Generac (GNRC) official guidance

Our capital expenditures are now projected to be approximately 4.5% of our forecasted net sales for the year, which now includes the purchase and outfitting of our new packaging facility in Belvidere, Illinois, and expanded investment levels in our other global large megawatt generator facilities.

Our capital expenditures are still projected to be approximately 3.5% of our forecasted net sales for the year, slightly elevated from historical levels as we continue to invest in incremental capacity and execute other projects to support future growth expectations, particularly for C&I data center products.

Our capital expenditures are projected to be approximately 3.5% of our forecasted net sales for the year, as we continue to invest in incremental capacity and execute other projects to support future growth expectations, particularly for C&I products.

Depreciation expense is still expected to be approximately $108 million-$112 million.

Depreciation expense is now forecast to be approximately $108 million-$112 million in 2026, an increase from $104 million-$108 million previously expected, primarily due to slightly higher CapEx guidance and recently closed acquisitions.

Depreciation expense is forecast to be approximately $104 million-$108 million in 2026, given our assumed CapEx guidance.

The corresponding adjusted EBITDA margin guidance is now expected to be approximately 20.5 to 21.0% as compared to the previous guidance range of approximately 20.0 to 21.0%.

When including the impact from tariff refunds, our full-year 2026 adjusted EBITDA margin guidance range moves to 20%-21%.

The corresponding adjusted EBITDA margin is now expected to be approximately 20.0 to 21.0%, as compared to the previous guidance of 18.5 to 19.5%.

Given the factors outlined in our net sales and gross margin update, we are increasing our guidance range for adjusted EBITDA margins to 18.5%-19.5%.

The corresponding adjusted EBITDA margin is now expected to be approximately 18.5 to 19.5%, as compared to the previous guidance of 18.0 to 19.0%.

Looking at our Adjusted EBITDA margin expectations for full year 2026, Adjusted EBITDA margins before deducting for non-controlling interest are expected to be approximately 18%-19% for the full year 2026, compared to 17% in 2025.

The corresponding adjusted EBITDA margin is expected to be approximately 18.0 to 19.0%.

We expect second quarter adjusted EBITDA margins to increase modestly relative to second quarter 2025 levels in the 18% range before improving sequentially in the back half of the year, reaching approximately 20% in the fourth quarter of 2026.

For full-year 2026, our GAAP effective tax rate is still expected to be between 24.5%-25%.

For full year 2026, our GAAP effective tax rate is expected to be between 24.5%-25.0%.

For 2026, our GAAP effective tax rate is expected to be between 24%-25% as compared to the 18.9% full year GAAP tax rate for 2025.

Consistent with prior guidance, free cash flow generation is still expected to be approximately $350 million for the full year 2026 as tariff refunds help to offset the incremental CapEx required to support future C&I growth.

Consistent with prior guidance, operating and free cash flow generation is expected to be weighted toward the second half of the year in 2026, resulting in projected free cash flow generation of approximately $350 million for the full year 2026.

Operating and free cash flow generation is expected to be weighted toward the second half of the year in 2026, resulting in projected free cash flow generation of approximately $350 million for the full year 2026.

Including the $71 million of tariff refunds that are reflected in the second quarter, we expect gross margins for full year 2026 to be in the 40% range.

Looking at our updated gross margin expectations for the full year 2026, we now expect gross margin % to increase approximately 50 basis points from our previous expectations, resulting in full year 2026 gross margins in the 38.5%-39.5% range.

Looking at our gross margin expectations for the full year 2026, we expect the full year realization of price increases to be fully offset by higher input costs and unfavorable mix, resulting in approximately flat gross margins compared to the prior year in the 38%-39% range.

GAAP intangible amortization expense in 2026 is now expected to be approximately $118 million-$122 million during the year, up from $112 million-$116 million previously expected, primarily due to updated assumptions around recently closed acquisitions.

GAAP and tangible amortization expenses in 2026 is now expected to be approximately $112 million-$116 million during the year, up from $108 million-$112 million previously expected, primarily due to updated assumptions around recently closed acquisitions.

