GNRC

A month has gone by since the last earnings report for Generac Holdings (GNRC). Shares have added about 2.8% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Generac Holdings due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Generac Holdings Inc. before we dive into how investors and analysts have reacted as of late. Generac reported second-quarter 2026 adjusted earnings per share (EPS) of $2.91, which beat the Zacks Consensus Estimate of $1.95. The company had registered an adjusted EPS of $1.65 in the prior-year quarter.Net sales were $1.173 billion, up 11% from $1.06 billion in the prior-year quarter. The figure missed the consensus estimate by 0.4%. Strength in the Commercial & Industrial (“C&I”) segment, particularly the data center market, remained the key catalyst, along with a $71 million pre-tax benefit from tariff refunds. Generac still expects full-year 2026 net sales growth in the mid-to-high teens, including an approximately 2% favorable contribution from foreign currency, acquisitions and divestitures. C&I sales are projected to grow in the low-30% range, while Residential sales are forecasted to increase in the high-single-digit range.However, the net income margin before noncontrolling interests is now forecasted at 9-10%, above the previous 8-9% range. Adjusted EBITDA margin is now expected at 20-21%, up from the prior range of 18.5-19.5%. The tariff refund recorded in the second quarter should add about 1.5% to the full-year margin. C&I revenues totaled $556.5 million, up 29% year over year, while the data center backlog reached about $1.6 billion. This included a 6% net favorable impact from the combination of acquisitions, divestitures and foreign currency. Core growth came from the data center market, while higher rental and telecom shipments more than offset weaker domestic industrial distributor shipments.Generac also highlighted a global supply agreement with a hyperscale data center client that it signed during the quarter and added that, with the recent finalization of product-specific terms, the commitment is nearly $700 million of volume for 2027. It has also secured a global supply agreement with a second hyperscale customer and is currently holding negotiations for final product-specific terms for 2027 and 2028 volumes. Notably, the data center backlog excludes committed volumes from the second hyperscale customer.During the quarter, Generac completed the Enercon acquisition. It purchased an additional facility in Belvidere, IL, to support large-megawatt generator packaging.Revenues from Residential were down 2% year over year to $621.3 million. Lower energy storage system and portable generator shipments drove the decline, largely offset by higher home standby generator sales. Gross profit increased to $521.8 million from $416.7 million, and gross margin widened to 44.5% from 39.3%. Tariff refunds added roughly 6% to gross margin. Favorable pricing partly offset unfavorable sales mix and higher input costs.Operating expenses increased 2% to $311.4 million, reflecting investments to support C&I growth and higher intangible amortization, partly offset by lower legal expenses. Operating income advanced 88.2% to $210.4 million. Adjusted EBITDA reached $290.7 million, or 24.8% of sales, compared with $187.6 million, or 17.7%, a year earlier. Net cash provided by operating activities increased to $121.2 million from $72.2 million in the year-ago quarter. Free cash flow rose to $62.9 million from $14.5 million in the year-ago quarter, supported by higher operating earnings, particularly cash receipts from tariff refunds.At June 30, 2026, cash and cash equivalents totaled $264.9 million, down from $265.5 million as of March 31. Long-term borrowings and finance lease obligations were $1.25 billion. In the past month, investors have witnessed a downward trend in estimates revision. At this time, Generac Holdings has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Generac Holdings has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Nordson Corporation NDSN reported third-quarter fiscal 2026 adjusted earnings of $3.25 per share, up 19.0% year over year and 5.2% above the Zacks Consensus Estimate of $3.09. Revenues of $817.67 million increased 10.3% and beat the consensus estimate of $779 million by 5.0%.Broad organic growth across all three segments powered the quarter, with Advanced Technology Solutions leading the expansion. Order momentum also remained strong, with backlog up 35% from the prior-year level. Organic sales increased 11.7% year over year. The net impact of acquisitions and divestitures reduced growth by 1.2%, while currency translation was a 0.2% headwind. The company reported record third-quarter sales in each of its three business segments.Asia Pacific revenues rose 22.2% to $293.76 million, marking the strongest regional increase. Americas sales increased 5.4% to $331.47 million, while Europe revenues advanced 3.1% to $192.43 million. The regional mix showed that growth extended beyond a single market. Industrial Precision Solutions revenues rose 4.7% to $367.25 million. Organic sales increased 3.3%, driven by strength in packaging, industrial coatings, polymer processing and nonwovens product lines. Acquisitions added 0.9%, while currency contributed 0.5%. Segment EBITDA was $129.90 million, with margin at 35%. Medical and Fluid Solutions revenues increased 5.0% to $230.54 million, despite a 5.6% divestiture drag. Organic sales climbed 10.6% on growth in engineered fluid solutions and medical product lines. Advanced Technology Solutions revenues surged 28.4% to $219.88 million, supported by 30.9% organic growth in electronics dispense and test and inspection applications. Advanced Technology Solutions also delivered record EBITDA of $65.70 million, up 58.1%, with margin improving to 30% from 24%. Medical and Fluid Solutions EBITDA rose to a record $88.29 million, while its margin remained at 38%. Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote Cost of sales increased 8.6% year over year to $363.94 million. Gross profit rose 11.6% to $453.73 million, while gross margin expanded 70 basis points to 55.5%. Selling and administrative expenses increased 11.7% to $230.64 million.Operating profit jumped 18.8% to $223.09 million. Adjusted operating profit was $225.94 million, up 12.6%. EBITDA increased 10.1% to $262.48 million, while the EBITDA margin held at 32%. Net income rose to $152.85 million from $125.78 million. GAAP earnings were $2.73 per diluted share, up from $2.22 a year earlier. Net interest expense declined to $20.36 million from $25.70 million. For the first nine months of fiscal 2026, cash from operating activities increased 10.5% to $570.47 million. Free cash flow rose 13.5% to $530.16 million. Third-quarter free cash flow was $236.75 million, representing a 144% conversion rate.Nordson exited the quarter with cash and cash equivalents of $113.43 million, compared with $108.44 million at the end of fiscal 2025. Long-term debt declined to $1.53 billion from $1.68 billion, while short-term debt and current maturities fell to $202 million from $315 million. During the first nine months, NDSN paid $137.38 million in dividends, up 3.3% year over year. Treasury-share purchases totaled $158.79 million, down 27.2% from the prior-year period. Capital spending totaled $40.31 million, compared with $49.00 million a year ago.The company repaid a net $258.03 million of debt during the period. Management also highlighted $1.1 billion of near-term capacity for strategic acquisitions, while net debt leverage improved to 1.7 times trailing 12-month EBITDA from 2.1 times at the end of fiscal 2025. Nordson now expects fiscal 2026 sales of $3,035-$3,075 million, up from the prior $2,930-$3,010 million range. Adjusted earnings are projected at $11.80-$12.00 per share, compared with the previous $11.30-$11.80 range. The revised outlook calls for sales growth of 9-10% and adjusted earnings growth of 15-17%. Management expects the strong sales pace from the first nine months to continue into the fourth quarter, supported by order-entry momentum and strength in key end markets. Foreign currency is expected to have a neutral impact on fourth-quarter sales if rates remain at current levels. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordson Corporation (NDSN) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Constellium SE (CSTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Generac Holdings has delivered an 84.8% gain over the past three years, yet the valuation picture is mixed, with the intrinsic value estimate from a Discounted Cash Flow (DCF) model pointing to upside while market multiples suggest the stock is not cheap. Generac Holdings shares are up 84.8% over three years, which puts extra focus on whether the current price already reflects investors' expectations. The long term case can benefit if the company converts revenue into steady cash flows and maintains balance sheet flexibility. However, any pressure on profitability or larger than expected capital needs may weigh on what investors are willing to pay. Generac Holdings scores 2 out of 6 on value checks, which leans more towards expensive than clear bargain even though the DCF view suggests the shares trade at a 12.2% discount to intrinsic value and earnings based multiples screen as overvalued. The issue now is whether Generac Holdings' current share price of US$210.81 offers enough margin of safety given these conflicting valuation signals. Find out why Generac Holdings' 11.2% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) approach estimates what Generac Holdings is worth today based on the cash it is expected to generate for shareholders. For the latest twelve months, Generac Holdings produced around $386.3 million in free cash flow, and the model assumes these cash flows keep growing from this base rather than shrinking. On these projections, the DCF points to an intrinsic value of about $240 per share, compared with the current share price of $210.81. That implies the stock trades at a 12.2% discount to the model’s estimate of fair value, even though the growth assumptions increase meaningfully from the recent cash flow level. Taken together, the DCF view suggests Generac Holdings stock appears undervalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Generac Holdings is undervalued by 12.2%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Generac Holdings. The P/E ratio suits Generac Holdings because earnings remain a key yardstick for how the market prices its ongoing profitability. On this measure, Generac