Generac (NYSE:GNRC) Releases Quarterly Earnings Results, Beats Expectations By $0.90 EPS

Generac (NYSE:GNRC) posted its quarterly earnings results on Wednesday. The technology company reported $2.91 EPS for the quarter, beating the consensus estimate of $2.01 by $0.90, FiscalAI reports. The business had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.18 billion. Generac had a net margin of 4.37% and a return on equity of 15.45%. The company’s quarterly revenue was up 10.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.65 EPS.

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

• Commercial and industrial sales rose 29% year over year, driven by data center shipments, rental products, and telecom demand. Generac raised its full-year C&I growth outlook to the low-30% range from the previously expected mid-to-high 20% range.
• Data center momentum accelerated, with more than $100 million of quarterly revenue, a $1.6 billion backlog, and roughly $1 billion of new orders in the past 90 days. The company expects nearly $450 million of data center revenue in 2026 and said a second hyperscale agreement could be at least as large as the first customer’s approximately $700 million commitment for 2027 deliveries.
• Generac is accelerating capacity investments for large megawatt generators, including bringing its Sussex, Wisconsin facility online by the end of the third quarter and expanding packaging capacity in Illinois. Management said it has a path to roughly triple assembly capacity from its original $1.25 billion year-end 2026 target over the next 12 to 18 months.
• Consolidated adjusted EBITDA margin expanded to 24.8%, helped substantially by approximately $71 million in tariff refunds; margins increased about one percentage point excluding that benefit. Full-year adjusted EBITDA margin guidance remains 18.5%–19.5% excluding tariff refunds, or 20%–21% including them.
• Residential sales declined 2% in the quarter, pressured by weak outage activity, lower portable generator shipments, and softness in residential energy storage following the end of a Puerto Rico program. Generac modestly reduced its full-year residential growth outlook to the high-single-digit range, citing continued outage weakness and affordability concerns.

Generac Stock Performance

NYSE:GNRC traded down $0.29 during midday trading on Wednesday, hitting $195.31. The company’s stock had a trading volume of 1,229,116 shares, compared to its average volume of 1,024,298. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.03 and a quick ratio of 0.99. Generac has a fifty-two week low of $134.80 and a fifty-two week high of $296.44. The firm’s 50 day moving average is $254.18 and its 200-day moving average is $223.96. The firm has a market cap of $11.50 billion, a P/E ratio of 60.76, a P/E/G ratio of 1.85 and a beta of 1.89.

Insiders Place Their Bets

In other Generac news, CEO Aaron Jagdfeld sold 5,000 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $272.18, for a total transaction of $1,360,900.00. Following the sale, the chief executive officer directly owned 564,528 shares of the company’s stock, valued at approximately $153,653,231.04. This trade represents a 0.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Norman P. Taffe sold 550 shares of the business’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $256.00, for a total value of $140,800.00. Following the completion of the transaction, the insider directly owned 15,808 shares of the company’s stock, valued at approximately $4,046,848. This trade represents a 3.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 6,100 shares of company stock worth $1,651,443 in the last quarter. Company insiders own 2.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of GNRC. MUFG Securities EMEA plc acquired a new position in Generac in the second quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd purchased a new stake in Generac in the 3rd quarter worth approximately $26,000. Quarry LP grew its stake in shares of Generac by 66.2% during the 3rd quarter. Quarry LP now owns 399 shares of the technology company’s stock worth $67,000 after purchasing an additional 159 shares during the period. Zions Bancorporation National Association UT increased its holdings in shares of Generac by 30.4% during the 4th quarter. Zions Bancorporation National Association UT now owns 536 shares of the technology company’s stock valued at $73,000 after purchasing an additional 125 shares in the last quarter. Finally, Gen Wealth Partners Inc increased its holdings in shares of Generac by 8.7% during the 4th quarter. Gen Wealth Partners Inc now owns 675 shares of the technology company’s stock valued at $92,000 after purchasing an additional 54 shares in the last quarter. 84.04% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the company. Wells Fargo & Company lifted their price target on Generac from $238.00 to $280.00 and gave the company an “overweight” rating in a report on Friday, May 1st. Cantor Fitzgerald initiated coverage on Generac in a research report on Wednesday, July 22nd. They set an “overweight” rating and a $325.00 price objective on the stock. Needham & Company LLC reiterated a “buy” rating on shares of Generac in a research note on Tuesday, June 2nd. Stifel Nicolaus set a $275.00 target price on shares of Generac in a report on Thursday, April 30th. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of Generac in a report on Wednesday, June 3rd. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $286.44.

About Generac

Generac Holdings Inc (NYSE: GNRC) is a leading manufacturer of backup power generation products for residential, commercial and industrial applications. The company offers a comprehensive portfolio of standby and portable generators, transfer switches and power management systems designed to provide reliable electricity during power outages and other critical situations. With an emphasis on innovation, Generac has expanded its offerings to include clean energy technologies such as battery storage and integrated solar-plus-storage systems.

Generac’s product lineup addresses a broad range of customer needs.