Generac Holdings (GNRC) Stock Forecast & Price Target

Generac Holdings has demonstrated a positive financial trajectory, highlighted by a 2.5% year-over-year revenue growth in its Commercial and Industrial segment, which contributed approximately 32.2% of total revenue for the third quarter of 2025. Notably, the company saw significant improvements in EBITDA margins, increasing from 19.6% in 2026 to a projected 20.5% in 2027, bolstered by enhanced domestic margin profiles and disciplined cost control. Additionally, core sales rose by approximately 3% in the third quarter of 2025, and management anticipates an adjusted-EBITDA margin expansion of 150–200 basis points sequentially, reflecting operational leverage and strong performance across various markets.

Generac Holdings experienced a significant stock decline of 15% since its August 13 high, contrasting with a 4% increase in the S&P 500 during the same period. The company's latest guidance for 2025 indicates flat consolidated net sales, reduced gross margin, and lower adjusted EBITDA and net income margins compared to previous expectations, suggesting weaker profitability and revenue growth. Additionally, the residential product segment saw a notable year-over-year decline in sales for the first time since 3Q22, further underscoring the challenges faced by Generac amidst a softer market and increased competition.