Interprétation IA fondée sur des extraits vérifiés. Les déclarations de l’entreprise et les limites de couverture restent explicites.
Méthode quality-scores-2 : six catégories de même poids. Le score global exige une couverture complète. Les données manquantes ne valent pas zéro. Les évaluations qualitatives sont des interprétations sourcées, pas des probabilités. 5/6 · 22/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Dealer installation, service and training capabilities are established, but comparative protection against competitors is insufficiently demonstrated to establish a moat.
durability · — · Two decades of network development support persistence of a capability, but do not establish durable economic protection. Current data-center supply constraints could be temporary.
customer dependency · — · Monitoring and repeat data-center orders indicate engagement, but customer dependency, exclusivity and meaningful switching friction are not established.
erosion resilience · — · Pricing offsets and commercial wins coexist with demand sensitivity and delivery impairments. The passages cannot establish resilience of a structural advantage through competitive erosion.
Pouvoir de fixation des prix50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Realized increases partially offset costs in 2022–2023 and supported 2025 results. First-quarter 2026 pricing exceeded input-cost increases, but tariff-related increases also hurt demand and margins, and second-quarter offsets were partial. Outcomes are mixed.
retention · 2/4 · Management reports additional orders from existing data-center customers, and finalized terms committed nearly $700 million of 2027 volume. These support repeat demand and engagement, but their representativeness is unknown and cancellation exposure qualifies commitments. No retention rate is inferred.
margin resilience · 2/4 · Annual gross margin declined from 38.8% to 38.3% in 2025 despite favorable pricing. First-quarter 2026 pricing and efficiencies demonstrate mitigation capability, but tariff refunds drove most second-quarter improvement. This is mixed resilience rather than moat proof.
contractual freedom · 2/4 · Implemented price increases and predominantly sub-year contracts demonstrate some ability to reset terms for new business. Master agreements define discounts and rebates, and data-center contracts carry cancellation and performance exposure. Unrestricted repricing of existing commitments is not disclosed.
Prévisibilité74
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 12.50
- Positive FCF years (%)
- 80.00
- FCF margin volatility (pp)
- 4.81
Solidité financière51
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 43.26
- netDebtEbitGrade
- 31.42
- interestCoverageGrade
- 28.10
- currentRatioGrade
- 100.00
- Debt / FCF (x)
- 4.97
- Net debt / operating income (x)
- 3.43
- Interest coverage (x)
- 4.09
- Current ratio (x)
- 2.03
Allocation du capital86
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 11.15
- 3-year average dilution (%)
- -2.49
- 3-year average SBC / revenue (%)
- 1.07
- cashConversionGrade
- 100.00
Qualité du management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half 2026 operating cash flow of $240.5 million exceeded $87.7 million of capital expenditure, with no program buybacks. However, acquisitions used $211.8 million of cash plus issued shares, dispositions incurred losses, and cash declined $76.5 million. Refunds aided cash generation; contingent Enercon consideration and unproven acquisition returns temper the assessment.
incentive alignment · 3/4 · Actual enterprise incentive payouts fell to 46% of target after missed objectives. Three-year awards vested at 66.7% as growth and margin missed thresholds while cash conversion exceeded maximum. Adopted retention requirements and reported ownership compliance demonstrate alignment, although individual holdings and long-term effectiveness are incompletely covered.
execution · 2/4 · Indirect operating evidence shows first-quarter efficiencies, improved cash generation, C&I sales growth and repeat data-center orders. Missed annual and three-year growth and margin objectives, plus substantial legal costs, temper that record. Refunds and acquisitions qualify the subsequent improvement.
governance · 2/4 · An independent lead director, audit meetings without management and the auditor's effective-controls opinion provide concrete oversight evidence. Combined chairman and CEO roles concentrate authority. The actual CPSC settlement and fine temper the record, while the settlement expressly did not establish a violation. Broader shareholder-rights coverage is incomplete.
Preuves
For over two decades, we have established the industry's largest network of factory direct independent generator dealers in North America.
