Generac (NYSE:GNRC) Issues Earnings Results

Generac (NYSE:GNRC) released its earnings results on Wednesday. The technology company reported $1.80 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.47, Zacks reports. Generac had a net margin of 3.79% and a return on equity of 14.55%. The company’s revenue was up 12.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.26 earnings per share.

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

• Generac reported accelerating data center demand with a current backlog of more than $700 million (up ~$300M since Feb.) and a $600 million non?binding notice to proceed for 2027 deliveries as vendor approvals near completion with two hyperscale customers.
• The company beat Q1 expectations (consolidated net sales $1.06B; adjusted EBITDA margin 18.3%) and is raising full?year guidance to mid?high?teens net sales growth and adjusted EBITDA margin of 18.5%–19.5%, driven primarily by C&I strength.
• Strategic moves to support scale include closing the Enercon acquisition (enclosures/switchgear) on April 1 and the Allmand acquisition in January, plus the Sussex plant ramping H2 production to lift U.S. large?genset capacity to >$1B by Q4 — all positioned to ease packaging bottlenecks and improve margins.
• Residential results showed a ~500 bps YoY EBITDA margin improvement after creating the combined “Generac Home” organization and cutting OpEx, but energy?tech sales declined post?DOE Puerto Rico work and full?year residential growth assumes a return to baseline outage activity.
• Financials remain solid: Q1 operating cash flow was $119M and free cash flow $90M, full?year FCF guidance ~ $350M, and gross debt at $1.32B (1.7x leverage) sits inside the 1–2x target range.

Generac Stock Performance

Shares of Generac stock traded up $35.35 during trading on Wednesday, hitting $252.47. 2,275,741 shares of the stock were exchanged, compared to its average volume of 1,094,620. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.00 and a current ratio of 2.03. Generac has a 12 month low of $109.20 and a 12 month high of $255.88. The stock’s fifty day moving average is $210.40 and its 200 day moving average is $180.65. The stock has a market cap of $14.81 billion, a PE ratio of 94.21, a P/E/G ratio of 2.18 and a beta of 1.78.

Analysts Set New Price Targets

Several research analysts have recently commented on the stock. Wells Fargo & Company lifted their price target on shares of Generac from $234.00 to $238.00 and gave the company an “overweight” rating in a report on Thursday, March 26th. UBS Group reiterated a “buy” rating and set a $270.00 price objective on shares of Generac in a research note on Friday, February 13th. Roth Mkm reissued a “neutral” rating and issued a $220.00 target price on shares of Generac in a report on Thursday, February 12th. Citigroup lowered their target price on Generac from $237.00 to $226.00 and set a “neutral” rating for the company in a report on Tuesday, April 21st. Finally, Barclays increased their price target on Generac from $213.00 to $228.00 and gave the stock an “equal weight” rating in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, Generac has a consensus rating of “Moderate Buy” and an average target price of $233.94.

Key Stories Impacting Generac

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Q1 beat and raised outlook — Generac reported non?GAAP EPS of $1.80 (vs. $1.33 consensus) and revenue of about $1.06B (up ~12%), and raised its 2026 revenue-growth target to the mid?to?high teens, driving the rally. Generac Tops Q1 Earnings Estimates, Lifts 2026 Revenue Outlook
• Positive Sentiment: Data-center backlog is a key growth driver — management said growing data?center orders/backlog materially contributed to Q1 strength and underpins the higher annual sales forecast. Power equipment maker Generac raises annual sales forecast on growing data center backlog
• Positive Sentiment: Market reaction / details — Coverage notes the stock jumped double digits after the beat; articles call out the stronger sales, EBITDA?margin improvement and C&I momentum. Generac (NYSE:GNRC) Beats Q1 CY2026 Sales Expectations, Stock Jumps 12.1%
• Neutral Sentiment: Company release & execution commentary — The official press release and earnings snapshot emphasize data?center execution, expanded adjusted?EBITDA margins and C&I momentum as reasons for the upgraded outlook. Generac Reports First Quarter 2026 Results
• Neutral Sentiment: Q1 coverage roundup — Multiple outlets (Zacks, Yahoo, MSN, WJFW) provide similar takeaways on beats, margin expansion and the outlook upgrade; useful for corroborating management’s message. GNRC stock just shot up 12% – these factors helped the company raise sales growth, EBITDA margin outlook for 2026
• Negative Sentiment: Valuation and margin context — Despite improved operating leverage, trailing net margin remains modest and the stock carries a high P/E, which may leave shares sensitive to execution risk or any guidance pullbacks. Generac Q1 earnings / conference call (MarketBeat)

Insider Transactions at Generac

In other Generac news, CFO York A. Ragen sold 24,362 shares of the business’s stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $235.61, for a total transaction of $5,739,930.82. Following the completion of the transaction, the chief financial officer directly owned 137,182 shares of the company’s stock, valued at $32,321,451.02. The trade was a 15.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Generac

Hedge funds have recently made changes to their positions in the business. Gen Wealth Partners Inc grew its holdings in Generac by 8.7% in the 4th quarter. Gen Wealth Partners Inc now owns 675 shares of the technology company’s stock worth $92,000 after buying an additional 54 shares in the last quarter. NewEdge Advisors LLC raised its stake in Generac by 2.7% during the 3rd quarter. NewEdge Advisors LLC now owns 2,749 shares of the technology company’s stock valued at $460,000 after acquiring an additional 73 shares in the last quarter. Vident Advisory LLC boosted its position in Generac by 2.9% during the 3rd quarter. Vident Advisory LLC now owns 2,651 shares of the technology company’s stock worth $444,000 after acquiring an additional 74 shares during the period. Fiduciary Trust Co boosted its position in Generac by 4.5% during the 3rd quarter. Fiduciary Trust Co now owns 1,842 shares of the technology company’s stock worth $308,000 after acquiring an additional 80 shares during the period. Finally, MML Investors Services LLC grew its stake in shares of Generac by 1.8% in the fourth quarter. MML Investors Services LLC now owns 5,051 shares of the technology company’s stock worth $689,000 after purchasing an additional 88 shares in the last quarter. Institutional investors own 84.04% of the company’s stock.

Generac Company Profile

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.