v3.26.1
Note 14 - Earnings Per Share
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Earnings Per Share [Text Block]

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 "in the money" restricted stock and the exercise of outstanding "in the money" stock options, as well as the satisfaction of certain acquisition contingent consideration conditions as of the end of the period. Refer to Note 4, “Redeemable Noncontrolling Interests,” of the Annual Report on Form 10-K for the year ended December 31, 2025, 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:

 

  

Three Months Ended June 30,

  

Six Months Ended June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Numerator

                

Net income attributable to Generac Holdings Inc.

 $143,244  $74,016  $216,497  $117,856 

Net income attributable to common shareholders

 $143,244  $74,016  $216,497  $117,856 
                 

Denominator

                

Weighted average shares, basic

  58,822,634   58,496,998   58,615,919   58,771,818 

Dilutive effect of stock compensation awards (1)

  812,813   520,825   820,460   614,089 

Weighted average shares, diluted

  59,635,447   59,017,823   59,436,379   59,385,907 
                 

Net income attributable to common shareholders per share

                

Basic

 $2.44  $1.27  $3.69  $2.01 

Diluted

 $2.40  $1.25  $3.64  $1.98 

 

(1) Excludes approximately 124,000 and 123,000 stock options and restricted stock awards for the three and six months ended June 30, 2026, respectively, and 779,000 and 428,000 stock options and restricted stock awards for the three and six months ended June 30, 2025, respectively, because they would be anti-dilutive.