Generac Holdings (GNRC) Stock Forecast & Price Target

The analysis indicates a positive outlook for Generac Holdings, driven by steady revenue growth in the Commercial and Industrial segment, which contributed approximately 32.2% of total revenue for the third quarter of 2025. The company's successful management of expenses and enhancement in gross margins, particularly through the ecobee product line, underpins its strong operational performance, with an upward trend in EBITDA margins projected from 19.6% in 2026 to 20.5% in 2027. Furthermore, core sales increased by roughly 3% in the third quarter of 2025, supported by anticipated seasonal leverage that is expected to boost adjusted-EBITDA margins by 150 to 200 basis points sequentially.

Generac Holdings has experienced a significant decline in its stock price, falling 15% since its August 13 high, while the S&P 500 saw a mere 4% increase during the same period. The company has revised its full-year 2025 financial guidance downward, projecting flat consolidated net sales of approximately $4.29 billion, a decrease in gross margin to around 39.5%, and lower adjusted EBITDA and net income margins than previously anticipated. Additionally, the residential product segment reported a year-over-year sales decline of approximately 13.3% in the third quarter of 2025, contributing to an overall revenue drop of around 8.3% compared to the prior year.