Generac Lands $8 Billion Amazon Deal, Boosts Data Center Growth
Generac Holdings ( ticker not provided) has secured an $8 billion supply deal with Amazon, expanding its data center partnership. The agreement marks a significant commitment from the tech giant, which is accelerating its data center expansion efforts.
According to Stifel, the company reiterated a 'Buy' rating and set a price target of $285 for Generac Holdings shares following the announcement. This aligns with Amazon's interests in expanding its cloud infrastructure.
The initial deliveries under this agreement are expected to total around $2.4 billion across 2027 and 2028, representing a substantial increase in Generac's backlog. The company had previously indicated that it would receive a second award of at least $700 million from a hyperscaler customer, but this new deal significantly expands its order book.
As part of the agreement, Amazon was granted warrants to purchase up to 1,693,745 shares of Generac common stock at an exercise price of $200.9266 per share. The vesting of these warrants is tied to cash payments made by Amazon to Generac under the supply deal.