Generac (NYSE:GNRC) Announces Quarterly Earnings Results

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

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 Stock Performance

GNRC traded up $33.94 during midday trading on Wednesday, hitting $216.24. 2,011,870 shares of the company were exchanged, compared to its average volume of 1,108,306. Generac has a 1-year low of $99.50 and a 1-year high of $215.00. 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 firm has a market capitalization of $12.69 billion, a price-to-earnings ratio of 41.00, a price-to-earnings-growth ratio of 1.50 and a beta of 1.85. The company’s 50 day simple moving average is $158.09 and its 200 day simple moving average is $169.41.

Key Stories Impacting Generac

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. CIBC Private Wealth Group LLC grew its stake in shares of Generac by 18.8% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,010 shares of the technology company’s stock worth $169,000 after purchasing an additional 160 shares during the period. CIBC Bancorp USA Inc. purchased a new stake in Generac during the third quarter worth $1,003,000. Captrust Financial Advisors boosted its holdings in Generac by 6.5% during the third quarter. Captrust Financial Advisors now owns 28,034 shares of the technology company’s stock worth $4,693,000 after buying an additional 1,704 shares in the last quarter. Danske Bank A S acquired a new stake in Generac during the third quarter valued at $4,230,000. Finally, Caitong International Asset Management Co. Ltd purchased a new position in Generac in the third quarter valued at $26,000. 84.04% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. JPMorgan Chase & Co. upgraded shares of Generac from a “neutral” rating to an “overweight” rating and set a $200.00 price target on the stock in a report on Monday, December 8th. Needham & Company LLC initiated coverage on Generac in a research note on Monday, January 12th. They set a “buy” rating and a $211.00 target price on the stock. Bank of America lowered their price target on Generac from $236.00 to $224.00 and set a “buy” rating for the company in a report on Wednesday, January 7th. Roth Mkm set a $184.00 price objective on shares of Generac and gave the company a “neutral” rating in a research report on Thursday, October 30th. Finally, Guggenheim reiterated a “buy” rating and issued a $202.00 target price on shares of Generac in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Generac has a consensus rating of “Moderate Buy” and a consensus price target of $195.29.

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.