Generac (NYSE:GNRC) Issues Earnings Results

Key Points

• Generac beat Q1 expectations with $1.80 EPS (vs. $1.33 consensus) and ~$1.06B revenue (+12.5% YoY), and it raised full‑year guidance to mid‑to‑high‑teens net sales growth with an adjusted EBITDA margin target of 18.5%–19.5%.
• Management highlighted accelerating data‑center demand with a backlog of more than $700 million (up ≈$300M since February) and a $600 million non‑binding notice to proceed for 2027 deliveries from two hyperscale customers.
• Generac is expanding C&I scale via the Enercon and Allmand acquisitions plus a Sussex plant ramp to >$1B U.S. large‑genset capacity by Q4, supported by solid cash flow (Q1 operating cash flow $119M, FCF $90M, FY FCF guide ~$350M), though the stock trades at a high trailing P/E (~94), leaving valuation risk if execution or orders slow.

Generac (NYSE:GNRC - Get Free Report) issued its quarterly earnings data on Wednesday. The technology company reported $1.80 EPS for the quarter, topping analysts' consensus estimates of $1.33 by $0.47, Zacks reports. Generac had a return on equity of 14.55% and a net margin of 3.79%.During the same quarter last year, the company posted $1.26 earnings per share. Generac's quarterly revenue was up 12.5% on a year-over-year basis.

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

• Generac reported accelerating data center demand with a current backlog of more than $700 million (up ~$300M since Feb.) and a $600 million non‑binding notice to proceed for 2027 deliveries as vendor approvals near completion with two hyperscale customers.
• The company beat Q1 expectations (consolidated net sales $1.06B; adjusted EBITDA margin 18.3%) and is raising full‑year guidance to mid‑high‑teens net sales growth and adjusted EBITDA margin of 18.5%–19.5%, driven primarily by C&I strength.
• Strategic moves to support scale include closing the Enercon acquisition (enclosures/switchgear) on April 1 and the Allmand acquisition in January, plus the Sussex plant ramping H2 production to lift U.S. large‑genset capacity to >$1B by Q4 — all positioned to ease packaging bottlenecks and improve margins.
• Residential results showed a ~500 bps YoY EBITDA margin improvement after creating the combined "Generac Home" organization and cutting OpEx, but energy‑tech sales declined post‑DOE Puerto Rico work and full‑year residential growth assumes a return to baseline outage activity.
• Financials remain solid: Q1 operating cash flow was $119M and free cash flow $90M, full‑year FCF guidance ~ $350M, and gross debt at $1.32B (1.7x leverage) sits inside the 1–2x target range.

Generac Stock Performance

Shares of GNRC traded up $34.54 during mid-day trading on Wednesday, hitting $251.66. The stock had a trading volume of 1,622,218 shares, compared to its average volume of 1,085,261. The company has a debt-to-equity ratio of 0.48, a current ratio of 2.03 and a quick ratio of 1.00. The firm has a market cap of $14.77 billion, a P/E ratio of 93.96, a PEG ratio of 2.18 and a beta of 1.78. Generac has a 52 week low of $109.20 and a 52 week high of $255.88. The business has a fifty day moving average price of $210.40 and a 200-day moving average price of $180.65.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. Robert W. Baird set a $292.00 price objective on shares of Generac in a report on Thursday, February 12th. Roth Mkm restated a "neutral" rating and set a $220.00 price target on shares of Generac in a report on Thursday, February 12th. Zacks Research raised shares of Generac from a "strong sell" rating to a "hold" rating in a research report on Thursday, February 19th. TD Cowen lifted their target price on shares of Generac from $220.00 to $255.00 and gave the stock a "buy" rating in a research report on Thursday, February 12th. Finally, Guggenheim restated a "neutral" rating and issued a $202.00 target price on shares of Generac in a research note on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $233.94.

Insider Transactions at Generac

In related news, CFO York A. Ragen sold 24,362 shares of the business's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $235.61, for a total value of $5,739,930.82. Following the sale, the chief financial officer directly owned 137,182 shares in the company, valued at approximately $32,321,451.02. The trade was a 15.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.70% of the company's stock.

Hedge Funds Weigh In On Generac

Several large investors have recently modified their holdings of the business. Invesco Ltd. lifted its stake in shares of Generac by 49.9% during the 4th quarter. Invesco Ltd. now owns 2,423,971 shares of the technology company's stock valued at $330,557,000 after buying an additional 806,430 shares in the last quarter. State Street Corp raised its holdings in Generac by 2.1% during the 2nd quarter. State Street Corp now owns 2,189,927 shares of the technology company's stock valued at $313,619,000 after acquiring an additional 45,592 shares during the period. Boston Partners raised its holdings in Generac by 7.1% during the 3rd quarter. Boston Partners now owns 1,947,332 shares of the technology company's stock valued at $326,003,000 after acquiring an additional 128,439 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in shares of Generac by 20.7% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,104,362 shares of the technology company's stock worth $184,870,000 after acquiring an additional 189,457 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in shares of Generac by 10.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,051,576 shares of the technology company's stock worth $143,409,000 after acquiring an additional 98,360 shares in the last quarter. Hedge funds and other institutional investors own 84.04% of the company's stock.

Key Stories Impacting Generac

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Q1 beat — GAAP/non‑GAAP EPS of $1.80 topped consensus (~$1.33) and revenue was about $1.06B, up ~12% YoY, demonstrating near‑term demand strength. Generac NYSE: GNRC Beats Q1 CY2026 Sales Expectations
• Positive Sentiment: Guidance lifted — management raised its 2026 revenue growth outlook to the mid‑to‑high teens and also improved its EBITDA‑margin outlook, signaling stronger-than-expected forward profitability. Generac Tops Q1 Earnings Estimates, Lifts 2026 Revenue Outlook
• Positive Sentiment: Data‑center backlog and C&I execution — management highlighted a growing data‑center backlog as a meaningful contributor to sales and improved operating leverage, supporting the upgraded outlook. Power equipment maker Generac raises annual sales forecast on growing data center backlog
• Neutral Sentiment: Investor access — the company hosted a conference call and filed a detailed press release with financials and commentary; investors will be watching cadence of data‑center orders and margin progression for confirmation. Listen to Conference Call / Q1 2026 Results
• Negative Sentiment: Valuation and margin context — despite the beat and guide, GNRC carries a high trailing P/E (~94) and relatively low net margin (~3.8%), which could make shares sensitive to any future guidance misses or slowing data‑center buying. Generac stock profile and metrics

Generac Company Profile

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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