Generac Holdings (GNRC) Stock Forecast & Price Target

Generac Holdings demonstrated a positive financial trajectory with a year-over-year revenue increase of approximately 2.5% in the Commercial and Industrial (C&I) segment, which comprised about 32.2% of its revenue for the third quarter of 2025. The company's emphasis on operational efficiency yielded gross margin improvements and higher EBITDA margins, projected to rise from 19.6% in 2026 to 20.5% in 2027, indicating strong profitability potential. Furthermore, core sales growth of approximately 3% in the third quarter, alongside an expected sequential expansion of adjusted EBITDA margins by 150–200 basis points, reflects Generac's effective sales strategies and robust market performance.

Generac Holdings has faced a significant decline in its stock price, falling 15% since its August 2023 high, contrasting sharply with a 4% increase in the S&P 500 during the same period. Management has revised its full-year 2025 guidance downward, projecting flat consolidated net sales and a decrease in both gross margin and adjusted EBITDA, indicating weakening financial performance. Additionally, the company reported a year-over-year decline in residential product segment sales and revenues in the third quarter of 2025, further highlighting the challenges ahead for Generac's business trajectory.