Is GNRC (Generac Holdings Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, GNRC is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (10.46% vs ≤33% threshold), interest income ratio (0.18% vs ≤5% threshold), and cash & securities ratio (2.68% vs ≤33% threshold).

Generac Holdings Inc. is a global leader in designing and manufacturing power generation equipment and energy storage systems. The company is best known for its residential automatic standby generators, ranging from 7.5kW to 150kW, as well as industrial alternators, batteries, and remote monitoring technologies like Mobile Link. For Muslim investors, Generac is classified as a Halal stock, having successfully passed all four AAOIFI Shariah screens. Its core business of producing industrial machinery and power solutions is inherently permissible, meaning investors can confidently allocate capital without exposure to prohibited industries like alcohol, gambling, or conventional finance. From an Islamic finance perspective, Generac boasts a highly compliant balance sheet with a low debt-to-market cap ratio of just 10.5%. Additionally, its interest-bearing securities and cash equivalents make up only 2.7% of its market cap, ensuring that the company's value is driven by its tangible manufacturing operations rather than financial engineering. While the stock is currently fully compliant, halal investors should continue to monitor its interest income, which currently sits at a perfectly safe 0.18% of revenue. Any future acquisitions or shifts in corporate financing should also be reviewed periodically to ensure debt levels remain well below the 33% AAOIFI threshold. Generac Holdings Inc. operates in the Industrials sector under the Industrial - Machinery industry and is headquartered in Waukesha, WI, US. The company is led by CEO Aaron Jagdfeld and employs approximately 9,400 people.

GNRC was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. GNRC passed 4 of these 4 screens.

Although GNRC passes all shariah screens, it does earn $7.7M in interest income (0.18% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.18 to purify the income.

GNRC was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.