Generac Holdings Inc

Generac Holdings plans to spend $250 million through the end of 2027 to expand production of larger generators for data centers, Reuters reported Thursday. The investment will cover equipment and capacity upgrades at several factories, and the company expects to hire about 1,000 employees, expanding its workforce by roughly 10%. Generac's backlog for the equipment has reached $1.6 billion as technology companies build increasingly large computing facilities to support AI services. Chief Executive Aaron Jagdfeld told Reuters that the duration of the data-center construction boom remains the central question for companies investing to meet demand.

Generac is spending $250 million by the end of next year to equip multiple factories to make beefed-up generators for data centers, with an order backlog of $1.6 billion and plans to add about 1,000 workers, a 10% increase in headcount. The AI-driven data-center build-out is lifting demand for cooling systems, electrical transformers, construction machinery, and their suppliers, including makers of wire cables, pipes, cement, and prefab metal walls. U.S. factories added 5,000 jobs in July, bringing the year-to-date total to 31,000, a reversal from last year's 113,000 job cuts, while the Institute for Supply Management reported manufacturing activity at its highest level in more than four years. Wood Mackenzie projects the electrical equipment market tied to U.S. data centers will surge from $33 billion in 2025 to $66 billion by 2030, and Siemens announced more than $200 million in investments for two new plants in Georgia and Texas. Smaller suppliers like Southeastern Hose have tripled revenue in five years and added 60 workers, though executives warn of bubble risk and are managing capacity carefully.

Generac reported second-quarter earnings that beat analyst profit estimates by 44.6%, driven by surging demand from data center customers. Revenue rose 10.6% year on year to $1.17 billion, slightly missing the $1.18 billion consensus, while adjusted earnings per share of $2.91 far exceeded the $2.01 forecast. The company’s Commercial & Industrial segment backlog swelled to $1.6 billion, fueled by hyperscale data center orders and two multiyear supply agreements, with the first deal contributing nearly $700 million in commitments for 2027 deliveries. Adjusted EBITDA reached $290.7 million, well above the $216.6 million estimate, aided by approximately $71 million in tariff refunds that boosted gross margins. Management expects continued C&I growth supported by capacity expansions, though residential sales face headwinds from a subdued power outage environment.

Several companies made notable premarket moves following their latest quarterly reports. Biogen rose 0.7% after beating revenue consensus and raising its full-year adjusted EPS guidance. GE HealthCare Technologies surged 12% on second-quarter adjusted earnings per share of $1.13, topping the FactSet consensus of $1.04, and reaffirmed its 2026 earnings guidance. Ford Motor jumped 6% after beating adjusted earnings expectations and hiking its 2026 earnings outlook, though automotive revenue slightly missed LSEG estimates. Vertiv tumbled 13% as its 17.8% organic revenue growth fell well short of the 23.6% FactSet consensus. Generac gained 5.5% on adjusted earnings of $2.91 per share, beating the $2.01 forecast, and reiterated its revenue growth guidance. Procter & Gamble dropped over 3% after fiscal fourth-quarter revenue of $21.2 billion missed the $21.38 billion LSEG estimate, and net income fell to $3.04 billion from $3.62 billion a year ago. Deutsche Bank rose more than 2% after posting a record second-quarter after-tax profit of 1.9 billion euros. CoStar tumbled 15% on a revenue miss and current-quarter guidance of $935 million to $945 million, below the $967.5 million consensus. Rocky Brands surged 16% as adjusted earnings per share more than tripled year-over-year, aided by tariff refunds and strong double-digit growth in several brands. KLA Corp slid 7% after issuing disappointing guidance, while Seagate Technology rose 6% on an outlook that trounced expectations, and Western Digital gained 4% in sympathy. Manhattan Associates climbed 11% after beating estimates and raising full-year forecasts. Visa lost 2% as its 2026 guidance underwhelmed, and it announced plans to cut about 2,600 jobs. Teradyne surged 9% on beats across second-quarter results and third-quarter forecasts. NXP Semiconductors lost 1.7% as its third-quarter adjusted earnings guidance bracketed the LSEG estimate. Skyworks Solutions slumped 9% after adjusted margin of 44.9% narrowly missed the 45.0% expectation.

Brown Advisory's Large-Cap Growth Strategy highlighted Trane Technologies as a key contributor in the first quarter of 2026. The strategy modestly trailed the Russell 1000 Growth Index amid market volatility, but relative performance improved as the quarter progressed. Industrials was the strongest relative contributor, driven by strong performance from Generac Holdings and Trane Technologies. Trane Technologies performed well after reporting strong results, supported by robust commercial HVAC demand and a healthy backlog, which reinforced confidence in its outlook and competitive positioning. The strategy's ability to outperform in a down market indicates the quality of its holdings, and the firm remains focused on maintaining a diversified portfolio of high-quality growth companies.

