Generac Rallies 18% on 2026 Forecast of 30% C&I Growth
Generac shares climbed roughly 18% to reach 52-week highs after Q4 revenue of $1.09 billion and EPS of $1.61 missed expectations but investors focused on 2026 guidance. Management forecasts mid-teens net sales growth, 30% C&I expansion, $400 million backlog, $500 million buyback, 18–19% EBITDA margins, and $350 million free cash flow for 2026.
1. Q4 Results & Stock Rally
Generac reported Q4 revenue of $1.09 billion and adjusted EPS of $1.61, missing forecasts, yet shares gained about 18% to reach 52-week highs as investors pivoted to forward guidance.
2. C&I Segment Growth & Backlog
Management projects 30% growth in the Commercial & Industrial segment driven by pilot programs with hyperscale data centers, a backlog of roughly $400 million and facility expansion in Wisconsin, bolstered by the Allmand acquisition.
3. 2026 Financial Outlook
The company expects mid-teens net sales growth, adjusted EBITDA margins of 18–19%, interest expense of $65–69 million, and approximately $350 million in free cash flow for 2026, underpinned by a new $500 million share repurchase program.
4. One-Time Charge & Weather Headwind
Residential sales fell 23% due to milder weather, and a $104.5 million legal provision led to a GAAP net loss of $24 million, viewed as a step to resolve litigation risks and reset the balance sheet.