Generac Holdings (GNRC) Stock Forecast & Price Target

Generac Hldgs demonstrates a positive financial outlook, highlighted by a 2.5% year-over-year revenue increase in its Commercial and Industrial segment, which accounted for approximately 32.2% of revenue in the third quarter of 2025. The company also observed significant improvements in its ecobee segment, benefiting from higher gross margins and a growing install base that reached around 4.75 million connected homes. Furthermore, EBITDA margins showed a consistent upward trend, with projections indicating an increase from 19.6% in 2026 to 20.5% in 2027, reflecting robust domestic margin performance and operational efficiency.

Generac Holdings has experienced a significant stock decline of 15% since August, while the S&P 500 saw an increase of 4% during the same period, indicating relative underperformance. The company’s revised full-year guidance suggests stagnant net sales of approximately $4.29 billion, alongside reduced projections for gross margin, adjusted EBITDA, net income margin, and free cash flow conversion, all pointing to weaker operational efficiency. Additionally, a notable 13.3% year-over-year decline in residential product segment sales for Q3 2025 further highlights the challenges Generac faces in sustaining revenue growth in a competitive market.