Ted Giletti

Ted Giletti inquired about Generac's energy technology revenues in 2025 relative to the $300 million-$400 million range, the expected 2026 revenues considering the Puerto Rico impact, and whether the focus remains on achieving break-even EBITDA margins for that business by 2027.

Answer

President and CEO Aaron Jagdfeld confirmed that 2025 energy technology revenues were at the high end of the range, around $375 million. For 2026, revenues are expected to be within the $300 million-$400 million range, with the end of the DOE program in Puerto Rico being offset by growth in PWRmicro and ecobee. He affirmed that Generac remains highly focused on achieving break-even profitability for the collective energy technology product set by 2027, despite increasing integration complexities.

Ted Giletti inquired about Generac's energy technology revenues in 2025 relative to the $300-$400 million range, the expected 2026 revenues given the Puerto Rico impact, and whether the focus remains on achieving break-even EBITDA margins for that business by 2027.

Answer

President and CEO Aaron Jagdfeld confirmed that 2025 energy technology revenues were at the high end of the range, around $375 million. He projected 2026 revenues would pull back slightly due to the DOE program's end but remain within the $300-$400 million range, supported by PowerMicro and ecobee growth. Jagdfeld affirmed the company's commitment to achieving break-even profitability for the collective product set by 2027, with significant progress expected in 2026.

Ted Giletti, on behalf of Citi, sought confirmation that full-year gain on sale revenue would align with 2021-2023 levels and asked about the expected cadence for the remainder of the year.

Answer

CFO Chuck Melko confirmed that the company still expects full-year gain on sale revenue to be in line with the average levels seen from 2021 to 2023. He indicated that Q3 and Q4 would consequently be higher than Q2 and that the total should be prorated across the second half of the year.