Slide 1: Investor Presentation February 2025
INVESTOR PRESENTATION February 2025 OUR PURPOSE: Lead the evolution to more resilient, efficient, and sustainable energy solutions.
Slide 2: Investor Relations
INVESTOR RELATIONS Aaron Jagdfeld PRESIDENT & CEO York Ragen CHIEF FINANCIAL OFFICER Kris Rosemann DIRECTOR CORPORATE DEVELOPMENT & INVESTOR RELATIONS (262) 506-6064 InvestorRelations@generac.com 2
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements contained in this news release, as well as • our ability to protect our intellectual property rights or • risks related to sourcing components in foreign countries; other information provided from time to time by Generac successfully defend against third
Slide 4: Generac Overview
Generac Overview GENERAC EE
Slide 5: Generac Overview
Generac Overview Founded in 2024 Net Sales: 9,200+ 1959 $4.3 $4.1 Billion billion Employees Worldwide (as of 12/31/2024) 2024 ADJ Omni-Channel EBITDA: Distribution $789 Million Thousands of Dealers, 1,200+ Wholesalers, Retailers Engineers and E-Commerce Worldwide $736 million (as of 12/31/2024) Part
Slide 6: Investment Highlights
Investment Highlights • Global Growth Opportunity Driven by Mega-Trends • Lower Power Quality • Higher Power Prices • Strong Competitive Advantages • Global footprint, product breadth & omni-channel distribution in backup power and energy technology solutions • Residential Solutions – Mega-Trends Su
Slide 7: Product Overview
Product Overview Residential – $2.4B Net Sales* C&I – $1.4B Net Sales* Other – $0.5B Net Sales* Grid Services Mobile Generator Portable Generators Stationary Generator Telecom Generator Home Standby Generator Residential & C&I Connectivity Generator Controls Mobile BESS Smart Thermostat Light Tower
Slide 8: Generac Global Footprint
GENERAC — EE Generac Global Footprint fy Global Headquarters Waukesha, Wisconsin Key Locations Offico, Warchouse, Sales, Research & Development and Other e Manufacturing Operations Conducted across 18 facilities globally, e including § locations in Wisconsin, USA
Slide 9: Unmatched Omni-Channel Distribution
Unmatched Omni-Channel Distribution ~9,200 Residential Dealers – Provides Direct Sales, Install & Service Domestic ~1,600 Wholesale Branches – Serves Contractors Across North America Residential ~8,000 Retail Outlets – Creates Product Awareness & Availability Distributors – Engages Specifying Engine
Slide 10: Track Record of Growth
$5,000 Track Record of Growth 14% REVENUE CAGR $4,000 2000 Through 2025F $3,000 Each growth cycle creates new & higher baseline $2,000 $1,000 $- '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '24 '25F Note: $ amounts in millions. Represents net sales. Figures include results from acquisitions compl
Slide 11: Mega-Trends Review
Mega-Trends Review Lower power quality • More frequent severe and volatile weather impacting aging grid, causing increased power outage activity • Increasing intermittent generation sources and accelerating electrification trends drive supply/demand imbalances Higher power prices • Investment requir
Slide 12: Powering a Smarter World
Powering a Smarter World Improve energy Increase power reliability through onsite generation and storage solutions that resilience and provide resiliency for homes, businesses independence. and communities. Optimize energy Enable sustainable and more efficient Powering a efficiency and consumption.
Slide 13: Residential Solutions
13 Residential Solutions Mega-Trends Support Parallel Growth Opportunities
Slide 14: Home Standby Penetration Opportunity
Home Standby Penetration Opportunity Power Outages Happen Everywhere 25% 17% Widespread Growth Potential 2% • Total US penetration rate ~6.5% * • 1% of penetration = ~$4.0B opportunity* 6% Mega-Trends 6% Powered by Bing © GeoNames, Microsoft, TomTom Lower Power Quality • Texas, Florida & California
Slide 15: Competitive Advantages to Capture HSB Penetration Opportunity
Competitive Advantages to Capture HSB Penetration Opportunity Proven Market Creation Capabilities • Directly engaging with a growing number of consumers • Driving awareness through advertising & targeted marketing • Distribution Expansion – product availability where & when consumers want Building &
Slide 16: Residential Energy Technology Market Opportunity
Residential Energy Technology Market Opportunity 2023 TAM1 ~$2.5B → Solar inverter – unlocks on-site solar power generation ✓ Next-generation inverter launch 2025 ~$1.5B → Energy storage – rate arbitrage, improve solar ROI & VPP participation ✓ Industry leading storage capacity – greater resilience
Slide 17: Differentiated Home Energy Ecosystem of the Future
