Generac Stocks Soar on $2.4 Billion Amazon Supply Deal

Generac Holdings Inc., trading under the ticker GNRC, saw its stock price surge 33.70% in premarket trading after announcing a long-term supply agreement with Amazon.com Inc., AMZN.

The deal involves Amazon purchasing generators from Generac for its data centers, with initial deliveries expected to total $2.4 billion in 2027 and 2028.

In connection with the agreement, an Amazon subsidiary was issued warrants for up to 1,693,745 shares of Generac at a price of $200.9266 per share.

The warrants vest in tranches as Amazon pays Generac for generators, with a total value capped at $8 billion in aggregate gross payments. The deal extends until September 2033 and includes anti-dilution adjustments and registration rights.

Market analysts estimate the full package to be worth around $340 million, accounting for approximately 3% of shares outstanding against a market capitalization of $10.3 billion.