Generac Holdings Inc. (NYSE:GNRC) reported first-quarter results on Wednesday that exceeded Wall Street expectations and lifted its full-year guidance, sending the stock sharply higher.
Shares jumped 13.76% in premarket trading following the announcement.
The company posted adjusted earnings per share of $1.80, beating the analyst consensus of $1.35 by $0.45.
Revenue rose 12% year over year to $1.06 billion, slightly ahead of the $1.05 billion estimate and up from $942 million in the same period last year.
Generac increased its 2026 net sales growth forecast to the mid-to-high teens percentage range, up from prior guidance of mid-teens growth.
It also raised its adjusted EBITDA margin outlook to approximately 18.5% to 19.5%, compared with the previous range of 18.0% to 19.0%. The midpoint of 19.0% marks an improvement from the earlier 18.5% midpoint.
“Our first quarter results reflect significant growth in our C&I segment and strong adjusted EBITDA margin expansion as we continue to strategically create a more balanced business with improved scale,” said Aaron Jagdfeld. “We are continuing to build momentum in the large and rapidly growing data center end market as we are in the final stages of vendor approval with multiple hyperscale customers.”
The Commercial & Industrial division was the main growth driver, with sales increasing about 28% to $510.1 million from $399.0 million a year earlier.
The Residential segment posted more modest growth, with sales rising around 1% to $552.2 million compared with $548.7 million in the prior-year quarter.
The company completed the acquisition of Allmand on January 5 and Enercon on April 1, with management highlighting the Enercon deal as a contributor to the improved outlook.