Generac Holdings (GNRC)
NYSE:GNRC
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Generac Holdings
(NYSE:GNRC)
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Rating:60Neutral
Price Target:
$220.00
▲(6.11% Upside)
Action:ReiteratedDate:03/25/26
GNRC scores as neutral overall: the biggest offsetting forces are pressured recent profitability and volatile cash flow versus a manageable balance sheet and an encouraging 2026 outlook driven by C&I/data-center demand and improving margin guidance. Technicals are mixed, while the high P/E meaningfully caps the score.
Positive Factors
C&I momentum & backlog
A $400M C&I/data-center backlog and recent 10% C&I growth indicate durable demand from commercial customers. Management sees ~30% C&I growth in 2026 and a path to doubling C&I sales in 3–5 years, which supports sustained top-line diversification beyond outage-dependent residential sales.
Negative Factors
Compressed profitability
Material margin compression over several years reflects rising operating costs, lower operating profit and mix shifts. Sustained lower net margins reduce internal reinvestment capacity, increase sensitivity to demand shocks, and strain financial flexibility unless management can restore operating leverage or structural cost improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
C&I momentum & backlog
A $400M C&I/data-center backlog and recent 10% C&I growth indicate durable demand from commercial customers. Management sees ~30% C&I growth in 2026 and a path to doubling C&I sales in 3–5 years, which supports sustained top-line diversification beyond outage-dependent residential sales.
Read all positive factors
Generac Holdings (GNRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.17B
Dividend YieldN/A
Average Volume (3M)983.52K
Price to Earnings (P/E)50.0
Beta (1Y)0.98
Revenue Growth5.52%
EPS Growth9.03%
CountryUS
Employees9,400
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.61
Shares Outstanding58,675,827
10 Day Avg. Volume1,023,583
30 Day Avg. Volume983,522
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 Cap1.08
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit8.15
Enterprise Value/Ebitda28.20
Forecast
1Y Price Target
$245.00Price Target Upside18.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)8.48
Revenue Forecast (FY)$4.85B
Generac Holdings Business Overview & Revenue Model
Company Description
Generac Holdings Inc. designs, manufactures, and sells power generation equipment, energy storage systems, and other power products for the residential, and light commercial and industrial markets worldwide. The company offers engines, alternators...
How the Company Makes Money
Generac primarily makes money by selling power generation and energy-related equipment and associated services through a channel of distributors, dealers, retailers, and other partners. Key revenue streams include: (1) Residential products: sales ...
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 Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful strategic progress: accelerating momentum in the C&I/data-center market (10% C&I growth in Q4, $400M backlog, pilot relationships with hyperscalers), major capacity investments (domestic capacity to surpass $1B), strong product innovation and ecobee momentum, and a constructive 2026 guidance (mid‑teens revenue growth and higher EBITDA margin). Offsetting these positives were a weak outage environment that depressed residential sales in Q4 (residential -23%, home standby shipments -25%), significant one-time charges in Q4 (≈$120M combined inventory and product liability provisions) that drove a GAAP loss and weaker cash flow, and uncertainty around when large hyperscaler orders will convert from pilots to firm contracts. On balance, the positives — including visible backlog, capacity expansion, product launches, and optimistic 2026 guidance — outweigh the near-term operational and one-time financial headwinds, suggesting constructive upside as execution on hyperscaler contracts and residential recovery materialize.Positive Updates
Strong C&I Momentum and Backlog
Global commercial & industrial (C&I) product sales grew 10% year-over-year in Q4 to $400M (from $363M). Company backlog for data center products increased to approximately $400M, with the majority expected to ship in 2026. Management expects C&I product sales to grow in the +30% range in 2026, and sees a path to doubling C&I sales over the next 3–5 years driven by data center demand.
Negative Updates
Overall Sales and Residential Declines in Q4
Consolidated net sales decreased 12% year-over-year in Q4 to $1.1B (from $1.2B). Residential product sales declined 23% in Q4 to $572M (from $743M), driven by a continued soft power outage environment and a 25% decline in home standby shipments versus a strong prior-year quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong C&I Momentum and Backlog
Global commercial & industrial (C&I) product sales grew 10% year-over-year in Q4 to $400M (from $363M). Company backlog for data center products increased to approximately $400M, with the majority expected to ship in 2026. Management expects C&I product sales to grow in the +30% range in 2026, and sees a path to doubling C&I sales over the next 3–5 years driven by data center demand.