Business / North American dealer network history and claimed scale · Dépôt 18/02/2026
These dealers sell, install and service our residential and light commercial generators to end users.
Business / dealer sales, installation and service functions · Dépôt 18/02/2026
We offer a broad set of tools, programs, factory support, training, and sales leads to help our distribution partners be successful.
Business / distribution partner training and factory support · Dépôt 18/02/2026
This remote monitoring information can also be accessed by our dealers to help them monitor their installed base of products and proactively support their customers.
Business / dealer access to installed-base remote monitoring · Dépôt 18/02/2026
As we continue to ramp our capacity and capabilities for large megawatt generators, we believe that we are well positioned to take share in this market over time given (i) our long-standing historical focus on backup power generation, (ii) our global presence in markets around the world, (iii) our ability to provide customized product solutions via our extensive sales, engineering, and project management resources, and (iv) our robust aftermarket support through a combination of direct service teams and our global service network provided by our industrial distributor partners.
MD&A / management's data-center competitive positioning claims · Dépôt 04/08/2026
In addition, product specific terms related to this agreement were recently finalized, which committed nearly $700 million of volume for 2027.
Second-quarter results / finalized 2027 supply commitment · Dépôt 29/07/2026
In addition, we increased our backlog for both hyperscale and non-hyperscale customers as we have received approximately $1 billion in additional orders from both new and existing customers since our prior update.
CEO commentary / additional orders from new and existing customers · Dépôt 29/07/2026
Some of our competitors have established brands and are larger in size or are divisions of large, diversified companies which have substantially greater financial resources than we do.
Risk factors / established and better-resourced competitors · Dépôt 18/02/2026
Delays in our suppliers' deliveries have sometimes impaired, and may continue to impair, our ability to deliver products to our customers.
Risk factors / supplier delays that impaired deliveries · Dépôt 18/02/2026
2025 operating expenses also include $142.3 million of legal provisions, settlements, patent related costs, and other costs related to certain legal matters.
2025 results / legal provisions, settlements and patent-related costs · Dépôt 18/02/2026
our dependence on a small number of contract manufacturers and component suppliers, including single-source suppliers;
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changes and volatility with respect to the trade policies of various countries, which may result in new or increased tariffs, trade restrictions, or other unfavorable trade actions;
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our ability to protect our intellectual property rights or successfully defend against third party infringement claims;
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changes in durable goods spending by consumers and businesses or other global macroeconomic conditions, impacting demand for our products;
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changes in governmental policies, particularly with respect to tax incentives, tax credits, or grant programs, which could: (i) affect the demand for certain of our products; or (ii) result in a withdrawal or reduction of grants previously awarded to the Company;
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increase in product and other liability claims, warranty costs, recalls, or other claims;
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significant legal proceedings, claims, fines, penalties, tax assessments, lawsuits or government investigations;
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our ability to consummate our share repurchase programs;
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our failure or inability to adapt to, or comply with, current or future changes in applicable laws, regulations, and product standards;
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our ability to develop and enhance products and gain customer acceptance including our offerings that serve the data center and energy technology markets;
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uncertainty regarding the growth of the data center market;
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increase in contract risk related to terms with certain data center customers, including cancellation rights, delivery requirements, and potential liability exposure tied to our performance obligations or other claimed damages;
Forward-looking risk disclosures / customer cancellation and performance exposure · Dépôt 29/07/2026
Despite our efforts, these tariff actions and resulting price increases have created inflationary pressures for consumers, negatively impacting demand and margins for certain of our products.
MD&A / realized demand and margin effects of tariffs and price increases · Dépôt 04/08/2026
24-cv-01281-LA). Champion claims that certain Generac and Powermate branded multi-fuel portable generators infringe on Champion’s portfolio of dual and multi-fuel patents.
Commitments and contingencies / Champion portable-generator patent dispute · Dépôt 18/02/2026
We implemented multiple price increases to help mitigate the impact of these rising commodity costs, and the realization of these price increases in 2022 and 2023 helped to partially offset the higher commodity costs.
