Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. As many believe, US equities experienced solid returns in 2025, with double-digit gains across all major indices, yet underlying conditions revealed extreme volatility and market leadership. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors SMid Cap Strategy trailed the Russell 2500 Growth Index, returning -2.71% vs. 0.33% for the Index. Relative performance fluctuated ...

Generac Named Finalist in Mega Category for Wisconsin Manufacturer of the Year Award [Accessibility Statement] Skip NavigationThis Recognition Highlights Generac's 65-Year Commitment to Wisconsin Manufacturing, Innovation and Community Impact.WAUKESHA, Wis., Feb. 20, 2026 /PRNewswire/ -- [Generac Holdings Inc.](NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, announced that it has been named a finalist for the 37th Annual Wisconsin Ma ...

Generac Signs Agreement to Acquire Enercon, Accelerating Growth in Data Center and Switchgear Markets [Accessibility Statement] Skip NavigationEast Peoria, Illinois-based manufacturer brings 50 years of expertise in generator enclosures and switchgear for mission-critical applicationsWAUKESHA, Wis., Feb. 19, 2026 /PRNewswire/ -- [Generac Holdings Inc.](NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, announced the signing of a definit ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34627 GENERAC HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdi ...

Core Insights - The article discusses the significant stock rally of Generac Holdings Inc. despite missing earnings expectations, driven by the company's strategic pivot towards providing backup power solutions for hyperscale data centers amid increasing demand from the AI sector [5][16]. Group 1: Company Performance - Generac's fourth-quarter earnings report showed revenue of $1.09 billion and adjusted earnings of $1.61 per share, both missing analyst expectations [4]. - The company reported a net loss of $24 million for the quarter, influenced by a one-time charge of $104.5 million related to a product liability settlement [14][15]. - Despite the earnings miss, Generac's stock rose approximately 18% to trade near $214.84, indicating strong market confidence in its future growth potential [5][18]. Group 2: Growth Projections - Management projects a 30% growth in the Commercial & Industrial (C&I) segment by 2026, primarily driven by the needs of hyperscale data centers [2][6]. - Total net sales are expected to grow in the mid-teens for 2026, a significant turnaround from the decline in 2025 [8]. - Approximately 25% of the projected C&I growth will come from the recent acquisition of Allmand, enhancing Generac's capacity and market share in the mobile rental sector [7]. Group 3: Strategic Developments - Generac is advancing to pilot stage with two major hyperscalers to provide backup power solutions, indicating strong demand for its products [9]. - The order backlog for industrial products has increased to approximately $400 million, reflecting robust demand [9]. - The company is ramping up its Wisconsin manufacturing facility to exceed $1 billion in production capacity to meet this demand [9]. Group 4: Financial Outlook - Adjusted EBITDA margins are forecasted to expand to between 18% and 19% in 2026 [20]. - The company expects its interest expense to decrease to between $65 million and $69 million due to lower interest rates [20]. - Generac projects a healthy free cash flow of approximately $350 million for the year, contributing to a favorable financial outlook [20].

Core Viewpoint - Generac Holdings Inc. is a prominent player in the backup power generation market, focusing on innovative solutions such as AI-driven data centers, and is experiencing increased demand despite recent revenue declines [1][3]. Group 1: Company Performance - Generac's fourth-quarter earnings per share were reported at $1.61, alongside an 11% decline in revenue [3]. - The stock price of Generac is currently at $214.99, reflecting a significant increase of 17.93% with a change of $32.69 [5]. - The company has a market capitalization of approximately $12.62 billion [5]. Group 2: Market Outlook - Roth Capital adjusted its rating for Generac to Neutral while raising the price target from $184 to $220, indicating a positive outlook for future performance [2]. - Expectations for mid-teens net sales growth in 2026 are driving optimism around the company [3]. - The company's operating leverage and a price/earnings to growth ratio under 1.9x support its premium valuation [4]. Group 3: Stock Performance - Generac's stock has fluctuated between a low of $190 and a high of $220.76 on the current trading day [5]. - Over the past year, the stock reached a high of $220.85 and a low of $99.50 [5]. - A bullish technical setup suggests potential for upside in the stock's performance [4].

