Note 12 - Earnings Per Share

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Earnings Per Share [Text Block]

12. 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 outstanding stock options, as well as the satisfaction of certain contingent acquisition consideration conditions as of the end of the period. Refer to Note 4, “Redeemable Noncontrolling Interest,” of the Annual Report on Form 10-K for the year ended December 31, 2024, 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 March 31,
	2025		2024
Numerator
Net income attributable to Generac Holdings Inc.	$	43,840	$	26,232
Redemption value adjustment		-		(2,686)
Net income attributable to common shareholders	$	43,840	$	23,546
Denominator
Weighted average shares, basic		59,062,534		59,849,362
Dilutive effect of stock compensation awards (1)		685,055		636,763
Diluted shares		59,747,589		60,486,125
Net income attributable to common shareholders per share
Basic	$	0.74	$	0.39
Diluted	$	0.73	$	0.39

(1) Excludes approximately 402,000 and 427,000 stock options and restricted stock awards for the three months March 31, 2025 and 2024, respectively, because they would be anti-dilutive.