Generac’s stock rises 7.4% on investor day outlook (NYSE:GNRC)
The company forecasts that it will see a compound annual growth rate of 12% to 14% from 2023 to 2026, when revenue will approach $5.85 billion.
Generac (GNRC) foresees its served addressable market growing from $39 billion last year to $66 billion by 2026 as its acquisitions help to diversify revenue among a variety of energy-solutions technologies.
The company has touted the growing need for backup generators, batteries and solar equipment as the U.S. power grid struggles to keep up with growing demand for electricity while weaning itself off fossil fuels.
Generac (GNRC) has faced difficulties with finding enough contractors and electricians to install backup generators in some regions, making it harder to clear dealer inventories. At least one analyst said the company may face greater competition from newer electrical vehicles equipped to supply backup power.