Generac Authorizes $500M Buyback, Projects Mid-Teens Growth on AI Data Center Pivot
Generac’s Q4 adjusted EPS was $1.61 vs $1.77 consensus and revenue dropped 12% to $1.09B, with residential sales down 23% to $572M offset by a 10% C&I boost from data center demand. It guides mid-teens sales growth for 2026, approved a $500M buyback and pivots to AI data centers.
1. Q4 Financial Performance
Generac reported adjusted EPS of $1.61 for the fourth quarter, below the $1.77 consensus, and revenue fell 12% to $1.09 billion. Residential sales plunged 23% to $572 million due to eased outage activity, while C&I sales rose 10% to $400 million thanks to stronger data center demand.
2. Fiscal 2026 Guidance and Share Repurchase
The company forecast mid-teens percentage net sales growth for fiscal 2026 and targets 18–19% adjusted EBITDA margins. The board approved a new $500 million share repurchase authorization to be completed over the next 24 months, replacing the prior program.
3. Strategic AI Data Center Pivot
Generac is shifting its strategic focus toward AI data center power solutions, aiming to leverage high-growth cloud infrastructure investments. This pivot underpins the company’s C&I segment strength and forms a central part of its long-term growth strategy.