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    Generac Holdings Inc (GNRC)

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    Business Description

    Generac Holdings Inc. is a leading global designer and manufacturer of energy technology solutions, providing power generation equipment, energy storage systems, energy management devices, and other power products . The company serves residential, light commercial, and industrial markets through a broad network of independent dealers, distributors, retailers, e-commerce partners, wholesalers, and equipment rental companies . Generac's product offerings are categorized into three main segments: Residential products, Commercial & Industrial (C&I) products, and Other products and services .

    1. Residential Products - Offers automatic home standby generators, portable generators, and residential energy storage systems, catering to the needs of homeowners.
    2. Commercial & Industrial (C&I) Products - Provides generators and energy storage systems designed for commercial and industrial applications.
    3. Other Products and Services - Includes aftermarket service parts, product accessories, and grid services, supporting the maintenance and enhancement of power solutions.

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Aaron P. JagdfeldPresident, CEO, and ChairmanSeptember 2008Aaron P. Jagdfeld has been the CEO of Generac since September 2008, a director since November 2006, and Chairman since February 2016. He joined Generac in 1994, became CFO in 2002, and President in 2007 .
    York A. RagenChief Financial OfficerSeptember 2008York A. Ragen has been the CFO of Generac since September 2008. He joined Generac in 2005 and previously held finance roles at APW Ltd. and Arthur Andersen .
    Erik WildeExecutive Vice President, Industrial, AmericasJuly 2016Erik Wilde has been the EVP, Industrial, Americas at Generac since July 2016. He previously worked at Komatsu America Corp. in various leadership roles .
    Patrick ForsytheChief Technical OfficerJanuary 2021Patrick Forsythe has been the CTO at Generac since January 2021. He was EVP of Global Engineering at Generac starting in July 2015 and held engineering roles at Hayward Industries and Ingersoll Rand Company .
    Raj KanuruExecutive Vice President, General Counsel and Secretary2013Raj Kanuru has been the EVP, General Counsel, and Secretary at Generac since 2013. He previously worked at Caterpillar Inc. and Progress Rail Services Inc. .
    Norman TaffePresident, Energy TechnologyAugust 2022Norman Taffe has been the President, Energy Technology at Generac since August 2022. He previously held executive roles at SunPower Corporation and Cypress Semiconductor .
    Kyle RaabePresident, Consumer PowerNovember 2019Kyle Raabe has been the President, Consumer Power at Generac since November 2019. He previously worked at The Master Lock Corporation and held various roles at Generac Power Systems .

    Questions to Ask Management

    1. Given the ongoing softness in the telecom and rental markets leading to a 10% decline in C&I product sales, what steps are you taking to mitigate this weakness, and how confident are you in the recovery of these markets in the near term?
    2. Despite recent growth driven by power outages like Hurricane Beryl, how sustainable is the increased demand for home standby generators, and what strategies are in place to drive growth in regions not experiencing significant outage activity?
    3. With only approximately 6% penetration in the U.S. residential standby generator market, what are the key barriers to increasing market adoption, and how do you plan to overcome them to accelerate growth?
    4. Considering the ongoing challenges in the clean energy market due to higher borrowing costs and changes to California's net metering program, how will these headwinds impact your Residential Energy Technology Products & Solutions, and what is your strategy to navigate them?
    5. You've made significant investments in energy storage systems, EV charging solutions through your agreement with Wallbox, and microgrid technologies; how do you plan to achieve profitable growth in these highly competitive and evolving markets, and what returns do you expect from these investments?

    Share Repurchase Program

    Program DetailsProgram 1Program 2
    Approval DateJuly 2022 February 12, 2024
    End Date/Duration24 months 24 months
    Total additional amount$500 million $500 million
    Remaining authorization$26.3 million $347,256,871
    DetailsReplaced by Program 2 Active, market conditions

    Debt Maturity Schedule

    YearAmount DueDebt TypeInterest Rate% of Total Debt
    2024$11.875Tranche A Term Loan Facility6.93% 0.8% = (11.875 / 1,468.666) * 100
    2024$150.000Revolving Facility6.93% 10.2% = (150.000 / 1,468.666) * 100
    2024$65.540Short-term BorrowingsN/A4.5% = (65.540 / 1,468.666) * 100
    2025$51.875Tranche A Term Loan Facility6.93% 3.5% = (51.875 / 1,468.666) * 100
    2026$70.625Tranche A Term Loan Facility6.93% 4.8% = (70.625 / 1,468.666) * 100
    2027$755.000Tranche A Term Loan Facility6.93% 51.4% = (755.000 / 1,468.666) * 100
    2027$150.000Revolving Facility6.93% 10.2% = (150.000 / 1,468.666) * 100
    2028$5.000Tranche B Term Loan Facility6.95% 0.3% = (5.000 / 1,468.666) * 100
    2029$5.000Tranche B Term Loan Facility6.95% 0.3% = (5.000 / 1,468.666) * 100
    2030$5.000Tranche B Term Loan Facility6.95% 0.3% = (5.000 / 1,468.666) * 100
    2031$467.500Tranche B Term Loan Facility6.95% 31.8% = (467.500 / 1,468.666) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Kohler - Competitor in residential products .
    • Briggs & Stratton - Competitor in residential products .
    • Cummins - Competitor in both residential and C&I products .
    • Honda - Competitor in residential products .
    • Champion - Competitor in residential products .
    • Techtronics International - Competitor in residential products .
    • Husqvarna - Competitor in residential products .
    • Ariens - Competitor in residential products .
    • LG Chem - Competitor in residential products .
    • Tesla - Competitor in residential products .
    • Enphase - Competitor in residential products .
    • Solar Edge - Competitor in residential products .
    • Google - Competitor in residential products .
    • Resideo - Competitor in residential products .
    • Emerson - Competitor in residential products .
    • Caterpillar - Competitor in C&I products .
    • IGSA - Competitor in C&I products .
    • AKSA - Competitor in C&I products .
    • MultiQuip - Competitor in C&I products .
    • Wacker - Competitor in C&I products .
    • Doosan - Competitor in C&I products .
    • Atlas Copco - Competitor in C&I products .
    • Himoinsa - Competitor in C&I products .
    • FG Wilson - Competitor in C&I products .
    • Woodward - Competitor in C&I products .
    • Planelec - Competitor in C&I products .
    • Co-map - Competitor in C&I products .
    • Autogrid - Competitor in grid services optimization software .
    • Energy Hub - Competitor in grid services optimization software .

    Auditor

    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLPApril 20, 2016 PresentCurrent auditor.
    Ernst & Young LLPN/AApril 20, 2016 The Audit Committee recommended and approved the dismissal. No disagreements or reportable events.