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Generac Holdings
(NYSE:GNRC)
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Rating:58Neutral
Price Target:
$203.00
▲(0.49% Upside)
Action:Reiterated
Date:07/30/26
GNRC’s score is driven by improving fundamentals and a strong earnings-call outlook (especially accelerating C&I/data-center demand and a large backlog), partially offset by weak technical positioning (price below major moving averages) and a rich valuation (P/E ~60). Financial performance is recovering but still reflects below-peak profitability and uneven cash-flow conversion.
Positive Factors
Large data-center backlog and hyperscaler contracts
A $1.6B data‑center backlog and multiyear hyperscaler commitments materially increase revenue visibility for C&I over the next 12–24 months. This reduces near‑term cyclicality, supports production planning and justifies capacity investment, underpinning sustainable top‑line growth and margin leverage.
Negative Factors
One-time tariff refund inflated margins
A meaningful portion of reported margin expansion stems from a nonrecurring $71M tariff recovery. This masks the underlying operating margin trend and makes year‑over‑year margin comparisons and current guidance less predictive of sustainable profitability absent recurring cost or mix improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Large data-center backlog and hyperscaler contracts
A $1.6B data‑center backlog and multiyear hyperscaler commitments materially increase revenue visibility for C&I over the next 12–24 months. This reduces near‑term cyclicality, supports production planning and justifies capacity investment, underpinning sustainable top‑line growth and margin leverage.
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
$11.60B
Dividend YieldN/A
Average Volume (3M)904.56K
Price to Earnings (P/E)44.7
Beta (1Y)1.06
Revenue Growth0.61%
EPS Growth-27.77%
CountryUS
Employees9,400
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)4.41
Shares Outstanding58,868,683
10 Day Avg. Volume862,000
30 Day Avg. Volume904,563
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$290.14Price Target Upside43.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)9.51
Revenue Forecast (FY)$4.94B
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:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong momentum in the Commercial & Industrial business driven by data center demand—evidenced by substantial backlog growth, new hyperscale agreements (~$700 million in the first hyperscaler commitment), upgraded C&I guidance (now low-30s% growth), production capacity acceleration, and materially improved adjusted EBITDA and cash generation. However, a meaningful portion of margin expansion was attributable to a one-time $71 million tariff refund, and the company faces execution and supply-chain risk as it rapidly expands assembly and packaging capacity. Residential demand showed softness (down ~2%) and guidance was modestly lowered due to weak outage activity and policy/headwind impacts for solar/storage. On balance, the operational wins, larger long-term opportunity in data centers, improved cash flow, and upgraded C&I outlook outweigh the lowlights tied to one-time effects and execution risks, indicating a favorable overall tone with some execution caveats.Positive Updates
Consolidated Revenue Growth
Net sales increased 11% year-over-year to $1.17 billion in Q2 2026 from $1.06 billion, driven primarily by C&I strength and data center product shipments.
Negative Updates
Residential Sales Softness and Guidance Reduction
Residential segment sales decreased ~2% to $621 million from $635 million YoY; full-year Residential net sales growth outlook modestly lowered to high single-digit range (from prior ~10%) due to soft power outage environment and affordability concerns, and residential energy storage demand weakened versus a strong 2025 comp.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Net sales increased 11% year-over-year to $1.17 billion in Q2 2026 from $1.06 billion, driven primarily by C&I strength and data center product shipments.
