GNRC · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

GENERAC HOLDINGS INC. · 2026-11-03 · Importance 57 · Surprise 64 · In source text

The effective tax rate for the nine months ended September 30, 2026 increased to 24.3% from 18.3% in the prior-year period. Nine-month income tax provision rose to $104.5 million from $41.4 million, an increase of $63.1 million. The higher rate primarily reflected favorable discrete tax items in the prior-year period that did not recur in 2026. The third-quarter effective rate was 23.9%, compared with 15.0% in the prior-year quarter, for the same stated reason.

Key facts

• Generac’s third-quarter 2026 effective tax rate was 23.9%, compared with 15.0% in the prior year, primarily because favorable discrete items in the prior-year period did not recur. source
• Generac’s nine-month 2026 effective tax rate was 24.3%, compared with 18.3% in the prior-year comparable period, primarily because prior-year favorable discrete items did not recur. source
• Generac’s effective income tax rates for the nine months ended September 30, 2026 and 2025 were 24.3% and 18.3%, respectively; the increase reflected favorable discrete items in the prior-year period that did not recur. source
• Generac expects cash taxes to remain subject to applicable local minimum-tax regimes despite January 2026 OECD guidance deeming the U.S. tax system compliant with Pillar Two and expected to eliminate additional top-up taxes across its global operations. source

Impact estimates