Brown Advisory's Large-Cap Growth Strategy highlighted Generac Holdings in its first-quarter 2026 investor letter, noting the stock traded higher during the quarter. The firm said Generac rebounded from prior weakness tied to a mild storm season in late 2025, supported by improving demand signals including increased outage activity and continued strength in Commercial and Industrial sales. Management also highlighted progress in building its data center-related backlog, reinforcing the company's long-term growth opportunity. Generac closed at $252.66 per share on July 2, 2026, with a market capitalization of $14.87 billion, and its shares gained 65.82% over the past 52 weeks.

Generac reported first-quarter revenues of $1.06 billion, up 12.4% year on year and exceeding analyst expectations by 1.1%, while Bloom Energy posted revenues of $751.1 million, a 130% increase that beat estimates by 42%. Among the 17 renewable energy stocks tracked, aggregate revenues surpassed consensus by 5.7% and next-quarter guidance was in line. FuelCell Energy was the weakest performer with revenues of $35.59 million, down 4.9% and missing estimates by 12.6%. Enphase reported revenues of $282.9 million, down 20.6% but meeting expectations, and EVgo posted revenues of $109.5 million, up 45.5% and beating estimates by 22.9%.

UBS raised its price target on Generac Holdings to $335 from $305 while reiterating a Buy rating, citing increased confidence in the sustainability of the company's earnings growth trajectory and improved long-term financial visibility. The upgrade follows Generac's June 2 announcement of a global supply agreement with a hyperscale data center operator to provide backup power generators, which CEO Aaron Jagdfeld said positions the company to support the expanding digital economy and establishes a foundation for future growth as data center demand rises.

A bullish thesis on Generac Holdings Inc. was shared on r/ValueInvesting by ValueEquities, presenting the company as a compelling value opportunity tied to AI infrastructure buildouts. The thesis argues that every major AI platform, cloud provider, and hyperscale data center depends on reliable power, and Generac is transforming from a residential generator manufacturer into a critical supplier of backup power systems for data centers and commercial customers. The company recently announced a supply agreement with a hyperscale data center operator, which could serve as a long-term growth catalyst. First-quarter 2026 results showed revenue up 12% year-over-year to $1.06 billion and adjusted earnings per share of $1.80, significantly exceeding consensus estimates of $1.33, with the commercial and industrial segment delivering 28% year-over-year growth. Management raised its full-year outlook to mid-to-high teens revenue growth and targets nearly 90% EBITDA growth by 2028. As of June 22nd, GNRC shares traded at $295.54 with a forward P/E of 34.36.

Generac Holdings shares have surged 116.7% year-to-date and 132.1% over the past 52 weeks, far outpacing the S&P 500's 9.2% and 24% returns over the same periods. The stock touched a 52-week high of $296.03 and rose 48.3% over the past three months, compared with a 13.6% gain for the S&P 500. GNRC has been trading above its 50-day moving average since mid-January and above its 200-day moving average over the past year. The company's strong performance has been driven by commercial and industrial growth, including a 28% jump in data center sales and a global supply deal tied to the $100 billion Stargate AI project. Wall Street analysts hold a consensus Moderate Buy rating on the stock, with a mean price target of $286.80 and a Street-high target of $335, implying a potential 13.4% upside.

Generac Holdings announced the acquisition of a new facility in Belvidere, Illinois, to expand its packaging capacity for large-megawatt generators amid soaring demand from data centers and other critical industries. The plant will focus on enclosure assembly and final packaging of shipment-ready units, complementing Generac's February acquisition of Enercon Engineering. It is expected to open in 2027 and will create more than 100 new jobs. The investment is part of Generac's efforts to bolster its domestic manufacturing footprint and meet growing demand, with the company's data center backlog rising to more than $700 million in the first quarter. As a result, Generac raised its full-year 2026 guidance, now expecting consolidated net sales to increase at a mid- to high-teens rate.

The global data center generators market is projected to grow from USD 8.57 billion in 2026 to USD 9.79 billion in 2031 at a CAGR of 2.7%, according to a new report by MarketsandMarkets. North America is expected to hold the largest market share, while the above 3 MW generator segment is forecast to grow at the highest CAGR of 5.4%. Diesel generators are estimated to account for USD 5,789.6 million in 2026, and bi-fuel generators are anticipated to see the fastest growth due to emission-reduction pressures. Key drivers include the expansion of edge computing, AI-driven data centers, and the shift toward hydrogen-ready and hybrid power solutions. Leading vendors such as Caterpillar, Cummins, Rolls-Royce, Generac Power Systems, and Kohler Energy are expanding capacity and developing next-generation technologies for hyperscale and colocation facilities.