Holdings trades at about 48.2x earnings, compared with an Electrical industry average near 35.4x and a peer group average of 37.3x. That places the stock on a visibly richer multiple than many companies in its space. The fair P/E ratio, which blends the company’s profile, sector, size and risk into a single benchmark, is estimated at about 39.5x. The current 48.2x reading sits well above that level, which points to investors already paying a premium relative to what this framework flags as a more balanced earnings multiple. On earnings, Generac Holdings stock currently screens as overvalued compared with both tailored and simple P/E benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up the Generac Holdings story from this valuation puzzle and set out what future growth, margins and earnings would need to look like for the stock to trade materially above or below today's price. Instead of relying on a single multiple or model outcome, each narrative lays out the assumptions behind its view of fair value so you can compare those expectations with Generac Holdings' actual results over time on the Community page. One of the top community narratives on Generac Holdings: 26% undervalued Read one of the top narratives on Generac Holdings Do you think there's more to the story for Generac Holdings? Head over to our Community to see what others are saying! Generac Holdings presents a split picture. The Discounted Cash Flow (DCF) intrinsic value estimate points to some upside, while the current P/E multiple suggests the stock is already priced at a premium to peers and tailored benchmarks. Broader valuation checks are weak, so the DCF signal on its own is not a simple green light. The key issue for investors is whether Generac can deliver the cash flow profile implied in the intrinsic value model without requiring heavier capital or sacrificing margins, which would challenge the current valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GNRC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Stratasys SSYS reported second-quarter 2026 non-GAAP earnings of 3 cents per share, flat year over year. The figure beat the Zacks Consensus Estimate by 200%. Revenues declined 0.4% year over year but grew 3.7% sequentially to $137.61 million. However, it missed the consensus mark by 1.7%. Record consumables revenues supported results, while weaker system sales weighed on the top line. Aerospace and defense revenues increased 17% year over year, reflecting growing adoption of Stratasys’ additive manufacturing platforms for production applications. Product revenues declined 2.2% year over year to $92.7 million. Within products, system revenues fell 13.7% to $26.4 million, reflecting continued variability as the company shifts toward larger manufacturing-oriented deals. Consumables revenues increased 3.3% to a record $66.3 million, driven by manufacturing materials. Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote Services revenues rose 3.7% year over year to $44.9 million. Customer support revenues decreased 1% to $29.9 million, while Stratasys Direct recorded 12.1% year-over-year growth. Non-GAAP gross margin contracted 50 basis points year over year to 47.2% from 47.7%. The strong Israeli shekel pressured profitability, partially offsetting the benefit from higher-margin consumables. The margin nevertheless improved from 46.3% in the first quarter.Non-GAAP operating expenses were $64.8 million, or 47.1% of revenues, compared with $64.7 million, or 46.9%, a year earlier. Adjusted EBITDA declined to $5.3 million from $6.1 million. Management said EBITDA would have been $8.2 million excluding the $2.9 million adverse currency impact. Non-GAAP operating income declined 90.9% year over year to $0.1 million from $1.1 million in the year-ago quarter. Aerospace and defense, Stratasys' largest vertical, grew 17% year over year. Management highlighted the expansion of U.S. Air Force adoption of F900 systems for sustainment and the production of flightworthy parts, with orders increasing across larger, ongoing programs.Stratasys also expanded its relationship with Quickparts through an agreement to purchase 12 Neo800+ systems, in addition to six existing units. The company was also awarded a two-year, $7.8 million America Makes program to advance in-situ monitoring capabilities for its F900 and F3300 platforms. Automotive activity included FANUC's adoption of Stratasys industrial solutions and an agreement with FAW Group to purchase 12 F900 systems by year-end. Two of those systems were shipped during the second quarter. FAW already operates five F900 systems and eight other Stratasys systems.The pending Markforged acquisition is expected to broaden Stratasys' production offering with continuous carbon fiber technology, materials and software. The $42.5 million all-cash transaction involves a business that generated roughly $70 million in 2025 revenues. Stratasys expects the deal to close by the end of 2026 and contribute positively to EBITDA within the first year. Stratasys ended June 30, 2026, with $212.5 million in cash, cash equivalents and short-term deposits, down from $237.8 million at the end of the first quarter. The company remained debt-free, providing financial flexibility for technology development and inorganic growth