Generac's stock soars more than 30% after Amazon deal cements company's status as an AI power player
By Claudia Assis
First deliveries of backup-power generators are worth $2.4 billion
The deal with Amazon is a big step for Generac, a $10 billion company whose residential generators are ubiquitous in big-box stores.
Shares of Generac Holdings skyrocketed after the maker of residential and industrial power generators signed a deal of up to $8 billion with Amazon.com for backup-power generators for data centers.
Generac (GNRC) said late Wednesday that the deal includes initial deliveries of backup-power generators worth $2.4 billion in 2027 and 2028. The deal also included warrants allowing an Amazon (AMZN) subsidiary to buy Generac shares through 2033, the manufacturer said in a late Wednesday filing.
Generac shares rose more than 34% in the Thursday's premarket session. That's puts them on track to smash the current one-day record gain of 25.4% on May 8, 2012.
The deal with Amazon is a big step for Generac, a $10 billion company whose residential generators are ubiquitous in big-box stores like Home Depot (HD) and warehouses such as Costco (COST), and which also makes products such as EV chargers and solar-battery storage.
In a July earnings report, it highlighted "continued momentum" for its data-center sales and it pledged to ramp up production for large-megawatt backup generators. The company added that it had a backlog for products serving the data-center market of about $1.6 billion at the time.
In a March presentation to investors, the company forecast sales of $1 billion by 2028, calling it a "generational growth opportunity."
Shares of Generac have gained 28% so far this year through Wednesday, compared with gains of around 10% for S&P 500 index SPX.
Tomi Kilgore in New York contributed.
-Claudia Assis
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09-17-26 0655ET
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