Generac Scores $8 Billion Deal with Amazon, Bolsters Market Position

Generac Holdings () has secured a significant supply agreement with Amazon, valued at up to $8 billion. The partnership involves the delivery of backup power generators for Amazon's data centers, with initial deliveries expected to total roughly $2.4 billion across 2027 and 2028. This agreement expands Generac's existing backlog by approximately $4 billion.

Stifel reiterated a Buy rating on Generac stock, citing the company's market position and rising demand from data center customers. The firm also noted that Amazon warrants issued to the e-commerce giant align with its interests and validate Generac's value proposition.

Rising demand from data centers is expected to lead to additional orders for Generac. According to InvestingPro analysis, Amazon currently trades below its Fair Value, suggesting room for further expansion.