Generac Holdings (GNRC) Stock Forecast & Price Target

Generac Holdings has demonstrated strong revenue growth in its Commercial and Industrial (C&I) segment, with a year-over-year increase of approximately 2.5% in the third quarter of 2025, bolstered by significant sales within the telecom and industrial distributor channels. The company's EBITDA margins are projected to improve from 19.6% in 2026 to 20.5% in 2027, reflecting enhanced domestic margin quality due to a favorable U.S. market mix and increasing data-center demands. Additionally, Generac's core sales, which exclude foreign currency and acquisition impacts, saw a rise of around 3%, with management anticipating a sequential expansion in adjusted EBITDA margin of 150 to 200 basis points in the upcoming quarter.

Generac Holdings has revised its full-year 2025 guidance downward, forecasting flat consolidated net sales compared to 2024, with revenue approximately $4.29 billion, representing a significant reduction from previous growth expectations. The adjusted EBITDA and net income margin are also projected to decrease to approximately 17.0% and 6.0%, respectively, indicating a declining profitability trend, as gross margins fell to 39.5% in 3Q25, down from 40.2% the previous year. Additionally, the company reported a 13.3% year-over-year decline in residential product segment sales for 3Q25, coupled with overall revenue falling short of consensus estimates, highlighting ongoing challenges in the market.