Generac Q2 sales rise on data center demand
Generac Q2 sales rise on data center demand
Overview
Energy technology maker's Q2 sales rose 11% yr/yr, slightly missing analyst expectations
Adjusted EPS and adjusted EBITDA for Q2 beat analyst expectations, aided by tariff refunds
Company maintained full-year sales growth outlook and secured major data center supply deals
Outlook
Generac maintains full-year 2026 net sales growth guidance of mid-to-high teens percent
Company raises full-year 2026 adjusted EBITDA margin outlook to 20.0-21.0% from 18.5-19.5%
Generac expects C&I segment sales to grow in low 30% range, Residential sales in high-single digits
Result Drivers
DATA CENTER DEMAND - C&I segment growth was primarily driven by ramping revenue from products sold into the global data center market
TARIFF REFUNDS - Tariff refunds contributed approximately 6% to gross margin and boosted adjusted net income and EBITDA
RESIDENTIAL SALES MIX - Residential segment sales declined due to lower energy storage system and portable generator shipments, mostly offset by growth in home standby generator sales
Company press release: ID:nGNX1fPlf4
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Slight Miss* | $1.17 bln | $1.18 bln (19 Analysts) |
Q2 Adjusted EPS | Beat | $2.91 | $2.01 (18 Analysts) |
Q2 EPS |
| $2.40 |
|
Q2 Adjusted Net Income | Beat | $174 mln | $115.93 mln (14 Analysts) |
Q2 Net Income |
| $143 mln |
|
Q2 Adjusted EBITDA | Beat | $291 mln | $216.11 mln (18 Analysts) |
Q2 Free Cash Flow |
| $63 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Generac Holdings Inc is $285.00, about 45.7% above its July 28 closing price of $195.60
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago
Reuters Recommended Reads
July 28 - Electrical equipment maker Hubbell lifts profit forecast amid demand from data centers
July 28 - Logitech beats forecasts after US tariff refund
July 28 - Meta, BlackRock partner on $14 billion El Paso data center venture
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)