Generac Holdings Inc.

Generac Holdings Inc. (GNRC) Market Cap

Generac Holdings Inc. has a market capitalization of —.

No quote data available.

CEO: Aaron Jagdfeld

Sector: Industrials

Industry: Industrial - Machinery

IPO Date: 2010-02-11

Website: https://www.generac.com

Generac Holdings Inc. (GNRC) - Company Information

Market Cap: -|Sector: Industrials

Company Profile

Generac Holdings Inc. specializes in the engineering, manufacturing, and global distribution of diverse power generation systems, energy storage solutions, and related electrical products. The company caters to residential users, light commercial enterprises, and industrial sectors worldwide. At its core, Generac produces vital components such as engines, alternators, batteries, advanced electronic controls, and robust steel enclosures. For homeowners, the company provides a range of automatic standby generators, from 7.5kW up to 150kW, including air-cooled models (7.5kW-26kW) and more powerful liquid-cooled units (22kW-150kW). Many of these residential systems are compatible with Mobile Link, a remote monitoring platform. Generac also offers portable generators, spanning outputs from 800W to 17.5kW, alongside an extensive catalog of outdoor power equipment like trimmers, mowers, log splitters, and pressure washers. Its commitment to sustainable energy is evident through its clean energy offerings, marketed under the PWRcell and PWRview brands. Serving commercial and industrial clients, Generac supplies essential equipment such as light towers, mobile power units, and portable energy storage systems. Its portfolio extends to include commercial mobile pumps, dust-suppression apparatus, and various control systems for gaseous-fueled engines. Light-commercial standby generators, rated from 22kW to 150kW, deliver critical three-phase power to small and mid-sized businesses. For heavy-duty applications, industrial generators with capabilities from 10kW to a formidable 3,250kW are deployed as emergency backup power for vital infrastructure across healthcare, telecommunications, data centers, commercial offices, retail, municipal services, and manufacturing facilities. Beyond direct product sales, the company supports its offerings by supplying aftermarket service parts and product accessories to its vast dealer network. Generac's distribution strategy is multi-faceted, leveraging independent residential and industrial dealers, major national and regional retailers, e-commerce platforms, specialized wholesalers (electrical, HVAC, solar), catalogs, equipment rental firms, and direct engagement with end-users. Founded in 1959, Generac Holdings Inc. is proudly headquartered in Waukesha, Wisconsin.

Analyst Sentiment

70%
Buy

From 22 Active Polls

1Y Forecast: $298.08

▲ +0.0% Potential Upside

Consensus Target Metrics

Low Bound

$214

Median

$302

High Bound

$335

Average

$298

Price & Moving Averages

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🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$298.08
▲ +51.23% Upside
Low Target
$214.00
9% Risk
Median Target
$302.00
53% Mid
High Target
$335.00
70% Max

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

Sentiment volume allocation data unavailable.

valuation & financial ratiosdetailed financials

Historical valuation matrix unavailable.

📘 Full Research Report

ℹ️

AI-Generated Research: This report is for informational purposes only.

📘 GENERAC HOLDINGS INC (GNRC) — Investment Overview

🧩 Business Model Overview

Generac designs and sells distributed power products that protect customers against grid outages and power quality disruptions. The value chain runs from product engineering and component sourcing, to manufacturing, to distribution through dealer and installer channels (and, for certain products, direct enterprise relationships), culminating in installation, maintenance, and ongoing support. A key feature of the model is the tight linkage between installed equipment and the service/parts ecosystem: once equipment is installed at a site, Generac’s monitoring, serviceability, and compatible accessories create practical continuity for customers and dealers.

💰 Revenue Streams & Monetisation Model

Revenue is generated primarily through:

  • Product sales (residential standby generators, commercial backup power systems, transfer switches, and related power management components).
  • Aftermarket revenue including service parts, maintenance, and site-based accessories that extend equipment life and preserve reliability.
  • Software-enabled/connected monitoring tied to installed systems (remote monitoring and service workflow support), typically representing a smaller portion of total revenue than equipment sales but enhancing customer retention and service conversion.

Margin structure tends to be driven by (1) product mix (higher-margin system and accessories vs. commoditized components), (2) manufacturing efficiency and component sourcing discipline, and (3) aftermarket attach rates. Over the cycle, aftermarket and connected-monitoring-linked revenue can dampen volatility by providing recurring or repeatable monetisation tied to the growing installed base.

🧠 Competitive Advantages & Market Positioning

Generac’s moat is rooted in switching costs and service/compatibility lock-in rather than pure manufacturing scale alone.

