EarningsQ3 2026 Earnings Report
MX:GNRC Q3 2026 EPS Results
Actual EPS$47.72
Consensus EPS$45.13
Beat/MissBeat by +$2.59
One Year Ago EPS$34.38
MX:GNRC Q3 2026 Revenue Results
Actual Revenue$24.32B
Expected Revenue$24.89B
Beat/MissMissed by -$561.12M
YoY Revenue Growth+16.19%
Earnings Announcement Details
QuarterQ3 2026
Date10/28/2026
TimeBefore Open
Conference CallWednesday, October 28, 2026
MX:GNRC Upcoming Earnings
Generac Holdings's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:GNRC Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, led by record company revenue, accelerating data center demand, the $2.4 billion Amazon delivery agreement, approximately $4.5 billion of data center backlog, expanding production capacity, residential recovery, higher margins, and increased free cash flow and EBITDA guidance. The company cited execution, supply-chain, lead-time, regulatory, telecom, and energy-storage challenges, but management characterized the major growth opportunities and outlook as highly favorable.Company Guidance
Record Quarterly Revenue and Strong EBITDA Growth
Consolidated net sales increased 16% year over year to an all-time record of $1.29 billion from $1.11 billion. Adjusted EBITDA increased 33% to $256 million, or 19.8% of sales, compared with $193 million, or 17.3%, in the prior-year quarter.
Commercial and Industrial Segment Momentum
Commercial and Industrial segment sales increased approximately 28% to $553 million from $432 million, driven primarily by ramping revenue from products sold into the global data center market. C&I adjusted EBITDA increased to $69.3 million, or 12.5% of sales, from $43.8 million, or 10.1%.
Amazon Data Center Supply Agreement
Generac entered a long-term supply agreement with Amazon for data center backup power generators. Initial deliveries are expected to total $2.4 billion in 2027 and 2028, and the agreement provides for up to approximately 1.7 million common warrant shares linked to $8 billion in backup generator purchases over the seven-year term.
Data Center Backlog Expansion
Backlog for products sold to the data center market increased to approximately $4.5 billion, nearly tripling from 90 days earlier. More than half of the backlog is expected to be delivered in 2027, with less than half currently scheduled for 2028.
Data Center Revenue Outlook Raised
Full-year 2026 data center revenue is now expected to be nearly $500 million, compared with approximately $450 million previously expected. For 2027, Generac expects revenue from products sold to the data center market to well exceed $2 billion.
Capacity Expansion and Production Ramp
Initial production began at the new large-megawatt generator facility in Sussex, Wisconsin, at the end of the third quarter, with build rates expected to ramp significantly in the fourth quarter. Generac expects to triple global production capacity, with capacity approaching approximately $4 billion annually by the second half of next year.
Additional Manufacturing and Packaging Investments
The company continues to invest in large-megawatt production facilities and deeper vertical integration. The new packaging facility in Belvedere, Illinois, is expected to come online in early 2027, while manufacturing expansions in Europe, Asia, and Latin America are intended to serve secured regional demand.
Potential Doubling of C&I Revenue
Generac believes it has a path to double its Commercial and Industrial reporting segment in 2027, supported by data center growth, rental and industrial distributor channels, and international markets. Management indicated that this could put the company at approximately a $7 billion net sales clip next year, with total guidance described as a little higher than $7 billion.
Residential Segment Returned to Growth
Residential segment sales increased approximately 9% to $744 million from $685 million. Home standby and portable generator sales grew at a much faster rate than the overall segment, while full-year residential sales growth remains expected in the high single digit range, led by mid-teens growth in home standby.
Improved Residential Profitability
Residential adjusted EBITDA increased to $200.8 million, or 27.0% of sales, from $160.2 million, or 23.4%. Segment adjusted EBITDA margin expanded by more than 350 basis points due to favorable price-cost impacts, operating leverage, and lower Energy Technology Solutions operating expense investments.
Stronger Home Standby and Portable Generator Demand
Home standby generator shipments increased at a mid-teens rate year over year, supported by more normalized outage activity, particularly in the Midwest and Northeast. Portable generator shipments were also very strong, and management stated that Generac had once again regained the number-one U.S. market share position in portable generators.
Dealer Network and Retail Footprint Expansion
The residential dealer count grew to nearly 9.9 thousand dealers. The portable generator team also added retail shelf space and gained share through product line reviews, supporting growth in the retail channel.
Ecobee Growth and Platform Expansion
Ecobee sales reached 5.5 million homes. Its services attach rate and recurring revenue continued to increase faster than overall growth, while disciplined operating expense management delivered another quarter of growing profitability. Generac also rolled out a unified software platform across its residential products.
Margin and Cash Flow Expansion
Consolidated gross margin increased to 39.9% from 38.3%, while operating expenses as a percentage of sales, excluding amortization, decreased by 1.6%. Cash flow from operations increased to $171 million from $118 million, and free cash flow increased to $132 million from $96 million.
Raised Full-Year EBITDA Margin Guidance
Following third-quarter outperformance, full-year 2026 adjusted EBITDA margin guidance was raised to 20.5% to 21% from 20% to 21%. Full-year free cash flow guidance was also increased to approximately $450 million, supported by higher operating earnings, lower working capital use, and incremental data center customer deposits.
Strong Balance Sheet and Leverage Position
Total debt was approximately $1.33 billion at quarter-end, resulting in a gross debt leverage ratio of 1.4x on an as-reported basis, within the company's target range of 1x to 2x adjusted EBITDA.
Diversified International and Non-Hyperscale Demand
International C&I sales excluding data center shipments increased year over year through broad-based regional growth. Europe posted solid growth, while Latin America and the Middle East returned to strong growth. Non-hyperscale data center orders received in the last 90 days were described as almost $600 million, and the non-hyperscale pipeline was characterized as very strong.
Residential Product Connectivity Improvement
The next-generation home standby product line provides out-of-the-box cellular connectivity. Fleet connectivity increased to approximately 99%, compared with approximately 50% to 55% when Wi-Fi was the standard protocol. Management also said production and labor efficiency at the Whitewater and Trenton facilities had returned to pre-next-generation-product levels.
MX:GNRC Earnings History
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