Generac Holdings shares fell 3.5% Wednesday after the power equipment maker reported weaker-than-expected fourth-quarter results. The Wisconsin-based company posted adjusted earnings of $1.61 per share, missing Wall Street's $1.77 target, while revenue dropped 12% year-over-year to $1.09 billion.

The decline stemmed largely from a 23% collapse in residential product sales to $572 million. CEO Aaron Jagdfeld attributed the slump to fewer power outages compared to 2025's active storm season, reducing demand for home generators. Commercial sales rose 10% to $400 million, driven by data center equipment purchases.

Generac announced a new $500 million stock repurchase program through 2027, replacing its existing authorization. Full-year 2025 sales totaled $4.21 billion, down 2% from 2024. The company forecasts mid-teens percentage sales growth for 2026 with EBITDA margins between 18-19%.