  • Switching costs (installed-base economics): Once a home or facility installs a Generac power system, replacement and upgrades often involve compatible transfer switching, monitoring interfaces, and dealer familiarity. This reduces the ease of migrating to competing platforms.
  • Dealer/installer channel depth: Generac’s distribution model relies on trained installer networks and established purchasing routines. Channel partners have practical incentives to standardize around equipment they can install, service, and warrant efficiently.
  • Serviceability and aftermarket coverage: A growing fleet increases the addressable service market over time, supporting recurring monetisation and sustaining gross margin resilience.

Competitive benchmarking

  • Kohler: Strong position in residential standby generation and broader power equipment. Generac tends to emphasize a larger share of distributed backup power exposure and a connected/aftermarket linkage designed to deepen installed-base retention.
  • Cummins: Diversified across industrial power and engine platforms with meaningful exposure to standby and emergency power. Cummins often competes with enterprise breadth and industrial engineering strength, while Generac’s focus remains more concentrated on distributed residential/commercial backup ecosystems where dealer-led distribution and installed-base depth matter.
  • Eaton (power management): Strong in electrical infrastructure and power quality solutions. Eaton’s orientation can skew toward broader power management and infrastructure products, whereas Generac competes more directly on “outage protection at the site” packages that integrate generation, transfer capability, and service continuity.

Overall, Generac’s positioning contrasts with broader industrial peers by prioritizing a tighter product-platform strategy around distributed outage protection, using the installed base as the economic anchor.

🚀 Multi-Year Growth Drivers

The growth outlook over a 5–10 year horizon is supported by structural demand rather than isolated cyclical tailwinds:

  • Grid reliability and resilience spend: Increased frequency and duration of outages, alongside customer expectations for energy assurance, supports continued demand for residential standby and commercial backup systems.
  • Energy storage adoption: Integration of storage solutions with backup power platforms expands the addressable market from single-mode backup toward multi-mode resilience (backup + peak/backup management).
  • Replacement cycles: Aging generator fleets create recurring demand as customers upgrade for reliability, emissions-compliance, and connected monitoring capabilities.
  • Data-center and critical-site power needs: Growth in power-hungry workloads and uptime requirements supports commercial installations with more complex power management requirements.
  • Channel expansion and product platform rollouts: Additional SKUs, accessory ecosystems, and connected monitoring features can raise conversion rates and improve lifetime customer value through attach and service penetration.

⚠ Risk Factors to Monitor

  • Commodity and supply-chain volatility: Engines, power electronics, and semiconductor-related components can pressure costs and constrain production during supply disruptions.
  • Pricing pressure in residential end-markets: Competitive intensity can force margin concessions, particularly if dealer inventory dynamics shift or if demand normalizes.
  • Execution and warranty risk in energy storage: Storage technology, thermal management, battery degradation, and warranty reserves can introduce earnings volatility if product performance and field reliability underperform.
  • Regulatory and emissions compliance: Evolving emissions standards and safety certification requirements can increase engineering and compliance costs, and may require product redesigns.
  • Dealer and installation capacity constraints: Installer availability and scheduling can act as a bottleneck for demand capture, particularly after demand accelerates.

📊 Valuation & Market View

Equity valuation for distributed power and aftermarket-adjacent manufacturers typically depends on earnings power and the perceived durability of installed-base monetisation. Market participants often frame the story through:

  • EV/EBITDA or EV/EBIT: Used to assess normalized operating profitability and margin trajectory as supply constraints clear and product mix evolves.
  • Revenue quality measures (aftermarket/service contribution and connected-enabled penetration): Higher visibility into repeatable revenue and improving mix can support valuation.
  • Free cash flow conversion: Sensitive to working capital, inventory levels, and capex discipline.
  • Growth vs. cyclicality: Residential and commercial backup power demand can move with housing/credit conditions and broader construction activity, so investors typically apply a cyclical risk premium unless installed-base-linked monetisation offsets variability.

The key variables that move sentiment tend to be structural: installed base expansion, aftermarket attach rates, sustainable gross margin, and evidence that storage-related revenue can scale without disproportionate warranty burden.

🔍 Investment Takeaway

Generac is positioned in a structurally supported segment of distributed outage protection, with an economic moat anchored in switching costs from an expanding installed base and the resulting service/compatibility ecosystem. Multi-year demand drivers—grid resilience, critical power needs, replacement cycles, and storage integration—can extend growth beyond equipment sales into a higher-quality, installed-base monetisation profile, provided supply chain execution, warranty discipline, and storage operational performance remain strong.


⚠ AI-generated — informational only. Validate using filings before investing.

