GENERAC HOLDINGS INC. Earnings Per Share Disclosure
| 14. | Earnings Per Share |
Basic earnings per share is calculated by dividing net income attributable to the common shareholders of the Company by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, diluted earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options, as well as the satisfaction of certain conditions related to acquisition contingent consideration as of the end of the period. Refer to Note 4, “Redeemable Noncontrolling Interest,” to the consolidated financial statements of this Annual Report on Form 10-K for further information regarding the accounting for redeemable noncontrolling interests within earnings per share.
The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Numerator | ||||||||||||
| Net income attributable to Generac Holdings Inc. | $ | 159,554 | $ | 316,315 | $ | 214,606 | ||||||
| Redemption value adjustment | - | 8,941 | (11,517 | ) | ||||||||
| Net income attributable to common shareholders | $ | 159,554 | $ | 325,256 | $ | 203,089 | ||||||
| Denominator | ||||||||||||
| Weighted average shares, basic | 58,523,642 | 59,559,797 | 61,265,060 | |||||||||
| Dilutive effect of stock compensation awards (1) | 742,061 | 790,615 | 793,327 | |||||||||
| Dilutive effect of contingently issued shares | 10,078 | - | - | |||||||||
| Weighted average shares, diluted | 59,275,781 | 60,350,412 | 62,058,387 | |||||||||
| Net income attributable to common shareholders per share | ||||||||||||
| Basic | $ | 2.73 | $ | 5.46 | $ | 3.31 | ||||||
| Diluted | $ | 2.69 | $ | 5.39 | $ | 3.27 | ||||||
| (1) | For the years ended December 31, 2025, December 31, 2024, and December 31, 2023, excludes approximately 300,000, 428,000 and 348,000 stock options and restricted stock awards, respectively, as the impact of such awards was anti-dilutive. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.