Core Insights - Generac Holdings Inc. reported a fourth-quarter loss due to a significant legal settlement charge, but anticipates strong growth in 2026 driven by increasing data center demand and a normalization of outage activity [1] Financial Performance - Fourth-quarter net sales were $1.09 billion, a 12% decrease year-over-year, primarily due to a decline in residential generator shipments amid a weaker power outage environment compared to the previous year [2] - Residential product sales fell 23% to $572 million, while commercial and industrial (C&I) sales rose 10% to $400 million, largely driven by increased revenue from data center customers [3] - The company posted a net loss of $24 million, or $0.42 per share, compared to a net income of $117 million a year earlier, which included a $104.5 million provision for a legal settlement and a $15.6 million inventory provision [5] - Adjusted net income decreased to $95 million, or $1.61 per share, from $168 million in the prior-year quarter, with adjusted EBITDA falling to $185 million, representing a 17.0% margin compared to 21.5% a year ago [6] Sales and Revenue Trends - For the full year 2025, net sales decreased 2% to $4.21 billion, with residential sales down 7% to $2.27 billion, while C&I sales increased 5% to $1.46 billion [7] - Net income attributable to Generac fell to $160 million, or $2.69 per share, from $316 million, or $5.39 per share, in 2024 [7] Operational Metrics - Cash flow from operations declined to $438 million in 2025 from $741 million in 2024, and free cash flow dropped to $268 million due to lower operating income and working capital dynamics [8] - The company repurchased approximately 1.1 million shares for $148 million during the year and has approved a new $500 million share repurchase authorization over the next 24 months [8] Strategic Initiatives - CEO Aaron Jagdfeld noted that momentum in the data center segment has accelerated, with Generac expanding its role as a supplier to hyperscale operators and increasing manufacturing capacity for large megawatt-scale generators [4]

Exhibit 99.1 Generac Reports Fourth Quarter and Full-Year 2025 Results Data center opportunities and assumed recovery in power outage environment support expectations for strong sales growth in 2026 WAUKESHA, WISCONSIN (February 11, 2026) – 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, 2025 and initiate ...

Core Insights - Generac Holdings Inc. anticipates strong sales growth in 2026, driven by data center opportunities and recovery in power outage environments [1][6] Fourth Quarter 2025 Highlights - Net sales decreased by 12% to $1.09 billion compared to $1.23 billion in Q4 2024, with a slight favorable impact from acquisitions and foreign currency [4] - Residential product sales fell approximately 23% to $572 million, while Commercial & Industrial (C&I) product sales increased by 10% to $400 million, primarily due to higher revenue from data center customers [4][12] - The company reported a net loss of $24 million, or $0.42 per share, compared to a net income of $117 million, or $2.15 per share in the same period last year [4] - Adjusted net income was $95 million, or $1.61 per share, down from $168 million, or $2.80 per share in Q4 2024 [4] - Adjusted EBITDA was $185 million, representing 17.0% of net sales, compared to $265 million, or 21.5% of net sales in the prior year [4][8] Full-Year 2025 Highlights - Net sales for 2025 decreased by 2% to $4.21 billion from $4.30 billion in 2024, with a slight favorable impact from acquisitions and foreign currency [4] - Residential product sales decreased by 7% to $2.27 billion, while C&I product sales increased by 5% to $1.46 billion [4] - Net income for 2025 was $160 million, or $2.69 per share, down from $316 million, or $5.39 per share in 2024 [4] - Adjusted EBITDA for 2025 was $716 million, or 17.0% of net sales, compared to $789 million, or 18.4% of net sales in the prior year [4] 2026 Outlook - The company expects full-year 2026 net sales growth in the mid-teens percent range, including a 1% favorable impact from foreign currency and acquisitions [15] - C&I product sales are projected to increase in the 30% range, driven by data center customer revenue and the acquisition of Allmand [18] - Residential product sales are expected to rise by approximately 10%, assuming a return to average power outage activity [18] - The anticipated net income margin for 2026 is expected to be around 8.0 to 9.0%, with an adjusted EBITDA margin of approximately 18.0 to 19.0% [19] Business Segment Results - Domestic segment sales decreased by approximately 17% to $889 million, primarily due to weaker shipments of home standby and portable generators [12] - International segment sales increased by approximately 12% to $209.2 million, driven by higher revenue from data center customers [16] - Adjusted EBITDA for the domestic segment was $151.5 million, or 17.0% of total sales, down from 22.7% in the prior year [13] Share Repurchase Program - The company repurchased approximately 1.1 million shares for $148 million in 2025 and initiated a new stock repurchase program allowing for up to $500 million over the next 24 months [5]