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📊 AI Financial Analysis

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Earnings Data: Q Ending 2026-06-30

"GNRC reported Q2’26 revenue of $1.174B and net income of $143.2M (EPS $2.44). Revenue rose +10.6% QoQ (from $1.059B) and +10.6% YoY (from $1.061B). Net income increased +95.6% QoQ (from $73.3M) and +93.4% YoY (from $74.0M), signaling a strong profitability rebound versus last year and especially versus the weak Q4’25 print. Profitability improved materially: gross margin expanded to ~44.5% from ~38.7% QoQ and ~39.3% YoY; net margin rose to ~12.2% from ~6.9% QoQ and ~7.0% YoY. Operating income margin also recovered to ~17.9% from ~11.1% QoQ. Cash flow quality looks solid for profitability: operating cash flow was $121.2M, supporting positive free cash flow of ~$62.9M (capex modest at $58M). Leverage remains meaningful (net debt ~$1.24B), but equity is stable and sizable at ~$2.88B with total assets of ~$5.77B. There were no dividends paid; no buybacks in Q2’26. Total shareholder returns are a key positive: the stock is up +91.7% over 1Y (above the 20% momentum threshold). Valuation remains elevated (P/E ~30; price-to-sales ~14.6), but strong earnings momentum helps offset risk."

Revenue Growth

Good

Revenue grew +10.6% QoQ and +10.6% YoY to $1.174B, consistent with an improving demand/throughput trajectory.

Profitability

Strong

Margins expanded sharply: gross margin ~44.5% (vs ~38.7% QoQ and ~39.3% YoY) and net margin ~12.2% (vs ~6.9% QoQ and ~7.0% YoY). Net income +95.6% QoQ and +93.4% YoY.

Cash Flow Quality

Positive

Operating cash flow was $121.2M; free cash flow was ~$62.9M after capex (~$58M). No dividends paid and no buybacks in the quarter.

Leverage & Balance Sheet

Neutral

Net debt remains high (~$1.24B) and debt-to-equity ~0.52, but total equity is stable (~$2.88B) and asset base grew to ~$5.77B.

Shareholder Returns

Strong

Price momentum is strong: +91.7% over 1Y. With zero dividend activity in the quarter, total return is driven primarily by capital appreciation.

Analyst Sentiment & Valuation

Positive

Consensus target ~$299.7 implies upside vs. the current price of $212.1, but valuation is rich (P/E ~30; P/S ~14.6), increasing sensitivity to execution.

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

RevenueEarningsP/E RatioSharesDebtMargin %

Fundamentals Overview

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So What? GNRC’s Q2 2026 read-through is that Generac is converting data center momentum into measurable backlog and capacity-driven execution—while residential acts as a partial offset. C&I revenue grew 29% YoY, and management anchored visibility with $1.6B data center backlog ($~1B new orders in 90 days). Hyperscale business development intensified: a nearly $700M-commitment 2027 supply agreement plus a second multiyear hyperscale deal signed late June, with 2027/2028 volumes still being finalized—explicitly positioned as upside beyond the booked backlog. Margin expansion is substantial but materially tariff-refund driven (~$71M pretax; ~150 bps tariff guidance framework). On operations, management accelerated Sussex, Wisconsin—first product in August and production ramp by end of Q3—supporting a stated 12-month tripling of assembly/packaging capacity (not engines), with third-party packaging filling the remaining gap. Outlook upgrades C&I to low-30s% growth and lifts data center revenue to ~$450M for 2026, while Residential remains constrained by outage baselines and affordability.

AI IconGrowth Catalysts

  • Commercial & Industrial (C&I) net sales up 29% YoY, driven by ramped revenue from products sold to the global data center market
  • Data center revenue backlog visibility: $1.6B backlog for products sold to data center market; new orders ~$1B over last 90 days
  • Home standby generators returned to solid growth in Q2 despite lower portable generator shipments from a softer power outage environment
  • Large megawatt generator quotation activity strengthening in non-data-center applications via independent distributor channel

Business Development

  • Signed multiyear supply agreement with a hyperscale customer announced in early June: commitments nearly $700M for product deliveries in 2027
  • Signed second hyperscale multiyear supply agreement in late June; finalizing terms/volumes/timelines for 2027 and 2028 deliveries (upside not included in the $1.6B backlog figure)
  • Completed April 1 acquisition of Enercon (generator enclosures and specialty packages)
  • Closed purchase of a second packaging/metal fabrication facility in Belvidere, Illinois (expected operational in Q1 2027)

AI IconFinancial Highlights

  • Consolidated net sales increased 11% to $1.17B (from $1.06B); net effect of acquisitions/divestitures/FX +~2%
  • C&I net sales up ~29% to $556M; Residential down ~2% to $621M
  • Consolidated adjusted EBITDA margin expanded to 24.8% (vs 17.7% prior year), primarily from tariff refunds
  • Tariff refunds impact: ~$71M pretax in Q2 reflected in gross margin/earnings metrics; ~$0.90 after-tax EPS impact; margin contribution described as ~6% to gross margin growth and 6% impact to adjusted EBITDA margin
  • Gross margin: 44.5% vs 39.3% prior year
  • Adjusted EBITDA increased to $291M (24.8% of net sales) from $188M (17.7%)
  • GAAP EPS: $2.40 vs $1.25; adjusted EPS: $2.91 vs $1.65
  • Effective tax rate increased to 24.6% (from 17.2%), driven primarily by nonrecurring favorable discrete item in prior year
  • GAAP taxes: $46.7M in Q2 2026 vs $15.4M prior year

