Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34627 GENERAC HOLDINGS INC. Securities registered pursuant to Section 12(b) of the Act: (Exact name of regis ...

Generac Holdings Inc. (NYSE:GNRC) Q3 2021 Earnings Conference Call November 2, 2021 10:00 AM ET Company Participants Aaron Jagdfeld – CEO York Ragen – CFO Michael Harris – Vice President, Investor Relations Conference Call Participants Tommy Moll – Stephens Ross Gilardi – Bank of America Philip Shen – ROTH Capital Brian Drab – William Blair Joseph Osha – Guggenheim Partners Mark Strouse – J.P. Morgan Jed Dorsheimer – Canaccord Genuity David Tarantino – KeyBanc Capital Markets Pearce Hammond – Piper Sandler ...

INVESTOR DAY SEPTEMBER 29, 2021 OUR PURPOSE: Lead the evolution to more resilient, efficient, and sustainable energy solutions. GENERAC® OVERVIEW 8:00am Registration 8:30am Introduction – Mike Harris 8:40am Generac Overview & Evolution – Aaron Jagdfeld About Generac New Enterprise Strategy – Evolution of Generac and Increased ESG Focus Next-Generation Grid – Generac Grid Services Introduction 9:25am Expanding Grid Services Capabilities for Global Opportunity – Bud Vos 9:45am Home Standby: Significant Penetr ...

Market Position and Growth Potential - The company maintains a leading market position in the power equipment market in North America, with an expanding international presence [86]. - Approximately 5% of the addressable market of homes in the United States currently has home standby generators, indicating significant growth potential [92]. - The penetration rate of home standby generators in California is approximately 1%, while in Texas it stands at about 3%, highlighting opportunities for market expansion [96][97]. - Major power outages have historically driven demand for generators, with increased awareness leading to strong revenue growth in the aftermath of such events [93]. - The company is focused on expanding its distribution network and product lines to increase awareness and penetration of standby generators [92]. - The COVID-19 pandemic has heightened the importance of backup power solutions as more people work and learn from home, increasing demand for home standby generators [91]. - The company is strategically positioned to participate in the evolving "Grid 2.0" infrastructure, which emphasizes decentralized and cleaner energy solutions [86]. Financial Performance - Net sales for the second quarter of 2021 reached $919.98 million, a 68.2% increase from $546.85 million in the same quarter of 2020 [113]. - Domestic segment sales increased by 70.2% to $784.15 million, while international segment sales rose by 57.8% to $135.84 million [113][114]. - Gross profit margin for Q2 2021 was 36.9%, down from 38.2% in Q2 2020, primarily due to higher input costs [116]. - Operating expenses increased by $37.4 million, or 31.3%, driven by higher variable expenses and costs related to the Deep Sea acquisition [117]. - Net income attributable to Generac Holdings Inc. was $127.04 million, compared to $66.15 million in the prior year quarter, reflecting increased sales volumes [120]. - Adjusted EBITDA for the Domestic segment was $203.93 million, or 26.0% of net sales, slightly down from 26.3% in the prior year quarter [121]. - Adjusted Net Income for Q2 2021 was $153.2 million, a 73.2% increase from $88.5 million in Q2 2020, influenced by a rise in cash income tax rate from approximately 17.0% to 21.0%-21.5% [123]. - Net sales for the six months ended June 30, 2021, reached $1,727.4 million, a 68.9% increase from $1,022.8 million in the prior year [126]. - Gross profit margin for the six months ended June 30, 2021, was 38.3%, up from 37.3% in the prior year, driven by a favorable sales mix and improved pricing [129]. - Net income attributable to Generac Holdings Inc. was $276.0 million, compared to $110.6 million in the prior year, reflecting increased sales volumes and favorable sales mix [133]. Cash Flow and Investments - Net cash provided by operating activities for the six months ended June 30, 2021, was $274.993 million, a 143.1% increase from $113.114 million in the prior year [146]. - Net cash used in investing activities was $(467.116) million, primarily for business acquisitions totaling $419.0 million [147]. - Net cash used in financing activities for the six months ended June 30, 2021, was $126.8 million, primarily due to $126.8 million of debt repayments and $40.0 million of taxes paid related to equity awards [148]. - For the same period in 2020, net cash used in financing activities was $128.2 million, with $125.7 million attributed to short-term borrowings repayments [149]. Adjusted Metrics and Taxation - Adjusted Net Income is defined as net income before noncontrolling interest and provision for income taxes, adjusted for various items including cash income tax expense and amortization of intangible assets [168]. - The company believes that Adjusted Net Income provides a more complete understanding of ongoing results of operations and the factors affecting its business [169]. - Adjusted net income per common share attributable to Generac for Q2 2021 was $2.39, compared to $1.40 in Q2 2020, indicating a 70.7% increase [171]. - The company reported a provision for income taxes of $46.362 million for Q2 2021, compared to $18.473 million in Q2 2020, which is an increase of 150.5% [171]. - Cash income tax expense for the first half of 2021 was projected at approximately 21.0% to 21.5%, compared to 17.0% for the same period in 2020 [174].

