Generac shares rose 3.9% after earnings, as record quarterly sales, margin expansion and an increase in full-year adjusted EBITDA margin guidance pointed to better-than-expected performance. Investors also had a sharply higher data-center outlook to weigh: the company expects 2027 data-center revenue to exceed $2 billion.
- Third-quarter net sales increased 16% year over year to a record; adjusted EBITDA rose 33%.
- Commercial and Industrial sales grew 28%, with more than $100 million of quarterly revenue from data-center products. Residential sales returned to growth, up 9%.
- Generac signed a long-term Amazon supply agreement, with initial deliveries expected to total $2.4 billion in 2027–28; data-center backlog reached approximately $4.5 billion, nearly triple the level 90 days earlier.
- The company raised its 2026 data-center revenue expectation to nearly $500 million from approximately $450 million previously, and expects 2027 revenue from the market to exceed $2 billion.
- Capacity expansion is underway, including initial production at a new Wisconsin facility; management expects build rates to ramp significantly in the fourth quarter.
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