GNRC · 10-Q · 2026Q2 · Full report

Debt and Liquidity Position

GENERAC HOLDINGS INC. · 2026-08-04 · Importance 49 · Surprise 6 · In source text

As of June 30, 2026, Generac had total liquidity of $1,264.2 million, comprising $264.9 million of cash and cash equivalents and $999.3 million of availability under its New Revolving Facility. The Term Loan B Facility carried a 5.37% interest rate, while the company’s net secured leverage ratio was 1.15 to 1.00 and total leverage ratio was 1.20 to 1.00. Generac’s interest coverage ratio was 15.72 to 1.00, versus a required minimum of 3.00 to 1.00, and the company was in compliance with all credit agreement covenants. Six-month financing cash flows included $118.7 million of debt repayments, partially offset by $22.7 million of short-term and $82.5 million of long-term borrowings.

Key facts

• As of June 30, 2026, there was $491.3 million outstanding under the Term Loan B Facility and $700 million outstanding under the New Tranche A Term Loan Facility, and no borrowings on the New Revolving Facility, leaving $999.3 million of unused capacity net of outstanding letters of credit. source
• As of June 30, 2026, we had total liquidity of $1,264.2 million which consists of $264.9 million of cash and cash equivalents and $999.3 million of availability under our New Revolving Facility. source
• The $40.8 million net cash used in financing activities for the six months ended June 30, 2026 was more than offset by $118.7 million of debt repayments consisting of $25.6 million of short-term borrowings and $93.1 million of long-term borrowings and finance lease obligations. source
• The Term Loan B Facility does not require an Excess Cash Flow payment if our net secured leverage ratio is maintained below 3.75 to 1.00. source
• As of June 30, 2026, we were in compliance with all covenants of the New Credit Agreements. source
• Net cash used in financing activities for the six months ended June 30, 2025 was $(101,318) thousand. source
• The $101.3 million net cash used in financing activities for the six months ended June 30, 2025 included proceeds of $21.9 million from short-term borrowings, $92.6 million from long-term borrowings, and $1.0 million from the exercise of stock options. source
• There are no financial maintenance covenants on the Term Loan B Facility. source

Impact estimates