How does this generator work ?

With the gasoline engine running the yellow wires are your excitation, measure across the yellow wires.

I know you have checked this but is the circuit breaker tripped?

Ron
Generator section is defunct. Its fan shattered and destroyed stator and rotor windings.
 
Generator section is defunct. Its fan shattered and destroyed stator and rotor windings.
So it's beyond economical repair?

I have an old Coleman Powermate 4000 going back maybe 30 years. That old generator saved me several times when my whole house unit failed. Briggs & Stratton 8 HP engine and your 2500 should be an 5 HP engine. Just a stator cost more than the unit new.

Ron
 
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