Read all positive updates
Company Guidance
Generac initiated 2026 guidance calling for consolidated net sales to grow at a mid‑teens rate (includes ~1% net benefit from foreign currency and recent M&A), with residential sales up roughly +10% (home standby expected to grow mid‑teens driven half by price and half by volume), C&I product sales up ~+30% (Allmand contributing ~25% of that C&I growth) and other products down ~10%; seasonal weighting ~46% of sales in H1 and ~54% in H2, and Q1 sales expected +11–13%. Gross margin is guided to be roughly flat versus 2025 at ~38–39% for the year (Q1 ~36% low point; second half ~39%), adjusted EBITDA margin before noncontrolling interest ~18–19% (vs 17% in 2025) with Q1 ~15% and second half ~20% (midpoint implies ~25% growth in EBITDA dollars year‑over‑year). Cash‑flow and expense metrics include free cash flow of about $350 million for 2026, capital spending ~3.5% of sales, depreciation ~$104–108 million, intangible amortization ~ $18 million, stock‑based compensation $54–58 million, interest expense $65–69 million (assuming no term‑loan prepayments), a GAAP effective tax rate of ~24–25%, and a weighted average diluted share count of ~59.5–60.0 million; guidance assumes a baseline outage environment and excludes potential incremental impacts from future M&A or share repurchases.Generac Holdings Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
64
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.21B | 4.30B | 4.02B | 4.56B | 3.74B |
| Gross Profit | 1.61B | 1.67B | 1.37B | 1.52B | 1.36B |
| EBITDA | 484.03M | 670.92M | 554.53M | 719.43M | 816.52M |
| Net Income | 159.55M | 325.26M | 203.09M | 350.27M | 533.39M |
Balance Sheet | |||||
| Total Assets | 5.57B | 5.11B | 5.09B | 5.17B | 4.88B |
| Cash, Cash Equivalents and Short-Term Investments | 341.41M | 281.28M | 200.99M | 132.72M | 147.34M |
| Total Debt | 1.33B | 1.48B | 1.73B | 1.60B | 1.32B |
| Total Liabilities | 2.93B | 2.61B | 2.74B | 2.80B | 2.61B |
| Stockholders Equity | 2.63B | 2.49B | 2.34B | 2.26B | 2.21B |
Cash Flow | |||||
| Free Cash Flow | 268.13M | 604.57M | 392.61M | -27.67M | 301.16M |
| Operating Cash Flow | 437.98M | 741.30M | 521.67M | 58.52M | 411.16M |
| Investing Cash Flow | -172.90M | -208.71M | -178.06M | -134.23M | -817.29M |
| Financing Cash Flow | -212.72M | -448.83M | -277.14M | 64.04M | -102.97M |
Generac Holdings Technical Analysis
Positive
207.34
Price Trends
204.16
Positive
178.37
Positive
175.73
Positive
Market Momentum
-1.76
Negative
54.57
Neutral
65.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNRC, the sentiment is Positive. The current price of 207.34 is above the 20-day moving average (MA) of 199.61, above the 50-day MA of 204.16, and above the 200-day MA of 175.73, indicating a bullish trend. The MACD of -1.76 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 65.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.85B | 25.94 | 12.11% | 1.56% | 7.09% | -2.29% | |
76 Outperform | $10.75B | 30.59 | 13.29% | ― | 12.60% | 24.02% | |
70 Outperform | $10.32B | 31.85 | 25.19% | 1.28% | 2.37% | -6.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $13.81B | 36.68 | 4.18% | 0.97% | -4.99% | 22.16% | |
60 Neutral | $12.17B | 50.02 | 6.19% | ― | 5.52% | 9.03% | |
43 Neutral | $28.29M | -3.96 | -118.04% | ― | 176.99% | -30.97% |
* Industrials Sector Average
GNRC
Generac Holdings
207.34
93.91
82.79%
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42.58%
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207.65
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SPXC
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215.54
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LASE
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0.95
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Generac Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Generac Restructures Reporting Into Residential and C&I Segments
Positive
Mar 25, 2026
On March 20, 2026, Generac approved incremental performance-based equity awards for executives Norm Taffe and Erik Wilde, with target values of $1 million and $2 million, respectively, vesting over two to three years and tied to business-specific ...
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.