Generac Holdings Inc. Q3 2026 Earnings Recap

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.

Key Takeaways

• 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.