Generac Holdings (GNRC)
NYSE:GNRC
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Earnings Data
Report Date
Aug 05, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.98Last Year’s EPS
1.65Same Quarter Last Year
Moderate Buy
Based on 18 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a strongly positive operational and financial performance picture: solid consolidated and segment revenue growth (notably a 28% increase in C&I), meaningful margin expansion, substantially improved adjusted EBITDA and cash flow, upgraded full‑year guidance, and strategic acquisitions (Enercon, Allmand) that improve competitive positioning and margin profile. The company also highlighted a growing backlog (> $700M) and a nonbinding $600M notice to proceed that provide visibility into 2027. Lowlights include modest Q1 gross margin pressure versus prior year, regional softness in certain international markets, near-term softness in some energy-technology sales following program completion, tariff and trade-policy uncertainty, and supply-chain/packaging bottlenecks that may require additional capacity investment or M&A. On balance, the positive metrics, raised guidance, and strengthened data-center positioning materially outweigh the listed challenges.Company Guidance
Consolidated Net Sales Growth
Net sales increased 12% year-over-year to $1.06 billion in Q1 2026 (from $942 million in Q1 2025), with ~4% of the increase attributable to acquisitions, divestitures and favorable foreign currency.
Commercial & Industrial (C&I) Segment Surge
C&I segment sales rose ~28% year-over-year to $510 million (from $399 million), including an approximate 10% favorable impact from acquisitions/divestitures/FX; company now expects C&I net sales to grow in the mid- to high-20s% for full year 2026 (raised from low- to mid-20s%).
Adjusted EBITDA and Margin Expansion
Consolidated adjusted EBITDA was $193 million (18.3% of sales) vs $150 million (15.9% of sales) in the prior year — a significant margin expansion driven by favorable sales mix, operating leverage and lower-than-expected input costs.
Residential Segment Margin Improvement
Residential adjusted EBITDA improved to $139 million (25.1% of residential sales) versus $112 million (20.3%) in the prior year — roughly a ~480–500 basis point expansion driven primarily by lower operating expenses following the Generac Home reorganization and favorable price realization.
Backlog and Hyperscale Opportunity
Backlog grew to more than $700 million (an increase of ~$300 million since mid-February), and the company received a nonbinding notice to proceed for approximately $600 million in 2027 deliveries from a hyperscale customer, providing multi-quarter / multi-year visibility.
Strategic Acquisitions to Improve Positioning
Completed acquisition of Enercon (April 1) to bring generator enclosures and switchgear capabilities in-house and closed Allmand (January) to bolster mobile product capacity; management expects these to improve margins, address packaging bottlenecks, and expand addressable markets.
Strong Cash Flow and Free Cash Flow Improvement
Operating cash flow was $119 million vs $58 million a year ago; free cash flow was $90 million vs $27 million in the prior year quarter, driven by higher operating earnings and lower working capital use. Full-year free cash flow guidance is ~ $350 million.
Updated Full-Year Guidance Raised
Company raised full-year outlook: consolidated net sales now expected to grow mid- to high‑teens% (vs prior mid‑teens guidance); gross margin guidance increased to 38.5%–39.5% (up ~50 bps) and adjusted EBITDA margin guidance raised to 18.5%–19.5% (up 50 bps).
Facility and Capacity Expansion
New Sussex, Wisconsin facility remains on track to begin production in H2 2026, increasing domestic generator manufacturing and assembly capacity for megawatt products to more than $1 billion by Q4 2026; management is already planning further capacity expansion for anticipated demand.
Ecobee Growth and Profitability
Ecobee connected-home count exceeded 5 million; service attach rates increased and Ecobee delivered its first positive adjusted EBITDA in Q1 2026, with management expecting continued strong shipment growth and improving profitability.
Improved GAAP and Adjusted Earnings Per Share
GAAP diluted EPS rose to $1.24 in Q1 2026 from $0.73 in Q1 2025; adjusted net income was $106 million ($1.80 per share) versus $75 million ($1.26 per share) a year ago.
Leverage and Balance Sheet
Total debt outstanding was $1.32 billion at quarter end with a gross debt leverage ratio of 1.7x, within the company's target gross debt leverage range of 1–2x adjusted EBITDA.
GNRC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
GNRC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $217.12 | $252.92 | +16.49% |
Feb 11, 2026 | $182.30 | $214.99 | +17.93% |
Oct 29, 2025 | $190.15 | $180.86 | -4.89% |
Jul 30, 2025 | $151.32 | $181.00 | +19.61% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Generac Holdings (GNRC) report earnings?
Generac Holdings (GNRC) is schdueled to report earning on Aug 05, 2026, Before Open (Confirmed).
What is Generac Holdings (GNRC) earnings time?
Generac Holdings (GNRC) earnings time is at Aug 05, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is GNRC EPS forecast?
GNRC EPS forecast for the fiscal quarter 2026 (Q2) is 1.98.
