| Segment Reporting [Text Block] |
7. Segment Reporting
On March 25, 2026, the Company announced its plan to reorganize its two reportable segments, effective March 31, 2026 (the Reorganization). The Company’s Chief Operating Decision Maker (CODM) is Aaron Jagdfeld, President and Chief Executive Officer (CEO). The Reorganization reflected a change in how the CODM evaluates the Company’s operations and performance to better align reporting with the way the business is managed. Prior to the Reorganization, the Company's reportable segments were Domestic and International. As a result of the Reorganization, the Company's new reportable segments are Residential and Commercial & Industrial (C&I). While Residential and C&I include similar products, they differ based on power output and end customer.
The Residential segment consists of the former Domestic segment, excluding the domestic C&I operations. Residential products consist primarily of automatic home standby generators ranging in output from 7.5kW to 150kW, portable generators, residential energy storage systems, energy management devices and solutions, and other outdoor power equipment. These products are predominantly sold through independent residential dealers, national and regional retailers, e-commerce merchants, electrical/HVAC/solar wholesalers, solar installers, and outdoor power equipment dealers. Residential segment revenue consists of product sales to the Company's distribution partners, who in turn sell the product to the end consumer, sometimes including installation and maintenance services. The Residential segment revenue also includes sales of products and services related to aftermarket service parts, the amortization of extended warranty deferred revenue, grid services revenue, and remote monitoring subscription revenue. In some cases, residential products are sold directly to the end consumer. The majority of Residential segment revenues are recorded at a point in time when control is transferred to the customer. The remaining revenue, primarily related to extended warranty and other subscription services, is recognized over the period the related services are performed.
The C&I segment consists of the operations of the former International segment with the addition of the domestic Commercial & Industrial operations. Commercial & Industrial products consist of larger output stationary generators used in C&I applications, with power outputs up to 3,250kW. Also included in C&I products are mobile generators, light towers, C&I battery energy storage systems, mobile heaters, mobile pumps, and related controls for power generation equipment. These products are sold globally through industrial distributors and dealers, Engineering, Procurement, and Construction (EPC) companies, equipment rental companies, and equipment distributors. C&I segment revenue consists of product sales to the Company's distribution partners, who in turn sell or rent the product to the end customer, sometimes including installation and maintenance services. The C&I segment revenue also includes sales of products and services related to aftermarket service parts and product accessories sold to the Company's distribution partners, grid services subscription revenue, as well as certain installation and maintenance service revenue. In some cases, C&I products are sold directly to the end customer. C&I segment revenues are recorded at either a point in time when control of the product is transferred to the customer, or if the performance obligation is satisfied over time, then revenue is recognized using a method that reflects the performance under the contract. Other service revenue is recognized when the services are performed.
Segment financial information for the prior periods has been recast to conform to the current presentation.
The composition of net sales between Residential and Commercial & Industrial reportable segments is as follows:
| | | Total Sales by Reportable Segment | |
| | | Three Months Ended June 30, 2026 | | | Three Months Ended June 30, 2025 | |
| | | External Net Sales | | | Intersegment Sales | | | Total Sales | | | External Net Sales | | | Intersegment Sales | | | Total Sales | |
| Residential | | $ | 617,022 | | | $ | 4,241 | | | $ | 621,263 | | | $ | 630,594 | | | $ | 4,124 | | | $ | 634,718 | |
| Commercial & Industrial | | | 556,488 | | | | 2 | | | | 556,490 | | | | 430,575 | | | | - | | | | 430,575 | |
