Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from Debt [USD, Thousands]

Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

8dedf53150e229dd02fa4a2086da6275f6ac5b412f7f4f2d326332621dfd454e

Penetration of the addressable market of homes in the United States for home standby generators (percentage)

49fcc04566b5fcba57155cb46a7309fc86eccfb1e14a00abda2c41ad69fcc4e0

Residential Products

Commercial & Industrial

Other Products

Residential Power Products

Commercial & Industrial Power Products

Other

Domestic Segment

International Segment

Total Net Sales

Total Revenue

6359ec74982ad7feebea135393b4fce02b5ed3431b75827d2c226b7af9ec59c6

b275725504330cd52a14cf30f9c7a6af85769999de017c5da5ac778c54217a2f

543383961104c80ef8dafb475dd729aca507a6b27bdcc1f97265145172cd0ab7

Domestic

International

- External Net Sales

- Intersegment Sales

Intercompany Elimination

6e74224696311d53288dca5d1245cdc5fb3f72ae05612104449836f7212e6b71

fc8d4f1c5977548299e683c6f33c14e3ed2fd7dcd8e92fc04b95ac141a231ddb

Net sales (USD, thousands)

Costs of goods sold (USD, thousands)

Gross profit (USD, thousands)

Selling and service expenses (USD, thousands)

Research and development expenses (USD, thousands)

General and administrative expenses (USD, thousands)

Amortization of intangibles (USD, thousands)

Total operating expenses (USD, thousands)

Income from operations (USD, thousands)

Interest expense (USD, thousands)

Investment income (USD, thousands)

Change in fair value of investment (USD, thousands)

Other, net (USD, thousands)

Total other expense, net (USD, thousands)

Income before provision for income taxes (USD, thousands)

Provision for income taxes (USD, thousands)

Net income (USD, thousands)

Net income attributable to noncontrolling interests (USD, thousands)

Net income attributable to Generac Holdings Inc. (USD, thousands)

7483363d42a727a97f3bdfe7ad6e7dd41565a456d957c8fb6e5963197c6cdae8

0855ef15ce29265fd2162dd05dd09a6814ece828825056f43ef429ed0b6c8816

The jump in cash for Q1 2024 was primarily driven by **robust operating cash flow**, with Generac generating **$111,898** in net cash from operating activities, a significant turnaround from the previous year’s negative performance. This improvement was due to **higher operating earnings**, a **reduction in primary working capital**, and the absence of a **large one-time cash tax payment** that had occurred in the prior year.  **[0001437749-24-014044_ex_663762.htm:0]** **[0001437749-24-014044_ex_663762.htm:7]** **[GNRC_3381808_6]**  Additionally, while there were cash outflows from investing activities (mainly due to expenditures on property and equipment and equity method investments) and financing activities (including repayments of short-term and long-term borrowings along with payments for additional ownership interests), these factors only partially offset the operating gains. A minor impact also came from exchange rate changes.  **[0001437749-24-014044_ex_663762.htm:7]** 

What factors contributed to the jump in cash in Q1 2024?

The current portion nearly doubled because of **significant debt-related activities**. The company undertook **substantial debt repayments** (amounting to **$609.5 million**) and **refinanced its Tranche B Term Loan Facility** on **July 3, 2024**, which introduced quarterly installments starting in **September 2024**, increasing the due obligations. Additionally, there was a notable increase in the **current portion of finance lease obligations** during this period.  **[0001437749-24-032683_ex_738669.htm:6]** **[0001437749-24-033337_gnrc20240930_10q.htm:2]** **[0001437749-24-024883_gnrc20240630_10q.htm:19]** **[0001437749-25-004353_gnrc20241231_10k.htm:114]** 

Why did the current portion of long-term borrowings nearly double in Q3 2024?

The significant drop in long-term borrowings in Q3 2024 was primarily caused by **substantial debt repayments** totaling **$560.6 million** during the nine months ended September 30, 2024, which were only partially offset by **new borrowings of $506.5 million** during the same period. Additionally, there were changes in finance lease obligations, which increased, and adjustments in the original issue discount and capitalized debt fees also contributed to the net reduction in the borrowings.  **[0001437749-24-033337_gnrc20240930_10q.htm:19]** **[0001437749-24-033337_gnrc20240930_10q.htm:45]** **[0001437749-24-032683_ex_738669.htm:6]** 

What caused the significant drop in long-term borrowings in Q3 2024?

d2b790e273648c2970c9f317008723e27a51f2d9276aa8220b2e4e5ac53db28d

The **sharp increase** in operating cash flow for Q4 2023 was primarily driven by a **reduction in inventory levels** (a **$144 million decrease**) that boosted cash flow, **higher operating earnings** supported by margin expansion from a favorable sales mix and cost efficiencies, and a noticeable **abatement of supply chain challenges** compared to the prior year.  **[GNRC_3373246_8]** **[GNRC_3373246_7]** 

What drove the sharp increase in Operating Cash Flow in Q4 2023?

The surge in **Operating Cash Flow** for FY 2023 was driven by a combination of factors, including **lower investment in working capital**, a favorable shift in **inventories** (which decreased by **$262,670 thousand** compared to an increase in the previous year), a smaller decline in **accounts payable** (a reduction of **$120,900 thousand** instead of a larger drop), and beneficial changes in other **operating assets and liabilities** that helped offset lower operating earnings.  **[0001437749-24-003977_ex_625113.htm:9]** **[0001437749-24-005040_gnrc20231231_10k.htm:84]** **[0001437749-24-005040_gnrc20231231_10k.htm:65]** 

What contributed to the surge in Operating Cash Flow in FY 2023?