Differentiated Home Energy Ecosystem of the Future Multiple hardware devices connected to a single interface to optimize home energy generation & consumption. Prioritize energy resilience & 1 independence Deliver savings by optimizing 2 for energy efficiency Balance comfort and 3 conservation Power
Slide 18: Leveraging HSB Competencies & Unique Capabilities To Win In Energy Technology
Leveraging HSB Competencies & Unique Capabilities To Win In Energy Technology Generac HSB Competencies Energy Technology Investment - Building & Developing Distribution - Differentiated Ecosystem - Direct to Consumer Marketing - Leading Energy Storage Capacity - Market Creation - ecobee Home Energy
Slide 19: Roadmap to Energy Technology Success
2026 → Drive scale & market share gains Roadmap to → Exit with breakeven EBITDA on path to company-average Adj EBITDA margins Energy Technology → Ongoing innovation & expansion of the ecosystem – 2026 and beyond Success 2025 → Next-gen storage & inverter product launches → Expand channels, leverage
Slide 20: Commercial & Industrial Solutions
20 Commercial & Industrial Solutions Growing Global Scale & Developing Energy Solutions
Slide 21: Global C&I Gaining Share & Scale
Global C&I Gaining Share & Scale GLOBAL C&I NET SALES • End market growth driven by mega-trends • Market share gains via competitive strengths • M&A expands product & distribution capabilities 21
Slide 22: C&I Mega-Trends & Competitive Strengths
C&I Mega-Trends & Competitive Strengths Lower Power Higher Power Quality Prices Infrastructure AI Adoption Cleaner Investment Accelerating Alternative Fuels DOMESTIC INTERNATIONAL Leadership in natural Telecom & rental market Broad power generation Growing portfolio of gas backup power leadership, e
Slide 23: Building Multi-Asset C&I Microgrids
Building Multi-Asset C&I Microgrids Power Generation & Storage Energy Management Devices Monitoring & Controls Wallbox Partnership Grid Services Turnkey solutions managed through a single interface integrating multiple assets to optimize power generation and consumption 23
Slide 24: Developing Optimized Solutions for C&I Energy Evolution
Developing Optimized Solutions for C&I Energy Evolution Low High Complexity of Solution Advanced Basic Backup Power Plus Energy Services Energy Services Optimized Power Power + Service Power (Simple) (Complex) Solutions Customer Maturity • Simple demand response programs • Advanced monitoring • Comp
Slide 25: Financial Summary
Financial Summary GENERAC EE
Slide 26: Financial Summary
Financial Summary Total Net Sales Gross Margin % Adjusted EBITDA Adjusted EBITDA Margin % 55% $1,000 35% $4,500 50% 30% $800 $3,500 45% 25% $600 40% 20% $2,500 $400 35% 15% $1,500 30% $200 10% 2020 2021 2022 2023 2024 2025F* 2020 2021 2022 2023 2024 2025F* Adjusted EPS Free Cash Flow $650 $9.00 $550
Slide 27: Business Outlook
GENERAC Business Outlook 2025F Guidance As Of February 12, 2025* Consolidated net sales • Consolidated revenue: increase between 3% to 7% • Residential products: increase at a mid-to-high single digit rate • C&I products: approximately flat from prior year Adjusted EBITDA margins • Between 18.0% to
Slide 28: Disciplined & Balanced Capital Allocation
Disciplined & Balanced Capital Allocation 1. Organic 2. Strategic M&A Growth Investment in technology, innovation, R&D Accelerating “Powering A capabilities, capacity Smarter World” Strategy expansion, global systems, automation 3. Maintaining 4. Return of $ in Millions Cumulative Share Repurchases
Slide 29: Appendix
Appendix GENERAC EE
Slide 30: Increasingly Imbalanced Electrical Grid
Increasingly Imbalanced Electrical Grid • SUPPLY RELIABILITY • DEMAND GROWTH DETERIORATING ACCELERATING • Climate change & severe weather • Electrification of everything • One-way system prone to outage • Transportation, HVAC, appliances • Infrastructure underinvestment • Data centers & artificial i
Slide 31: HSB: Underpenetrated with Demographic Tailwinds
HSB: Underpenetrated with Demographic Tailwinds North American Penetration Opportunity(1) 89.5% 90% 80% Aging Population Fits Demographic 70% • ~75% of buyers age 50 and older % of US Addressable Market 60% 50% • ~$500k median home value 40% • ~80-85% retro-fit application 30% 29.0% • ~$135K median
Slide 32: Expanding Power Outage Severity
Expanding Power Outage Severity1 Total Outage Hours (Severity) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (1) Represents power outage hours for mainland U.S. only 32
Slide 33: Q4 2024 & LTM Financial Overview
Q4 2024 & LTM Financial Overview 1) Adjusted EBITDA (margin) calculated using adjusted EBITDA before deducting for non-controlling interest. 33
Slide 34: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 34
Slide 35: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 35
Slide 36: Adjusted Net Income & Free Cash Flow Reconciliation
Adjusted Net Income & Free Cash Flow Reconciliation 36