GNRC · 10-Q · 2026Q3 · Full report

Supply Chain Tariff Impact

GENERAC HOLDINGS INC. · 2026-11-03 · Importance 46 · Surprise 42

Beginning in the first quarter of 2025, the United States imposed additional tariffs on imports from numerous countries, while certain countries announced tariffs on U.S. goods; some measures were later modified or delayed. Generac implemented price increases and supply-chain initiatives, but said tariff actions and resulting price increases created inflationary pressure for consumers and negatively affected demand and margins for certain products. On February 20, 2026, the U.S. Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), allowing recovery of amounts previously paid; Generac received Phase I refunds of $29.7 million in the third quarter and $91.1 million in the first nine months of 2026. As of September 30, 2026, all expected Phase I refunds had been received, with approximately $10.5 million of the recovery remaining in inventory.

Key facts

• Generac has implemented price increases across many product offerings and supply-chain initiatives to mitigate tariffs, but tariff actions and resulting price increases have created consumer inflation and negatively affected demand and margins for certain products. source
• Generac says volatile steel, copper, and aluminum prices, advanced electronic components and battery-cell costs and availability, foreign-exchange movements, and regulatory tariffs can materially affect results. source