Generac reported a strong Q2 2026 with CNI segment up 29% driven by data center revenue and a $1.6B backlog. Management raised CNI guidance to low 30s% growth and highlighted aggressive capacity expansion to triple large generator production. Residential growth was modestly lowered due to soft outage activity and macro headwinds, but overall tone was bullish on multi-year data center opportunity. Data center revenue recognized >$100M in Q2; full-year 2026 data center revenue expectation raised to ~$450M.
Generac reported a strong Q2 2026 with CNI segment up 29% driven by data center revenue and a $1.6B backlog. Management raised CNI guidance to low 30s% growth and highlighted aggressive capacity expansion to triple large generator production. Residential growth was modestly lowered due to soft outage activity and macro headwinds, but overall tone was bullish on multi-year data center opportunity. Data center revenue recognized >$100M in Q2; full-year 2026 data center revenue expectation raised to ~$450M.
Management exuded confidence in the data center opportunity, emphasizing aggressive capacity expansion, large order wins, and upside to prior growth targets.
Capex guidance was raised to approximately 4.5% of net sales for 2026, funding investments in large megawatt generator production, packaging, and vertical integration, with a path to triple production capacity over the next year.
Guidance · revenue to 16%
Guidance · revenue to 16%
Management highlighted unprecedented demand from AI infrastructure, with data center orders and capacity expansion accelerating, and described it as a generational growth opportunity that is core to their business.
Data center backlog more than doubles with new hyperscale agreements. Management exuded confidence in the data center opportunity, emphasizing aggressive capacity expansion, large order wins, and upside to prior growth targets.
Capex guidance was raised to approximately 4.5% of net sales for 2026, funding investments in large megawatt generator production, packaging, and vertical integration, with a path to triple production capacity over the next year.
Management exuded confidence in the data center opportunity, emphasizing aggressive capacity expansion, large order wins, and upside to prior growth targets.
“In some cases, what we're hearing in particular from this particular customer set is that they have projects that if they could get backup power, they could turn the project on quicker because of the lead times of the backup industry today.”
“we believe we now have a path over the next 12 months to triple our production capacity from our original year-end 2026 target of 1.25 billion.”
“our lead times remain in that 40 to 45 week range for the products today. in spite of the backlog that's grown here.”
“we are now in the final stages of negotiations with this customer on terms, conditions, volumes and timelines for 2027 and 2028 deliveries.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | 4.5% | 4.5% | RAISED |
| Free cash flow | FY2026 | $350M | $350M | MAINTAINED |
| Gross margin | FY2026 | 40% | 40% | GUIDED |
| Op marginEBITDA | FY2026 | 20%–21% | 20.5% | RAISED |
| Revenue | FY2026 | 15%–17% | 16% | MAINTAINED |
| RevenueRESIDENTIAL | FY2026 | 9% | 9% | LOWERED |
| RevenueCNI | FY2026 | 31%–33% | 32% | RAISED |