Generac Holdings (GNRC) Stock Forecast & Price Target

Generac Holdings demonstrated strong revenue growth in its Commercial and Industrial (C&I) segment, with a year-over-year increase of approximately 2.5% in 3Q25, driven by robust sales to telecom and industrial distributor channels, as well as a growing presence in European markets. The company's core sales rose about 3%, highlighting the effectiveness of its disciplined cost control measures and improved gross margins, particularly in its ecobee division, which reported significant operational leverage. Furthermore, Generac's expansion of its dealer network to an all-time high of 9,400 and its strengthening install base of connected homes to roughly 4.75 million positions the company well for continued growth and margin improvement through 2026–2027.

Generac Holdings has revised its full-year 2025 guidance to reflect flat consolidated net sales of approximately $4.29 billion, down from previous expectations of 2% to 5% growth, along with declines in gross margin and net income margin, now at approximately 39.5% and 6.0% respectively. The company also anticipates reduced adjusted EBITDA, dropping to around 17.0% from a prior range of 18.0% to 19.0%, as well as a decrease in free cash flow conversion, projected at about 80%. Furthermore, Generac's residential product segment reported a year-over-year sales decline of approximately 13.3%, indicating vulnerability in its market position amidst potential future economic downturns and industry headwinds.