initiatives.Operating activities used $18.7 million of cash during the quarter compared with $1.1 million used a year earlier. Management attributed the elevated cash usage mainly to non-routine items, including legal expenses related to protecting intellectual property. Stratasys reaffirmed its 2026 revenue outlook of $565-$575 million and continues to expect sequential revenue growth through the year. Non-GAAP gross margin is projected to be in the range of 46.7-47.1%, while non-GAAP operating margin is expected to be between 0.7% and 1.5%.The company maintained its non-GAAP earnings guidance of 9-14 cents per share and adjusted EBITDA forecast of $25-$30 million. Capital expenditures are projected to be in the range of $20-$25 million. However, Stratasys no longer expects positive operating cash flow for the full year following first-half cash usage, although it expects operating cash flow to turn positive in the second half of 2026. Currently, Stratasys carries a Zacks Rank #2 (Buy). Caterpillar CAT, Generac Holdings GNRC, and Schneider Electric SBGSY are stocks worth considering in the broader Zacks Industrial Products sector. While Caterpillar and Generac Holdings sport a Zacks Rank #1 (Strong Buy), Schneider Electric currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. The long-term earnings growth rates for Caterpillar, Generac Holdings, and Schneider Electric are 21.07%, 12%, and 17.18%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stratasys, Ltd. (SSYS) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Schneider Electric SE (SBGSY) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Trimble TRMB reported second-quarter 2026 non-GAAP earnings of 86 cents per share, beating the Zacks Consensus Estimate by 7.5%. Earnings rose 21.1% year over year. Revenues of $972 million increased 11% year over year and up 10% on an organic basis. The company also surpassed the Zacks Consensus Estimate by 2.2%. The quarter benefited from organic execution in AECO and Field Systems. Annualized recurring revenue (ARR) reached a record $2.51 billion, up 14% year over year and 12% organically. Subscription and services revenues were $640.6 million, up 9.9% year over year, while product revenues advanced 13.2% to $331.4 million. Subscription and services accounted for 65.9% of total revenues, keeping recurring streams central to the business mix.Management said recurring revenue growth supported stronger gross and operating profitability. The Connect & Scale strategy remains focused on linking data and workflows across Trimble’s software and hardware ecosystem. Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote AECO revenues were $388.5 million, with organic growth of 9%. Segment ARR reached a record $1.57 billion and increased 14% organically. Trimble Construction One bundles, cross-sell activity and the Document Crunch acquisition supported bookings momentum.The segment's operating income margin was 30.6%, up 20 basis points year over year. Management said AECO remains on track for an operating margin of about 35% in 2026, while new AI tools are being deployed across estimating, job costing, and contract-risk workflows. Field Systems generated $442.5 million in revenues, with 12% organic growth. ARR was $399 million, also up 12% organically. Demand was strongest in Civil Construction and Geospatial, led by data centers, utilities, and energy infrastructure.Tariff refunds reduced revenues by $14 million, creating a three-percentage-point drag on growth, but had no impact on operating income. The segment's operating margin expanded 210 basis points to 32.9%, helped by recurring revenue growth and scale. Transportation & Logistics revenues were $141 million, up 5% organically, while ARR increased 7% to $533 million. Transporeon delivered mid-teens growth, and management cited healthy bookings despite a still-constrained freight market.Operating margin improved 240 basis points to 24%. Trimble also began a strategic review of the T&L business after receiving inbound interest from multiple parties, with management emphasizing that there is no predetermined outcome or timeline. Non-GAAP gross margin increased 120 basis points year over year to 71.8%.Adjusted EBITDA reached $278 million, with margin expanding 120 basis points to 28.6%. GAAP results included a $562 million goodwill impairment related to T&L, which drove a GAAP net loss of $471.7 million.Non-GAAP operating income was $260.6 million, translating to a 26.8% margin, up 140 basis points. TRMB ended the quarter with $214.4 million in cash and equivalents and total debt of $1.459 billion.Through the first two quarters of 2026, operating cash flow was $515 million. Free cash flow totaled $501.8 million for the first half. The board authorized a new $1 billion share repurchase program, replacing the prior authorization, while share repurchases totaled $329 million through the first two quarters. Trimble raised its 2026 revenue outlook in the range of $3.90-$3.95 billion and non-GAAP earnings of $3.60-$3.70 per share. Organic ARR growth is expected to be between 12% and 14%, with non-GAAP operating margin projected to be 28.2%-28.6% and adjusted EBITDA margin to be 29.7%-30.1%.For the third quarter, TRMB expects revenues of $953-$978 million and non-GAAP earnings of 83-88 cents per