Generac Holdings (GNRC) Stock Forecast & Price Target

Generac Holdings demonstrated positive financial performance with a year-over-year revenue increase of approximately 2.5% in the Commercial and Industrial segment, reflecting strong sales growth and improved operating leverage. The company's adjusted EBITDA margins are projected to rise from 19.6% in 2026 to 20.5% in 2027, indicating a continued enhancement of profitability while the core sales increased by roughly 3% in 3Q25. Furthermore, Generac's ecobee install base reached approximately 4.75 million connected homes, contributing to further market penetration and revenue potential within the clean energy sector.

Generac Holdings has experienced a 15% decline in stock value since its Q2 report, contrasting with a 4% increase in the S&P 500 during the same period, indicating investor concerns. The company has revised its full-year 2025 guidance, now projecting flat net sales and decreased margins compared to previous estimates, with adjusted EBITDA and net income margins both significantly lowered. Furthermore, the residential product segment has shown a notable decline in sales, marking the first year-over-year drop since 3Q22, leading to overall revenue falling short of expectations for 3Q25.