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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.

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1.b. Last Insights on GNRC

Breaking News: Generac Holdings Inc reported strong Q1 earnings, beating estimates with EPS of $1.8 versus $1.33 expected. Revenue reached $1.06 billion, up 13% year-over-year. The company's data center demand drove growth, with backlog increasing from $400 million to $700 million. Generac raised its 2026 revenue growth outlook to the mid-to-high teens. Some analysts consider the stock overvalued with a GF Score of 88/100. A recent recommendation suggests a buy. The company reported net sales of $1.06 billion for the quarter ended March 31.

1.c. Company Highlights

2. Powering Growth: Q1 2026 Surges Past Expectations

In the first quarter of 2026, the company posted net sales of $1.06 billion, up 12% YoY, while adjusted EBITDA rose to $193 million, translating to an 18.3% margin—well above the 15.9% margin in the prior year. GAAP EPS climbed to $1.24, and adjusted EPS reached $1.80, surpassing analysts’ $1.33 estimate. With a P/E of 78.18 and EV/EBITDA of 34.8, the stock reflects a premium driven by robust earnings growth and a bullish outlook.

Publication Date: Apr -30

📋 Highlights
  • Strong Q1 Growth:: Net sales rose 12% YoY to $1.06B, driven by 28% C&I segment growth to $510M from data centers and almond acquisition.
  • EBITDA Margin Expansion:: Adjusted EBITDA margin hit 18.3% vs. 15.9% prior year, exceeding guidance due to favorable sales mix and cost control.
  • Outlook Raised:: Full-year 2026 net sales now expected to grow mid- to high-teens, with EBITDA margins targeting 18.5–19.5% (up from prior guidance).
  • Enercon Acquisition Impact:: $600M hyperscale project win and Enercon acquisition (closed April 1) to add 50 bps to EBITDA margins, boosting competitive positioning in large-gen markets.
  • Capacity & Backlog:: New Wisconsin facility to double domestic production capacity by 2026, with $600M in 2027 hyperscale commitments and robust backlog into 2027.

Revenue Upswing

The 28% jump in Commercial & Industrial (C&I) sales to $510 million, propelled by data‑center demand and the Enercon acquisition, anchored the quarter’s revenue lift. Residential sales held steady, adding only 1% to $552 million, while the new Sussex facility is poised to bolster domestic generator capacity in the second half of the year.

Margin Expansion

Gross margin slipped slightly to 38.7% from 39.5% YoY, yet operating leverage improved as operating expenses grew modestly by only 2% ($4.6 million). The Enercon deal is expected to add roughly 50 basis points to gross and EBITDA margins, positioning the company for full‑year margins of 38.5–39.5% and adjusted EBITDA of 18.5–19.5%.

Earnings Beat

Adjusted net income of $106 million (EPS $1.80) outperformed expectations, aided by a $600 million nonbinding notice for 2027 deliveries and lower-than‑expected input costs. The company’s free cash flow rose to $90 million, reflecting stronger operating earnings and reduced working‑capital drag.

Guidance Lift

Management raised the 2026 net‑sales outlook to a mid‑to‑high‑teens growth rate, with C&I sales projected to climb 20–22% as data‑center, rental, and telecom channels expand. The firm also highlighted a 50‑basis‑point gross‑margin increase and a 20% adjusted EBITDA margin by Q4, signaling accelerating profitability.

Strategic Moves

The Enercon acquisition secures proprietary design and manufacturing of large‑megawatt generators, enhancing competitive positioning. Concurrently, the company is finalizing vendor approvals with two hyperscale data‑center customers, potentially unlocking multi‑year revenue streams that extend visibility through 2027.

3. NewsRoom

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Generac Urges Consumers Not to Overlook Hurricane Season Readiness

May -05

Source: prnewswire.com

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Why Generac Stock Powered Higher This Week

May -01

Source: fool.com

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Generac Is A Tricky Trade Opportunity After The Positive Quarterly Report

Apr -30

Source: seekingalpha.com

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Generac Suffers Growing Backup Power Demand - AI Beneficiary At Hefty Price

Apr -30

Source: seekingalpha.com

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Generac Holdings Inc. (GNRC) Q1 2026 Earnings Call Transcript

Apr -29

Source: seekingalpha.com

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Why Generac Stock Is Soaring Today

Apr -29

Source: fool.com

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Generac Tops Q1 Earnings Estimates, Lifts 2026 Revenue Outlook

Apr -29

Source: zacks.com

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Generac Holdings (GNRC) Q1 Earnings and Revenues Top Estimates

Apr -29

Source: zacks.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

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A-Score: 4.2/10

Value: 4.2

Growth: 5.0

Quality: 3.5

Yield: 0.0

Momentum: 6.5

Volatility: 6.0

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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

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Generac

A-Score: 4.0/10

Value: 3.8

Growth: 6.7

Quality: 6.0

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

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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

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Enovis

A-Score: 3.4/10

Value: 8.8

Growth: 1.6

Quality: 3.9

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

263.68$

Current Price

263.68$

Potential

-0.00%

Expected Cash-Flows