Generac (NYSE:GNRC) Issues Earnings Results

Generac (NYSE:GNRC) posted its earnings results on Wednesday. The technology company reported $1.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.81 by ($0.20), FiscalAI reports. The company had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.16 billion. Generac had a return on equity of 17.63% and a net margin of 6.92%.Generac’s quarterly revenue was down 11.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.80 earnings per share.

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

• Data center / CNI momentum — Backlog rose to about $400 million, Generac advanced to pilot programs with two hyperscalers and is ramping domestic large?megawatt generator capacity (new Wisconsin facility) to >$1 billion by year?end to support expected volume growth.
• 2026 guidance — Company expects consolidated net sales to grow at a mid?teens rate, CNI ~+30% and residential ~+10%, with adjusted EBITDA margin targeted at ~18%–19% and ~25% growth in EBITDA dollars year?over?year.
• Q4 results and one?time charges — Q4 net sales fell 12% to $1.1B and GAAP posted a net loss of $24M driven by a $104.5M portable?generator product?liability settlement and a $15.6M inventory provision, pulling adjusted EBITDA to 17% (down from 21.5%).
• Residential energy tech / ecobee — ecobee hit ~5 million connected homes and achieved positive EBITDA contribution while PowerCell 2 and PowerMicro launched, but energy storage shipments will decline in 2026 as the Puerto Rico DOE program winds down, a partial offset to residential growth.

Generac Price Performance

Shares of NYSE GNRC opened at $214.84 on Thursday. The company has a fifty day moving average price of $159.21 and a 200 day moving average price of $169.72. The firm has a market cap of $12.61 billion, a PE ratio of 40.92, a PEG ratio of 1.47 and a beta of 1.85. The company has a current ratio of 2.18, a quick ratio of 1.02 and a debt-to-equity ratio of 0.51. Generac has a 1-year low of $99.50 and a 1-year high of $220.85.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of GNRC. NewEdge Advisors LLC raised its position in Generac by 6.2% in the 1st quarter. NewEdge Advisors LLC now owns 2,439 shares of the technology company’s stock valued at $309,000 after buying an additional 142 shares during the last quarter. Woodline Partners LP raised its holdings in shares of Generac by 40.9% in the first quarter. Woodline Partners LP now owns 5,036 shares of the technology company’s stock valued at $638,000 after purchasing an additional 1,463 shares during the last quarter. First Trust Advisors LP raised its holdings in shares of Generac by 27.6% in the second quarter. First Trust Advisors LP now owns 101,298 shares of the technology company’s stock valued at $14,507,000 after purchasing an additional 21,908 shares during the last quarter. Cerity Partners LLC lifted its position in shares of Generac by 1.6% in the second quarter. Cerity Partners LLC now owns 50,550 shares of the technology company’s stock worth $7,239,000 after purchasing an additional 816 shares in the last quarter. Finally, California Public Employees Retirement System boosted its holdings in Generac by 8.6% during the second quarter. California Public Employees Retirement System now owns 104,246 shares of the technology company’s stock worth $14,929,000 after purchasing an additional 8,213 shares during the last quarter. 84.04% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms recently weighed in on GNRC. Wells Fargo & Company set a $195.00 price objective on shares of Generac in a research note on Friday, December 19th. JPMorgan Chase & Co. raised shares of Generac from a “neutral” rating to an “overweight” rating and set a $200.00 price target on the stock in a research report on Monday, December 8th. Guggenheim reissued a “buy” rating and issued a $202.00 price target on shares of Generac in a report on Tuesday. Citigroup raised Generac from a “neutral” rating to a “buy” rating and set a $207.00 price objective on the stock in a research note on Thursday, January 8th. Finally, Canaccord Genuity Group reduced their target price on Generac from $240.00 to $236.00 and set a “buy” rating on the stock in a report on Tuesday, January 13th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Generac currently has a consensus rating of “Moderate Buy” and an average target price of $198.65.

Key Stories Impacting Generac

Here are the key news stories impacting Generac this week:

• Positive Sentiment: TD Cowen raised its price target to $255 and maintained a Buy rating, signaling notable upside versus the prior target and supporting investor optimism.
• Positive Sentiment: Management initiated 2026 guidance calling for mid?teens net?sales growth and ~18–19% adjusted EBITDA margin, driven by accelerating data?center (C&I) demand — a structural growth driver highlighted by multiple analysts. Generac Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Board approved a new $500M share?repurchase authorization and completed the Allmand acquisition to expand large generator capacity — both actions bolster capital return and C&I production plans. Generac Reports Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Analyst coverage remains constructive overall (multiple Buy/outperform ratings); some shop notes and roundups summarize mixed views and differing price targets. Expert Outlook: Generac Hldgs Through The Eyes Of 9 Analysts
• Neutral Sentiment: Q4 deep?dive pieces emphasize that data?center momentum offsets residential headwinds, providing context for the beat/miss debate. GNRC Q4 Deep Dive
• Negative Sentiment: Q4 results missed consensus: adjusted EPS $1.61 vs. $1.81 expected and revenue of ~$1.09B vs. ~$1.16B consensus; residential sales fell sharply (~23% YoY), reflecting a weak outage environment that pressured near?term top?line. Q4 Earnings / Conference Call
• Negative Sentiment: Company reported a GAAP net loss in Q4 (?$24M) driven largely by a $104.5M provision for a legal settlement and higher operating expenses, which reduced free cash flow and margins for the quarter. Quiver / Press Summary
• Negative Sentiment: Operating leverage and inventory/mix pressures pushed gross margin and free cash flow below last year’s levels, leaving the stock exposed if data?center orders don’t materialize as expected. Zacks: Misses Q4 Earnings & Sales

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.