Generac Holdings (GNRC) Stock Forecast & Price Target

Generac Holdings demonstrated a positive outlook through its consistent revenue growth in the Commercial and Industrial (C&I) segment, with a year-over-year increase of approximately 2.5% for the third quarter of 2025, contributing to overall core sales growth of around 3%. The company's focus on improved gross margins and operational efficiency, particularly highlighted by the performance of ecobee's install base, has resulted in encouraging EBITDA margin projections increasing from 19.6% to 20.5% in the following year. Additionally, robust sales to telecom and industrial distributor channels, along with strength in European markets, along with the anticipated enhancement of domestic margin profiles, signify Generac's favorable potential as data-center volumes increase and the adverse effects of energy technology diminish.

Generac Holdings has revised its full-year 2025 guidance downward, expecting flat consolidated net sales compared to 2024, reduced adjusted EBITDA, and lower net income margins, which reflects a more challenging financial outlook. Residential product segment sales for 3Q25 have declined approximately 13.3% year-over-year, marking the segment's first annual decline since 3Q22, and overall revenue for the quarter fell by 8.3% compared to the previous year. Additionally, concerns regarding rising tariffs and input costs, along with potential operational constraints, contribute to a bearish outlook on the company's future performance and financial health.