Want to see GNRC full AI Analyst Report?
Top Page
Generac Holdings
(NYSE:GNRC)
Select Model
Select Model
Rating:68Neutral
Price Target:
$319.00
▲(50.40% Upside)
Action:Reiterated
Date:04/30/26
The score is supported most by a strongly positive earnings update (raised 2026 guidance, expanding margins, and improved demand visibility via backlog) and bullish technical trend. These are tempered by only mid-tier underlying financial performance due to compressed profitability and an expensive valuation (P/E ~50) with no dividend yield provided.
Positive Factors
Strong cash generation
Generac's recent TTM cash generation (operating cash flow $499M; FCF $449M; strong FCF growth) provides durable funding for capex, capacity buildouts, acquisitions, and debt reduction. Reliable cash conversion supports strategic investments and cushions cyclical revenue swings over the medium term.
Negative Factors
Compressed profitability vs. prior years
Material margin compression from peak years reflects lasting below-the-line cost pressures and weaker earnings power. Even with recent improvement, lower net margins reduce reinvestment capacity and ROE, making long-term returns more sensitive to cost inflation and integration costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Generac's recent TTM cash generation (operating cash flow $499M; FCF $449M; strong FCF growth) provides durable funding for capex, capacity buildouts, acquisitions, and debt reduction. Reliable cash conversion supports strategic investments and cushions cyclical revenue swings over the medium term.
Read all positive factors
Generac Holdings Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyGenerac Holdings (GNRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.87B
Dividend YieldN/A
Average Volume (3M)856.80K
Price to Earnings (P/E)78.0
Beta (1Y)1.04
Revenue Growth-0.51%
EPS Growth-44.42%
CountryUS
Employees9,400
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)3.24
Shares Outstanding58,868,683
10 Day Avg. Volume924,657
30 Day Avg. Volume856,799
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)3.03
Price to Sales (P/S)1.90
P/FCF Ratio29.77
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue3.89
Enterprise Value/Gross Profit10.21
Enterprise Value/Ebitda32.97
Forecast
1Y Price Target
$295.38Price Target Upside39.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)8.98
Revenue Forecast (FY)$4.92B
Generac Holdings Business Overview & Revenue Model
Company Description
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 ...
How the Company Makes Money
Generac primarily makes money by selling power generation equipment and related products to end markets that include residential home standby backup power, portable generators, and commercial & industrial backup/prime power systems. Revenue is lar...
Generac Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
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.Positive Updates
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.
Negative Updates
Q1 Gross Margin Slightly Lower YoY
Consolidated gross profit margin declined 0.8 percentage points year-over-year to 38.7% in Q1 2026 (from 39.5% in Q1 2025), primarily due to a higher mix of C&I sales partially offset by favorable price/cost realization.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Generac raised its 2026 outlook after Q1 outperformance, now expecting consolidated net sales to grow in the mid‑ to high‑teens (including ~2% benefit from FX/acquisitions/divestitures), C&I net sales to grow in the mid‑ to high‑20s (up from low‑to‑mid‑20s, with ~5% inorganic/FX benefit) and Residential sales to grow ~10%; seasonally sales are weighted ~45% H1 / ~55% H2 with Q2 sales up ~9–10% and stronger Y/Y acceleration in H2. Gross margin is guided to 38.5%–39.5% (≈ +50 bps vs prior guidance) and adjusted EBITDA margin to 18.5%–19.5% (prior 18.0%–19.0%), with Q2 adj. EBITDA ~18% and Q4 approaching ~20%; full‑year free cash flow is targeted at roughly $350M. Other guideposts: GAAP tax rate 24.5%–25.0%; interest expense ≈ $65M; CapEx ~3.5% of sales; depreciation $108M–$112M; intangible amortization $112M–$116M; stock‑based comp $54M–$58M; diluted shares 59.5M–60M. The update reflects Q1 results (Q1 net sales $1.06B, adj. EBITDA margin 18.3%), a >$700M C&I backlog, a ~$600M 2027 notice‑to‑proceed, and incremental contribution and margin accretion from the Enercon acquisition.Generac Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.33B | 4.21B | 4.30B | 4.02B | 4.56B | 3.74B |
| Gross Profit | 1.65B | 1.61B | 1.67B | 1.37B | 1.52B | 1.36B |
| EBITDA | 510.94M | 464.59M | 670.92M | 554.53M | 719.43M | 816.52M |
| Net Income | 188.97M | 159.55M | 325.26M | 203.09M | 350.27M | 533.39M |
Balance Sheet | ||||||
| Total Assets | 5.59B | 5.57B | 5.11B | 5.09B | 5.17B | 4.88B |
| Cash, Cash Equivalents and Short-Term Investments | 265.53M | 341.41M | 281.28M | 200.99M | 132.72M | 147.34M |
| Total Debt | 1.32B | 1.33B | 1.48B | 1.73B | 1.60B | 1.32B |
| Total Liabilities | 2.92B | 2.93B | 2.61B | 2.74B | 2.80B | 2.61B |
| Stockholders Equity | 2.67B | 2.63B | 2.49B | 2.34B | 2.26B | 2.21B |
Cash Flow | ||||||
| Free Cash Flow | 330.80M | 268.13M | 604.57M | 392.61M | -27.67M | 301.16M |
| Operating Cash Flow | 499.11M | 437.98M | 741.30M | 521.67M | 58.52M | 411.16M |
| Investing Cash Flow | -292.14M | -172.90M | -208.71M | -178.06M | -134.23M | -817.29M |
| Financing Cash Flow | -135.36M | -212.72M | -448.83M | -277.14M | 64.04M | -102.97M |
Generac Holdings Technical Analysis
Negative
212.10
Price Trends
263.65
Negative
236.80
Positive
200.05
Positive
Market Momentum
3.72
Positive
43.65
Neutral
34.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNRC, the sentiment is Negative. The current price of 212.1 is below the 20-day moving average (MA) of 271.80, below the 50-day MA of 263.65, and above the 200-day MA of 200.05, indicating a neutral trend. The MACD of 3.72 indicates Positive momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 34.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNRC.
Generac Holdings Risk Analysis
Generac Holdings disclosed 31 risk factors in its most recent earnings report. Generac Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Generac Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.57B | 33.06 | 12.61% | 1.56% | 7.54% | 7.09% | |
72 Outperform | $11.40B | 42.81 | 12.67% | ― | 17.39% | 20.78% | |
71 Outperform | $10.33B | 23.57 | 28.13% | 1.28% | 4.44% | 25.08% | |
68 Neutral | $14.87B | 77.98 | 7.18% | ― | -0.51% | -44.42% | |
68 Neutral | $14.54B | 50.57 | 4.23% | 0.97% | 1.54% | 22.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
44 Neutral | $53.65M | -1.40 | -4407.08% | ― | 40.40% | -99.95% |
* Industrials Sector Average
GNRC
Generac Holdings
252.66
104.33
70.34%
DCI
Donaldson Company
89.09
19.90
28.76%
IEX
IDEX
223.82
47.22
26.74%
RRX
Regal Rexnord
218.45
70.68
47.84%
SPXC
SPX
227.74
57.77
33.99%
LASE
Laser Photonics Corp.
1.40
-0.99
-41.42%
Generac Holdings Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Generac Lifts 2026 Outlook After Strong First Quarter
Positive
Apr 29, 2026
Generac reported strong first quarter 2026 results on April 29, 2026, with net sales up 12% year over year to $1.06 billion, driven largely by a 28% surge in Commercial Industrial revenue and modest 1% growth in Residential sales. Net income rose...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.