +76.5% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $268.1M | -55.6% | -30.0% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +6.4% | -54.7% | -36.8% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 50.6% | -14.4% | +6.3% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 2.03x | +3.0% | +0.8% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $5.6B | +9.1% | +3.2% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 2.69 vs 6.51 | -58.7% | 2.40 vs 4.02 | -40.2% |
| Revenue Surprise | $4.2B vs $4.3B | -1.6% | $1.2B vs $1.8B | -34.6% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Sep 1, 2026 | Taffe Norman P | officer: President Generac Home | Common Stock | D | 3,932 | $181.22 |
| Sep 1, 2026 | Jagdfeld Aaron | director, officer: Chief Executive Officer | Common Stock | D | 5,000 | $182.21 |
| Aug 7, 2026 | Raabe Kyle Andrew | officer: President, Home Power Gen. | Common Stock | A | 213 | $102.42 |
| Aug 7, 2026 | Raabe Kyle Andrew | officer: President, Home Power Gen. | Common Stock | D | 213 | $213.35 |
| Aug 7, 2026 | Raabe Kyle Andrew | officer: President, Home Power Gen. | Stock Option (Right to Buy) | D | 213 | $102.42 |