AI IconCapital Funding

  • Total debt outstanding: ~$1.33B; gross debt leverage ratio: ~1.5x (within 1x–2x target range)
  • Free cash flow (FCF) in Q2: $63M vs $14M prior year; company attributed increase to tariff refund cash receipts and lower cash taxes, partially offset by working capital use
  • Full-year 2026 FCF guidance: ~$350M
  • Full-year 2026 capital expenditures: ~4.5% of forecasted net sales (includes purchase/outfitting of Belvidere packaging facility and increased investment in global large megawatt generator facilities)
  • No share repurchase amount provided in this quarter; company noted 2026 outlook excludes potential additional share repurchases

AI IconStrategy & Ops

  • Production capacity ramp: on track to begin production in Sussex, Wisconsin by end of Q3 (ahead of initial target)
  • Sussex facility acceleration: first product running down the line in August to prove out the line; completing testing capabilities and starting production ramp by end of Q3
  • Packaging/capacity expansion: Enercon enclosure/specialty package acquisition (closed April 1) and Belvidere Illinois facility purchase (operational expected Q1 2027)
  • Vertical integration: investing to increase value-added content for large megawatt generators to shorten lead times and improve profitability
  • Capacity math: management stated tripling of production capacity over next 12 months relates to generator assembly and packaging capacity only (does not include engines/upstream components); expects to achieve ~70% of tripling via internal assembly/packaging, with third-party packaging augmenting the remainder
  • CapEx commentary: guidance increased to ~4.5% of sales; Mike Halloran Q&A indicated this reflects added Sussex capacity (e.g., adding a second line)

AI IconMarket Outlook

  • Expect to recognize nearly $450M in data center revenue related revenue for full-year 2026 (increased from previous expectation)
  • Data center backlog: $1.6B for products sold to data center market; excludes expected orders from second hyperscale supply agreement (potential upside not quantified)
  • C&I segment net sales growth guidance for full-year 2026 increased to low 30s% range (from mid-to-high 20s% previously)
  • Residential segment net sales guidance reduced to high single-digit growth for full-year 2026 (from ~10% previously), assuming outage activity at longer-term baseline and no major outage event
  • Q3 net sales growth expected in high teens range; Q4 acceleration expected as data center revenue ramps and Residential comps ease
  • Full-year 2026 gross margin guidance: ~40% range including $71M tariff refunds; excluding tariff recovery, near low end of 38.5%–39.5%
  • Adjusted EBITDA margin guidance: 18.5%–19.5% excluding 150 bps tariff impact; 20%–21% including tariff refunds
  • Full-year GAAP effective tax rate expected 24.5%–25%
  • Interest expense guidance: ~$65M–$69M for 2026; primary driver higher interest rates

AI IconRisks & Headwinds

  • Residential demand sensitivity to power outage environment: guidance assumes baseline outage activity and does not assume a major power outage event; softer outage environment reduced portable generator shipments YoY
  • Affordability concerns impacting residential outlook in 2H 2026 (modest reduction to prior guidance)
  • Telecom channel lumpiness: full-year shipments expected flat vs prior year due to reduced orders from a specific telecom customer working through backlog
  • Policy/regulatory headwinds: residential solar and storage weakness due to more challenging policy environment (DOE program completed end of 2025; weaker market conditions in 2026)
  • International regional softness: Middle East softer performance partially offset by data center shipments, control solutions, and battery storage

Q&A: Analyst Interest

  • Topic: Capacity tripling and what is actually included (assembly/packaging vs upstream). Management said the tripling pathway over 12 months applies only to generator assembly and packaging capacity, not engines/upstream components. They highlighted Sussex acceleration and added internal lines, plus a ~70% internal coverage assumption with third-party packaging to fill the gap.
  • Topic: Timing and prerequisites to reach the large megawatt capacity scale. Management tied schedule to facility readiness, stating Sussex production ramp begins by end of Q3 with first product running in August for line proofing and testing completion. They linked acceleration to hyperscale agreement commitments, including 2027 and 2028 addendums under final negotiation.
  • Topic: Operational transition as revenue mix shifts to C&I/data center—impact on ROIC and cash flow mechanics. Management acknowledged longer sales cycles for large enterprise projects and the need to align customer deposits with supply chain cash flow. They emphasized early payback expectations as “remarkable” and argued the business is not dramatically CapEx-intensive relative to projected volumes.

Sentiment: MIXED

Note: This summary was synthesized by AI from the GNRC Q2 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

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© 2026 Stock Market Info — Generac Holdings Inc. (GNRC) Financial Profile