GNRC: Model Update, Reiterating Neutral Rating

Research evidence excerpt

GNRC: Model Update, Reiterating Neutral Rating

ENERGY TECHNOLOGY

GENERAC HOLDINGS INC. May 26, 2026

Figure 3. GNRC: EBITDA Multiple Valuation Analysis

2026E 2027E 2028E '25-28E

Company Ticker EV/EBITDA EV/EBITDA EV/EBITDA Revenue CAGR

Caterpillar Inc. CAT 28.3x 24.2x 21.1x 9.0%

Cummins Inc. CMI 14.6x 12.8x 11.5x 7.4%

EnerSys ENS 13.6x 12.6x 11.6x 10.7%

Stanley Black & Decker, Inc. SWK 9.9x 9.2x 8.5x 2.4%

Whirlpool Corporation WHR 8.0x 7.2x 6.4x 2.3%

Average 14.9x 13.2x 11.8x 6.3%

Generac Holdings Inc. GNRC 18.2x 16.2x 14.2x 13.0%

Source: FactSet, Guggenheim Securities, LLC estimates

Note: GNRC multiples are based on Guggenheim Securities estimates. All others are FactSet consensus numbers.

Investment Risks - Downside

 GNRC uses substantial amounts of aluminum, steel and copper in its products, and its exposed to price swings and tariffs in the market for those

products. Unexpected price increases or tariffs could negatively impact the company’s business.

 The company’s largest business segment, home backup generators, is sensitive to changes in economic activity, particularly consumer

sentiment. Any unexpected deterioration in consumer willingness to make big-ticket purchases could be negative for GNRC.

 GNRC has said that the company intends to invest more heavily in its commercial/industrial segment, but so far has failed to show much

progress. Continued lack of progress in this important market could negatively impact GNRC’s business to a greater extent than we expect.

 Ongoing efforts to build a presence in the residential solar and energy storage markets have not been successful, but GNRC continues to invest

aggressively in this area. Continued investments, accompanied by a likely continued lack of success, could prove to be more of a financial