Why Generac Holdings (GNRC) Is Down 14.8% After Soft Q3 2025 And Weaker Residential Generator Demand

• In the past year, Generac Holdings reported weaker-than-expected Q3 2025 results as a softer power-outage environment weighed on residential generator sales and profitability.
• At the same time, slowing revenue growth, rising costs, and eroding returns on capital have raised fresh questions about the durability of its core profit engines, even as some analysts retain a moderately constructive stance.
• With weaker-than-expected quarterly performance and declining operating metrics now in focus, we’ll examine how this shifts Generac’s investment narrative.

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Generac Holdings Investment Narrative Recap

To own Generac today, you have to believe its core role in backup power, from homes to data centers, can offset weaker residential generator demand and margin pressure. The Q3 2025 miss directly undercuts the near term catalyst of higher residential adoption while reinforcing the key risk that outage driven sales are inherently volatile, but it does not yet erase the longer term case built around diversified power solutions.

The recent Q3 2025 results, with lower sales and a sharp drop in net income year on year, are the clearest near term datapoint for that thesis. They tie directly to the risk that home standby and portable generator demand can flatten once outage activity normalizes, which matters even more as Generac tries to lean on newer growth drivers like data center and energy management offerings.

Yet, against that backdrop, investors should be aware that reliance on unpredictable outage patterns could...

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.

Uncover how Generac Holdings' forecasts yield a $209.59 fair value, a 53% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community value Generac between US$80 and about US$209.59, showing how far apart views on upside and downside can be. Set this against the recent Q3 earnings shortfall, which highlights how sensitive residential generator demand is to outage trends, and you can see why it helps to compare several different assessments of the company’s prospects.

Explore 8 other fair value estimates on Generac Holdings - why the stock might be worth 42% less 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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