The documents report that net cash provided by operating activities was **$111,898 thousand** in Q1 2024 and **$77,664 thousand** in Q2 2024.  **[0001437749-24-015075_gnrc20240331_10q.htm:5]** **[0001437749-24-024883_gnrc20240630_10q.htm:5]**  However, the detailed explanation provided in the documents focuses on the overall six‐month period ending June 30, 2024, where improvements in operating earnings and favorable changes in working capital components (such as accounts receivable, inventories, and accounts payable) contributed to a significant increase compared to the period in 2023.  **[0001437749-24-024883_gnrc20240630_10q.htm:43]**  In other words, while the six‐month performance shows a strong improvement, there isn’t a specific explanation in the documents for the notable dip in Q2 compared to Q1. The factors mentioned are for the period as a whole and do not break out a detailed reason for Q2’s lower figure.

Why did Operating Cash Flow dip notably in Q2 2024?

The provided documents do not include any information on the factors that led to the jump in **Free Cash Flow** in Q3 2024. The available details focus solely on **Expenditures for property and equipment**. Please let me know if you need any further clarification based on the available data.  **[0001437749-23-030646_gnrc20230930_10q.htm:5]** **[0001437749-24-033337_gnrc20240930_10q.htm:5]** **[0001437749-24-032683_ex_738669.htm:12]** 

What factors led to the jump in Free Cash Flow in Q3 2024?

5254243f8dd6c4026cabbca5d428280350eb692d312aac4814b0173cccb43787

In FY 2023, net sales were lower primarily due to a **significant decline in residential product sales**, which dropped by **$848,942 thousand (-29.2%)** compared to FY 2022. This decrease was driven by factors such as **elevated field inventory levels**, strong comparisons from the prior year, and **lower shipments** for products like home standby generators, portable generators, and clean energy products. Although there was some offset from growth in commercial & industrial product sales and improvements in the international segment, these gains were not enough to counterbalance the steep decline in the domestic segment, leading to an overall net decrease of **$542,070 thousand (-11.9%)** in FY 2023.  **[0001437749-24-005040_gnrc20231231_10k.htm:62]** **[0001437749-24-003977_ex_625113.htm:0]** **[0001437749-24-005040_gnrc20231231_10k.htm:61]** **[0001437749-24-005040_gnrc20231231_10k.htm:104]** 

Why were net sales lower in FY 2023?

Based on the provided documents, there is no explanation for a drop in net income in Q1 2024. In fact, the discussion about net income in Q1 2024 focuses on a **year-over-year increase** compared to Q1 2023—attributed to a **16.1% rise in gross profit**, a **50.3% boost in operating income**, lower costs of goods sold (down **6.9%**), and a reduced effective tax rate (from **35.7%** to **31.2%**).  **[0001437749-24-014044_ex_663762.htm:0]** **[GNRC_3381808_6]** **[0001437749-24-015075_gnrc20240331_10q.htm:32]**  The documents do show that Q4 2023 net income was **$96,810 thousand**  **[0001437749-24-005040_gnrc20231231_10k.htm:82]**  versus **$26,478 thousand** in Q1 2024  **[0001437749-24-015075_gnrc20240331_10q.htm:3]** , but no explanation is provided for this quarter-on-quarter drop.

Why did net income drop so much in Q1 2024?

The boost in gross profit in Q3 2024 was driven by multiple factors. The **favorable sales mix** from stronger shipments of **home standby generators** helped create a more profitable product mix.  **[GNRC_3405083_5]** **[0001437749-24-033337_gnrc20240930_10q.htm:37]** **[0001437749-24-032683_ex_738669.htm:1]**  In addition, **lower input and logistics costs** for raw materials and transportation improved margins.  **[GNRC_3405083_5]** **[0001437749-24-033337_gnrc20240930_10q.htm:37]** **[0001437749-24-032683_ex_738669.htm:1]**  The company also benefited from **improved production efficiencies** in its manufacturing processes, particularly for home standby generators.  **[GNRC_3405083_5]** **[0001437749-24-033337_gnrc20240930_10q.htm:37]** **[0001437749-24-032683_ex_738669.htm:1]**  Finally, the impact of **elevated power outage activity**, fueled by events such as Hurricanes Helene and Milton, increased demand for high-margin products like home standby and portable generators.  **[GNRC_3405083_5]** **[0001437749-24-033337_gnrc20240930_10q.htm:37]** **[GNRC_3405083_1]** 

What drove the boost in gross profit in Q3 2024?

The negative turn in noncontrolling interests for **Q2 2024** was primarily due to **lower contributions from international operations**—where declines in sales and adjusted EBITDA margins, driven by reduced operating leverage on lower shipments, diminished the share of income attributable to noncontrolling interests—as well as an **improvement in consolidated net income** that shifted the profitability distribution more towards Generac Holdings Inc. than its noncontrolling interests.  **[GNRC_3395296_6]** **[0001437749-24-024883_gnrc20240630_10q.htm:37]** 

Why did noncontrolling interests turn negative in Q2 2024?

b195e95e8da5f9736409c03ad4ae1d1c57f7bba0ab86338c333a5f1bf20436fe

Generac Holdings Inc (GNRC)

Financials