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# Generac's Data Center Backlog Reaches About $4.5 Billion As Third-Quarter Sales Hit A Record
- URL: https://www.bullished.co/generacs-data-center-backlog-reaches-about-4-5-billion-as-third-quarter-sales-hit-a-record-70b3ea51/
- Published: 2026-10-28T10:25:57.000Z
- Updated: 2026-10-28T15:07:37.000Z
- Description: Sales rose 16% to $1.29 billion as home generators rebounded and C&I sales climbed about 28%, and Generac narrowed its margin outlook.
- Author: Matteo Parrino
- Tags: Earnings, GNRC, Industry: Industrials

Generac, which makes home and commercial generators, energy storage and other power equipment, said its backlog for data center products has grown to [about $4.5 billion](https://www.globenewswire.com/news-release/2026/10/28/3389945/0/en/generac-reports-third-quarter-2026-results.html?ref=bullished.co) after a record third quarter. [Net sales rose 16% to $1.29 billion](https://www.sec.gov/Archives/edgar/data/0001474735/000143774926033685/ex%5F1032565.htm?ref=bullished.co) from $1.11 billion a year earlier, the company reported Wednesday, with a net 1 percentage point added by acquisitions, divestitures and currency.

## Data centers drive the commercial side

Commercial & Industrial external sales climbed about 28% to [$552 million](https://www.globenewswire.com/news-release/2026/10/28/3389945/0/en/generac-reports-third-quarter-2026-results.html?ref=bullished.co) from $432 million, and the company said growth was led by ramping revenue from products sold into the global data center market. Lower shipments to domestic industrial distributors and telecom channels offset part of that.

Segment adjusted EBITDA, an earnings measure that strips out financing, tax and certain one-time items, was $69.3 million, or 12.5% of C&I sales, against 10.1% a year earlier.

CEO Aaron Jagdfeld said the backlog follows the recently announced agreement with Amazon, plus wins from new and existing customers. Initial deliveries under the long-term supply agreement for backup generators at Amazon data centers are expected to total a combined $2.4 billion in 2027 and 2028\. Jagdfeld said Generac is executing its announced capacity expansion plans "to capture this generational growth opportunity."

## Home generators rebound

Residential external sales rose about 9% to $743 million from $682 million, led by home standby and portable generators and partly offset by lower energy storage shipments. Residential adjusted EBITDA was $200.8 million, or 27.0% of segment sales, versus 23.4%. Jagdfeld credited "lower power quality" trends for the increase in shipments.

Residential products made up 53.9% of total net sales in 2025, according to Generac's annual report.

## Margins widen, outlook narrows

Net income attributable to the company was $109 million, or $1.83 per share, versus $66 million, or $1.12\. Adjusted earnings were $2.54 per share against $1.83\. Gross margin was 39.9% versus 38.3%, helped by favorable price and cost, including lower tariff costs. Total adjusted EBITDA was $256 million, or 19.8% of sales, versus $193 million, or 17.3%.

Free cash flow was $132 million, up from $96 million, as higher operating earnings were partly offset by greater capital spending.

Generacmaintains full-year sales growth guidance in the mid-to-high teens percent range. Its adjusted EBITDA margin forecast is now about 20.5% to 21.0%, from 20.0% to 21.0%. Management holds its call at 10:00 a.m. EDT on Wednesday.

The raised floor on the margin forecast leaves the full-year sales outlook unchanged, while the data center backlog now stands at about $4.5 billion.

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### Sources

- [8-K Filing — GENERAC HOLDINGS INC. (GNRC)](https://www.sec.gov/Archives/edgar/data/0001474735/000143774926033685/gnrc20261027c%5F8k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ex\_1032565.htm — GENERAC HOLDINGS INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001474735/000143774926033685/ex%5F1032565.htm?ref=bullished.co) — SEC EDGAR
- [Generac Reports Third Quarter 2026 Results](https://www.globenewswire.com/news-release/2026/10/28/3389945/0/en/generac-reports-third-quarter-2026-results.html?ref=bullished.co) — globenewswire.com