Download PDF

1. Company Snapshot

1.a. 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, batteries, electronic controls, steel enclosures, and other components.


It also provides residential automatic standby generators ranging in output from 7.5kW to 150kW; air-cooled engine residential standby generators ranging from 7.5kW to 26kW; liquid-cooled engine generators with outputs ranging from 22kW to 150kW; and Mobile Link, a remote monitoring system for home standby generators.In addition, the company offers various portable generators ranging in size from 800W to 17.5kW; outdoor power equipment, such as trimmers, field and brush mowers, log splitters, stump grinders, chipper shredders, lawn and leaf vacuums, pressure washers, and water pumps; and clean energy solution under the PWRcell and PWRview brands.Further, it provides light towers, mobile generators, and mobile energy storage systems; commercial mobile pumps and dust-suppression equipment; various gaseous-engine control systems and accessories; light-commercial standby generators ranging from 22kW to 150kW and related transfer switches providing three-phase power for small and mid-sized businesses; and industrial generators ranging in output from 10kW to 3,250kW used as emergency backup for healthcare, telecom, datacom, commercial office, retail, municipal, and manufacturing markets.


Additionally, the company sells aftermarket service parts and product accessories to dealers.It distributes its products through independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce partners, electrical, HVAC and solar wholesalers, catalogs, equipment rental companies and distributors, and solar installers; and directly to end users.The company was founded in 1959 and is headquartered in Waukesha, Wisconsin.

Show Full description

1.b. Last Insights on GNRC

Generac Holdings' recent performance was driven by optimism surrounding its data center growth, fueled by AI demand. The company's management targets $300 million in data center revenue in 2026 and over $500 million in 2027. Despite a Q4 earnings miss, with EPS of $1.61 and an 11% revenue decline, analysts reiterate a "Buy" rating, citing strong momentum and potential for mid-teens 2026 net sales growth. Wells Fargo upgraded the stock to "overweight," citing growth prospects.

1.c. Company Highlights

2. Generac Holdings' Mixed Q4 2025 Earnings: A Closer Look

Generac Holdings Inc. reported a net loss of $24 million in Q4 2025, compared to a net income of $117 million in the prior year, largely due to a $104.5 million provision for a product liability matter and a $15.6 million net inventory provision related to a supplier contract dispute. Net sales decreased 12% to $1.1 billion, with residential product sales declining 23% to $572 million, while commercial and industrial (C&I) product sales rose 10% to $400 million. Adjusted EBITDA was $185 million, or 17% of net sales, down from $265 million, or 21.5% of net sales, in the prior year. Earnings per share (EPS) came in at $1.61, below analyst estimates of $1.81.

Publication Date: Feb -16

📋 Highlights
  • Q4 Net Sales Decline: Net sales fell 12% to $1.1 billion, driven by a 23% drop in residential product sales.
  • C&I Sales Growth: Commercial & Industrial sales rose 10% to $400 million, fueled by data center demand.
  • Backlog Growth: Large megawatt generator backlog reached $400 million, expected to ship in 2026.
  • Net Loss in Q4: Net loss of $24 million, compared to prior-year net income of $117 million, due to $104.5M product liability provision.
  • Data Center Market Opportunity: $1.5 billion potential from a 10-15% share in the $15 billion backup generator market for data centers.

Segment Performance

The domestic segment saw sales decrease 17% to $889 million, while the International segment reported a 12% increase to $209 million. For the full year 2025, domestic sales decreased 4% to $3.49 billion, and International sales rose 7% to $777 million. The company's energy technology revenues reached $375 million, driven by shipments of energy storage systems to Puerto Rico.

Guidance and Outlook

Generac expects a mid-teens rate of growth in net sales for 2026, with residential net sales increasing in the plus 10% range and C&I product sales growth in the plus 30% range. The company anticipates adjusted EBITDA margins to be approximately 18% to 19% for the full year 2026. It sees a significant opportunity in the data center market, with a potential $1.5 billion addition to its business, doubling its current C&I revenue in 3 to 5 years.

Valuation and Cash Flow

With a P/E Ratio of 82.01 and an EV/EBITDA of 34.54, the market appears to be pricing in significant growth expectations. Generac generated $189 million in cash flow from operations and $130 million in free cash flow in Q4 2025. For the full year 2025, cash flow from operations was $438 million, and free cash flow was $268 million. The company's gross debt leverage ratio stood at 1.9x at the end of Q4.

Share Repurchase and Capacity Expansion

The company repurchased approximately 1.11 million shares of its common stock during the full year for $148 million and has a new share repurchase authorization of up to $500 million over the next 24 months. Generac is expanding its domestic manufacturing capacity for large megawatt generators to $1 billion by Q4 2026, driven by demand signals from hyperscalers.