share. Organic ARR growth is projected to be in the range of 11%-13%. Field Systems ARR growth is expected to face a 400-500 basis-point headwind for several quarters from replacing a low-margin white-label product with an internally developed solution. Currently, Trimble carries a Zacks Rank #2 (Buy). Caterpillar CAT, Generac Holdings GNRC, and Schneider Electric SBGSY are stocks worth considering in the broader Zacks Industrial Products sector. While Caterpillar and Generac Holdings sport a Zacks Rank #1 (Strong Buy), Schneider Electric currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. The long-term earnings growth rates for Caterpillar, Generac Holdings, and Schneider Electric are 21.07%, 12%, and 17.18%, respectively. Shares of Caterpillar, Generac Holdings, and Schneider Electric have appreciated 49.3%, 62.7%, and 30.2%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Trimble Inc. (TRMB) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Schneider Electric SE (SBGSY) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Helios Technologies, Inc. HLIO reported strong second-quarter 2026 performance, driven by broad-based sales growth and improved profitability. Adjusted earnings were 88 cents per share, up 49% year over year, and beat the Zacks Consensus Estimate of 80 cents by 10%. Revenues came in at $231.9 million, up 9% year over year, and topped the consensus mark of $230.4 million by 0.7%. On a non-GAAP basis, Helios also emphasized that sales grew 16% on a pro forma basis, reflecting the divestiture of Custom Fluidpower (“CFP”) and the impact of foreign exchange. Reported sales were weighted to the Americas, which accounted for 52% of total revenues, while EMEA and APAC represented 26% and 22%, respectively. The top line exceeded expectations as both business segments contributed, with sales growth across the Americas and EMEA and overall APAC revenues also increasing year over year. Electronics segment’s sales increased 19% year over year to $85.5 million, driven by gains across all regions. Americas sales rose 17% to $63 million, EMEA revenues increased 7% to $9.1 million and APAC sales surged 43% to $13.4 million. Segment gross margin improved 530 bps to 34.6%, while operating income rose 90% to $11.2 million. Hydraulics segment’s sales rose 4% to $146.4 million. Americas sales increased 6% to $57.2 million and EMEA revenues advanced 12% to $51.8 million, while APAC sales declined 8% to $37.4 million. On a pro forma basis for the CFP divestiture, APAC Hydraulics sales increased year over year. Segment gross margin increased 160 bps to 34.6%, and operating income rose 16% to $28.9 million. Helios Technologies, Inc price-consensus-eps-surprise-chart | Helios Technologies, Inc Quote Gross profit rose 19%, with the gross margin expanding 280 basis points to 34.6%, supported by higher volume, favorable segment mix, the CFP divestiture and a benefit from IEEPA tariff refunds. Operating income increased 48% to $32.5 million, with operating margin improving 370 basis points (bps) to 14.0%. Adjusted EBITDA margin expanded 260 bps year over year to 21.2%, reflecting gross margin expansion and operating expense leverage, partly offset by research and development investments, employee benefit-related costs and an isolated bad debt expense. Management also highlighted record second-quarter operating cash generation. In the first six months of 2026, Helios generated net cash of $65.8 million from operating activities compared with $56 million in the year-ago period. Capital expenditure totaled $18 million in the same period, up 56.5% year over year. Free cash flow was $47.8 million in the first six months. Exiting the first six months of 2026, the company had long-term non-revolving debt of $226.1 million, down from $256.2 million at the end of 2025. Net debt-to-adjusted EBITDA improved to 1.4x compared with 2.6x in the year ago period, underscoring continued progress on deleveraging. Helios exited the period with cash and cash equivalents of $68 million compared with $73 million at the end of 2025. The company maintained its quarterly dividend at 12 cents per share and paid its 118th consecutive quarterly dividend during the second quarter. Helios also repurchased 149,000 shares for $10.6 million during the first six months of 2026. For 2026, Helios raised its revenue outlook to $880-$900 million from $840-$870 million. The company now projects an adjusted EBITDA margin of 20.2-21.0%, compared with 19.5-21.0% previously, and non-GAAP earnings per share of $3.05-$3.25, up from $2.75-$3.00. For third-quarter 2026, the company issued an outlook calling for revenues of $215-$222 million, adjusted EBITDA margin of 19.8-20.6% and adjusted earnings of 70-77 cents per share. The company currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helios Technologies, Inc (HLIO) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Constellium SE (CSTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 10:00 a.m. ET Director of Corporate Finance and Investor Relations - Kris Rosemann President and Chief Executive Officer - Aaron Jagdfeld Chief Financial Officer - York Ragen Operator: Good day, and thank you for standing by. Welcome to the Second Quarter 2026 Generac Holdings, Inc. Earnings Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kris