Generac beats Q3 adjusted EPS estimates, maintains FY outlook

Overview

• US energy technology firm's Q3 net sales rose 16% yr/yr to record level

• Adjusted EPS for Q3 beat analyst expectations

• Company maintained full-year sales growth outlook, raised adjusted EBITDA margin guidance

Outlook

• Generac maintains 2026 net sales growth guidance in mid-to-high teens percent range

• Company maintains 2026 net income margin guidance of about 9.0 to 10.0%

• Generac raises 2026 adjusted EBITDA margin guidance to about 20.5-21.0% from 20.0-21.0%

Result Drivers

• DATA CENTER DEMAND - Co said C&I segment growth was driven by ramping revenue from products sold into global data center market, per CEO Aaron Jagdfeld

• HOME GENERATOR SALES - Co said residential segment growth was driven by increased shipments of home standby and portable generators

• PRICE/COST IMPACTS - Co said higher gross margin was primarily due to favorable price/cost impacts and lower tariff costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 5 "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 $283.00, about 46.1% above its October 27 closing price of $193.71

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 29 three months ago

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(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.)