Generac Holdings Inc. (GNRC) Earnings
Generac Holdings Inc. is expected to report next earnings on July 29, 2026 (in NaN days), with a consensus EPS estimate of $1.96. GNRC has beaten EPS estimates in 8 of its last 12 reported quarters (average surprise +7.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $1.33 | $1.80 | +35.3% | $1.1B | +0.7% |
| Feb 11, 2026 | $1.81 | $1.61 | -11.0% | $1.1B | +4.0% |
| Oct 29, 2025 | $2.25 | $1.83 | -18.7% | $1.1B | -4.0% |
| Jul 30, 2025 | $1.33 | $1.65 | +24.1% | $1.1B | -12.6% |
| Apr 30, 2025 | $0.99 | $1.26 | +27.3% | $942M | -11.5% |
| Feb 12, 2025 | $2.49 | $2.80 | +12.4% | $1.2B | -0.9% |
| Oct 31, 2024 | $1.95 | $2.25 | +15.4% | $1.2B | -4.8% |
| Jul 31, 2024 | $1.24 | $1.35 | +8.9% | $998M | -0.2% |
| May 1, 2024 | $0.72 | $0.88 | +22.2% | $889M | +0.4% |
| Feb 14, 2024 | $2.10 | $2.07 | -1.4% | $1.1B | -2.7% |
| Nov 1, 2023 | $1.50 | $1.64 | +9.3% | $1.1B | +2.5% |
| Aug 2, 2023 | $1.16 | $1.08 | -6.9% | $1.0B | +2.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 29, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- First quarter results reflect return to strong growth with net sales up 12% y/y, healthy gross margin, and robust operating leverage. - Commercial and industrial segment led growth with 28% sales increase, driven by data center momentum and almond acquisition. - First quarter adjusted EBITDA margin 18.3% expanded significantly, driven by strong execution, favorable sales mix, and lower input costs. - Raised full year net sales and adjusted EBITDA margin outlook due to first quarter outperformance, CNI segment strength, and Enercon acquisition. - Progressing with vendor approval for hyperscale data center customers, received $600M non-binding notice to proceed for 2027 deliveries. - New facility in Sussex, WI on track to begin production in second half of 2026 to support generator manufacturing. - Completed acquisition of Enercon, enhancing competitive positioning for large megawatt generators and enabling better control of customer lead times. - Residential segment introduced Generac Home structure to leverage synergies, expected to enable cost savings and margin expansion. - Residential segment EBITDA margins expanded nearly 500 basis points in first quarter due to lower operating expenses.
Guidance
- Raised full year 2026 consolidated net sales outlook to mid to high teens rate, driven by CNI segment growth. - CNI segment net sales now projected to increase in mid to high 20% range, up from low to mid 20% range. - Full year 2026 gross margin percent expected to increase ~50 basis points to 38.5 - 39.5% range. - Adjusted EBITDA margin guidance increased to 18.5% - 19.5% range. - Second quarter adjusted EBITDA margins expected to increase modestly relative to 2025, then improve sequentially in back half of year to ~20% in Q4 2026. - Projected free cash flow for full year 2026 is ~$350 million.
Segment performance
Commercial and Industrial segment sales increased 28% year over year, primarily driven by continued momentum in the data center market and the almond acquisition. Residential segment total sales increased approximately 1% to $552 million as compared to $549 million in the prior year. Commercial and industrial segment total sales increased approximately 28% to $510 million from $399 million in the prior year quarter. Consolidated net sale during the quarter increased 12% to $1.06 billion. Commercial and industrial segment adjusted EBITDA margin was 13.0% of CNI total sales, up from 11.4% in prior year. Residential segment adjusted EBITDA was 25.1% of total residential sales, up from 20.3% in prior year.
Risks & headwinds
- Supply chain risks, including potential constraints in engine, alternator, and cooling package supply. - Geopolitical instability and trade policy uncertainty impacting international shipments, particularly in Middle East and Latin American regions. - Regulatory and permitting challenges, such as air permitting around diesel generators in data center projects. - Market dynamics and seasonality impacting residential segment sales, including potential fluctuations in power outage activity.
Analyst Q&A
Q: Tommy Moll asked about product testing and pilots for the $600M non-binding notice to proceed and service capabilities.
A: Aaron Yagfeld said they're in final stages of vendor approval, passing gates, and discussing site specifics, and they're in good shape with industrial distribution network for service.
Q: George Gianerakis asked about de-risking engine supply chain and multi-year capacity guarantees.
A: Aaron Yagfeld said they have multi-year agreement with engine supplier for exclusivity in US, working on engine production in US, and multi-sourcing critical components with plans to add capacity.
Q: Mike Halloran asked about non-data center CNI segment and new product categories.
A: Aaron Yagfeld talked about telecom order volume growth, mobile equipment refleeting cycle and almond acquisition, core CNI business, and positive receptivity of expanded product line.
Q: Jeff Hammond asked about residential strength and margins.
A: Aaron Yagfeld and York Reagan said margin improvement was driven by cost control, leverage of teams, and gross margin improvement from favorable price cost and new product rollout.
Q: Brian Drab asked about standby business ramp.
A: Aaron Yagfeld said second half growth expected due to easy comps, normal seasonality, and price, with winter storm Fern helping in Q1.
Q: Stephen Gengaro asked about C&I margin progression and growth rates.
A: Aaron Yagfeld and York Reagan said margin progression from OPEX leverage, growth rates linked to CapEx and data center build out, and long-term growth expectations.
Q: Praneesh Satish asked about hyperscale agreement and tariffs.
A: Aaron Yagfeld said in conversation with two hyperscale customers, close to finish line with one, and York Reagan said tariff assumptions are consistent with prior guidance.
Q: Christopher Glenn asked about residential margin upside.
A: Aaron Yagfeld said it's from unification benefits, product ramp, and software trends, with continued leverage expected.
Q: Julian Donovan-Smith asked about pricing momentum for large diesel gen sets.
A: Aaron Yagfeld said pricing improved, lead times constrained, and opportunities to increase vertical integration and efficiencies.
Q: Vikram Bagri asked about CNI gating factors and residential ET break even.
A: Aaron Yagfeld said air permitting solvable, capacity growth through various means, and residential ET break even timeline remains 2027.
Q: Keith Hoosom asked about telecom and rental cycle.
A: Aaron Yagfeld said telecom cycles are multi-year, rental is refleeting cycle with specific metrics and factors influencing it.