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GNRC & CPower Partner to Transform Energy Resilience & Revenue in PJM
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Key Takeaways
Generac partners with CPower to help businesses monetize energy via VPP and demand response programs.
GNRC leverages generators, storage and microgrids to cut costs and create new revenue streams.
Strong C&I growth, data center demand and a $400M backlog boost Generac's long-term outlook.
As electricity demand surges and power prices rise, businesses are increasingly seeking smarter, more resilient energy solutions. In response to this evolving landscape, Generac Holdings Inc. (GNRC - Free Report) has collaborated with CPower Energy, a Virtual Power Plant (VPP) platform, aiming to transform how commercial and industrial (C&I) customers manage and monetize their energy usage across the PJM Interconnection, the largest electricity market in North America.
CPower, with 6.7 GW of customer capacity across more than 23,000 sites, is a major player in this field. Its platform allows businesses to easily enroll in and benefit from these programs without needing extensive expertise in energy markets. The initiative combines Generac’s strong portfolio of distributed energy equipment, including generators, battery storage systems and microgrids, with CPower’s expertise in wholesale energy markets and demand response programs.
Besides generating revenue, the partnership aims to lower operational costs. A key advantage is on-bill savings through optimizing energy use and avoiding peak demand charges. By integrating distributed generation assets into CPower’s VPP platform, businesses can participate in capacity markets, provide ancillary services to stabilize the grid, engage in demand response programs, cut peak energy consumption and costs, and create recurring revenue streams. This shift turns passive energy systems into active financial assets.
This collaboration is part of Generac’s broader strategy to grow its presence in the C&I energy market. It has heavily invested in energy storage solutions, microgrid technologies, clean energy integration and grid services and software platforms. Partnering with CPower speeds up this strategy by offering immediate access to energy markets and a proven demand response platform. It also aligns with Generac’s mission to lead the transition toward more resilient, efficient and sustainable energy systems.
Healthy Traction in C&I Unit Powers GNRC Amid Hiking Costs
Increasing C&I sales, driven by generators to data centers and recovery in the home standby sales, bode well. C&I revenues totaled $400 million, up 10% year over year, driven mainly by shipments of large megawatt generators to data centers. International sales rose 12% in the fourth quarter. Driven by data center momentum and the Allmand acquisition, C&I product sales are anticipated to increase around 30%. Continued C&I momentum, along with expected capacity expansions, supports a multi-year revenue growth.
The rise of AI-driven data centers is increasing power demand and straining aging grids, boosting the need for reliable backup solutions. Generac is well-positioned to benefit, with management viewing 2026 as an inflection point for its C&I segment. The company’s data center backlog has reached $400 million, mostly set to ship in 2026, improving revenue visibility. Generac expects C&I sales to double in the coming years and is expanding capacity for large megawatt generators, targeting more than $1 billion in domestic capacity by 2026. Recent investments, including a new Wisconsin facility and the acquisition of Enercon Engineering, support this growth.
However, Generac operates in a highly competitive market, facing pressure from both large diversified industrial players and smaller manufacturers across generators, engine-powered tools, solar inverters and battery storage. Some competitors aggressively price their products to gain market share, often forcing Generac to keep prices low and compress margins. Additionally, the need for continuous investment in R&D to keep pace with rapid technological change and product obsolescence weighs on profitability.
Generac’s Zacks Rank & Stock Price Performance
GNRC currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 66.7% in the past year compared with the Zacks Manufacturing - General Industrial industry's growth of 20.3%.
Image Source: Zacks Investment Research
Stocks to Consider From the Computer and Technology Space
Pegasystems’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, with the average surprise being 80.38%. In the last reported quarter, PEGA delivered an earnings surprise of 5.56%. Its shares have decreased 23.6% in the past six months.
Blackbaud’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.1%. In the last reported quarter, BLKB delivered an earnings surprise of 3.48%. Its shares have decreased 41% in the past year.
Commvault Systems’ earnings beat the consensus estimate in three of the trailing four quarters while missing in one, with the average surprise being 7.77%. In the last reported quarter, CVLT delivered an earnings surprise of 19.39%. Its shares have declined 48.7% in the past year.