Rosemann, Director of Corporate Finance and Investor Relations. Please go ahead. Kris Rosemann: Good morning, and welcome to our second quarter 2026 earnings call. I'd like to thank everyone for joining us this morning. With me today is Aaron Jagdfeld, President and Chief Executive Officer; and York Ragen, Chief Financial Officer. We will begin our call today by commenting on forward-looking statements. Certain statements made during this presentation as well as other information provided from time to time by Generac or its employees may contain certain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements. Please see our earnings release or SEC filings for a list of words or expressions that identify such statements and the associated risk factors. In addition, we will make reference to certain non-GAAP measures during today's call. Additional information regarding these measures, including reconciliation to comparable U.S. GAAP measures, is available in our earnings release and SEC filings. I'll now turn the call over to Aaron. Aaron P. Jagdfeld: Thanks, Kris. Good morning, everyone, and thank you for joining us today. Our second quarter results reflect continued momentum in our Commercial & Industrial segment, which drove 11% growth in overall net sales from the prior year. Highlighting the quarter was revenue from products sold to the data center market, which underpinned a 29% increase in C&I segment sales on a year-over-year basis as well as the return of solid growth for sales of our home standby generators during the quarter. Consolidated adjusted EBITDA margins also expanded during the quarter to 24.8%, primarily due to tariff refunds and strong operating leverage. During the quarter, we made significant progress in solidifying our position in the data center market as we recognized more than $100 million of revenue and secured 2 multiyear supply agreements with hyperscale customers. The first agreement, which we announced in early June, now includes -- now includes commitments totaling nearly $700 million for product to be delivered in 2027. In late June, we officially signed our second hyperscale supply agreement, and we are now in the final stages of negotiations with this customer on terms, conditions, volumes and time lines for 2027 and 2028 deliveries. These agreements provide ongoing validation of our status as a top-tier supplier of C&I backup power generators and reaffirm our strong reputation as an engineering-driven organization with a unique focus on backup power, a customer-centric approach and global service and production capabilities. With the addition of the first hyperscale customer, our backlog for products sold to the data center market now stands at $1.6 billion, representing new orders of approximately $1 billion over the last 90 days. Importantly, this backlog does not include expected orders resulting from the second hyperscale supply agreement, which we believe represents significant potential upside and further visibility to future volume growth in the years ahead. In addition to the hyperscale supply agreements we finalized, demand remains robust across a broad range of data center customers with strong order growth from new and existing colocator customers. As our order book continues to build, we now expect to recognize nearly $450 million in data center revenue -- related revenue for the full year 2026. This represents an increase to our previous expectation for revenue from the data center market in 2026 and the higher backlog also provides much greater visibility to accelerating C&I sales growth into 2027. To address this rapidly growing demand for our products, we are continuing to aggressively invest in production and packaging capacity for our large megawatt generators. During the second quarter, we continued to ramp production in our existing domestic and international facilities and sped up our efforts to build out our recently acquired large megawatt production facility in Sussex, Wisconsin. We are now on track to begin production in Sussex by the end of the third quarter, which is ahead of our initial target. Additionally, we continue to invest in vertical integration for large megawatt generators during the quarter as we work to increase our value-added content for these products, thereby allowing us to maintain shorter overall lead times versus the industry and to improve the overall profitability of large megawatt packages. On April 1, we completed the acquisition of Enercon, a leading provider of generator enclosures and specialty packages, and we recently closed on the purchase of a second facility in Belvidere, Illinois, which is expected to be operational in the first quarter of 2027, thereby significantly expanding our packaging and metal fabrication capacity for large megawatt generators. Importantly, we've also identified a number of additional investment opportunities within our existing and planned global footprint that will dramatically expand our capacity for large megawatt generators in the years ahead. As a result, we believe we now have a path over the next 12 months to triple our production capacity from our original year-end 2026 target of $1.25 billion. The overall investments we are making to increase capacity underscore our confidence in the