Generac is evolving its product portfolio by building out ecosystems of energy technology products, solutions, and services for homes and businesses, including residential and C&I energy storage, solar module-level power electronics (MLPE), energy monitoring & management devices, and electric vehicle (EV) charging.

In December 2023, Generac made a minority investment in Wallbox N.V. (Wallbox) (NYSE: WBX), a global leader in smart EV charging and energy management solutions. Along with the investment, Generac and Wallbox are expected to collaborate to provide Wallbox's full suite of EV charging solutions to Generac's customers and distribution partners.

In 2021, Generac unveiled its “Powering A Smarter World” strategic plan, which serves as the framework for the significant investments the company has made and will continue to make to capitalize on the long-term growth prospects of Generac.

The company has historically attempted to mitigate the impact of any inflationary pressures through improved product design and sourcing, manufacturing efficiencies, price increases, and select hedging transactions.

The company believes its global distribution network is a competitive advantage that has strengthened over the years as a result of adding, expanding and developing the various distribution channels through which it sells its products.

Research and development (R&D) has been a core competency for Generac since its inception, and today includes a staff of over 1,000 engineers working on numerous projects at various facilities around the world.

The prices of those raw materials and components are susceptible to significant fluctuations due to trends in supply and demand, commodity prices, currencies, transportation costs, government regulations and tariffs, price controls, economic conditions and other unforeseen circumstances beyond our control.

For certain products Generac does not have internal manufacturing capabilities and rely upon a small number of contract manufacturers to build these products or supply these components, including but not limited to certain clean energy products or components.

The unauthorized use of our intellectual property by others could reduce our competitive advantage and harm our business. Not only are intellectual property-related proceedings burdensome and costly, but they could take years to resolve, and we might not ultimately prevail.

The company faces competition from a variety of large diversified industrial companies as well as smaller generator manufacturers, along with mobile equipment, engine powered tools, solar inverter, battery storage, smart thermostat, and grid services providers, both domestic and internationally.

In a continuously evolving market, the company believes its scale and broad capabilities make it well positioned to remain competitive. The company competes primarily based on brand reputation, quality, reliability, pricing, innovative features, breadth of product offering, product availability and factory support.

The company in recent years has been evolving its business model toward more of a focus on energy technology solutions and services, which has introduced a new set of competitors.

The company seeks to mitigate the impact of commodity prices on its business through a continued focus on global sourcing, product design improvements, manufacturing efficiencies, price increases and select hedging transactions.

Although the company attempts to maintain a flexible manufacturing cost structure, its margins can be impacted if it cannot timely adjust labor and manufacturing costs to match fluctuations in net sales.

The company believes its vertical integration and scale in home standby generators provides a material benefit in its ability to maintain industry-leading output with state-of-the-art manufacturing processes, especially when demand for our products can increase rapidly with very short notice.

The company's focus on a broad range of energy technology products and solutions drives technological innovation, advanced engineering capabilities, and specialized manufacturing competencies.

The company has made several acquisitions in recent years that significantly enhanced its R&D capabilities. This includes substantial technical resources in energy storage, monitoring, and power conversion for residential applications, as well as in the C&I energy storage and generator controls spaces.

The company has significantly increased its software development capabilities across a variety of applications, including system-level controls, remote monitoring, and distributed energy resource management systems.

On February 12, 2024, the Company's Board of Directors approved a new stock repurchase program that allows for the repurchase of up to $500 million of the Company's common stock over the next twenty-four months.

The company requires capital expenditures for facilities and related improvements, technology, research & development, tooling, equipment, capacity expansion, internal use software, IT systems & infrastructure and upgrades.

The company regularly executes organizational changes such as acquisitions, divestitures, restructurings, and realignments to support its growth and management strategies.

The company continues to advance its Environmental, Social, and Governance (ESG) program and published an expanded ESG Report in April of 2023.

This report details the company's progress in executing the ESG goals and initiatives that align with its “Powering a Smarter World” enterprise strategy and its purpose statement: 'To lead the evolution to more resilient, efficient, and sustainable energy solutions.'

Increasing governmental and societal attention to ESG matters, including expanding mandatory and voluntary reporting, and disclosure topics such as climate change, sustainability, natural resources, waste reduction, energy, human capital, and risk oversight could expand the nature, scope, and complexity of matters that the company is required to control, assess, and report.

Power disruptions are an important driver of consumer awareness for back-up power and have historically influenced demand for generators both in the United States and internationally.

With only approximately 6.25% penetration of the addressable market of homes in the United States, the company believes there are significant opportunities to further penetrate the residential standby generator market both domestically and internationally.

The company believes the electric utility landscape will undergo significant changes in the decade ahead due to rising utility rates, grid instability and power quality issues, environmental concerns, and the continuing performance and cost improvements in renewable energy and energy storage technologies.