Financial Data and Key Metrics Changes - The company reported a 68% year-over-year increase in net sales, reaching $920 million compared to $546.8 million in the prior year [10][43]. - Adjusted EBITDA increased by 77% year-over-year, with adjusted EPS rising by 71% [12][55]. - Gross profit margin decreased to 36.9% from 38.2% in the prior year due to higher input costs [50]. Business Line Data and Key Metrics Changes - Residential products sales surged 76% to $600 million, driven by robust home standby generator sales, which nearly doubled [44]. - Commercial and industrial (C&I) product net sales increased 64% to $254.3 million, with a 6% growth on a core basis compared to 2019 levels [46][47]. - The other products and services category, including aftermarket service parts, grew 30% to $65.7 million [49]. Market Data and Key Metrics Changes - Domestic segment sales rose 70% to $784.1 million, while international segment sales increased 57.8% to $135.8 million [52][53]. - The company experienced a core growth rate of 45% in international shipments, primarily in Europe and Latin America [40]. Company Strategy and Development Direction - The company aims to transition into an energy technology solutions provider, focusing on innovative solutions for power, communications, and critical infrastructure [42]. - Recent acquisitions, including Chilicon Power and Deep Sea Electronics, are expected to enhance the company's capabilities and market reach [25][38]. - The company plans to double its production capacity for home standby generators by Q2 2022, with ongoing investments in manufacturing and supply chain [18][91]. Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for home standby generators driven by increased awareness of power security and higher power outage activity [9][16]. - The company raised its full-year revenue outlook to approximately 47% to 50% growth compared to the prior year, reflecting better-than-expected performance across several business areas [62]. - Management acknowledged ongoing cost pressures and logistics challenges but expressed confidence in achieving higher production levels and improved margins in the future [64][66]. Other Important Information - The company ended the second quarter with $830 million in liquidity, including $390 million in cash [59]. - Cash flow from operations was robust at $122.5 million, with free cash flow reaching $96.3 million, both records for the second quarter [57]. Q&A Session All Questions and Answers Question: Clarification on capacity additions and margin normalization - Management expects Q4 margins to return closer to Q1 levels, indicating a higher run rate into 2022 as input costs normalize [72]. Question: Operational goals for the new facility in Trenton - The company aims to have about 800 employees in the Trenton facility by the end of the year, with additional manufacturing equipment planned for Q1 and Q2 [78][79]. Question: Backlog and lead time clarification - The quoted lead time of 28 weeks is based on current production rates and order volume, with expectations for considerable backlog by year-end [84][86]. Question: Future capacity expansion considerations - Management is closely monitoring demand and supply chain capabilities, with potential for further expansion depending on market conditions [91][93]. Question: Demand for Chilicon products and capacity - Management is optimistic about demand from channel partners for Chilicon's product line, which could significantly increase shipments and revenue for the PWRcell business [95].