Read all positive updates
Company Guidance
Management maintained and refined 2026 guidance: consolidated net sales are expected to grow in the mid‑ to high‑teens (including an ~2% favorable impact from FX/acquisitions/divestitures), C&I net sales are now guided to grow in the low‑30s% (up from mid‑ to high‑20s) and Residential net sales are now expected to grow in the high single‑digits (down modestly from ~10% prior guidance); they now expect nearly $450M of 2026 data‑center revenue, a $1.6B data‑center backlog (≈$1B of new orders in the last 90 days) including ≈$700M of 2027 commitments from the first hyperscaler (second hyperscaler not yet booked), and roughly $1.35B currently scheduled for 2027. Q2 results were $1.17B net sales (+11% YoY), adjusted EBITDA $291M (24.8% margin), adjusted net income $174M ($2.91/sh) and GAAP net income $143M ($2.40/sh, including an after‑tax ~$0.90/sh benefit from $71M pretax tariff refunds); the company expects full‑year gross margin ex‑tariff near the low end of 38.5–39.5% (≈40% including the $71M tariff recovery) and is maintaining adjusted EBITDA margin guidance of 18.5–19.5% ex‑tariff (20–21% including tariff), with Q3 pacing high‑teens sales growth and Q4 accelerating. Key financial assumptions: capex ≈4.5% of sales, free cash flow ≈$350M for the year, interest expense $65–69M, depreciation $108–112M, intangible amortization $118–122M, stock comp $54–58M, GAAP effective tax rate 24.5–25%, diluted share count 59.5–60M, total debt ≈$1.33B (gross leverage ~1.5x).Generac Holdings Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
70
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.44B | 4.21B | 4.30B | 4.02B | 4.56B | 3.74B |
| Gross Profit | 1.76B | 1.61B | 1.67B | 1.37B | 1.52B | 1.36B |
| EBITDA | 561.01M | 464.59M | 670.92M | 554.53M | 719.43M | 816.52M |
| Net Income | 258.19M | 159.55M | 325.26M | 203.09M | 350.27M | 533.39M |
Balance Sheet | ||||||
| Total Assets | 5.77B | 5.57B | 5.11B | 5.09B | 5.17B | 4.88B |
| Cash, Cash Equivalents and Short-Term Investments | 264.92M | 341.41M | 281.28M | 200.99M | 132.72M | 147.34M |
| Total Debt | 1.50B | 1.33B | 1.48B | 1.73B | 1.60B | 1.32B |
| Total Liabilities | 2.89B | 2.93B | 2.61B | 2.74B | 2.80B | 2.61B |
| Stockholders Equity | 2.88B | 2.63B | 2.49B | 2.34B | 2.26B | 2.21B |
Cash Flow | ||||||
| Free Cash Flow | 379.25M | 268.13M | 604.57M | 392.61M | -27.67M | 301.16M |
| Operating Cash Flow | 548.13M | 437.98M | 741.30M | 521.67M | 58.52M | 411.16M |
| Investing Cash Flow | -354.46M | -172.90M | -208.71M | -178.06M | -134.23M | -817.29M |
| Financing Cash Flow | -153.16M | -212.72M | -448.83M | -277.14M | 64.04M | -102.97M |
Generac Holdings Technical Analysis
Negative
202.01
Price Trends
249.84
Negative
236.18
Negative
204.56
Negative
Market Momentum
-15.31
Positive
29.50
Positive
17.16
Positive
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 202.01 is below the 20-day moving average (MA) of 217.06, below the 50-day MA of 249.84, and below the 200-day MA of 204.56, indicating a bearish trend. The MACD of -15.31 indicates Positive momentum. The RSI at 29.50 is Positive, neither overbought nor oversold. The STOCH value of 17.16 is Positive, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $16.99B | 33.06 | 12.91% | 1.29% | 7.32% | 12.36% | |
71 Outperform | $10.92B | 24.93 | 28.13% | 1.31% | 4.44% | 25.08% | |
69 Neutral | $11.00B | 38.06 | 12.67% | ― | 20.63% | 27.00% | |
68 Neutral | $13.66B | 47.51 | 4.23% | 0.66% | 1.54% | 22.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $11.60B | 44.70 | 9.54% | ― | 0.61% | -27.77% | |
43 Neutral | $46.63M | -0.98 | -4407.08% | ― | 40.40% | -99.95% |
* Industrials Sector Average
GNRC
Generac Holdings
197.11
0.68
0.35%
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33.35%
IEX
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47.79%
RRX
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205.23
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40.31%
SPXC
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219.62
18.64
9.27%
LASE
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0.98
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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.