| Intercompany eliminations | | | - | | | | (4,243 | ) | | | (4,243 | ) | | | - | | | | (4,124 | ) | | | (4,124 | ) |
| Total net sales | | $ | 1,173,510 | | | $ | - | | | $ | 1,173,510 | | | $ | 1,061,169 | | | $ | - | | | $ | 1,061,169 | |
| | | Total Sales by Reportable Segment | |
| | | Six Months Ended June 30, 2026 | | | Six Months Ended June 30, 2025 | |
| | | External Net Sales | | | Intersegment Sales | | | Total Sales | | | External Net Sales | | | Intersegment Sales | | | Total Sales | |
| Residential | | $ | 1,166,338 | | | $ | 7,108 | | | $ | 1,173,446 | | | $ | 1,173,709 | | | $ | 9,672 | | | $ | 1,183,381 | |
| Commercial & Industrial | | | 1,066,537 | | | | 51 | | | | 1,066,588 | | | | 829,581 | | | | - | | | | 829,581 | |
| Intercompany eliminations | | | - | | | | (7,159 | ) | | | (7,159 | ) | | | - | | | | (9,672 | ) | | | (9,672 | ) |
| Total net sales | | $ | 2,232,875 | | | $ | - | | | $ | 2,232,875 | | | $ | 2,003,290 | | | $ | - | | | $ | 2,003,290 | |
The Company views Adjusted EBITDA as a key measure of the Company's performance. The computation of Adjusted EBITDA is based primarily on the definition that is contained in the Company’s credit agreements. The Company presents Adjusted EBITDA not only due to its importance for purposes of the Company's credit agreements, but also because it assists the Company in comparing performance across reporting periods on a consistent basis as it excludes items the Company's management believes are not indicative of the Company's core operating performance. The CODM uses Adjusted EBITDA, along with the Company's management:
| | ● | for planning purposes, including the preparation of the Company's annual operating budget and developing and refining internal projections for future periods; |
| | ● | to allocate resources to enhance the financial performance of the Company's business; |
| | ● | as a target for the determination of the bonus component of compensation for the Company's senior executives under the Company's management incentive plan, as described further in the Company's proxy statement; |
| | ● | to evaluate the effectiveness of the Company's business strategies and as a tool in evaluating the Company's performance against the Company's budget for each period; and |
| | ● | in communications with the Company's Board of Directors and investors concerning the Company's financial performance. |
The table below presents sales (external and intersegment), significant segment expenses, other segment items, and Adjusted EBITDA by reportable segment, reconciled to consolidated income before provision for income taxes.
| | | Three Months Ended June 30, 2026 | | | Three Months Ended June 30, 2025 | |
| | | Residential | | | Commercial & Industrial | | | Corporate & Eliminations (*) | | | Total | | | Residential | | | Commercial & Industrial | | | Corporate & Eliminations (*) | | | Total | |
| External net sales | | $ | 617,022 | | | $ | 556,488 | | | $ | - | | | $ | 1,173,510 | | | $ | 630,594 | | | $ | 430,575 | | | $ | - | | | $ | 1,061,169 | |
| Intersegment sales | | | 4,241 | | | | 2 | | | | - | | | | 4,243 | | | | 4,124 | | | | - | | | | - | | | | 4,124 | |
| Total sales | | | 621,263 | | | | 556,490 | | | | - | | | | 1,177,753 | | | | 634,718 | | | | 430,575 | | | | - | | | | 1,065,293 | |
| Elimination of intersegment sales | | | | | | | | | | | (4,243 | ) | | | (4,243 | ) | | | | | | | | | | | (4,124 | ) | | | (4,124 | ) |
| Costs of goods sold | | | 259,692 | | | | 396,250 | | | | - | | | | 655,942 | | | | 335,113 | | | | 313,431 | | | | - | | | | 648,544 | |
| Elimination of intersegment cost of goods sold | | | | | | | | | | | (4,243 | ) | | | (4,243 | ) | | | | | | | | | | | (4,124 | ) | | | (4,124 | ) |
| Operating expenses | | | 187,926 | | | | 114,870 | | | | 8,582 | | | | 311,378 | | | | 197,990 | | | | 89,226 | | | | 17,744 | | | | 304,960 | |
| Other segment items (1) | | | (41,744 | ) | | | (36,114 | ) | | | (2,433 | ) | | | (80,291 | ) | | | (44,809 | ) | | | (25,424 | ) | | | (5,607 | ) | | | (75,840 | ) |
| Adjusted EBITDA by reportable segment | | $ | 215,389 | | | $ | 81,484 | | | $ | (6,149 | ) | | $ | 290,724 | | | $ | 146,424 | | | $ | 53,342 | | | $ | (12,137 | ) | | $ | 187,629 | |
| Interest expense | | | | | | | | | | | | | | | (16,787 | ) | | | | | | | | | | | | | | | (18,242 | ) |
| Depreciation and amortization | | | | | | | | | | | | | | | (58,410 | ) | | | | | | | | | | | | | | | (48,321 | ) |