GENERAC® 1 INVESTOR PRESENTATION MAY 2021 "Generac's mission is to ensure peace of mind by developing power products and solutions that make the world safer, brighter, and more productive." INVESTOR RELATIONS Aaron Jagdfeld PRESIDENT & CEO York Ragen CHIEF FINANCIAL OFFICER Mike Harris VICE PRESIDENT – CORPORATE DEVELOPMENT & INVESTOR RELATIONS (262) 506-6064 InvestorRelations@generac.com GENERAC® 2 FORWARD LOOKING STATEMENTS Certain statements contained in this news release, as well as other information pr ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34627 GENERAC HOLDINGS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

Financial Data and Key Metrics Changes - Net sales increased 70% year-over-year to $807 million, setting an all-time record, and also increased sequentially from the previous quarter [11][47] - Adjusted EBITDA margin rose 840 basis points to 26.5%, the highest since Q4 2013, driven by higher revenue and operating leverage [13][58] - GAAP net income for Q1 2021 was $149 million, compared to $44.5 million in Q1 2020, with diluted net income per share increasing to $2.33 from $0.68 [62][63] Business Line Data and Key Metrics Changes - Residential product sales more than doubled to $542.1 million, a 110% increase year-over-year, driven by strong demand for home standby generators [48][49] - Commercial and industrial (C&I) product net sales increased 18% to $202.4 million, marking a return to growth for the first time since Q3 2019 [52] - Other products and services category, including aftermarket service parts, increased 36% to $62.9 million, benefiting from higher power outage activity [55] Market Data and Key Metrics Changes - Domestic segment sales surged 84% to $693 million, with adjusted EBITDA for the segment at 30% margin [60] - International segment sales increased 15% to $115 million, with core sales up approximately 10% [61] - The company expanded its distribution footprint, ending Q1 with approximately 7,700 residential dealers, an increase of about 400 from the previous quarter [20] Company Strategy and Development Direction - The company is focusing on expanding capacity for home standby generators and clean energy products, with plans to ramp up production in South Carolina and Wisconsin [17][71] - New product launches are expected in the clean energy sector, including a purpose-built generator for off-grid use [25][89] - The company aims to position itself as an energy technology solutions provider, integrating Enbala's technology to enhance its offerings [29][88] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing "Home as a Sanctuary" trend and the impact of recent power outages in Texas as key drivers for increased demand [9][16] - The outlook for 2021 has been significantly raised, with expected net sales growth of 40% to 45% compared to the prior year [74] - Management acknowledged challenges related to supply chain constraints and rising input costs but expressed confidence in mitigating these through operational efficiencies [45][78] Other Important Information - The company reported robust cash flow from operations of $152.5 million, a significant increase from $11.3 million in the prior year [66] - Liquidity position remains strong with over $1 billion available, including $745 million in cash [68] - The company is experiencing longer lead times for products, currently averaging 28 weeks, and is actively working to reduce this [16][100] Q&A Session Summary Question: Enbala and grid services opportunities - Management expressed growing confidence in the Enbala acquisition, noting an increase in the pipeline of opportunities and the potential for product integration [88] Question: Capacity to meet increased demand - Management discussed ongoing efforts to improve operational efficiencies and expand capacity, including plans for additional production lines and subcontracting [94][100] Question: Impact of potential severe weather on capacity - Management indicated that they are preparing for potential increased demand due to severe weather, with plans to double current capacity over the next year [100][103] Question: Future EBITDA margin sustainability - Management suggested that while current margins are strong, future performance will depend on input costs and the ability to manage inflationary pressures [108][109]

GENERAC® 1 INVESTOR PRESENTATION FEBRUARY 2021 "Generac's mission is to ensure peace of mind by developing power products and solutions that make the world safer, brighter, and more productive." INVESTOR RELATIONS Aaron Jagdfeld PRESIDENT & CEO York Ragen CHIEF FINANCIAL OFFICER Mike Harris VICE PRESIDENT – CORPORATE DEVELOPMENT & INVESTOR RELATIONS (262) 506-6064 InvestorRelations@generac.com GENERAC® 2 FORWARD LOOKING STATEMENTS Certain statements contained in this news release, as well as other informati ...

