Generac: 2Q Results Align, Encouraging DC Order Traction and Capacity Expansion

研报英文原文证据摘录

Generac: 2Q Results Align, Encouraging DC Order Traction and Capacity Expansion

of 38.7% after Quarterly Forecasts (FYE Dec)

deducting 6% benefit from tariff refunds. Similarly, PF EBITDA of $291mm Adj. EPS ($)

approximately aligned with consensus of $217mm after deducting $71mm 2025A 2026E 2027E

benefit from tariff refunds. Q1 1.26 1.80A 1.74

Q2 1.65 2.91A 2.22

• FY26 revenue guidance maintained, EBITDA guide adjusted for 2Q tariff Q3 1.83 2.28 2.98

refund. GNRC continues to look for FY26 revenue growth of mid/high-teens Q4 1.61 2.62 3.01

FY 6.34 9.62 9.97

(Street: ~17%). Within the segments, GNRC increased its outlook for C&I y/y

growth to low-30s% (mid/high-20s% previously), and trimmed its resi y/y Style Exposure

growth outlook to high-single digit (~10% previously). PF EBITDA margin

guidance was increased to 20-21%, from 18.5-19.5% previously, reflecting

1.5% benefit from the 2Q tariff refund (unchanged excluding tariffs).

• Data center backlog expands, second hyperscaler deal being finalized.

GNRC’s data center backlog increased to $1.6bn, from $0.7b at 1Q, including

the $0.7bn deal with the company’s first hyperscaler announced during the

quarter. The backlog increase included deals with new and existing customers.

The second hyperscaler agreement, signed in late June for 2027/28 deliveries,

was characterized as "at least as large" as the first, and is in final stages of

negotiations on product specific terms. Notably, none of this second agreement

is currently reflected in the $1.6bn backlog figure. FY26 data center revenue

guidance was raised to ~$450mm, enabled by a sooner than expected start for

expanded Sussex production (end of 3Q). Management did signal that coming

off of this second hyperscaler agreement, they plan to focus on the robust non-