Generac Reports Stronger-Than-Expected Earnings Amid Rising Data Center Demand
Generac Holdings Inc. (NYSE:GNRC) reported second-quarter earnings that exceeded expectations, driven by strong demand from data center customers and a boost from tariff refunds. The company's adjusted earnings came in at $2.91 per share compared to the expected $2.00, while revenue rose 11% year-over-year to $1.17 billion but fell short of forecasts due to softer residential market performance. The Commercial & Industrial segment saw a significant increase with sales up 29%, reaching $556 million, whereas Residential segment revenue declined by 2%. Generac's EBITDA margin expanded significantly to 24.8% from 17.7% the previous year, largely due to tariff refunds contributing about 6 percentage points of improvement. The company secured a global supply agreement with another hyperscale customer and now has a data center backlog totaling $1.6 billion. Generac also raised its full-year adjusted EBITDA margin guidance from 18.5%–19.5% to 20.0%–21.0%, reflecting the positive impact of tariff refunds.
Tickers: $GNRC
Topics: backup power equipment Commercial & Industrial segment data centers tariff refunds