Generac (GNRC)
Backup power systems, growing DC segment.
- Ticker: GNRC
- Sector: power equipment (genset)
- DC exposure tier: mid
Generac (GNRC) is a moderate-exposure data-center supply-chain name in the power equipment sector. Data Center Index tracks Generac's capex history, project wins, and supplier exposure across the AI infrastructure buildout, refreshed daily from SEC filings and project announcements.
Generac data center thesis
Generac is the residential standby-power leader pivoting hard into the commercial and industrial segment that includes data centers. Backlog ran from $0.09B in 2020 to $0.21B in Q3 2025 (+18% YoY), small versus Cummins but accelerating, and C&I growth is what justified the 122% twelve-month rerating. At a $16B cap with revenue still 65%+ residential, GNRC is the higher-beta standby-power proxy for investors who want DC exposure without the $40B+ Cummins multiple.
Bull case
- Backlog has compounded from $0.09B in 2020 to $0.21B in Q3 2025 with consistent ~18% YoY growth across the last four quarters; the Commercial and Industrial book is the driver, and DC standby is the fastest-growing slice inside it.
- Genset lead times of 20-40 weeks are stable but tight, and Generac's distribution network and dealer base let it scale C&I backup faster than legacy industrial competitors as new DC builds need backup capacity that generally must be onsite well before IT fit-out.
- DC backup capacity scales 1:1 with site MW; every gigawatt of new hyperscaler campus pulls megawatts of standby gen behind it, and the tracked AI buildout pipeline sustains a multi-year tailwind for the C&I mix shift.
Bear case
- The bulk of revenue is still residential standby, which moves with hurricane seasons, grid-outage cycles, and consumer financing rates; a mild storm season or a credit reset can swamp the DC narrative on the consolidated line.
- Operating income halved from $0.54B in 2024 to $0.29B in 2025 even as revenue stayed near $4.2B; margin pressure from inventory destocking and tariff exposure remains a live issue management is still working through.
- After a 122% move and trading at 98% of its 52-week range, GNRC has fully reset to a DC-beneficiary multiple; a single soft residential quarter could trigger the same multiple compression that hit it through 2022-23.
Data center exposure rationale
Commercial & Industrial backup-power exposure includes DCs; bulk of revenue still residential standby gen.
Generac revenue and capex
In fiscal 2025, Generac reported revenue of $4.2B, capital spending of $169.8M and operating income of $289.2M.
| Fiscal year | Revenue | Capex | Operating income |
|---|---|---|---|
| 2025 | $4.2B | $169.8M | $289.2M |
| 2024 | $4.3B | $136.7M | $536.7M |
| 2023 | $4.0B | $129.1M | $386.2M |
Tracked Generac data center projects
- Childress Campus, 750 MW, Childress, TX · operational
- Lancaster County DC, 300 MW, Lancaster County, PA · under construction
Recent Generac news
- Generac signs $8bn back up generator deal with Amazon, DCD, 2026-09-21