Generac Holdings (GNRC) Stock Forecast & Price Target

Generac Holdings is projected to achieve consolidated net sales growth between 2% and 5%, translating to net revenue estimates of $4.38 billion to $4.51 billion, indicating resilient demand in its markets. The company's gross margin has witnessed improvement, rising to approximately 39.5%, while the anticipated rise in adjusted EBITDA margins by 150 to 200 basis points in the third quarter reflects operational leverage from increased sales volumes. Furthermore, the company's focus on its energy technology segment, paired with advantageous trends in electrification and smart home solutions, positions it favorably for long-term growth and performance enhancements.

Generac Holdings has experienced a significant decline in its stock value, dropping 15% since its August peak, contrasting sharply with a 4% increase in the S&P 500 during the same timeframe. The company's revenue and gross profit estimates for 2027 are projected to decrease, compounded by management's cut in 2H25 top-line guidance due to unexpected pricing assumptions tied to reduced tariffs. Additionally, a subdued performance in the important residential solar market coupled with the absence of anticipated cost reductions could further adversely impact Generac's overall business prospects.