Generac Holdings Inc. raised the lower end of its 2026 adjusted EBITDA margin outlook after third-quarter net sales climbed 16% to a record $1.29 billion, reflecting growth in both major segments.
The company now expects its full-year adjusted EBITDA margin, before deductions for non-controlling interests, to be approximately 20.5% to 21.0%. Its previous range was approximately 20.0% to 21.0%, so the upper end was unchanged. Generac kept its 2026 net sales growth projection at mid-to-high teens compared with the prior year.
Commercial & Industrial external net sales increased about 28% to $552 million. Generac said growth in that segment came primarily from rising sales of products for the global data-center market. Residential external net sales grew about 9% to $743 million, with home standby and portable generators contributing to the increase; lower energy-storage shipments partly offset it. Acquisitions, divestitures and foreign-currency effects together had a net favorable 1% impact on third-quarter sales growth, the company said.
Net income attributable to Generac was $109 million, or $1.83 per share, compared with $66 million, or $1.12 per share, a year earlier. The company reported $256 million in adjusted EBITDA before deductions for non-controlling interests, equal to 19.8% of net sales. A year earlier, adjusted EBITDA was $193 million, or 17.3% of net sales.
Gross margin increased to 39.9% from 38.3%. Generac cited favorable pricing and cost effects, including lower tariff costs, partly offset by an unfavorable sales mix. Operating expenses rose $31.6 million, or 10%. Higher spending to support future Commercial & Industrial growth, marketing costs, incentive compensation and intangible amortization contributed to the increase; lower investment in energy technology solutions partly offset it.
The company said its data-center product backlog reached about $4.5 billion. It expects the Amazon.com, Inc. backup-generator agreement to account for a combined $2.4 billion in initial deliveries during 2027 and 2028.
Generac filed its results in a Form 8-K with the Securities and Exchange Commission on Wednesday, Oct. 28. The filing lists Item 2.02, Results of Operations and Financial Condition, and Item 9.01, Financial Statements and Exhibits. The company scheduled a conference call to discuss the results for 10 a.m. EDT Wednesday, Oct. 28.
