Amazon Deal Pumps Up Generac Holdings' Market Position

Generac Holdings (no ticker provided) has secured a major supply agreement with Amazon for backup power generators. The partnership is valued at up to $8 billion, with initial deliveries expected to total around $2.4 billion across 2027 and 2028.

This deal significantly expands Generac's data backlog, which stood at $1.6 billion in the second quarter of 2026. Stifel reiterates its Buy rating on Generac stock, with a price target of $285 per share.

The supply agreement includes Amazon warrants to acquire up to 1,693,745 Generac common shares at an exercise price of $200.9266 per share, tied to cash payments. This aligns Amazon and Generac's interests, validating Generac's market position.