What Generac Holdings Inc. told the SEC could break it.

Tariffs on foreign goods (notably from China, India and the EU) have raised Generac's costs; despite price increases and supply-chain initiatives, the resulting price hikes have created consumer inflationary pressure that is negatively affecting demand and margins for certain products.

“Despite our efforts, these tariff actions and resulting price increases have created inflationary pressures for consumers, negatively impacting demand and margins for certain of our products.”

All of Generac's engines and engine-driven products sold in the U.S. are regulated by the EPA, California Air Resources Board and other air-quality districts, whose continually evolving emissions rules can raise compliance costs and constrain product offerings.

“Our products sold in the United States are regulated by the U.S. Environmental Protection Agency (EPA), California Air Resources Board (CARB) and various other state and local air quality management districts. All of our engines and engine-driven products sold in the U.S. are regulated.”

Generac depends in some cases on suppliers that are the sole source of certain important components, and has found it challenging to consistently obtain adequate, cost-efficient and timely deliveries of required raw materials and components.

“Also, our ability to continue to obtain quality materials and components is subject to the continued reliability and viability of our suppliers, including in some cases, suppliers who are the sole source of certain important components.”