Generac (NYSE:GNRC) Announces Earnings Results, Beats Estimates By $0.90 EPS

Key Points

• Generac beat quarterly earnings expectations, reporting $2.91 in EPS versus the $2.01 consensus estimate. Revenue rose 10.3% year over year to $1.17 billion, slightly below analysts’ $1.18 billion forecast.
• Commercial and industrial demand—especially from data centers—surged. C&I sales increased 29%, while data-center revenue exceeded $100 million, supported by a $1.6 billion backlog and approximately $1 billion in new orders over the past 90 days.
• Residential performance remained a weakness: sales fell 2% amid low outage activity, weaker portable-generator shipments, and softer energy-storage demand. Generac modestly lowered its full-year residential growth outlook to the high-single-digit range.

Generac (NYSE:GNRC - Get Free Report) announced its earnings results on Wednesday. The technology company reported $2.91 EPS for the quarter, topping analysts' consensus estimates of $2.01 by $0.90, FiscalAI reports. The company had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.18 billion. Generac had a return on equity of 15.45% and a net margin of 4.37%.Generac's revenue for the quarter was up 10.3% compared to the same quarter last year. During the same period last year, the firm earned $1.65 EPS.

Here are the key takeaways from Generac's conference call:

• Commercial and industrial sales rose 29% year over year, driven by data center shipments, rental products, and telecom demand. Generac raised its full-year C&I growth outlook to the low-30% range from the previously expected mid-to-high 20% range.
• Data center momentum accelerated, with more than $100 million of quarterly revenue, a $1.6 billion backlog, and roughly $1 billion of new orders in the past 90 days. The company expects nearly $450 million of data center revenue in 2026 and said a second hyperscale agreement could be at least as large as the first customer’s approximately $700 million commitment for 2027 deliveries.
• Generac is accelerating capacity investments for large megawatt generators, including bringing its Sussex, Wisconsin facility online by the end of the third quarter and expanding packaging capacity in Illinois. Management said it has a path to roughly triple assembly capacity from its original $1.25 billion year-end 2026 target over the next 12 to 18 months.
• Consolidated adjusted EBITDA margin expanded to 24.8%, helped substantially by approximately $71 million in tariff refunds; margins increased about one percentage point excluding that benefit. Full-year adjusted EBITDA margin guidance remains 18.5%–19.5% excluding tariff refunds, or 20%–21% including them.
• Residential sales declined 2% in the quarter, pressured by weak outage activity, lower portable generator shipments, and softness in residential energy storage following the end of a Puerto Rico program. Generac modestly reduced its full-year residential growth outlook to the high-single-digit range, citing continued outage weakness and affordability concerns.

Generac Price Performance

Generac stock traded down $0.29 during mid-day trading on Wednesday, reaching $195.31. 1,229,116 shares of the company's stock traded hands, compared to its average volume of 1,024,298. Generac has a 12-month low of $134.80 and a 12-month high of $296.44. The company has a market cap of $11.50 billion, a price-to-earnings ratio of 60.76, a PEG ratio of 1.85 and a beta of 1.89. The stock has a 50 day moving average of $254.18 and a two-hundred day moving average of $223.96. The company has a quick ratio of 0.99, a current ratio of 2.03 and a debt-to-equity ratio of 0.47.

Insider Activity

In other news, insider Norman P. Taffe sold 550 shares of the stock in a transaction on Monday, July 6th. The shares were sold at an average price of $256.00, for a total value of $140,800.00. Following the sale, the insider owned 15,808 shares of the company's stock, valued at approximately $4,046,848. This represents a 3.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Aaron Jagdfeld sold 5,000 shares of the company's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $272.18, for a total transaction of $1,360,900.00. Following the transaction, the chief executive officer owned 564,528 shares in the company, valued at $153,653,231.04. The trade was a 0.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,100 shares of company stock worth $1,651,443 over the last 90 days. Corporate insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Gen Wealth Partners Inc grew its stake in Generac by 8.7% in the fourth quarter. Gen Wealth Partners Inc now owns 675 shares of the technology company's stock worth $92,000 after purchasing an additional 54 shares in the last quarter. NewEdge Advisors LLC raised its position in Generac by 2.7% during the 3rd quarter. NewEdge Advisors LLC now owns 2,749 shares of the technology company's stock valued at $460,000 after purchasing an additional 73 shares in the last quarter. Vident Advisory LLC raised its position in Generac by 2.9% during the 3rd quarter. Vident Advisory LLC now owns 2,651 shares of the technology company's stock valued at $444,000 after purchasing an additional 74 shares in the last quarter. Fiduciary Trust Co lifted its holdings in shares of Generac by 4.5% in the 3rd quarter. Fiduciary Trust Co now owns 1,842 shares of the technology company's stock worth $308,000 after buying an additional 80 shares during the period. Finally, MML Investors Services LLC grew its position in shares of Generac by 1.8% during the 4th quarter. MML Investors Services LLC now owns 5,051 shares of the technology company's stock worth $689,000 after buying an additional 88 shares in the last quarter. Hedge funds and other institutional investors own 84.04% of the company's stock.

Analyst Ratings Changes

A number of analysts have commented on GNRC shares. Robert W. Baird set a $311.00 price target on Generac in a research report on Thursday, April 30th. Wells Fargo & Company lifted their price target on shares of Generac from $238.00 to $280.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Canaccord Genuity Group raised their price objective on shares of Generac from $300.00 to $325.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. UBS Group upped their target price on shares of Generac from $305.00 to $335.00 and gave the stock a "buy" rating in a report on Thursday, June 11th. Finally, Jefferies Financial Group restated a "buy" rating on shares of Generac in a research report on Wednesday, June 3rd. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $286.44.

About Generac

Generac Holdings Inc NYSE: GNRC is a leading manufacturer of backup power generation products for residential, commercial and industrial applications. The company offers a comprehensive portfolio of standby and portable generators, transfer switches and power management systems designed to provide reliable electricity during power outages and other critical situations. With an emphasis on innovation, Generac has expanded its offerings to include clean energy technologies such as battery storage and integrated solar-plus-storage systems.

Generac's product lineup addresses a broad range of customer needs.

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