Wall Street analysts forecast that Generac Holdings (GNRC) will report quarterly earnings of $1.81 per share in its upcoming release, pointing to a year-over-year decline of 35.4%. It is anticipated that revenues will amount to $1.17 billion, exhibiting a decrease of 5.1% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial ...

Key Takeaways Generac will report Q4 2025 earnings on Feb. 11, with revenues expected to decline 5.2% year over year.GNRC's earnings estimate is $1.81 per share, down 35.4% from last year and revised lower in 60 days.Strength in C&I sales, energy storage demand and new products may help offset residential weakness.Generac Holdings Inc. (GNRC) will report fourth-quarter 2025 results on Feb. 11, before the market opens. The Zacks Consensus Estimate for revenues is pinned at $1.17 billion, down 5.2% from the p ...

Core Viewpoint - Pelican Bay Capital Management (PBCM) reported strong performance in its Concentrated Value Strategy for Q4 2025, driven by AI-related stocks and commodities exposure, outperforming the Russell 1000 Value Index [1]. Group 1: PBCM Performance - PBCM's Concentrated Value Strategy returned 8.5% in Q4 2025, compared to a 3.8% return for the Russell 1000 Value Index [1]. - For the full year, the Strategy achieved a return of 20.6%, exceeding the Index's 15.9% [1]. - The firm focuses on investing in high-quality companies with strong balance sheets [1]. Group 2: Generac Holdings Inc. (NYSE:GNRC) - Generac Holdings Inc. was highlighted as an underperformer in PBCM's Q4 2025 investor letter, with a stock price of $183.53 as of February 6, 2026 [2]. - The one-month return for Generac was 17.20%, and it experienced a 26.51% increase over the past twelve months, with a market capitalization of $10.77 billion [2]. - PBCM noted that Generac and Brown-Forman experienced weakness in Q4, as both companies gave back some gains from Q3 [3]. - PBCM expressed a willingness to add to its position in Generac if the stock continues to decline [3]. Group 3: Hedge Fund Interest - Generac Holdings Inc. was held by 54 hedge fund portfolios at the end of Q3 2025, an increase from 51 in the previous quarter [4]. - While acknowledging Generac's potential, PBCM believes certain AI stocks present greater upside potential and less downside risk [4].