Investment and Growth - The company has invested in manufacturing capacity through automation and acquisitions, ensuring sufficient capacity to meet near-to-intermediate term business goals[63]. - The company has made significant acquisitions, including Pika Energy and Neurio Technologies, to bolster its capabilities in energy storage and monitoring markets[64]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1]. - The Company executed several acquisitions to support its strategic plan, including Selmec in June 2018, Captiva in February 2019, Neurio in March 2019, and Pika in April 2019, enhancing its product offerings and market reach[313][314]. - In July 2020, the Company acquired West Coast Energy Systems, improving its service capabilities in the west coast markets for both commercial and residential products[318]. - The Company acquired Enbala for a purchase price of $41,982 on October 7, 2020, funded solely through cash on hand[354]. - The acquisition of Energy Systems in July 2020 and Mean Green in September 2020 had a combined purchase price of $22,815, also funded through cash on hand[357]. Financial Performance - Net sales for the year ended December 31, 2020, were $2,485.2 million, an increase of 12.7% from $2,204.3 million in 2019[304]. - Gross profit for 2020 was $957.7 million, representing a gross margin of 38.5%, compared to $797.8 million in 2019[304]. - Net income attributable to Generac Holdings Inc. for 2020 was $350.6 million, up 39.1% from $252.0 million in 2019[305]. - Operating income for 2020 was $479.1 million, a 28.7% increase from $372.2 million in 2019[305]. - The company reported a basic net income per share of $5.61 for 2020, compared to $4.09 in 2019, reflecting a 37.0% increase[305]. - Pro forma net sales for 2020 were $2,512,017, compared to $2,204,336 in 2019, reflecting an increase of 13.9%[367]. - Pro forma net income attributable to Generac Holdings Inc. for 2020 was $339,317, compared to $239,925 in 2019, representing an increase of 41.4%[367]. - The company’s total revenue for 2020 was $1,432,565,000, up from $1,084,383,000 in 2019, indicating a growth of approximately 32.1%[310]. Research and Development - The research and development team consists of over 500 engineers focused on power generation, energy storage, and grid services, aiming to enhance product competitiveness and reduce manufacturing costs[64]. - Research and development expenses increased to $80.3 million in 2020, a rise of 17.3% from $68.4 million in 2019, reflecting the company's commitment to innovation[305]. - Research and development expenditures for the years ended December 31, 2020, 2019, and 2018 were $80,251, $68,394, and $50,019 respectively, showing a significant increase of 17.1% from 2019 to 2020[342]. Market Position and Competition - The company has a diverse product offering in the generator market, focusing on standby, portable, and mobile generators, which provides a competitive edge[69]. - The company faces competition from major players like Caterpillar and Cummins in the power generation and energy storage markets[72]. - The company is focused on clean energy products, which has introduced new competitors in the market[70]. Financial Risks and Liabilities - The company is exposed to market risks from foreign currency exchange rates, commodity prices, and interest rates, and uses financial instruments to mitigate these risks[269]. - The company is exposed to fluctuating commodity prices, particularly for steel, aluminum, and copper, which may impact gross margins if prices increase without corresponding selling price adjustments[272][274]. - All outstanding debt under the Term Loan and ABL Facility was subject to floating interest rate risk, with a total notional amount of $1,500 thousand across various interest rate swap contracts[276]. - A hypothetical change in the LIBOR interest rate of 100 basis points would have changed annual cash interest expense by approximately $3.3 million in 2020[276]. - The fair value of interest rate swaps was a liability of $29.9 million as of December 31, 2020[276]. Assets and Liabilities - Total assets as of December 31, 2020, were $3,235.4 million, compared to $2,665.7 million at the end of 2019, marking a growth of 21.4%[302]. - Total liabilities increased to $1,779.0 million in 2020 from $1,571.6 million in 2019, indicating a rise of 13.2%[302]. - The company’s total long-term borrowings stood at $845,911 as of December 31, 2020, slightly up from $840,150 in 2019[408]. - The company reported an accumulated other comprehensive loss of $(34,254) as of December 31, 2020, reflecting significant unrealized losses on cash flow hedges[378]. Employee and Operational Insights - The company has a workforce of 6,797 employees, with 3,705 directly involved in manufacturing[80]. - The company is committed to employee health and safety, with programs designed to support wellness and compliance with safety standards[76]. - The Company recorded a product warranty liability of $59,218 as of December 31, 2020, up from $49,316 in 2019, reflecting a 20% increase year-over-year[405]. Tax and Compliance - The company's provision for income taxes for 2020 was $98,973, compared to $67,299 in 2019, reflecting an increase of 47.3%[423]. - The effective tax rate for 2020 was 22.2%, compared to 21.1% in 2019[432]. - The unrecognized tax benefit increased to $7,613 as of December 31, 2020, from $6,720 in 2019[429].