Generac Lands $8 Billion Deal with Amazon on Backup Generators

Generac Holdings has signed a long-term agreement with Amazon to supply backup generators for its data centers. The deal is worth $2.4 billion in initial deliveries by 2028, with potential total purchases reaching as much as $8 billion.

The partnership will support Amazon's expanding AI infrastructure needs and boost Generac's capacity and financial outlook. Amazon received warrants for up to 1.69 million Generac shares at $200.93 per share, with more than 300,000 shares vesting immediately and the remaining shares vesting in tranches tied to Amazon's purchases through 2033.

Generac has been enjoying a strong year, with its stock up 52% and net sales jumping 11% to $1.17 billion in the second quarter, driven by commercial and industrial sales growth of 29%. The company maintains its full-year guidance for sales growth in the mid-teens percentage range but raised its net income margin to a range of 9% to 10%.