Generac Holdings (GNRC.N): First One is the Hardest; 2Q Preview

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Generac Holdings (GNRC.N): First One is the Hardest; 2Q Preview

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01 Jul 2026 02:00:20 ET │ 17 pages

Generac Holdings (GNRC.N)

First One is the Hardest; 2Q Preview

CITI'S TAKE

Neutral / High Risk We update our model ahead of 2Q and are 3% and 2% higher than

consensus EPS in the upcoming quarter and in FY26, respectively. Our Short-Term View: Downside, expires 19-JUL-26

catch-up with GNRC indicates that the second hyperscaler may not Price (30 Jun 26 16:00) US$292.81

require the same NTP process as the first, which would represent a more Target price US$300.00↑

direct path to firm orders. Commensurately, the company is exploring from US$263.00

opportunities to expand capacity via greenfield or M&A, while the existing Expected share price return 2.5%

footprint can facilitate additional production. Recent vertical integration Expected dividend yield 0.0%

should provide upside to the targeted mid-to-high teens EBITDA margins

Expected total return 2.5% in large output generator business while the legacy C&I business appears

Market Cap US$17,237M to be showing moderate organic growth in rental and telecom. In

residential, revenue guidance incorporates a relatively soft outage

environment in 1H, consistent with the latest outage data. We increase our

PT to $300/sh driven by higher estimates and a rare increase in target Vikram BagriAC

multiples given growth uplift from large MW generators. +1-212-816-4506

vikram.bagri@citi.com

C&I Revenues — C&I segment revenue guidance of mid-to-high 20% incorporates

approximately mid single-digit growth in the base C&I business (i.e. excluding data

centers) supported by rental and telecom growth. International performance is

mixed by region. Management had reduced Middle East demand expectations at 1Q