Generac Stock Soars on $2.4B Amazon Deal: Data-Center Backlog Accelerates

Generac's stock surged after announcing a long-term agreement to provide backup generators to Amazon's data centers, valued at approximately $2.4 billion over 2027 and 2028.

The deal is seen as a significant step-change for the data-center story, with Generac's previous expectations of around $450 million in 2026 data center business now dwarfed by this new agreement.

Amazon has the right to purchase up to 1.7 million shares of Generac at $200.93 per share, with 308,000 vesting immediately and the remainder vesting based on aggregate generator payments from Amazon and its affiliates.

The deal also raises concerns about competitive and customer concentration risks, as well as margin and return on investment (ROI) targets for Generac.