Core Insights - Generac delivered a strong quarterly performance, exceeding analyst expectations and raising its full-year guidance, which has positively impacted its stock price [1][2][4] Financial Performance - In Q2, Generac's revenue increased by 6.2%, with residential growth at 7% and commercial and industrial growth at 5% [2] - Adjusted EBITDA margins improved from 16.5% to 17.7%, while adjusted non-GAAP earnings per share rose by 22.2% to $1.65, surpassing expectations [2] - The company has tightened its full-year revenue outlook to a range of 2% to 5%, up from the previous 0% to 7% range, and adjusted EBITDA margins are now projected to be between 18% and 19% [3] Market Context - There is growing consumer concern regarding electricity scarcity, which may be driving investments in on-premises generators [4] - The rise of artificial intelligence data centers is contributing to potential strains on the electricity grid, further influencing demand for Generac's products [4] Valuation and Investment Perspective - Following the recent stock surge, Generac trades at approximately 24 times this year's earnings estimates and 21 times next year's estimates, which is reasonable for a high-quality market leader [6] - Generac is considered a growth at a reasonable price (GARP) stock, with potential for increased sales during electricity outages caused by disasters [7]