Highlights

  • Third quarter net sales were $1.29 billion, with net income attributable to Generac of $109 million, or $1.83 per share.
  • Adjusted EBITDA before noncontrolling interests, a non-GAAP measure, was $256 million, or 19.8% of net sales, compared with $193 million.
  • A long-term Amazon supply agreement has initial deliveries expected to total a combined $2.4 billion in 2027 and 2028.
  • Full-year adjusted EBITDA margin is now expected at approximately 20.5 to 21.0%, compared with 20.0 to 21.0% previously.

Generac Holdings Inc. (NYSE:GNRC) shares were trading at USD 196.16 on October 28, 2026, up 1.26%, with a relative volume at time of 3.36. The energy technology company disclosed a supply agreement with Amazon.com, Inc. during the quarter and reported third quarter 2026 results with an updated full-year outlook on October 28.

Generac Holdings Inc. is incorporated in Delaware and lists its principal executive offices in Waukesha, Wisconsin. Founded in 1959, the company designs and manufactures energy technology solutions and other power products. Its offerings include power generation equipment, energy storage systems and energy management devices and solutions. It serves residential, commercial, data center, telecom, rental and industrial markets. The company reports two segments, Residential and Commercial & Industrial, and its common stock trades on the New York Stock Exchange.

Third Quarter Results

Generac reported net sales of $1,294,779 thousand for the third quarter ended September 30, 2026, compared with $1,114,353 thousand a year earlier. The company said net sales increased 16%, including a net 1% impact from acquisitions, divestitures and foreign currency.

Gross profit margin was 39.9%, compared with 38.3%. Operating expenses increased by $31.6 million, or 10%. Net income attributable to the company was $109 million, or $1.83 per share, compared with $66 million, or $1.12 per share.

On a non-GAAP basis, adjusted net income attributable to the company was $151 million, or $2.54 per share, compared with $108 million, or $1.83 per share. Adjusted EBITDA before deducting for noncontrolling interests was $256 million, compared with $193 million. For the nine months, net income was $325,071 thousand, compared with $185,288 thousand.

Segment Results

Commercial & Industrial total sales increased approximately 28% to $553.0 million from $432.4 million. The company said core growth was primarily from ramping revenue from products sold into the global data center market, while shipments to the domestic industrial distributor and telecom channels were lower. Segment adjusted EBITDA was $69.3 million, or 12.5% of total sales, compared with $43.8 million, or 10.1%.

Residential total sales increased approximately 9% to $744.1 million from $685.0 million. The company cited higher sales of home standby and portable generators, partially offset by lower shipments of energy storage systems. Segment adjusted EBITDA was $200.8 million, or 27.0% of segment sales, compared with $160.2 million, or 23.4%.

Cash Flow, Debt and Backlog

Cash flow from operations was $171.0 million, compared with $118.4 million. Free cash flow, a non-GAAP measure, was $131.7 million, compared with $96.5 million, which the company said reflected higher operating earnings, partially offset by increased capital expenditures.

Cash and cash equivalents were $393,671 thousand at September 30, 2026, compared with $341,413 thousand at December 31, 2025. Long-term borrowings and finance lease obligations were $1,243,734 thousand. On the call, management said total debt outstanding was approximately $1.33 billion, a gross debt leverage ratio of 1.4x.

The chief executive officer said the backlog for products to be sold to the data center market has grown to approximately $4.5 billion, and that the company continues to execute on previously announced capacity expansion plans. The company disclosed the Amazon agreement as a long-term supply agreement for backup power generators for Amazon data centers.

2026 Outlook

Generac is maintaining its full-year 2026 net sales growth guidance in the mid-to-high teens percent range, including an approximate 2% impact from foreign currency, acquisitions and divestitures. It is also maintaining net income margin guidance, before deducting for noncontrolling interests, of approximately 9.0 to 10.0%.

Adjusted EBITDA margin guidance is now approximately 20.5 to 21.0%, compared with the previous range of approximately 20.0 to 21.0%. On the call, management said it expects capital expenditures of 4% to 4.5% of forecasted net sales.