Generac Surges on $8 Billion Deal with Amazon

Generac's stock surged over 34% in pre-market trading on September 17 ET, following its announcement of a long-term supply agreement with Amazon to provide backup generators for its data centers.

The deal is expected to generate approximately $2.4 billion in initial-phase deliveries from 2027 to 2028, with Generac expanding its production and system assembly capacity for high-power backup generators.

The agreement also includes a warrant arrangement tied to procurement payments: when cumulative generator procurement payments from Amazon and its affiliates reach $8 billion, the relevant warrants will fully vest.