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Generac Tops Q1 Earnings Estimates, Lifts 2026 Revenue Outlook
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Key Takeaways
Generac posted Q1 EPS of $1.80, beating estimates, with sales up 12% to $1.06 billion, also topping forecasts.
GNRC lifted 2026 revenue growth outlook to mid-to-high teens on strong data center demand & backlog expansion.
C&I sales jumped 28% on data center strength, while Residential sales rose 1% amid mixed product trends
Generac Holdings Inc. (GNRC - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $1.80, which beat the Zacks Consensus Estimate of $1.33. GNRC registered an adjusted EPS of $1.26 in the prior-year quarter.
Net sales were $1.06 billion, up 12% from $942 million in the prior-year quarter. The figure also beat the consensus estimate of nearly $1.044 billion. Strength in the Commercial & Industrial (“C&I”) segment, especially the data center market, acted as a catalyst. Generac added that it was in the final stages of vendor approval with several hyperscale customers. It is also witnessing backlog expansion for these products with both current and new customers. The Enercon buyout (completed earlier this month) is expected to boost GNRC’s vertical integration and support margin expansion for megawatt backup power offerings.
Given the strong first-quarter performance and momentum in the data center market and increasing backlog, GNRC now expects 2026 revenues to increase in the mid-to-high teens percent range. This includes a 2% positive impact from the net effect of foreign currency, acquisitions and divestitures. The earlier growth target was in the mid-teens percent range.
Generac Holdings Inc. Price, Consensus and EPS Surprise
C&I product sales are anticipated to increase in the mid-to-high 20% range compared with the earlier target of low-to-mid 20% range. Residential product sales are expected to increase in the 10% range for 2026.
The net income margin (before deducting for non-controlling interests) is expected to be between 8% and 9%. The adjusted EBITDA margin is estimated to be 18.5-19.5% as compared with the earlier guided range of 18-19%.
Image Source: Zacks Investment Research
GNRC is up 8.6% in the pre-market trading today. The stock has gained 89.8% compared with the Manufacturing-General Industrial industry’s growth of 24.9% in the past year.
GNRC’s Segments in Detail
Beginning from the first quarter of 2026, Generac's two reportable segments are now Residential and C&I.
The Residential segment consists of the former Domestic segment minus the domestic C&I operations. The C&I segment consists of the former International segment, plus the domestic C&I operations.
Revenues from Residential were up 1% year over year to $552.2 million, driven by higher portable generator shipments, partially offset by reduced energy storage system sales. Sales of home standby generators remained unchanged from the prior-year quarter as higher pricing offset reduced volumes.
C&I revenues totaled $510.1 million, up 28% year over year. This included 10% net favorable impact from the combination of acquisitions, divestitures and foreign currency. The core revenue growth for the segment was driven by higher sales to data center customers and shipments to domestic industrial distributors and rental channels. Increasing sales of the control solutions to the power generation vertical acted as another tailwind.
The Zacks Consensus Estimate for Residential and C&I products’ first-quarter revenues was pegged at $518 million and $439 million, respectively.
GNRC’s Margin Performance
Gross profit was $410.2 million, up from nearly $372 million in the prior-year quarter, with respective margins of 38.7% and 39.5%. The margin performance was impacted by an unfavorable sales mix, which offset higher price realization.
Total operating expenses were $292.9 million, up 2% year over year, caused by higher intangible amortization.
The operating income was $117.3 million compared with $83.6 million in the prior-year quarter. Adjusted EBITDA, before deducting for non-controlling interests, was $193 million compared with $150 million a year ago.
GNRC’s Cash Flow & Liquidity
In the first quarter, the company generated $119 million of net cash from operating activities. The free cash flow totaled $90 million.
As of March 31, 2025, GNRC had $265.5 million of cash and cash equivalents, with $1.25 billion of long-term borrowings and finance-lease obligations.
The company did not buy back stock in the first quarter. In 2025, the company repurchased 1.1 million shares for $148 million. GNRC also earlier approved a share repurchase authorization of up to $500 million over the next 24 months. This new program replaces the remaining balance of the earlier program.
Recent Performances of Other Companies in the Same Space
Otis Worldwide Corporation (OTIS - Free Report) reported mixed first-quarter 2026 results. Earnings per share (EPS) of 89 cents missed the Zacks Consensus Estimate of 91 cents by 2.2%. In the year-ago quarter, it reported an adjusted EPS of 92 cents.
OTIS’ net sales of $3.57 billion surpassed the consensus mark of $3.5 billion by 2% and increased 6.4% on a year-over-year basis. Organically, net sales were up 1% year over year. Favorable foreign exchange movement supported sales growth by 5%. A standout in the quarter was repair, with net sales up 16% at actual currency and organic repair sales up about 10%.
Dover Corporation (DOV - Free Report) posted first-quarter fiscal 2026 adjusted earnings of $2.28 per share, up 11.2% from $2.05 a year ago. The figure topped the Zacks Consensus Estimate of $2.27, reflecting a 0.4% surprise.
Dover Corporation’s quarterly revenues rose 10.1% year over year to $2.05 billion, beating the consensus mark of $2.01 billion by 2.1%. The upside was backed by solid growth in secular-growth-exposed end markets and improving conditions across DOV’s portfolio. Excellent order activity, with book-to-bill above one across all five segments, aided growth.
Graco Inc.’s (GGG - Free Report) first-quarter 2026 adjusted earnings of 66 cents per share were down 6% from 70 cents in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of 75 cents by 12%.
Graco’s net sales rose 2% year over year to $540.1 million but lagged the consensus estimate of $560 million by 3.5%. Organic order backlog rose 13% from the end of 2025. On a regional basis, quarterly sales generated from the Americas increased 3% year over year. In Europe, the Middle East and Africa, sales increased 4% year over year. Sales from the Asia Pacific decreased 5% year over year.
