Generac Holdings (GNRC) Stock Forecast & Price Target

Generac Holdings reported a positive outlook driven by a year-over-year increase of approximately 2.5% in the Commercial and Industrial (C&I) segment, which represented around 32.2% of their third-quarter revenue. The company's ecobee platform showed robust performance, reaching an install base of approximately 4.75 million connected homes, contributing to significant gross margin improvements and disciplined cost control. Furthermore, Generac's EBITDA margins are projected to increase from 19.6% in 2026 to 20.5% in 2027, underpinned by strong domestic sales performance, seasonal leverage, and an overall growth in core sales of approximately 3%.

Generac Holdings has experienced a significant decline in stock value, falling 15% since its Q2 report, while the S&P 500 increased by 4% during the same period. Management has revised its full-year 2025 guidance downwards, expecting flat consolidated net sales compared to 2024, reduced gross margins, and a decrease in both adjusted EBITDA and net income margins. Additionally, the residential product segment has shown a year-over-year sales decline of 13.3%, marking the segment's first decline since Q3 2022, further highlighting potential challenges in revenue generation amidst unfavorable market conditions.