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GNRC & CPower Partner to Transform Energy Resilience & Revenue in PJM
Key Takeaways
As electricity demand surges and power prices rise, businesses are increasingly seeking smarter, more resilient energy solutions. In response to this evolving landscape, Generac Holdings Inc. (GNRC - Free Report) has collaborated with CPower Energy, a Virtual Power Plant (VPP) platform, aiming to transform how commercial and industrial (C&I) customers manage and monetize their energy usage across the PJM Interconnection, the largest electricity market in North America.
CPower, with 6.7 GW of customer capacity across more than 23,000 sites, is a major player in this field. Its platform allows businesses to easily enroll in and benefit from these programs without needing extensive expertise in energy markets. The initiative combines Generac’s strong portfolio of distributed energy equipment, including generators, battery storage systems and microgrids, with CPower’s expertise in wholesale energy markets and demand response programs.
Besides generating revenue, the partnership aims to lower operational costs. A key advantage is on-bill savings through optimizing energy use and avoiding peak demand charges. By integrating distributed generation assets into CPower’s VPP platform, businesses can participate in capacity markets, provide ancillary services to stabilize the grid, engage in demand response programs, cut peak energy consumption and costs, and create recurring revenue streams. This shift turns passive energy systems into active financial assets.
This collaboration is part of Generac’s broader strategy to grow its presence in the C&I energy market. It has heavily invested in energy storage solutions, microgrid technologies, clean energy integration and grid services and software platforms. Partnering with CPower speeds up this strategy by offering immediate access to energy markets and a proven demand response platform. It also aligns with Generac’s mission to lead the transition toward more resilient, efficient and sustainable energy systems.
Healthy Traction in C&I Unit Powers GNRC Amid Hiking Costs
Increasing C&I sales, driven by generators to data centers and recovery in the home standby sales, bode well. C&I revenues totaled $400 million, up 10% year over year, driven mainly by shipments of large megawatt generators to data centers. International sales rose 12% in the fourth quarter. Driven by data center momentum and the Allmand acquisition, C&I product sales are anticipated to increase around 30%. Continued C&I momentum, along with expected capacity expansions, supports a multi-year revenue growth.
The rise of AI-driven data centers is increasing power demand and straining aging grids, boosting the need for reliable backup solutions. Generac is well-positioned to benefit, with management viewing 2026 as an inflection point for its C&I segment. The company’s data center backlog has reached $400 million, mostly set to ship in 2026, improving revenue visibility. Generac expects C&I sales to double in the coming years and is expanding capacity for large megawatt generators, targeting more than $1 billion in domestic capacity by 2026. Recent investments, including a new Wisconsin facility and the acquisition of Enercon Engineering, support this growth.
However, Generac operates in a highly competitive market, facing pressure from both large diversified industrial players and smaller manufacturers across generators, engine-powered tools, solar inverters and battery storage. Some competitors aggressively price their products to gain market share, often forcing Generac to keep prices low and compress margins. Additionally, the need for continuous investment in R&D to keep pace with rapid technological change and product obsolescence weighs on profitability.
Generac’s Zacks Rank & Stock Price Performance
GNRC currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 66.7% in the past year compared with the Zacks Manufacturing - General Industrial industry's growth of 20.3%.
Image Source: Zacks Investment Research
Stocks to Consider From the Computer and Technology Space
Some better-ranked stocks from the broader technology space are Pegasystems Inc. (PEGA - Free Report) , Blackbaud, Inc. (BLKB - Free Report) and Commvault Systems, Inc. (CVLT - Free Report) . PEGA sports a Zacks Rank #1 (Strong Buy), while BLKB and CVLT carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Pegasystems’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, with the average surprise being 80.38%. In the last reported quarter, PEGA delivered an earnings surprise of 5.56%. Its shares have decreased 23.6% in the past six months.
Blackbaud’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.1%. In the last reported quarter, BLKB delivered an earnings surprise of 3.48%. Its shares have decreased 41% in the past year.
Commvault Systems’ earnings beat the consensus estimate in three of the trailing four quarters while missing in one, with the average surprise being 7.77%. In the last reported quarter, CVLT delivered an earnings surprise of 19.39%. Its shares have declined 48.7% in the past year.