Generac Surges Over 34% Pre-Market After Signing Up to $8 Billion Generator Deal With Amazon, Initial Delivery at $2.4 Billion

TradingKey - In US pre-market trading on September 17 ET, Generac (GNRC) rose over 34%. The company disclosed on September 16 that it signed a long-term supply agreement with Amazon (AMZN) to provide backup generators for its data centers.

[Source: TradingView]

Generac expects initial-phase deliveries from 2027 to 2028 to total approximately $2.4 billion. The agreement also sets up 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.

A wholly owned subsidiary of Amazon may purchase up to 1.6937 million shares of Generac stock at approximately $200.93 per share through September 16, 2033. Warrants corresponding to approximately 308,000 shares will vest immediately, while the remainder will vest in tranches based on the progress of procurement payments.

Generac is expanding its production and system assembly capacity for high-power backup generators. In the second quarter of 2026, the company's external net sales for its Commercial & Industrial segment increased by approximately 29% year-over-year to $556 million.

As of July 29, Generac's data center product backlog was approximately $1.6 billion, excluding agreed procurement volumes from a second hyperscale data center customer. Latest regulatory filings confirm that this customer is Amazon.

If the $2.4 billion of first-phase equipment is delivered as scheduled, it will be recognized in Generac's data center-related revenue in 2027 and 2028. Moving forward, the market will focus on delivery progress and whether Amazon's cumulative procurement payments continue to advance toward the $8 billion cap.

What Kind of Company Is Generac?

Founded in 1959, Generac is a US manufacturer of backup power and energy technology equipment, primarily producing residential and commercial standby generators and providing energy storage, energy management, and data center power supply equipment.

Data center demand is an important growth driver for its commercial and industrial business. In the second quarter of 2026, the company reported revenue of $1.17 billion, up 11% year-over-year, with net income of $143 million. External net sales for the commercial and industrial business were $556 million, while external net sales for the residential business were $617 million.