AI Takeaway
GNRC delivered strong Q1 FY2026 results with revenue up 12.4% YoY to $1.06B, net income surging 67.1% to $73.3M, and operating cash flow more than doubling to $119.3M, reflecting improved operational leverage.
Revenue
$1.06B
++12.44% YoY
EPS (Basic)
$1.25
++68.92% YoY
Gross Margin
38.7%
-0.76% YoY
Operating Income
$117.29M
++40.24% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue increased 12.4% YoY from $942.1M to $1,059.4M in Q1 FY2026, indicating a meaningful recovery in demand for Generac's power generation products and services across its residential and commercial/industrial segments.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating income jumped 40.2% YoY to $117.3M while revenue grew only 12.4%, demonstrating strong operating leverage as fixed costs were spread over a larger revenue base and operational efficiencies took hold. Operating margin expanded approximately 220 basis points to 11.1%.
Source: Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
Net income grew 67.1% YoY to $73.3M, with diluted EPS rising 69.9% from $0.73 to $1.24, suggesting that below-the-line items (interest, taxes) also contributed favorably to profitability improvement in Q1 FY2026.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
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Upgrade to unlockGross margin declined approximately 76 basis points YoY from 39.5% to 38.7%, even as revenue grew 12.4%. Cost of revenue grew faster than revenue (13.9% vs. 12.4%), suggesting input cost pressures or unfavorable product/channel mix. Sustained margin compression could weigh on profitability if not offset by volume growth.
Source: Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
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Upgrade to unlockReported EPS of $1.80 versus the $1.36 analyst consensus — a +32.8% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.06B | $942.12M | +12.44% |
Cost of Revenue | $649.13M | $570.13M | +13.86% |
Gross Profit | $410.24M | $371.99M | +10.28% |
Operating Income | $117.29M | $83.64M | +40.24% |
Net Income | $73.25M | $43.84M | +67.09% |
EPS (Basic) | $1.25 | $0.74 | +68.92% |
EPS (Diluted) | $1.24 | $0.73 | +69.86% |
R&D Expense | $62.66M | $62.05M | +0.98% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $5.59B | $5.06B | +10.53% |
Current Assets | $2.45B | $1.99B | +23.15% |
Total Liabilities | $2.92B | $2.59B | +12.77% |
Current Liabilities | $1.21B | $1.01B | +19.87% |
Stockholders' Equity | $2.67B | $2.47B | +8.32% |
Cash & Equivalents | $265.53M | $187.46M | +41.64% |
Long-Term Debt | $1.19B | — | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $119.28M | $58.15M | +105.13% |
Investing Cash Flow | $-153.75M | $-33.54M | -358.42% |
Financing Cash Flow | $-41.38M | $-119.72M | +65.43% |
Share Buybacks | $0 | $97.45M | -100.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 38.7% | 39.5% | -0.76% |
Operating Margin | 11.1% | 8.9% | +2.19% |
Net Margin | 6.9% | — | — |
ROE | 2.7% | — | — |
ROA | 1.3% | — | — |
Current Ratio | $2.028 | — | — |
Debt to Equity | $1.091 | — | — |
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GNRC had a strong Q1 FY2026, with revenue rising 12.4% YoY to $1.06B and net income surging 67.1% to $73.3M. Diluted EPS came in at $1.24, up nearly 70% from $0.73 in Q1 FY2025, reflecting significant operational improvement.
GNRC's revenue grew 12.4% YoY to $1,059.4M in Q1 FY2026, suggesting a recovery in demand for its power generation and energy technology products. The filing text was not available, but the financial data indicates broad-based top-line improvement relative to the prior year period.
GNRC's gross margin declined slightly by about 76 basis points to 38.7% as cost of revenue grew faster than revenue, but operating margin expanded meaningfully by approximately 220 basis points to 11.1% due to strong operating leverage. Net margin also improved significantly, reaching 6.9% in Q1 FY2026.
GNRC's balance sheet shows total assets of $5.59B, a current ratio of 2.03x indicating solid short-term liquidity, and $265.5M in cash. However, long-term debt of $1.19B and a debt-to-equity ratio of 1.09x represent a moderate leverage level that investors should monitor.
GNRC generated $119.3M in operating cash flow in Q1 FY2026, more than double the $58.2M generated in Q1 FY2025. The company also significantly increased its investing outflows to -$153.8M, suggesting meaningful capital deployment into growth initiatives or acquisitions during the quarter.