Core Viewpoint - Generac Holdings has experienced a significant stock surge of 56.65% year-to-date, attributed to its strategic pivot towards data centers, which is yielding positive results [2][8]. Financial Performance - In Q4 2026, Generac reported revenue of $1.09 billion, missing the expected $1.18 billion, and adjusted earnings of $1.61 per share, below the $1.80 estimate. The company also recorded a GAAP net loss of $24 million due to a $104.5 million legal settlement [3]. - Residential sales declined by 23% year-over-year to $572 million, primarily due to weak power outage activity [4]. Data Center Strategy - CEO Aaron Jagdfeld indicated a fundamental shift in the company's position within the data center market, highlighting accelerated momentum and the potential for significant backlog growth from hyperscale customers [5]. - The commercial and industrial segment, which includes data center power solutions, grew by 10% in Q4 to $400 million. Generac is expanding its manufacturing capacity to meet anticipated multi-year growth [5][6]. Future Outlook - Management's guidance for 2026 anticipates mid-teens revenue growth, with commercial and industrial sales expected to increase by approximately 30% driven by data center demand and the Allmand acquisition. Residential sales are projected to grow around 10% if power outage activity normalizes [7][8]. - Generac has initiated a $500 million share repurchase program, reflecting confidence in its future growth prospects [8].

Core Insights - Generac Holdings (NYSE:GNRC) has experienced a significant stock price increase of 56.65% year-to-date [1] - The company's shares have risen by 36.35% over the past month [1] - In the last week alone, the stock has climbed 20.51% [1]

Core Viewpoint - Generac's stock surged over 17% following a positive AI-driven growth forecast despite a decline in fourth-quarter net sales and profits [1][4]. Group 1: Financial Performance - Generac reported a 12% year-over-year decline in fourth-quarter net sales, totaling $1.1 billion [4]. - Residential product sales fell by 23% to $572 million, attributed to fewer power outages leading to lower portable generator shipments [4]. - In contrast, commercial and industrial product revenue increased by 10% to $400 million, driven by higher sales to data center customers [4]. - Adjusted net income for the quarter was $95 million, or $1.61 per share, down from $168 million, or $2.80 per share, in the same quarter last year [5]. Group 2: Future Outlook - Generac anticipates full-year sales growth in the mid-teens percentage range for 2026, with a projected 10% increase in residential product sales due to normalized power outage activity [6]. - The company expects commercial and industrial sales to grow by 30%, bolstered by the expansion of its data center business [6]. - CEO Aaron Jagdfeld highlighted ongoing investments in manufacturing capabilities, including the acquisition of a new facility in Wisconsin, aimed at doubling commercial and industrial product sales in the coming years [7].

Market Overview - The trading day ended with the S&P 500 finishing flat, the Nasdaq down by approximately 0.2%, and the Dow Jones down by about 0.1% [7] - Small-cap stocks were the biggest losers, with the index down about 0.4% as expectations for Fed rate cuts were pushed out [7] Sector Performance - In the S&P 500, 285 stocks were higher while 218 were lower, indicating a slight positive sentiment [8] - The energy sector saw a gain of 2.6%, while consumer staples and materials rose by 1.4% and 1.3%, respectively [9] - Financials, communication services, and consumer discretionary sectors lagged behind [9] Company Earnings - McDonald's reported a 5.7% increase in comparable sales for Q4, exceeding the estimate of 3.76%, with total revenue slightly above $7 billion compared to the expected $6.83 billion [10][11] - The company's focus on value has resonated with cost-conscious consumers, leading to an 8% increase in global systemwide sales [12][13] - Cisco's second-quarter adjusted earnings per share beat estimates, with total revenue also surpassing expectations at $5.3 billion [20][22] Notable Gainers - GENERAC Holdings saw a significant gain of about 18% after forecasting a 2026 EBITDA margin above analyst consensus, despite missing Q4 net sales estimates [15][16] - Smurfit Westrock gained nearly 10% after reporting adjusted EBITDA that beat analyst estimates, with the stock up about 30% year-to-date [18] - Micron Technology rose almost 10% as the company assured investors of high-volume production of its new memory chips [19] Notable Decliners - Mattel's shares plummeted by 25%, marking the largest drop since 1999, after holiday results fell short of analyst expectations [24] - Robinhood's stock fell by 8.8% due to lower fourth-quarter profits linked to declines in cryptocurrency values [25] - Lyft's shares dropped by 17% following a disappointing forecast and missed Wall Street estimates [29]