Generac (NYSE:GNRC) Releases Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Generac (NYSE:GNRC) released its quarterly earnings data on Wednesday. The technology company reported $2.54 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.14, FiscalAI reports. Generac had a net margin of 6.52% and a return on equity of 18.78%. The firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.32 billion. During the same quarter in the prior year, the company posted $1.83 earnings per share. The business’s revenue was up 16.2% on a year-over-year basis.

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

• Data center momentum accelerated sharply: Generac signed a long-term Amazon supply agreement with approximately $2.4 billion of deliveries expected in 2027–2028, lifting data center backlog to about $4.5 billion. Management now expects data center revenue to exceed $2 billion in 2027.
• Third-quarter net sales reached a record $1.29 billion, up 16%, while adjusted EBITDA increased 33% to $256 million. The company raised its full-year 2026 adjusted EBITDA margin outlook to 20.5%–21% and expects approximately $450 million of free cash flow.
• The residential segment returned to strong growth, with sales up 9% and home standby generator sales increasing at a mid-teens rate as power outages normalized. Portable generator demand also strengthened, while the dealer network expanded to nearly 9,900 locations.
• Generac is ramping production at its Sussex facility, expanding internationally, and bringing a new Belvidere packaging facility online in early 2027, with a goal of nearly tripling global large-megawatt capacity. However, supply chains remain tight—particularly for high-horsepower engines—and fourth-quarter consolidated gross margins are expected to decline to 37%–38% because of data center sales mix and inflationary pressures.

Generac Stock Performance

NYSE GNRC traded down $10.13 during trading hours on Friday, hitting $193.23. 845,960 shares of the company’s stock traded hands, compared to its average volume of 1,093,121. The business’s fifty day moving average price is $199.37 and its two-hundred day moving average price is $217.29. The firm has a market capitalization of $11.40 billion, a P/E ratio of 38.25, a P/E/G ratio of 1.72 and a beta of 1.91. The company has a current ratio of 1.97, a quick ratio of 1.00 and a debt-to-equity ratio of 0.41. Generac has a 52 week low of $134.80 and a 52 week high of $296.44.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on GNRC shares. TD Cowen raised Generac to a “strong-buy” rating in a report on Monday, October 5th. Jefferies Financial Group reiterated a “buy” rating on shares of Generac in a research report on Thursday. Raymond James Financial set a $279.00 price target on shares of Generac in a report on Thursday. Wells Fargo & Company set a $280.00 price objective on shares of Generac in a report on Thursday, September 17th. Finally, KeyCorp reissued an “overweight” rating on shares of Generac in a research note on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, Generac presently has a consensus rating of “Moderate Buy” and an average target price of $290.27.

Insiders Place Their Bets

In other Generac news, insider Kyle Raabe sold 603 shares of the company’s stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $212.57, for a total transaction of $128,179.71. Following the sale, the insider directly owned 9,966 shares in the company, valued at $2,118,472.62. This represents a 5.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Norman P. Taffe sold 150 shares of the stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $220.00, for a total value of $33,000.00. Following the completion of the sale, the insider owned 10,976 shares in the company, valued at approximately $2,414,720. The trade was a 1.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 18,442 shares of company stock worth $3,656,537. Corporate insiders own 2.40% of the company’s stock.

Generac Company Profile

Generac Holdings Inc is a technology and energy solutions company that designs and manufactures power generation equipment and other energy-related products. Its offerings include standby and portable generators, commercial and industrial power systems, energy storage solutions, and products that help customers manage and monitor energy use.

The company serves residential, commercial, industrial, and utility customers. Its products are used for backup power, prime power, and distributed energy applications across homes, businesses, data centers, healthcare facilities, construction sites, and other critical operations.