Generac reported second quarter 2026 net sales of $1.17 billion, an 11% increase year-over-year, beating analyst estimates of $1.08 billion. Adjusted EPS came in at $2.91, significantly ahead of the $1.95 consensus, aided by a one-time tariff refund and strong operational performance in the Commercial & Industrial segment.
Key Highlights
- Commercial & Industrial (C&I) segment sales surged 29% to $556.5 million, driven by ramping production for backup generators sold into the global data center market.
- The company's backlog for products serving the data center market has now reached approximately $1.6 billion, and it secured a global supply agreement with a second hyperscale customer.
- Residential segment sales of $621.3 million marked a 2% decrease year-over-year, as growth in home standby generators was offset by lower shipments of energy storage systems and portable generators.
- Full-year 2026 adjusted EBITDA margin guidance was raised to a range of 20.0% to 21.0%, up from the prior 18.5% to 19.5%, reflecting an expected 1.5% full-year impact from a $71 million tariff refund recorded in the quarter.