Generac Q2 Earnings Call Highlights

Generac Q2 Earnings Call Highlights Written by MarketBeat July 29, 2026 Share Link copied to clipboard. Image from MarketBeat Media, LLC.

Key Points Data center demand drove strong growth: Second-quarter sales rose 11% to $1.17 billion, led by a 29% increase in commercial and industrial revenue. Generac’s data center backlog reached $1.6 billion, with 2026 data center revenue now expected to approach $450 million.

Generac is rapidly expanding capacity: The company is accelerating production at its Sussex, Wisconsin, facility and adding capacity across other locations, aiming to triple large-megawatt generator assembly and packaging capacity over the next 12 months.

Profitability benefited from tariff refunds, while residential expectations softened: A $71 million pretax tariff refund helped lift adjusted EBITDA margin to 24.8%, but Generac lowered its residential sales-growth outlook to the high-single-digit range while raising its C&I growth forecast to the low-30% range.

ERock IPO: A $1.3B Power Play Solution Generac NYSE: GNRC reported second-quarter 2026 net sales growth of 11% as rising demand from data center customers drove a 29% increase in commercial and industrial revenue, while home standby generator sales returned to growth. Net sales totaled $1.17 billion for the quarter, compared with $1.06 billion a year earlier.

Commercial and industrial, or C&I, sales rose to $556 million from $431 million, while residential sales declined 2% to $621 million. Chief Executive Officer Aaron Jagdfeld said data center-related products were the principal driver of C&I growth, with Generac recognizing more than $100 million of related revenue during the quarter.

Data Center Backlog Reaches $1.6 Billion MarketBeat Week in Review – 06/01 - 06/05 Generac said it secured two multiyear supply agreements with hyperscale data center customers during the quarter. The first agreement includes commitments totaling nearly $700 million for products scheduled for delivery in 2027. The company said it remains in final-stage negotiations with that customer regarding terms, volumes and timelines for 2027 and 2028 deliveries.

Jagdfeld said the second hyperscale agreement was not yet included in the company’s $1.6 billion data center backlog because product-specific terms had not been finalized. He said the agreement is expected to be at least as large as the first hyperscale arrangement and includes discussions around deliveries in both 2027 and 2028.

The data center backlog represented about $1 billion in new orders over the prior 90 days. Generac now expects nearly $450 million in data center-related revenue during 2026, raising its prior expectation. Of the existing backlog, the company expects roughly $250 million to ship in the second half of 2026, with the remaining approximately $1.35 billion scheduled for 2027 delivery.

"The visibility to our multi-year growth outlook is clearly exceeding our previous expectations,” Jagdfeld said, describing the opportunity as a “generational” one for the company.

Capacity Expansion Accelerates To support demand for large megawatt generators, Generac is expanding generator assembly and packaging capacity across its domestic and international facilities. The company expects to begin production at its recently acquired Sussex, Wisconsin, facility by the end of the third quarter, earlier than its prior year-end target.

Jagdfeld said the first products are expected to run through a line at the facility in August, followed by a production ramp by the end of the quarter. The company also plans to add a second line at Sussex and has identified opportunities to expand output at facilities in Oshkosh, Wisconsin; Asia; Europe; and India. Generac is also establishing production capabilities in Brazil and Mexico.