Town of Genesee-based generator manufacturer
Generac continues to see increasing sales as demand for the company’s data center-related products keeps growing.
On Wednesday, the company reported a second quarter sales increase of 6.3%, to $1.06 billion, versus the prior year. It's second quarter net income was $74 million, up 25.2% from the same period a year ago.
The sales increase was driven primarily by growing commercial and industrial (C&I) product sales to Generac’s industrial distributors, along with an increase in shipments of residential home energy products.
"Additionally, we experienced a strong initial reception to our formal entrance into the data center market during the second quarter as we developed a significant global pipeline of opportunities and began building backlog for our new high-output diesel generator product offering," said
Aaron Jagdfeld, president and CEO of Generac.
The company has built a global backlog of $150 million worth of data center products, specifically, its new large megawatt generators. Global shipments of these products are expected to begin in the second half of this year.
“Highly competitive lead times and the strength of our reputation in the power generation industry contributed to the strong initial response to our formal entrance into this market during the second quarter,” said Jagdfeld.
Generac anticipates fulfilling a majority of its backlog next year. Anecdotally, the company has heard from data center operators and builders that there is a backlog of 5,000 generators needed in 2026 to support data center construction.
“The structural deficit that is there will allow for a pretty rapid entry for us into the market,” said Jagdfeld. “I am shocked at the over $150 million that we have already booked in hard orders. And the size of the pipeline that we are cultivating in this market.”
Right now, Generac is focused on ramping up production capacity of its largest diesel generators. The company is doing so by expanding its production capacity for its mid-range products, which in turn creates additional capacity opportunities for large megawatt generators.
Generac’s
new Beaver Dam manufacturing facility, which was an investment of approximately $65 million, is a good example of this concept, Jagdfeld said.
By consolidating the production of units previously outsourced to Mexico—including units ranging from 48KW to 1MW—Beaver Dam unlocks growth at other Generac facilities including its plant in Oshkosh, which can now focus on larger megawatt units to serve the growing data center market.
“I’ve never seen something that can move the needle like this,” said Jagdfeld, adding that in a few years Generac’s C&I products could become the largest component of the business.
Also on Wednesday, Generac updated its overall net sales growth guidance for 2025 to be 2% to 5% over the prior year as compared to the previous guidance range of 0% to 7%.
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