GAAP intangible amortization expense in 2026 is expected to be approximately $108 million-$112 million during the year.

We now expect interest expense to be approximately $65 million-$69 million for full-year 2026, compared to approximately $65 million previously expected, assuming no term loan principal prepayments during the year.

We now expect interest expense to be approximately $65 million for full year 2026, down from $65 million-$69 million previously expected, assuming no additional Term Loan principal prepayments during the year.

We expect interest expense to be approximately $65 million-$69 million for full year 2026, assuming no additional term loan principal prepayments during the year.

As our order book continues to build, we now expect to recognize nearly $450 million in data center revenue, related revenue for the full year 2026.

C&I segment net sales are now expected to grow in the low 30s% range for 2026 as compared to the mid to high 20s% range previously.

C&I segment sales are now expected to grow in the low 30% range during the year as a result of continued significant momentum in the data center market, and Residential segment sales are now projected to increase in the high-single digit range from the prior year.

This increased net sales growth expectation is driven entirely by the C&I segment, with net sales for this segment now projected to increase in the mid to high 20% range compared to 2025, an increase from our previous range of low to mid 20% growth as disclosed at our Investor Day in March.

C&I segment sales are now expected to grow in the mid-to-high 20% range during the year, an increase from the previous guidance of growth in the low-to-mid 20% range.

As Aaron discussed, we expect robust C&I product sales growth in the +30% range during 2026, primarily driven by products sold to data center customers.

C&I product sales are expected to increase in the 30% range during the year, primarily due to increased revenue from products sold to data center customers and the recent acquisition of Allmand.

Looking ahead, we now expect our residential segment sales to increase in a high single-digit range on a year-over-year basis for the full year 2026.

C&I segment sales are now expected to grow in the low 30% range during the year as a result of continued significant momentum in the data center market, and Residential segment sales are now projected to increase in the high-single digit range from the prior year.

Our Residential segment net sales guidance remains consistent and is still expected to increase in the 10% range compared to the prior year.

Residential segment sales are still projected to increase in the 10% range from the prior year.

We expect overall residential net sales to increase in the +10% range as compared to 2025, primarily driven by growth in shipments of home standby and portable generators, given the assumption of a return to a baseline average power outage environment in 2026, as compared to an easier comp in the second half of 2025.

Residential product sales are projected to increase in the 10% range from the prior year, driven by higher home standby generator price realization and increased shipments assuming a return to power outage activity in line with the longer-term baseline average for the remainder of the year.

The Company is maintaining its full-year 2026 net sales growth guidance in the mid-to-high teens percent range as compared to the prior year, including an approximate 2% favorable impact from the net effect of foreign currency, acquisitions, and divestitures.

As a result, we continue to expect consolidated net sales for the full year to increase in the mid to high teens percent range as compared to the prior year, which includes an approximate 2% favorable impact from the net effect of foreign currency acquisitions and divestitures.

Total net sales growth is still expected to be in the mid-to-high teens percent range as compared to the prior year, which includes an approximate 2% favorable impact from the net effect of foreign currency, acquisitions, and divestitures.

As a result of these factors, we now expect consolidated net sales for the full year to increase at a mid to high teens rate as compared to the prior year, which includes an approximate 2% favorable impact from the net effect of foreign currency, acquisitions, and divestitures.

Total net sales growth is now expected to be in the mid-to-high teens percent range as compared to the prior year, which includes an approximate 2% favorable impact from the net effect of foreign currency, acquisitions, and divestitures.

We expect consolidated net sales for the full year to increase at a mid-teens rate as compared to the prior year, which includes a favorable impact of approximately 1% from the net combination of foreign currency and completed acquisitions and divestitures.

The Company is initiating guidance for full-year 2026 that anticipates strong net sales growth in the mid-teens percent range as compared to the prior year, which includes a 1% favorable impact from the net effect of foreign currency and completed acquisitions and divestitures.

Stock compensation expense is still expected to be between $54 million-$58 million for the year.

Stock compensation expense is still expected to be between $54 million-$58 million for the year.

Stock compensation expense is expected to be between $54 million-$58 million for the year.