GNRC · 10-Q · 2026Q2 · Full report

Supply Chain Constraints

GENERAC HOLDINGS INC. · 2026-08-04 · Importance 29 · Surprise 24

Generac’s global supply chain uses advanced electronic components and battery cells whose pricing and availability can fluctuate, while steel, copper, aluminum, and labor costs remain important input variables. Increased data-center demand has heightened volatility in these raw materials and contributed to supply constraints in large-megawatt backup generators. The company is using product redesign, sourcing initiatives, manufacturing efficiencies, pricing, and selective hedging to mitigate cost and availability pressures. The filing also states that price increases implemented in response to trade-related cost pressures created inflationary effects for consumers and weakened demand for certain products.