Generac Stock Soars on Amazon Data Centre Deal
Generac Holdings stock surged by over 40% in after-hours trading on Wednesday following an announcement of a major long-term deal with Amazon. The agreement will see Generac supply backup generators to Amazon's data centres, with initial deliveries valued at around $2.4 billion for the years 2027 and 2028.
The potential scope of the contract is significantly larger, with up to $8 billion in generator purchases possible over time. This expansion represents a major growth opportunity for Generac as the company continues to expand its commercial and industrial business.
In addition to the supply agreement, Amazon subsidiary was issued a warrant to purchase up to 1.69 million GNRC shares at $200.9266 per share. A portion of these shares, approximately 307,954, vested immediately, while the remaining shares are tied to future generator purchases.