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Generac Expands C&I Capacity With New Sussex Manufacturing Site

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Key Takeaways

  • Generac acquired a Sussex, WI manufacturing site to expand C&I production alongside Beaver Dam and Oshkosh.
  • GNRC's move into large-megawatt generators drove data center demand, doubling the order backlog.
  • Generac posted Q3 C&I revenue of $358M, up 9% YoY, with the Sussex plant opening in Q4 2026.

Generac Holdings Inc. ((GNRC - Free Report) ) has announced the acquisition of a new manufacturing facility in Sussex, WI. The facility will expand Generac’s manufacturing footprint for its Commercial & Industrial (C&I) products, a segment that has delivered strong year-over-year growth in recent quarters. Along with the company’s new state-of-the-art plant in Beaver Dam, WI, and expanded operations in Oshkosh, WI, the Sussex site highlights Generac’s continued investment in scaling C&I capacity to meet rising demand for backup power and support long-term growth.

Generac’s expansion into large-megawatt generators has enabled its entry into the rapidly growing data center market, where power requirements are expected to rise significantly for years to come. Since broadening its product portfolio to include these generators, the company has seen strong interest from data center customers, including a doubling of its order backlog, as disclosed on its third-quarter earnings call in October.

The added capacity from the Sussex facility will also strengthen Generac’s ability to serve established backup power markets such as healthcare, hospitality, wastewater, water utilities and heavy industrial facilities that rely on large-megawatt solutions.

The new manufacturing site is expected to create more than 100 manufacturing jobs when it becomes operational in the fourth quarter of 2026.

Internationally, Generac maintains a robust C&I energy solutions portfolio supported by nine manufacturing facilities across Mexico, Europe, Asia and South America.

Management highlighted that with global data center capacity expected to more than triple by 2030, the rapid expansion of this market is driving unprecedented demand for reliable and scalable power solutions.

The company’s aggressive investments in this fast-growing segment represent a generational growth opportunity, with the potential to double C&I sales over the next three to five years. The Sussex facility enhances the company’s manufacturing capacity and operational flexibility, enabling it to better serve customers while accelerating growth in its C&I business.

In third-quarter 2025, C&I revenues totaled $358 million, up 9% year over year, driven by increased shipments to domestic industrial distributors and telecom customers as well as growth in Europe and shipments of large megawatt generators to data centers. International sales rose 11% in the third quarter. The company shipped its first international shipments to a client in Australia and domestic shipments began in October, with the majority of the backlog expected to ship in 2026. For 2025, C&I sales are projected to be up in mid-single digits. Continued C&I momentum, along with expected capacity expansions, supports a multi-year revenue growth.

Generac’s Zacks Rank & Stock Price Performance

GNRC currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 7.7% in the past year against the Zacks Manufacturing - General Industrial industry's growth of 12.5%.

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Stocks to Consider From the Computer and Technology Space

Some better-ranked stocks from the broader technology space are Watts Water Technologies, Inc. ((WTS - Free Report) ), Trimble Inc. ((TRMB - Free Report) ) and Nordson Corporation ((NDSN - Free Report) ). WTS, TRMB and NDSN carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Watts Water’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.9%. In the last reported quarter, WTS delivered an earnings surprise of 9.17%. Its shares have surged 41.8% in the past year.

Trimble earnings beat the consensus estimate in each of the trailing four quarters, with the average surprise being 7.43%. TRMB long-term earnings growth rate is 10%. Its shares have increased 10% in the past year.

Nordson’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 2.2%. In the last reported quarter, NDSN delivered an earnings surprise of 3.41%. Its shares have jumped 21.5% in the past year.

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