Amazon Secures Generac Backup Generators Deal Worth $2.4 Billion

Generac Holdings has secured a significant long-term supply agreement with Amazon worth $2.4 billion for backup generators to be delivered between 2027 and 2028.

The deal positions Amazon as Generac's second hyperscaler customer, after the company already signed a similar agreement with a major player in the industry.

Under the agreement, Amazon will receive an equity warrant that can deliver approximately 1.69 million Generac shares, representing about 2.6% of fully diluted shares.

The warrant economics are tied to Amazon's cumulative purchasing activity, with 307,954 shares vesting immediately upon signing and the remainder vesting incrementally as Amazon makes qualifying payments for industrial generators under the commercial agreements.