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Generac Holdings (MX:GNRC)
:GNRC
Mexico Market
EarningsQ2 2026 Earnings Report

Generac Holdings (GNRC) Q2 2026 Earnings Report

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MX:GNRC Q2 2026 EPS Results

Actual EPS$52.66
Consensus EPS$36.41
Beat/MissBeat by +$16.25
One Year Ago EPS$29.86

MX:GNRC Q2 2026 Revenue Results

Actual Revenue$21.24B
Expected Revenue$21.31B
Beat/MissMissed by -$79.80M
YoY Revenue Growth+10.59%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
MX:GNRC Upcoming Earnings
Generac Holdings's next earnings date is estimated for November 4, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:GNRC Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed strong momentum in the Commercial & Industrial business driven by data center demand—evidenced by substantial backlog growth, new hyperscale agreements (~$700 million in the first hyperscaler commitment), upgraded C&I guidance (now low-30s% growth), production capacity acceleration, and materially improved adjusted EBITDA and cash generation. However, a meaningful portion of margin expansion was attributable to a one-time $71 million tariff refund, and the company faces execution and supply-chain risk as it rapidly expands assembly and packaging capacity. Residential demand showed softness (down ~2%) and guidance was modestly lowered due to weak outage activity and policy/headwind impacts for solar/storage. On balance, the operational wins, larger long-term opportunity in data centers, improved cash flow, and upgraded C&I outlook outweigh the lowlights tied to one-time effects and execution risks, indicating a favorable overall tone with some execution caveats.
Company Guidance
Management maintained and refined 2026 guidance: consolidated net sales are expected to grow in the mid‑ to high‑teens (including an ~2% favorable impact from FX/acquisitions/divestitures), C&I net sales are now guided to grow in the low‑30s% (up from mid‑ to high‑20s) and Residential net sales are now expected to grow in the high single‑digits (down modestly from ~10% prior guidance); they now expect nearly $450M of 2026 data‑center revenue, a $1.6B data‑center backlog (≈$1B of new orders in the last 90 days) including ≈$700M of 2027 commitments from the first hyperscaler (second hyperscaler not yet booked), and roughly $1.35B currently scheduled for 2027. Q2 results were $1.17B net sales (+11% YoY), adjusted EBITDA $291M (24.8% margin), adjusted net income $174M ($2.91/sh) and GAAP net income $143M ($2.40/sh, including an after‑tax ~$0.90/sh benefit from $71M pretax tariff refunds); the company expects full‑year gross margin ex‑tariff near the low end of 38.5–39.5% (≈40% including the $71M tariff recovery) and is maintaining adjusted EBITDA margin guidance of 18.5–19.5% ex‑tariff (20–21% including tariff), with Q3 pacing high‑teens sales growth and Q4 accelerating. Key financial assumptions: capex ≈4.5% of sales, free cash flow ≈$350M for the year, interest expense $65–69M, depreciation $108–112M, intangible amortization $118–122M, stock comp $54–58M, GAAP effective tax rate 24.5–25%, diluted share count 59.5–60M, total debt ≈$1.33B (gross leverage ~1.5x).
Consolidated Revenue Growth
Net sales increased 11% year-over-year to $1.17 billion in Q2 2026 from $1.06 billion, driven primarily by C&I strength and data center product shipments.
Commercial & Industrial (C&I) Surge
C&I total sales rose ~29% to $556 million from $431 million year-over-year, led by ramping data center revenue and strength in rental and telecom channels; full-year C&I net sales growth guidance raised to the low-30s percent range (up from mid- to high-20s).
Material Data Center Backlog and Contracts
Data center backlog reached $1.6 billion after roughly $1.0 billion of new orders in the last 90 days; recognized >$100 million of data center revenue in the quarter and secured two multiyear hyperscale supply agreements (first includes commitments ~ $700 million for 2027 deliveries); company now expects nearly $450 million in data center revenue for full-year 2026 (increase to prior expectation).
Strong Adjusted EBITDA and Margin Expansion
Consolidated adjusted EBITDA was $291 million, representing 24.8% of net sales versus 17.7% in the prior-year quarter; gross profit margin expanded to 44.5% from 39.3% year-over-year, and adjusted EBITDA margin guidance (including one-time tariff impact) now at 20%–21% for full year 2026.
Residential Home Standby Resilience
Home standby generator sales returned to solid growth in Q2 and dealer network expanded to ~9,700 dealers (increase of ~400 YoY); in-home consultations (IHCs) were up YoY and next-generation 28 kW air-cooled product saw faster-than-expected uptake.
Cash Flow and Profitability Improvements
GAAP net income rose to $143 million from $74 million YoY; diluted GAAP EPS $2.40 vs $1.25 prior year. Adjusted net income $174 million ($2.91/share) vs $97 million ($1.65/share). Cash flow from operations improved to $121 million (vs $72 million) and free cash flow increased to $63 million (vs $14 million).
Strategic Capacity & Vertical Integration Investments
Completed Enercon acquisition, purchased Belvidere facility (expected operational Q1 2027), accelerated Sussex production (on track to begin by end of Q3, ahead of schedule), and outlined a path to triple packaging/assembly capacity from original $1.25B year-end 2026 target within ~12 months to meet data center demand.
M&A and Product Wins Performing Above Expectations
Allmand acquisition exceeding sales and adjusted EBITDA expectations; ecobee posted profitable top-line growth and grew connected homes to >5.25 million (mid-teens YoY growth).
Improved Leverage and Capital Guidance
Total debt ~$1.33 billion with gross debt leverage ~1.5x adjusted EBITDA (inside target 1–2x range). Full-year free cash flow still expected to be ~ $350 million despite elevated CapEx to support capacity expansion (CapEx ~4.5% of forecasted net sales).

MX:GNRC Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 04, 2026
2026 (Q3)
43.99 / -
33.114―
2026 (Q2)
36.41 / 52.66
29.85776.36% (+22.80)
2026 (Q1)
24.05 / 32.57
22.842.86% (+9.77)
2025 (Q4)
32.03 / 29.13
50.667-42.50% (-21.53)
2025 (Q3)
39.61 / 33.11
40.714-18.67% (-7.60)
2025 (Q2)
24.65 / 29.86
24.42922.22% (+5.43)
2025 (Q1)
17.70 / 22.80
15.92443.18% (+6.88)
2024 (Q4)
45.71 / 50.67
37.45735.27% (+13.21)
2024 (Q3)
35.27 / 40.71
29.67637.20% (+11.04)
2024 (Q2)
21.77 / 24.43
19.54325.00% (+4.89)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed