Generac tops quarterly profit estimates on strong data center-driven generator demand
Generac tops quarterly profit estimates on strong data center-driven generator demand July 29 (Reuters) - Power equipment maker Generac Holdings GNRC.N reported second-quarter profit above Wall Street estimates on Wednesday, as strong demand from data center customers fueled orders for large-megawatt backup generators.
Shares of the company rose more than 4% in premarket trading.
Demand for power equipment has surged as data center operators expand capacity to support AI workloads, boosting orders for backup generators, switchgear and other electrical infrastructure needed to ensure uninterrupted power supply.
"We increased our backlog for both hyperscale and non-hyperscale customers as we have received approximately $1 billion in additional orders from both new and existing customers since our prior update," said CEO Aaron Jagdfeld.
The company maintained its full-year 2026 net sales guidance of mid-to-high teens percent growth compared to the prior year.
Sales in Generac's Commercial & Industrial segment stood at $556.5 million for the quarter ended June 30, up 29% from a year earlier.
Adjusted profit per share for the quarter came in at $2.91 per share, above analysts' expectations of $2.01 per share, according to data compiled by LSEG.
Generac reported quarterly revenue of $1.17 billion, up 11% from a year earlier and slightly below analysts' estimates of $1.177 billion.
(Reporting by Apratim Sarkar in Bengaluru; Editing by Jonathan Ananda)