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Generac Tops Q1 Earnings Estimates, Lifts 2026 Revenue Outlook
Key Takeaways
Generac Holdings Inc. (GNRC - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $1.80, which beat the Zacks Consensus Estimate of $1.33. GNRC registered an adjusted EPS of $1.26 in the prior-year quarter.
Net sales were $1.06 billion, up 12% from $942 million in the prior-year quarter. The figure also beat the consensus estimate of nearly $1.044 billion. Strength in the Commercial & Industrial (“C&I”) segment, especially the data center market, acted as a catalyst. Generac added that it was in the final stages of vendor approval with several hyperscale customers. It is also witnessing backlog expansion for these products with both current and new customers. The Enercon buyout (completed earlier this month) is expected to boost GNRC’s vertical integration and support margin expansion for megawatt backup power offerings.
Given the strong first-quarter performance and momentum in the data center market and increasing backlog, GNRC now expects 2026 revenues to increase in the mid-to-high teens percent range. This includes a 2% positive impact from the net effect of foreign currency, acquisitions and divestitures. The earlier growth target was in the mid-teens percent range.
Generac Holdings Inc. Price, Consensus and EPS Surprise
Generac Holdings Inc. price-consensus-eps-surprise-chart | Generac Holdings Inc. Quote
C&I product sales are anticipated to increase in the mid-to-high 20% range compared with the earlier target of low-to-mid 20% range. Residential product sales are expected to increase in the 10% range for 2026.
The net income margin (before deducting for non-controlling interests) is expected to be between 8% and 9%. The adjusted EBITDA margin is estimated to be 18.5-19.5% as compared with the earlier guided range of 18-19%.
Image Source: Zacks Investment Research
GNRC is up 8.6% in the pre-market trading today. The stock has gained 89.8% compared with the Manufacturing-General Industrial industry’s growth of 24.9% in the past year.
GNRC’s Segments in Detail
Beginning from the first quarter of 2026, Generac's two reportable segments are now Residential and C&I.
The Residential segment consists of the former Domestic segment minus the domestic C&I operations. The C&I segment consists of the former International segment, plus the domestic C&I operations.
Revenues from Residential were up 1% year over year to $552.2 million, driven by higher portable generator shipments, partially offset by reduced energy storage system sales. Sales of home standby generators remained unchanged from the prior-year quarter as higher pricing offset reduced volumes.
C&I revenues totaled $510.1 million, up 28% year over year. This included 10% net favorable impact from the combination of acquisitions, divestitures and foreign currency. The core revenue growth for the segment was driven by higher sales to data center customers and shipments to domestic industrial distributors and rental channels. Increasing sales of the control solutions to the power generation vertical acted as another tailwind.
The Zacks Consensus Estimate for Residential and C&I products’ first-quarter revenues was pegged at $518 million and $439 million, respectively.
GNRC’s Margin Performance
Gross profit was $410.2 million, up from nearly $372 million in the prior-year quarter, with respective margins of 38.7% and 39.5%. The margin performance was impacted by an unfavorable sales mix, which offset higher price realization.
Total operating expenses were $292.9 million, up 2% year over year, caused by higher intangible amortization.
The operating income was $117.3 million compared with $83.6 million in the prior-year quarter. Adjusted EBITDA, before deducting for non-controlling interests, was $193 million compared with $150 million a year ago.
GNRC’s Cash Flow & Liquidity
In the first quarter, the company generated $119 million of net cash from operating activities. The free cash flow totaled $90 million.
As of March 31, 2025, GNRC had $265.5 million of cash and cash equivalents, with $1.25 billion of long-term borrowings and finance-lease obligations.
The company did not buy back stock in the first quarter. In 2025, the company repurchased 1.1 million shares for $148 million. GNRC also earlier approved a share repurchase authorization of up to $500 million over the next 24 months. This new program replaces the remaining balance of the earlier program.
GNRC’s Zacks Rank
Generac currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performances of Other Companies in the Same Space
Otis Worldwide Corporation (OTIS - Free Report) reported mixed first-quarter 2026 results. Earnings per share (EPS) of 89 cents missed the Zacks Consensus Estimate of 91 cents by 2.2%. In the year-ago quarter, it reported an adjusted EPS of 92 cents.
OTIS’ net sales of $3.57 billion surpassed the consensus mark of $3.5 billion by 2% and increased 6.4% on a year-over-year basis. Organically, net sales were up 1% year over year. Favorable foreign exchange movement supported sales growth by 5%. A standout in the quarter was repair, with net sales up 16% at actual currency and organic repair sales up about 10%.
Dover Corporation (DOV - Free Report) posted first-quarter fiscal 2026 adjusted earnings of $2.28 per share, up 11.2% from $2.05 a year ago. The figure topped the Zacks Consensus Estimate of $2.27, reflecting a 0.4% surprise.
Dover Corporation’s quarterly revenues rose 10.1% year over year to $2.05 billion, beating the consensus mark of $2.01 billion by 2.1%. The upside was backed by solid growth in secular-growth-exposed end markets and improving conditions across DOV’s portfolio. Excellent order activity, with book-to-bill above one across all five segments, aided growth.
Graco Inc.’s (GGG - Free Report) first-quarter 2026 adjusted earnings of 66 cents per share were down 6% from 70 cents in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of 75 cents by 12%.
Graco’s net sales rose 2% year over year to $540.1 million but lagged the consensus estimate of $560 million by 3.5%. Organic order backlog rose 13% from the end of 2025. On a regional basis, quarterly sales generated from the Americas increased 3% year over year. In Europe, the Middle East and Africa, sales increased 4% year over year. Sales from the Asia Pacific decreased 5% year over year.