| Non-cash write-down and other adjustments (2) | | | | | | | | | | | | | | | (2,515 | ) | | | | | | | | | | | | | | | (2,155 | ) |
| Non-cash share-based compensation expense (3) | | | | | | | | | | | | | | | (14,005 | ) | | | | | | | | | | | | | | | (14,752 | ) |
| Transaction costs and credit facility fees (4) | | | | | | | | | | | | | | | (1,115 | ) | | | | | | | | | | | | | | | (1,004 | ) |
| Business optimization and other charges (5) | | | | | | | | | | | | | | | (2,351 | ) | | | | | | | | | | | | | | | (3,442 | ) |
| Provision for legal, regulatory, and other costs (6) | | | | | | | | | | | | | | | 951 | | | | | | | | | | | | | | | | (4,911 | ) |
| Change in fair value of investment (7) | | | | | | | | | | | | | | | 5,916 | | | | | | | | | | | | | | | | (1,524 | ) |
| Other (8) | | | | | | | | | | | | | | | (12,702 | ) | | | | | | | | | | | | | | | (3,426 | ) |
| Income before provision for income taxes | | | | | | | | | | | | | | $ | 189,706 | | | | | | | | | | | | | | | $ | 89,852 | |
| | | Six Months Ended June 30, 2026 | | | Six Months Ended June 30, 2025 | |
| | | Residential | | | Commercial & Industrial | | | Corporate & Eliminations (*) | | | Total | | | Residential | | | Commercial & Industrial | | | Corporate & Eliminations (*) | | | Total | |
| External net sales | | $ | 1,166,338 | | | $ | 1,066,537 | | | $ | - | | | $ | 2,232,875 | | | $ | 1,173,709 | | | $ | 829,581 | | | $ | - | | | $ | 2,003,290 | |
| Intersegment sales | | | 7,108 | | | | 51 | | | | - | | | | 7,159 | | | | 9,672 | | | | - | | | | - | | | | 9,672 | |
| Total sales | | | 1,173,446 | | | | 1,066,588 | | | | - | | | | 2,240,034 | | | | 1,183,381 | | | | 829,581 | | | | - | | | | 2,012,962 | |
| Elimination of intersegment sales | | | | | | | | | | | (7,159 | ) | | | (7,159 | ) | | | | | | | | | | | (9,672 | ) | | | (9,672 | ) |
| Costs of goods sold | | | 540,647 | | | | 767,340 | | | | - | | | | 1,307,987 | | | | 625,015 | | | | 599,212 | | | | - | | | | 1,224,227 | |
| Elimination of intersegment cost of goods sold | | | | | | | | | | | (7,159 | ) | | | (7,159 | ) | | | | | | | | | | | (9,672 | ) | | | (9,672 | ) |
| Operating expenses | | | 364,543 | | | | 217,351 | | | | 22,429 | | | | 604,323 | | | | 383,218 | | | | 179,599 | | | | 30,491 | | | | 593,308 | |
| Other segment items (1) | | | (85,718 | ) | | | (66,119 | ) | | | (4,644 | ) | | | (156,481 | ) | | | (82,865 | ) | | | (47,918 | ) | | | (10,965 | ) | | | (141,748 | ) |
| Adjusted EBITDA by reportable segment | | $ | 353,974 | | | $ | 148,016 | | | $ | (17,785 | ) | | $ | 484,205 | | | $ | 258,013 | | | $ | 98,688 | | | $ | (19,526 | ) | | $ | 337,175 | |
| Interest expense | | | | | | | | | | | | | | | (32,163 | ) | | | | | | | | | | | | | | | (35,352 | ) |
| Depreciation and amortization | | | | | | | | | | | | | | | (114,384 | ) | | | | | | | | | | | | | | | (94,462 | ) |
| Non-cash write-down and other adjustments (2) | | | | | | | | | | | | | | | (1,072 | ) | | | | | | | | | | | | | | | (2,142 | ) |
| Non-cash share-based compensation expense (3) | | | | | | | | | | | | | | | (27,447 | ) | | | | | | | | | | | | | | | (26,360 | ) |
| Transaction costs and credit facility fees (4) | | | | | | | | | | | | | | | (3,825 | ) | | | | | | | | | | | | | | | (1,764 | ) |
| Business optimization and other charges (5) | | | | | | | | | | | | | | | (3,504 | ) | | | | | | | | | | | | | | | (5,017 | ) |
| Provision for legal, regulatory, and other costs (6) | | | | | | | | | | | | | | | (2,255 | ) | | | | | | | | | | | | | | | (8,662 | ) |
| Change in fair value of investment (7) | | | | | | | | | | | | | | | 4,542 | | | | | | | | | | | | | | | | (11,471 | ) |
| Other (8) | | | | | | | | | | | | | | | (17,632 | ) | | | | | | | | | | | | | | | (3,579 | ) |
| Income before provision for income taxes | | | | | | | | | | | | | | $ | 286,465 | | | | | | | | | | | | | | | $ | 148,366 | |
| | (*) | The 'Corporate & Eliminations' column includes general corporate overhead, centrally managed costs not allocated to the reportable segments, and the elimination of intersegment revenues and cost of goods sold. These costs primarily relate to certain legal, accounting, human resources, technology functions, and other costs related to the Corporate headquarters. |
