GENERAC HOLDINGS INC. (GNRC) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that GENERAC HOLDINGS INC. surfaced in its latest filing.

• Ongoing contractual disputes with certain sole-source suppliers, though they have not had a significant adverse impact to date.
• Subject to adverse rulings or settled claims for significant amounts related to infringement of third-party intellectual property rights.
• Product liability insurance coverage has been insufficient to cover claims or damage awards in certain cases; settled at least one product liability injury case in an amount exceeding insurance coverage.
• Subject to consumer product class action lawsuits related to clean energy, generator, and chore products.
• On July 4, 2025, the United States enacted the OBBBA, which eliminates or reduces several tax credits and incentives applicable to energy related technologies.July 4, 2025
• In July 2024, the company received a grant from the U.S. Department of Energy (DOE) to facilitate installation of residential solar and battery storage systems for disadvantaged Puerto Rican residents; the DOE has elected to stop funding going forward in 2026.July 2024
• On February 9, 2026, the Board approved a stock repurchase program for up to $500 million of common stock over twenty-four months.February 9, 2026
• Subject to the EU's Corporate Sustainability Reporting Directive.
• The U.S. government has renegotiated and terminated certain trade agreements, including the U.S.-Mexico-Canada Agreement.
• During 2025, the U.S. imposed new or increased tariffs that led to retaliatory tariffs on the U.S., increasing supply chain costs.2025
• Regulatory investigations by the U.S. Department of Justice (DOJ), CPSC, and EPA.
• CARB regulations will prohibit future sales in California of certain small off-road engines.
• As of December 31, 2025, total indebtedness was $1,333.1 million.December 31, 2025
• Tranche B Term Loan Facility matures on July 3, 2031; Tranche A Term Loan Facility and Revolving Facility mature on July 1, 2030.
• Goodwill and other indefinite-lived intangibles totaled $1,594.4 million as of December 31, 2025.December 31, 2025
• Have been subject to securities class action litigation relating to the market price of our stock.