Generac reported second-quarter 2026 results with net sales of $1.17 billion and net income attributable to the company of $143 million. Adjusted net income attributable to the company was $174 million, or adjusted diluted EPS of $2.91, and adjusted EBITDA was $291 million (24.8% of sales). Management reiterated full-year net sales growth guidance in the mid-to-high teens and raised adjusted EBITDA margin guidance to about 20.0–21.0% reflecting tariff refunds.

Financial Highlights

  • Revenue: Net sales of $1,173.5 million for the three months ended June 30, 2026 (up 11% year-over-year from $1,061.2 million).
  • Gross profit and margin: Gross profit of $521.8 million; gross margin of 44.5% for the quarter.
  • Operating income: Income from operations of $210.4 million for the quarter.
  • Net income: Net income attributable to the company of $143.2 million for the quarter.
  • Adjusted results: Adjusted net income attributable to the company of $173.6 million (adjusted diluted EPS $2.91) and adjusted EBITDA attributable to the company of $290.96 million for the quarter.

Business Highlights

  • Segment performance: Commercial & Industrial (C&I) external net sales rose ~29% to $556.5 million, driven primarily by data center market shipments; Residential external net sales declined ~2% to $617.0 million.
  • Data center momentum: Secured a global supply agreement with a leading hyperscale data center operator and finalized product terms committing nearly $700 million of volume for 2027; signed a second global supply agreement with another hyperscale customer and negotiating 2027–2028 terms.
  • Backlog growth: Data center product backlog increased to approximately $1.6 billion (excluding committed volumes from the second hyperscale customer); roughly $1 billion in additional orders received since prior update.
  • Capacity and acquisitions: Completed acquisition of Enercon and acquired an additional facility in Belvidere, Illinois, expanding capacity for large megawatt generator packaging to support ramped production.
  • Operational drivers: C&I adjusted EBITDA margin improved to 14.6% reflecting tariff refund impact, acquisitions/divestitures, and operating leverage; Residential adjusted EBITDA margin benefited from tariff refunds, favorable mix, and operational efficiencies.

Original SEC Filing:

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