Generac Holdings Surges on Robust Earnings and Analyst Upgrades

Generac Holdings' (GNRC) stock surged 7.56% to $194.69 after the company reported Q2 net sales growth of 6% YoY to $1.06 billion, exceeding analyst expectations. Non-GAAP net income rose 18% to $97 million, or $1.65 per share. Analysts upgraded price targets, with Cannacord Genuity increasing its target from $180 to $250 per share.

Generac Holdings Inc. (GNRC) reported robust financial results for the second quarter of 2025, with net sales growing by 6% year-over-year (YoY) to $1.061 billion, exceeding analyst expectations [1]. The company's adjusted earnings per share (EPS) of $1.65 also surpassed the Zacks Consensus Estimate of $1.33, marking a significant improvement over the prior-year quarter's adjusted EPS of $1.35 [1].

The strong performance was driven by increases in both Residential and Commercial & Industrial (C&I) product sales, which acted as key catalysts for the company's growth. Domestic revenues rose by 7% to $884.5 million, while international revenues surged by 7% to $197.2 million, supported by higher inter-segment sales and strength in C&I product shipments in Europe [1].

Generac's entry into the data-center vertical is expected to be a strong business opportunity in the long term, as the company has developed a significant global pipeline of opportunities and is building a robust backlog for its new high-output diesel generator product [1].

The company revised its full-year 2025 guidance upward, anticipating net sales growth of 2% to 5% compared to the previous range of 0% to 7%. Adjusted EBITDA margins are now expected to be between 18% and 19% compared to the previous projection of 17% to 19% [1]. Additionally, the company expects its free cash flow conversion from adjusted net income to be 90% to 100% compared to the previous guided range of 70% to 90% [1].

Generac's stock surged 7.7% in pre-market trading following the announcement, reaching $194.69. The stock has gained 1.4% compared to the Manufacturing-General Industrial industry’s growth of 1% in the past six months [1]. Analysts have upgraded their price targets, with Cannacord Genuity increasing its target from $180 to $250 per share [1].

References:
[1] https://finance.yahoo.com/news/generac-q2-earnings-revenues-beat-141800917.html
[2] https://www.ainvest.com/news/generac-holdings-2025-q2-earnings-beats-expectations-net-income-rising-26-2507/