MD&A / realized 2022–2023 price increases and partial cost offset · Dépôt 21/02/2024
Gross profit margin for the year ended December 31, 2025 was 38.3% compared to 38.8% for the year ended December 31, 2024.
2025 results / annual gross-margin comparison · Dépôt 18/02/2026
This decline was partially offset by higher price realization.
2025 results / favorable price realization · Dépôt 18/02/2026
In addition, higher input costs, including the impact of tariffs and commodities, were more than offset by increased price realization.
First-quarter 2026 results / pricing exceeded input-cost increases · Dépôt 05/05/2026
The increase was primarily driven by tariff refunds which contributed approximately 6% to gross margin growth during the quarter.
Second-quarter 2026 results / tariff-refund contribution to gross margin · Dépôt 04/08/2026
Additionally, unfavorable sales mix and higher input costs were partially offset by favorable price realization.
Second-quarter 2026 results / pricing partially offset mix and input pressures · Dépôt 04/08/2026
Discounts and rebates offered to customers are typically defined in the master sales agreements with customers and, therefore, are recorded using the most likely amount method based on the terms of the contract.
Revenue accounting / contractual discounts and rebates · Dépôt 18/02/2026
As the Company’s product sale contracts and standard payment terms predominantly have a duration of less than one year, it uses the practical expedient applicable to such contracts and does not consider the time value of money.
Revenue accounting / predominantly sub-year product contracts · Dépôt 18/02/2026
Dollars in Thousands) (Unaudited) Six Months Ended June 30, 2026 2025 Operating activities Net income $ 216,122 $ 118,708 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and finance lease amortization 53,189 43,292 Amortization of intangible assets 61,195 51,170 Amortization of deferred financing costs and original issue discount 1,081 1,278 Change in fair value of investments (4,542 ) 11,471 Deferred income tax expense (benefit) 26,447 (18,668 ) Share-based compensation expense 27,447 26,360 Loss on disposal of assets 211 602 Loss attributable to business dispositions 18,238 3,905 Other noncash charges 2,159 1,513 Excess tax benefits from equity awards (3,447 ) 90 Net changes in operating assets and liabilities: Accounts receivable (64,430 ) (485 ) Inventories 14,869 (199,279 ) Other assets (105,336 ) 7,990 Accounts payable 116,387 129,489 Accrued wages and employee benefits (8,098 ) (28,297 ) Other accrued liabilities (110,996 ) (18,798 ) Net cash provided by operating activities 240,496 130,341 Investing activities Proceeds from sale of property and equipment 10 - Purchase of long-term investments - (2,656 ) Expenditures for property and equipment (87,687 ) (88,653 ) Acquisition of businesses, net of cash acquired (211,820 ) - Proceeds (payments) from sale of businesses, net of cash disposed 23,654 (1,999 ) Net cash used in investing activities (275,843 ) (93,308 ) Financing activities Proceeds from short-term borrowings 22,736 21,860 Proceeds from long-term borrowings 82,538 92,585 Repayments of short-term borrowings (25,571 ) (30,171 ) Repayments of long-term borrowings and finance lease obligations (93,096 ) (29,032 ) Stock repurchases - (147,917 ) Payment of deferred acquisition consideration (958 ) - Cash dividends paid to noncontrolling interest of subsidiary - (293 ) Taxes paid related to equity awards (36,702 ) (9,393 ) Proceeds from the exercise of stock options 10,275 1,043 Net cash used in financing activities (40,778 ) (101,318 ) Effect of foreign exchange rate changes on cash and cash equivalents (367 ) 6,539 Net decrease in cash and cash equivalents (76,492 ) (57,746 ) Cash and cash equivalents at beginning of period 341,413 281,277 Cash and cash equivalents at end of period $ 264,921 $ 223,531 See notes to condensed consolidated financial statements.
Cash-flow statement / first-half 2026 investment, financing and cash generation · Dépôt 04/08/2026
During the three and six months ended June 30, 2026, we received tariff refunds totaling approximately $61 million.
