Did Generac’s New Sussex Megawatt Plant Just Shift Generac Holdings' (GNRC) Investment Narrative?

• Generac Holdings Inc. recently acquired a new manufacturing facility in Sussex, Wisconsin, expanding its Commercial & Industrial production capacity for large‑megawatt backup generators serving data centers and other critical infrastructure, with the plant expected to open in the fourth quarter of 2026 and add over 100 manufacturing jobs.
• This move highlights Generac’s push to address a growing order backlog and deepen its presence in high-demand markets such as data centers, healthcare, and heavy industry that require robust backup power solutions.
• We’ll now examine how this added capacity for large‑megawatt generators could influence Generac’s investment narrative and long‑term growth profile.

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Generac Holdings Investment Narrative Recap

To own Generac, you need to believe backup power demand from data centers and critical infrastructure can offset volatility in residential and clean energy. The Sussex facility expansion directly supports the key near term catalyst of scaling large megawatt generator sales, while also amplifying execution risk if data center demand or project timing disappoints.

This expansion comes shortly after Generac reported a doubled order backlog for large megawatt generators and highlighted strong interest from data center customers. The Sussex plant, alongside Beaver Dam and Oshkosh, is central to translating that backlog into Commercial & Industrial revenue and testing whether the data center opportunity can meaningfully rebalance the business away from outage driven residential cycles.

But while capacity is ramping up, investors should also be aware that if data center growth or hyperscaler demand slows, Generac could be left with...

Read the full narrative on Generac Holdings (it's free!)

Generac Holdings' narrative projects $5.5 billion revenue and $593.3 million earnings by 2028. This requires 7.4% yearly revenue growth and about a $232.8 million earnings increase from $360.5 million today.

Uncover how Generac Holdings' forecasts yield a $209.59 fair value, a 49% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community value Generac between US$80 and about US$210, showing a wide spread of expectations. Against this backdrop, the company’s heavy investment in data center focused capacity raises important questions about how execution and demand will shape future returns.

Explore 8 other fair value estimates on Generac Holdings - why the stock might be worth as much as 49% more than the current price!

Build Your Own Generac Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Generac Holdings research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Generac Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Generac Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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