Generac Investor Day March 25, 2026 1 Agenda 2 • Introduction Kris Rosemann • Generac Overview – Accelerating a Track Record of Growth Aaron Jagdfeld • Commercial & Industrial – A Generational Growth Opportunity Erik Wilde • Break • Generac Home – Powerful Alone. Brilliant Together. Norm Taffe • Home Standby – Market Leader with Significant Penetration Opportunity Kyle Raabe • Financial Framework – Creating Significant Value for Shareholders York Ragen • Questions & Answers Presenters Kyle Raabe President, ...

Core Insights - Custom Truck One Source reported record quarterly revenue of $528 million for Q4 2025, with adjusted EBITDA of $121 million, reflecting an 18% year-over-year increase. Full-year revenue reached $1.944 billion, an 8% increase from 2024, with adjusted EBITDA up 13% [7][8]. Segment Performance - APS (Advanced Power Solutions) generated $37 million in revenue for Q4, maintaining a gross margin of 27%. The full-year gross margin was just under 24%, improving by nearly 120 basis points year-over-year [1]. - TES (Truck and Equipment Sales) reported Q4 equipment sales of $284 million, down 8% year-over-year due to customers advancing capital spending and deferring deliveries. Full-year revenue was $1.1 billion, up 4% and the highest in the segment's history [2]. - ERS (Equipment Rental Solutions) achieved Q4 revenue of $207 million, a 20% increase year-over-year, with full-year revenue growing 17%. Utilization averaged 83.6% in Q4, up approximately 470 basis points from Q4 2024 [3][5]. Financial Performance - The company reported a Q4 net income of approximately $21 million but a full-year GAAP net loss of about $31 million, affected by a prior year gain from a sale-leaseback transaction. Excluding this gain, underlying net income improved due to higher gross profit and lower interest expenses [4]. - The average OEC (Original Equipment Cost) on rent was just under $1.4 billion in Q4, up 14% year-over-year, with management noting historically high levels of utilization and OEC on rent [5][6]. Strategic Initiatives - A strategic partnership with Hiab was highlighted, aimed at broadening the product portfolio and enhancing service capabilities in various markets [10]. - The company is investing in expanding aftermarket service capacity to support TES customers and grow parts and service revenue [11]. Balance Sheet and Cash Flow - The company ended 2025 with net debt of $1.65 billion and net leverage of 4.3x, an improvement from the previous year. Working capital progress was noted, with inventory declining by over $100 million in Q4 [12][13]. - Net rental capital expenditures exceeded $40 million in Q4, with total rental fleet OEC reaching almost $1.64 billion, a record high [14]. 2026 Outlook - Full-year 2026 guidance projects revenue between $2.005 billion and $2.12 billion, with adjusted EBITDA of $410 million to $435 million, indicating year-over-year growth of 3% to 9% in revenue and 7% to 13% in adjusted EBITDA [15]. - The company plans to reduce net investment in the rental fleet to approximately $150 million to $170 million in 2026, down from over $250 million in 2025, while still growing the rental fleet at a mid-single-digit rate [15]. Reporting Changes - Starting with the quarter ending March 31, 2026, the company will shift to two reportable segments: Specialty Equipment Rentals (SER) and Specialty Truck Equipment and Manufacturing (STEM) [16].

How can you keep power going in a blackout? Smelly, high-maintenance generators are out. Battery powered backups—which can keep fridges on for days—are in, writes columnist Nicole Nguyen. 🔗 https://t.co/APzOeXxOib https://t.co/Rp6Qy58cnq ...

RT Tennessee Emergency Management Agency (TEMA) (@TennesseeEMA)(February 3, 2026 | 12:15 p.m. CT): In response to Winter Storm Fern, state and local partners worked together to help communities most impacted by prolonged power outages. Through a generous donation from Elon Musk and xAI, the state received and completely distributed 500 generators to the most impacted communities in Tennessee to support residents with urgent needs.Distribution is being coordinated locally. ...

How can you keep power going in a blackout? Smelly, high-maintenance generators are out. Battery powered backups—which can keep fridges on for days—are in, writes columnist Nicole Nguyen. 🔗 https://t.co/lyGvhI3s9N https://t.co/UqZuxHZstc ...

How can you keep power going in a blackout? Smelly, high-maintenance generators are out, battery powered backups—which can keep fridges on for days—are in, writes @nicnguyen https://t.co/wTrR4eWao1 ...

How can you keep power going in a blackout? Smelly, high-maintenance generators are out. Battery powered backups—which can keep fridges on for days—are in, writes columnist Nicole Nguyen. 🔗 https://t.co/3cq6H31bTT https://t.co/wos2ZULvRx ...