MD&A / cash tariff refunds received in 2026 · Dépôt 04/08/2026
Additional contingent consideration may be earned up to a maximum amount of $112,043, with 35% paid in restricted shares and the remainder in cash, upon the achievement of certain conditions.
Subsequent events / Enercon contingent cash and share consideration · Dépôt 05/05/2026
Jagdfeld, Ragen, and Kanuru. 2025 Financial Goals Annual Performance Bonus Metrics – Consolidated Threshold Target Maximum 2025 Achievement Weighted Payout % Adjusted EBITDA (75%)* $677.0 million $846.3 million $1,015.6 million $715.5 million 46.0% PWC as % of Net Sales (25%) 32.9% 29.9% 26.9% 35.1% 0.0% Overall Payout 46.0% * Adjusted EBITDA under the AIP excludes the impact of acquisitions that occurred during the performance period and is calculated before deduction for noncontrolling interests.
Executive compensation / 2025 actual targets, results and incentive payout · Dépôt 29/04/2026
For the three-year period from 2023 to 2025, the Committee determined that the revenue CAGR and average adjusted EBITDA margin did not achieve threshold levels, while FCF Conversion exceeded the maximum level, resulting in vesting of the awards at 66.7% of Target.
Executive compensation / actual three-year performance and award vesting · Dépôt 29/04/2026
Specifically, it simplified the retention ratios to be 50% of after-tax shares received from compensatory equity awards; however, if an executive is not in compliance after 5 years, the retention ratio is 100% of after-tax shares.
Executive compensation / adopted share-retention requirements · Dépôt 29/04/2026
As of March 31, 2026, all NEOs have met their ownership requirements.
Executive compensation / ownership compliance as of March 31, 2026 · Dépôt 29/04/2026
This margin increase was primarily driven by operational efficiencies resulting in lower operating expenses and favorable price realization that more than offset higher input costs.
First-quarter 2026 results / operational efficiencies and price realization · Dépôt 05/05/2026
Second Quarter Business Segment Results
Commercial & Industrial Segment
Commercial & Industrial segment total sales increased approximately 29% to $556.5 million from $430.6 million in the prior year quarter, including an approximate 6% net favorable impact to sales growth from the combination of acquisitions, divestitures, and foreign currency.
Second-quarter 2026 results / C&I sales growth and acquisition effects · Dépôt 29/07/2026
The Audit Committee meets with our independent registered public accounting firm without management present on a regular basis.
Corporate governance / audit meetings without management · Dépôt 29/04/2026
Board of Directors Leadership Structure Aaron Jagdfeld has served as a director of the Company since 2006 and is the Company’s Chairman of the Board, President, and Chief Executive Officer.
Corporate governance / combined chairman, president and CEO roles · Dépôt 29/04/2026
Bennett Morgan serves as the Board’s independent Lead Director.
Corporate governance / independent lead director · Dépôt 29/04/2026
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
Auditor report / effective internal control opinion at December 31, 2025 · Dépôt 18/02/2026
The terms of the settlement agreement require the Company to (i) abide by certain customary agency requirements regarding the ongoing commitment to the Company’s internal CPSA compliance practices and program, and (ii) pay a civil fine of $15,800.
Commitments and contingencies / CPSC settlement obligations and civil fine · Dépôt 18/02/2026
The agreement does not constitute an admission by Generac or a determination by the CPSC that Generac violated the CPSA.
Commitments and contingencies / settlement did not establish a CPSA violation · Dépôt 18/02/2026
Due to all of these factors, the market for large-megawatt backup generators has become significantly supply-constrained.
MD&A / management's description of data-center generator supply constraints · Dépôt 04/08/2026
On April 1, 2026, the Company issued 247,321 shares of its common stock to the former owners of Enercon, as partial consideration for the acquisition of all of the outstanding shares of Enercon.
Unregistered securities / shares actually issued for Enercon · Dépôt 04/08/2026
