u/After_Program

Generac signed a long-term supply agreement with Amazon to provide backup generators for Amazon data centers, with initial deliveries expected to total $2.4 billion across 2027 and 2028, which is significant relative to Generac's current revenue base (e.g., $1.17 billion last quarter). As part of the deal, Generac issued Amazon a warrant to buy up to 1,693,745 GNRC shares at $200.9266, with vesting tied to Amazon's cumulative payments reaching $8 billion, aligning Amazon's purchases with increased equity participation. The main risk is that Generac redacted portions of the agreement, and there is uncertainty around data center market growth and potential cancellation rights. The catalyst to watch is whether Amazon begins vesting additional warrant shares during 2027.