| | (1) | Other segment items primarily represent depreciation and amortization and the following items defined below: Non-cash write-down and other adjustments; Non-cash shared-based compensation expense; Transaction costs and credit facility fees; Business optimization and other charges; and Provision for legal, regulatory, and other costs. |
| | (2) | Includes gains (losses) on dispositions of assets other than in the ordinary course of business, gains (losses) on sales of certain investments, unrealized mark-to-market adjustments on commodity contracts, certain foreign currency related adjustments, and certain purchase accounting and contingent consideration adjustments. |
| | (3) | Represents share-based compensation expense to account for stock options, restricted stock, and other stock awards over their respective vesting periods. |
| | (4) | Represents transaction costs incurred directly in connection with any investment, as defined in the Company's credit agreement, equity issuance or debt issuance or refinancing, together with certain fees relating to the Company's senior secured credit facilities, such as administrative agent fees and credit facility commitment fees under the Company's credit agreement. |
| | (5) | Represents severance and other restructuring charges related to the consolidation of certain operating facilities and organizational functions. |
| | (6) | Represents the following significant litigation, regulatory, and other matters that are not indicative of the Company's ongoing operations: |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2026 | | | 2025 | | | 2026 | | | 2025 | |
| Legal expenses, judgements and settlements related to certain patent lawsuits | | $ | (3,485 | ) | | $ | 1,696 | | | $ | (1,038 | ) | | $ | 3,188 | |
| Legal expenses, judgements and settlements related to certain class action lawsuits | | | 1,262 | | | | 2,540 | | | | 2,288 | | | | 3,883 | |
| Legal expenses related to certain government inquiries and other significant matters | | | 1,272 | | | | 675 | | | | 2,134 | | | | 1,591 | |
| Release of warranty provision recorded in 2022 to address clean energy warranty-related matters | | | - | | | | - | | | | (1,129 | ) | | | - | |
| Total provision for legal, regulatory and other matters | | $ | (951 | ) | | $ | 4,911 | | | $ | 2,255 | | | $ | 8,662 | |
| | (7) | Represents non-cash gains (losses) primarily from changes in the fair value of the Company's investment in Wallbox warrants and equity securities. |
| | (8) | The current year loss relates primarily to four immaterial business dispositions with two closing in the first quarter and two closing in the second quarter of 2026. The prior year loss relates primarily to one immaterial business disposition that closed in the second quarter of 2025. |
The following tables summarize additional financial information by reportable segment:
| | | Assets by Reportable Segment | |
| | | June 30, 2026 | | | December 31, 2025 | |
| Residential | | $ | 2,905,028 | | | $ | 3,144,332 | |
| Commercial & Industrial | | | 2,808,887 | | | | 2,367,764 | |
| Corporate | | | 58,236 | | | | 61,583 | |
| Total | | $ | 5,772,151 | | | $ | 5,573,679 | |
| | | Depreciation and Amortization by Reportable Segment | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2026 | | | 2025 | | | 2026 | | | 2025 | |
| Residential | | $ | 31,131 | | | $ | 29,264 | | | $ | 63,347 | | | $ | 58,149 | |
| Commercial & Industrial | | | 26,891 | | | | 18,616 | | | | 50,378 | | | | 35,609 | |
| Corporate | | | 388 | | | | 441 | | | | 659 | | | | 704 | |
| Total | | $ | 58,410 | | | $ | 48,321 | | | $ | 114,384 | | | $ | 94,462 | |
| | | Capital Expenditures by Reportable Segment | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2026 | | | 2025 | | | 2026 | | | 2025 | |
| Residential | | $ | 10,438 | | | $ | 27,404 | | | $ | 23,249 | | | $ | 43,531 | |
| Commercial & Industrial | | | 46,412 | | | | 28,992 | | | | 61,870 | | | | 42,080 | |
| Corporate | | | 1,440 | | | | 1,320 | | | | 2,568 | | | | 3,042 | |
| Total | | $ | 58,290 | | | $ | 57,716 | | | $ | 87,687 | | | $ | 88,653 | |
The Company’s sales in the U.S. represented approximately 76% and 80% of total sales for the three months ended June 30, 2026 and 2025, respectively, and approximately 77% and 79% for the six months ended June 30, 2026 and 2025, respectively. Approximately 78% and 74% of the Company's identifiable long-lived assets were located in the U.S. as of June 30, 2026 and December 31, 2025, respectively.
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