Generac (NYSE:GNRC) Posts Earnings Results, Misses Estimates By $0.20 EPS

Generac (NYSE:GNRC) issued its quarterly 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 during the quarter, compared to analyst estimates of $1.16 billion. Generac had a net margin of 6.92% and a return on equity of 17.63%. The business’s revenue was down 11.6% on a year-over-year basis. During the same quarter last year, the firm earned $2.80 EPS.

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 Trading Up 16.9%

Shares of NYSE GNRC traded up $30.80 during midday trading on Wednesday, reaching $213.10. 1,921,621 shares of the stock were exchanged, compared to its average volume of 1,101,922. The stock has a 50 day moving average price of $158.09 and a 200-day moving average price of $169.41. The company has a current ratio of 2.18, a quick ratio of 1.02 and a debt-to-equity ratio of 0.51. The company has a market capitalization of $12.50 billion, a P/E ratio of 40.59, a P/E/G ratio of 1.50 and a beta of 1.85. Generac has a 52-week low of $99.50 and a 52-week high of $215.00.

Generac News Roundup

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Management initiated full‑year 2026 guidance calling for mid‑teens net‑sales growth and an adjusted EBITDA margin around 18–19%, driven by expected strength in Commercial & Industrial (C&I) sales. Generac Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Board approved a new $500 million share‑repurchase program (in addition to ~$148M repurchased in 2025), signaling capital‑allocation confidence and likely supporting EPS per share over time. Generac Holdings Inc. Reports Fourth Quarter and Full-Year 2025 Financial Results, Initiates 2026 Outlook
• Positive Sentiment: Data‑center demand is accelerating: C&I sales rose and management is investing to expand capacity (Allmand acquisition, new manufacturing capacity) to capture large megawatt generator orders and backlog growth. Generac Reports Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Wall Street still largely bullish (multiple recent buy/outperform ratings) but price targets vary and the median target sits near current levels, implying mixed near‑term analyst reactions. Generac Holdings Inc. Reports Fourth Quarter and Full-Year 2025 Financial Results, Initiates 2026 Outlook
• Negative Sentiment: Q4 results missed estimates: GAAP EPS $1.61 (miss vs. consensus $1.81) and revenue $1.09B (miss vs. ~$1.16B); adjusted metrics were weaker and revenue was down ~12% YoY—a short‑term headwind for sentiment. Generac Holdings (GNRC) Misses Q4 Earnings and Revenue Estimates
• Negative Sentiment: GAAP net loss of $24M in Q4 driven in part by a $104.5M provision for a legal settlement; gross margin, operating margin and cash flow were all pressured versus prior year. These items increase near‑term financial uncertainty. Generac Reports Fourth Quarter and Full-Year 2025 Results

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Generac in a research note on Thursday, January 22nd. Guggenheim reaffirmed a “buy” rating and issued a $202.00 price objective on shares of Generac in a report on Tuesday. Wells Fargo & Company set a $195.00 price target on Generac in a report on Friday, December 19th. Canaccord Genuity Group decreased their price target on Generac from $240.00 to $236.00 and set a “buy” rating on the stock in a research note on Tuesday, January 13th. Finally, Citigroup upgraded Generac from a “neutral” rating to a “buy” rating and set a $207.00 price objective for the company in a research report on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Generac currently has a consensus rating of “Moderate Buy” and a consensus target price of $195.29.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. MUFG Securities EMEA plc acquired a new position in Generac during the second quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd acquired a new stake in Generac during the 3rd quarter worth approximately $26,000. Quarry LP raised its holdings in Generac by 66.3% in the third quarter. Quarry LP now owns 399 shares of the technology company’s stock valued at $67,000 after buying an additional 159 shares during the period. Brown Brothers Harriman & Co. lifted its position in Generac by 168.5% during the third quarter. Brown Brothers Harriman & Co. now owns 674 shares of the technology company’s stock valued at $113,000 after buying an additional 423 shares in the last quarter. Finally, CIBC Private Wealth Group LLC lifted its position in Generac by 18.8% during the third quarter. CIBC Private Wealth Group LLC now owns 1,010 shares of the technology company’s stock valued at $169,000 after buying an additional 160 shares in the last quarter. 84.04% of the stock is currently owned by hedge funds and other institutional investors.

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.