GNRC US S&P 500Russell 1000 Earnings call · transcribed from the recording
Generac (GNRC) · Q3 2026 results and valuation
Share price: $194.00 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 28 Oct 2026 and 29 Jul 2026
Net income down 23.7% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−23.7%
Net income vs Q2 2026
Outlook given
Net income 109.2M vs 143.2M
Revenue +10.3%
Against the same quarter last year (Q3 2025) it is +65.1%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Upbeat
More upbeat than 78% of company calls
Answers to analysts: restrained, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Rising
The core total sales growth for the segment was primarily driven by ramping revenue from products sold into the global data center market.
Valuation
Is Generac undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −2.7% growth a year (3-year revenue growth), the model's fair value is $26.04 a share — the stock trades 645% above it. Today's price assumes 19.2% growth a year.
Current price
$194.00
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+19.2% for 10 yrs
Fair value / share
$26.04
Buy below
$19.53
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
Generac expects to achieve significantly higher levels of output from its existing facilities through added production lines and an increase in manufacturing staffing levels.
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Guidance
Specifically for 2027, Generac now expects revenue from products sold to the data center market to well exceed $2 billion.
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Figure
Initial deliveries in this agreement are expected to be a combined $2.4 billion in 2027 and 2028, driving the increase...
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Fading
Partially offsetting these declines, home standby generator sales returned to solid growth during the quarter, primarily due to increased price…
Source quote
“Partially offsetting these declines, home standby generator sales returned to solid growth during the quarter, primarily due to increased price... In addition, we also saw a decline in portable generator shipments compared to the prior year given the lower power outage environment. As disclosed in our earnings release, our second quarter results included an approximate $71 million pretax impact related to tariff refunds, which...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 89% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“As a result of our recent wins, current backlog, capacity expansion efforts, and our track record of strong execution, we believe we have excellent visibility to dramatic growth in the...”
“In closing this morning, our third quarter performance, including tremendous momentum in the rapidly growing data center market, highlighted by our agreement with Amazon, alongside a return to strong growth...”
“Specifically, the Almond business has outperformed our prior expectations for both sales and profitability, and as we continue to see healthy rental fleet demand driven by a significant pipeline of...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.29B | 1.17B | +10.3% | 1.11B | +16.2% |
| Gross profit | 516.0M | 521.8M | −1.1% | 426.9M | +20.9% |
| Operating income | 160.6M | 210.4M | −23.7% | 103.1M | +55.8% |
| Net income | 109.2M | 143.2M | −23.7% | 66.2M | +65.1% |
| EPS | 1.83 | 2.40 | −23.7% | 1.12 | +63.4% |
| P/E today 34.9 | 40.8 | 67.3 | −26.5 | 31.9 | +8.9 |
Topics
Most discussed now
- Looking at Generac's updated adjusted EBITDA margin expectations for the full year, as a result of its third quarter outperformance,...
- Generac's portable generator business is growing nicely and doing well.
- Please see Generac's earnings release or SEC filings for a list of words or expressions that identify such statements and...
- Consolidated gross profit margin was 39.9% compared to 38.3% in the prior year third quarter.
Faded since Q2 2026
- Fading With respect to future visibility, as I just said, the second hyperscale agreement that Generac is talking about is actually as...
- Fading Generac has a corporate structure that serves those teams, and it has had to beef up elements of that corporate structure...
- Fading You would expect that you're going to get from a horsepower standpoint and a power density standpoint in terms of...
- Fading There are other types of behind-the-meter technologies, behind-the-meter power generation technologies.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Material agreement; Unregistered share sale · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K