Core Insights - Generac Holdings (GNRC) is a leading manufacturer of power generation equipment, focusing on backup power solutions due to rising demand from outages, data centers, and electrification trends [1] Revenue Segments - In 2024, Generac's revenue reached $4.3 billion, with Residential products contributing 56-57% ($2.4 billion), Commercial & Industrial (C&I) at 32% ($1.4 billion), and Other products/services at 11% [2] - Domestic sales account for 84% of total sales, while international sales make up 16% [2] - The trailing twelve months (TTM) revenue through mid-2025 stands at $4.41 billion, but fiscal year 2025 revenues are projected to remain flat near $4.3 billion [2] Growth Rates - Revenue grew by 6.8% in 2024 after an 11.9% decline in 2023, with TTM growth at 9.7% [3] - Residential products averaged 9.5% year-over-year growth over two years, while C&I experienced a 2.2% decline [3] - Analysts project a 7.7% revenue growth over the next year, with flat sales expected in 2025 amid weak outages [3] - Earnings per share (EPS) is expected to rise by 15.8% to $7.54, but the Zacks consensus for 2025 projects EPS at $6.61, indicating a 9% annual drop [3] Q3 Report Displays the Weakness - In Q3 2025, Generac reported adjusted EPS of $1.83, missing the Zacks Consensus Estimate of $2.25 by 18% [4] - Net sales were $1.11 billion, down 5% from $1.17 billion in the prior-year quarter, also missing the consensus estimate of $1.2 billion [4] Demand and Backlog - Management views data center power as a "generational opportunity," with potential to double C&I sales over the next three to five years due to hyperscale and AI-driven capacity build-out [8] - The order backlog for large megawatt generators has roughly doubled in recent quarters, although fewer power outages have kept sales flat in 2025 [8][9] Adjusted Expectations - Due to a weak power outage environment, management has revised its expectations for 2025, now forecasting flat revenues compared to earlier guidance of a 2-5% increase [6] - Net income margin is now expected to be 6%, down from the previous guidance of 7.5-8.5% [7] - Adjusted EBITDA margin is estimated at 17%, compared to the previous range of 18% to 19% [7] - Free cash flow conversion from adjusted net income is now expected to be 80%, down from the previous guidance of 90% to 100% [7] Customers, Partners, and Competition - Key customers include residential homeowners and C&I clients like data centers [10] - Generac has acquired a manufacturing site in Sussex, WI, to expand C&I production, which is crucial for long-term growth [11] - Bloom Energy (BE) is emerging as a competitor with its solid oxide fuel cells targeting data centers, posing indirect competition to Generac's combustion generators [12][14]

Core Viewpoint - Generac Holdings Inc. is set to release its fourth quarter and full-year 2025 financial results on February 11, 2026, with a conference call scheduled for 10:00 a.m. EST to discuss the earnings highlights [1]. Company Overview - Generac is a total energy solutions company founded in 1959, recognized as a leading global designer, manufacturer, and provider of energy technology solutions [3]. - The company offers a wide range of products including power generation equipment, energy storage systems, and energy management devices, catering to residential, light commercial, and industrial markets [3]. - Generac pioneered the affordable backup generator and established the automatic home standby generator category, continuing to expand its energy technology offerings to promote more resilient and sustainable energy solutions [3].

Group 1 - Generac's stock has been trading unevenly due to concerns about grid reliability and extreme weather, alongside its exposure to housing market cyclicality [3][7] - The AI price-prediction model forecasts a moderate increase in Generac's stock price, projecting an average price of $180.50 by mid-April, reflecting improving fundamentals without fully committing to a housing-driven acceleration [5][9][10] - The company's core narrative is focused on power reliability and grid stress, with long-term demand for standby generators and energy storage systems supported by severe weather events and aging infrastructure [7] Group 2 - Near-term performance of Generac is closely linked to housing trends, with residential generator installations tracking new home construction, which has slowed due to a recent housing downturn [8] - Recent commentary indicates inventory normalization and improving sell-through, which have stabilized revenue expectations for Generac [8] - Technical indicators suggest a modestly positive outlook for the stock, with signs of stabilization after recent volatility [10]

Core Insights - The impact of severe winter weather on the power grid is significant, with low temperatures leading to issues like frozen pipes, which can be mitigated by backup power sources such as generators [1][2] - There is an increasing trend in the frequency and severity of climate-related events, prompting both proactive and reactive purchasing behaviors for generators among consumers [3][4] - Winter outages present unique challenges compared to summer outages, as they can be more dangerous and less survivable due to extreme cold [5][6] Inventory and Production - The company currently has a strong inventory position, benefiting from a lack of significant hurricane activity in the previous fall, which typically would have depleted stock [8][9] - The company is prepared for the current storm event, likening the planning and forecasting to that of a hurricane, indicating readiness to meet demand [9] - Tariffs have impacted production costs and pricing strategies, leading the company to adjust its supply chain while attempting to minimize price increases for customers [10][11]