Generac Q4 revenue, EPS miss estimates due to fewer power outages

Generac Holdings

11/02/2026 11:08

Overview

Energy technology firm's Q4 revenue fell 12%, missing analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Company announced a new $500 mln stock repurchase program

Outlook

Generac expects 2026 net sales growth in mid-teens percent range

C&I product sales expected to increase 30% in 2026

Residential product sales projected to rise 10% in 2026

Result Drivers

RESIDENTIAL SALES DECLINE - Weak power outage activity led to a 23% drop in residential product sales, impacting overall revenue

C&I SALES GROWTH - Increased demand from data center customers drove a 10% rise in commercial and industrial product sales

LEGAL SETTLEMENT IMPACT - A $104.5 mln provision for a legal settlement significantly affected net income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$1.09 bln
$1.16 bln (19 Analysts)
Q4 Adjusted EPS
Miss
$1.61
$1.77 (18 Analysts)
Q4 EPS
-$0.42
Q4 Adjusted Net Income
Miss
$95 mln
$104.94 mln (16 Analysts)
Q4 Net Income
-$24 mln
Q4 Adjusted EBITDA
Miss
$185 mln
$197.68 mln (18 Analysts)
Q4 Free Cash Flow
$130 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 6 "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 $202.00, about 10.8% above its February 10 closing price of $182.30

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nGNX4qNnp8

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.)