GNRC · 10-Q · 2026Q2 · Full report

Supply Chain Tariff Impact

GENERAC HOLDINGS INC. · 2026-08-04 · Importance 40 · Surprise 42 · In source text

Beginning in the first quarter of 2025, the United States enacted additional tariffs on goods imported from numerous countries, while certain countries imposed tariffs on U.S. goods; some measures were later modified or delayed. Generac implemented price increases and supply-chain initiatives to mitigate the tariffs, but the resulting price increases created inflationary pressure for consumers and negatively affected demand and margins for certain products. Following the U.S. Supreme Court’s February 20, 2026 decision invalidating tariffs imposed under the IEEPA, Generac received approximately $61 million of tariff refunds during the three and six months ended June 30, 2026 and recorded a further $28 million receivable deemed probable of collection. Approximately $71 million of the recovery reduced second-quarter 2026 cost of goods sold, with the remainder recorded in inventory.

Key facts

• During the three and six months ended June 30, 2026, Generac received tariff refunds totaling approximately $61 million. source
• Generac established a tariff refund receivable of approximately $28 million for which receipt is deemed probable. source
• Approximately $71 million of the tariff recovery reduced second quarter 2026 cost of goods sold with the remainder reflected in inventory. source
• Generac received a U.S. Supreme Court decision on February 20, 2026 invalidating IEEPA tariffs and allowing recovery of previously paid IEEPA tariff amounts. source

Impact estimates