Core Insights - Caterpillar is transforming customer usage of its equipment as demand shifts towards data centers, autonomous operations, and energy reliability [1] - The company reported significant growth in Power and Energy sales, driven by large orders related to AI and cloud workloads [3] Group 1: Data Center Demand - Data center construction is a primary demand driver, with Caterpillar's generator sets and turbines being used as primary power sources for hyperscale and enterprise data centers [3] - Power and Energy sales to users increased by 37% in the fourth quarter, while power generation sales rose by 44% [3] Group 2: On-Site Power Generation - Operators are building on-site power plants to avoid grid constraints and ensure uptime for compute-intensive workloads [4] - The demand for natural gas is increasing as operators rely on it for on-site generation, leading to higher orders for gas compression equipment and turbines [5] Group 3: Autonomous Operations in Mining - In mining and quarry operations, there is an expansion in the use of autonomous hauling systems to enhance productivity and safety [6] - The number of autonomous haul trucks in operation increased to 827, up from 690 the previous year [6] Group 4: Construction Industry Trends - Sales to users in Construction Industries rose by 11% in the quarter, driven by equipment deployment for site preparation and energy projects [8] - Contractors are increasingly relying on rental fleets to support large, capital-intensive builds [8] Group 5: Services and Connectivity - Services revenue reached $24 billion for the year, supported by a connected fleet of over 1.6 million assets [9] - Caterpillar anticipates that these use cases will drive growth towards the upper end of its long-term target range by 2026, with Power and Energy leading the way [9]

Core Insights - Caterpillar's fourth-quarter results reflect the global economy, with sales boosted by increased spending on artificial intelligence, despite anticipating over $2 billion in tariff impacts in the coming year [1][4] - The company's power and energy segment, which produces generators, experienced a sales increase of over 20%, becoming its largest business by sales, surpassing the construction unit [1][2] Financial Performance - Caterpillar's shares rose approximately 60% over the past year, significantly outperforming the S&P 500, which saw gains of about 15% during the same period [2] - The company reported an adjusted profit per share of $5.16 for the quarter ending December 31, slightly up from $5.14 a year ago, with revenue increasing to $19.1 billion from $16.2 billion [6] Market Dynamics - There is a rising demand for "prime power" systems, as data-center customers seek additional on-site power to support rapid growth [3] - Despite better-than-expected sales, tariff-related costs are limiting margin expansion, with expectations that these headwinds will continue through 2026 [5] Tariff Implications - Caterpillar warned of tariff-related costs projected at $2.6 billion for 2026, with last year's tariffs amounting to $1.8 billion [4] - The company has set an adjusted operating profit margin target of 15% to 19% through 2024, increasing to 21% to 25% by 2030, contingent on sales levels [6]

Financial Data and Key Metrics Changes - Caterpillar achieved full year sales and revenues of $67.6 billion, the highest in its history, with a 4% year-over-year growth [5][10] - Adjusted operating profit margin for the full year was 17.2%, within the target range, and adjusted profit per share was $19.06 [5][10] - Fourth quarter sales and revenues reached $19.1 billion, an 18% increase compared to the previous year, with adjusted operating profit margin at 15.6% and adjusted profit per share at $5.16 [6][23] Business Line Data and Key Metrics Changes - Construction Industries' sales to users grew 11% in the fourth quarter, driven by strong growth in North America [7][27] - Resource Industries' sales to users declined 7% in the fourth quarter, consistent with expectations due to capital discipline in mining [8][28] - Power and Energy, the largest segment, saw a 37% increase in sales to users, with power generation growing 44% [9][29] Market Data and Key Metrics Changes - North America showed better-than-expected growth in construction, while EAME and Asia Pacific experienced slight declines [8][16] - Latin America saw growth that exceeded expectations, while Resource Industries benefited from rising demand for copper and gold [17] - The backlog grew to a record level of $51 billion, an increase of 71% year-over-year, indicating strong market demand [5][6] Company Strategy and Development Direction - Caterpillar's strategy focuses on profitable growth through commercial excellence, advanced technology leadership, and operational excellence [20][21] - The company aims to double power generation sales by 2030 and is expanding its capacity in both large engines and industrial gas turbines [12][13] - The company is committed to returning substantially all MP&E-free cash flow to shareholders, maintaining its status as a dividend aristocrat [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong backlog and healthy end markets, anticipating sales growth of 5%-7% in 2026 [13][33] - The impact of tariffs is expected to continue, with incremental tariff costs projected at $2.6 billion for 2026 [36] - The company is focused on managing costs and ensuring proper margins despite the challenges posed by tariffs and inflation [35][37] Other Important Information - Caterpillar generated $9.5 billion in MP&E-free cash flow for 2025, allowing for significant shareholder returns [10][31] - The company is experiencing strong demand for its products in data centers and is actively working with customers to align order schedules with project timelines [49][51] Q&A Session Summary Question: Can you comment on the order growth and backlog growth? - Management highlighted a record backlog of $51 billion, with strong order rates across all segments, particularly in Construction Industries and Power and Energy [46][47] Question: How do you view the capacity increase and potential overcapacity risks? - Management indicated that capacity planning is based on customer forecasts and that they are closely monitoring demand across all industries to avoid overcapacity [51][52] Question: What is the outlook for sales growth given the strong backlog? - Management noted that while the backlog is strong, sales growth may be moderated by capacity constraints and the timing of bringing new capacity online [55][56]