3. NewsRoom

Card image cap

Generac Named Finalist in Mega Category for Wisconsin Manufacturer of the Year Award

Feb -20

Source: prnewswire.com

Card image cap

Generac Signs Agreement to Acquire Enercon, Accelerating Growth in Data Center and Switchgear Markets

Feb -19

Source: prnewswire.com

Card image cap

Rivian, Magna International, And Akamai Are Among the Top 10 Large-Cap Gainers Last Week (Feb. 9-Feb. 13): Are the Others in Your Portfolio?

Feb -15

Source: feeds.benzinga.com

Card image cap

Generac Stock Rallies: Why AI Matters More Than Earnings

Feb -13

Source: marketbeat.com

Card image cap

Generac's Data Center Pivot Fuels 57% Rally Despite Q4 Earnings Miss

Feb -12

Source: 247wallst.com

Card image cap

Here Are Thursday’s Top Wall Street Analyst Research Calls: BP Plc., Borg Warner, Generac, Kraft-Heinz, MercadoLibre, Pfizer, Shopify, Valvoline, and More

Feb -12

Source: 247wallst.com

Card image cap

Why Generac Stock Surged Today

Feb -11

Source: fool.com

Card image cap

Generac Holdings Inc (GNRC) Q4 2025 Earnings Call Highlights: Navigating Challenges and Seizing Opportunities

Feb -11

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.60%)

6. Segments

Residential Products

Expected Growth: 8%

Residential Products from Generac Holdings Inc. growth driven by increasing demand for backup power solutions, rising adoption of solar and energy storage systems, and growing need for grid resilience. Additionally, expanding product offerings, strategic partnerships, and investments in digital technologies contribute to the 8% growth.

Commercial & Industrial Products

Expected Growth: 9%

Generac Holdings Inc.'s Commercial & Industrial Products segment growth of 9% is driven by increasing demand for backup power systems, rising adoption of renewable energy sources, and growing need for grid resiliency. Additionally, expansion into new markets, product innovation, and strategic acquisitions are contributing to the segment's growth.

Other

Expected Growth: 10%

Generac Holdings Inc.'s 'Other' segment growth is driven by increasing demand for energy storage systems, expansion into new markets, and strategic acquisitions. Additionally, the rising adoption of clean energy solutions, grid modernization, and the need for backup power during outages also contribute to this growth.

7. Detailed Products

Residential Generators

Generac's residential generators provide backup power to homes during outages, ensuring families stay safe and comfortable.

Commercial Generators

Generac's commercial generators provide reliable backup power to businesses, hospitals, and other critical facilities.

Industrial Generators

Generac's industrial generators provide high-power backup solutions for industrial applications, including manufacturing and oil and gas operations.

Clean Energy Systems

Generac's clean energy systems provide solar, battery storage, and energy management solutions for homes and businesses.

Mobile Generators

Generac's mobile generators provide portable power solutions for construction, events, and emergency response applications.

Light Commercial Generators

Generac's light commercial generators provide backup power for small businesses, restaurants, and retail stores.

Transfer Switches

Generac's transfer switches provide automatic switching between utility and generator power, ensuring seamless transitions.

8. Generac Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Generac Holdings Inc. faces moderate threat from substitutes due to the presence of alternative energy sources such as solar and wind power. However, the high upfront costs and intermittency of these sources limit their adoption, reducing the threat.

Bargaining Power Of Customers

Generac Holdings Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to customers' operations, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Generac Holdings Inc. relies on a few key suppliers for components such as engines and alternators. While the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the power generation industry. New entrants would need to invest heavily in research and development, manufacturing, and distribution, making it difficult for them to compete with established players like Generac Holdings Inc.

Intensity Of Rivalry

The power generation industry is highly competitive, with several established players competing for market share. Generac Holdings Inc. faces intense competition from companies like Cummins Inc. and Briggs & Stratton Corporation, which can lead to pricing pressure and high marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.23%
Debt Cost 8.29%
Equity Weight 59.77%
Equity Cost 10.97%
WACC 9.89%
Leverage 67.31%

11. Quality Control: Generac Holdings Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Chart Industries

A-Score: 4.6/10

Value: 2.7

Growth: 8.6

Quality: 4.1

Yield: 0.0

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
John Bean Technologies

A-Score: 4.2/10

Value: 4.2

Growth: 5.0

Quality: 3.5

Yield: 0.0

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Mirion Technologies

A-Score: 4.1/10

Value: 1.6

Growth: 5.4

Quality: 5.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Generac

A-Score: 4.0/10

Value: 3.8

Growth: 6.7

Quality: 6.0

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Regal Rexnord

A-Score: 4.0/10

Value: 5.2

Growth: 4.0

Quality: 5.0

Yield: 2.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Enovis

A-Score: 3.4/10

Value: 8.8

Growth: 1.6

Quality: 3.9

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

223.34$

Current Price

223.34$

Potential

-0.00%

Expected Cash-Flows