Generac Holdings Inc. disclosed a long-term supply agreement with Amazon for backup power generators for data centers, alongside issuing warrants to Amazon. This significant deal, with initial deliveries valued at $2.4 billion, is a major positive catalyst for Generac, driving its stock up substantially in premarket trading.
Generac Holdings Inc. announced a substantial long-term supply agreement with Amazon.com, Inc. to provide backup power generators for Amazon's data centers. This deal is a significant win for Generac, securing a major customer and substantial revenue, with initial deliveries projected at $2.4 billion in 2027 and 2028. In conjunction, Generac issued warrants to Amazon to purchase up to 1.69 million shares, signaling a deeper strategic partnership. The market reacted overwhelmingly positive, with GNRC stock soaring over 33% in premarket trading, reflecting the long-term revenue visibility and validation from a tech giant like Amazon. This fundamentally changes Generac's growth outlook and investor sentiment, offering a strong buying opportunity for traders looking for growth in the power generation sector.