tremendous potential upside we see for large megawatt generators in the next several years. Now looking at our C&I segment results for the quarter in more detail. Second quarter shipments to our domestic industrial distributor channel declined from the prior year, which reflected a strong comparable period in 2025 in which we significantly reduced our lead times for C&I products. Despite lower shipments, orders from our industrial distributors remained strong through the first half of the year, hitting a record high in the second quarter, signaling solid demand across our traditional C&I markets. Additionally, we continue to see robust quoting activity for our large megawatt generators in non-data center applications offered through our independent distributor channel. Sales to our domestic telecom customers grew at a strong rate in the second quarter as our national wireless customers continue to harden their networks. However, full year shipments are now expected to be flat from the prior year, primarily as a result of a reduction in orders from a certain telecom customer as they work through a backlog of their generator installations. Longer term, we expect that demand for this channel will continue to be driven by increasing dependence on wireless communications as well as the continued evolution of telecom and digital infrastructure, including data center adjacent applications. Mobile product shipments to our national and independent rental equipment customers also grew at a strong rate during the second quarter on an organic basis and contributions from the Allmand acquisition exceeded our prior expectations. Allmand continues to outperform on both sales and adjusted EBITDA margin contribution, further validating the strategic rationale and the timing of this acquisition. Looking ahead, we continue to expect strong full year growth in shipments of both Generac and Allmand mobile products as rental customers continue to refresh their fleets to capture structural demand trends tied to the significant pipeline of mega projects such as data centers. Shipments of Commercial & Industrial battery energy storage systems grew in both domestic and international markets during the quarter. Our global backlog for these products has grown meaningfully, and domestic orders for multi-asset solutions have already exceeded full year 2025 levels through the first half of 2026. While still a relatively nascent market for Generac, the recent momentum in demand we are experiencing further reinforces our view that these energy technology solutions represent a meaningful long-term opportunity as a growing number of C&I customers look for multi-asset backup power solutions that can help to address the growing issues resulting from lower power quality and higher power prices. Our international sales increased at a strong rate year-over-year, driven by data center shipments, control solutions and battery energy storage products, partially offset by the June 1 divestiture of our gas engine controls business, along with softer performance in certain regions globally, including the Middle East. We continue to expect solid international growth in 2026 outside of the data center end market, highlighting our diversified geographic footprint and our product breadth. Overall, we are increasing our full year 2026 C&I segment net sales growth guidance as a result of higher expectations for global data center product shipments and the continued strength in mobile products. C&I segment net sales are now expected to grow in the low 30s percent range for 2026 as compared to the mid- to high 20s percentage range previously. The ongoing momentum in our C&I segment in 2026 now puts us on a path to exceed the long-range planning targets that we previously disclosed at our Investor Day earlier this year. Now looking at our second quarter Residential segments in more -- Residential segment results in more detail. Overall Residential segment sales were down 2% in the quarter as compared to the second quarter of 2026 (sic) [ 2025 ], with growth in home standby generator sales mostly offsetting lower shipments in other residential products, including portable generators and energy storage systems. Importantly, residential adjusted EBITDA margins expanded significantly in the quarter, reflecting the benefit from tariff refunds, a higher sales mix from the home standby category, the favorable impact from price/cost dynamics in the quarter and continued operating expense discipline around our residential energy technology solutions portfolio. Home standby generator sales returned to solid growth in the quarter despite outage activity declining from the prior year and coming in below the longer-term baseline level. The softer power outage environment did, however, impact our domestic portable generator shipments in the quarter as they were lower on a year-over-year basis. While outage activity remained below our long-term baseline average during the quarter and declined significantly from the prior year, underlying demand in the home standby category remained resilient as in-home consultations were up on a year-over-year basis, driven by the Midwest region following multiple recent storms in that part of the country. The increase in IHCs also provides further evidence of our well-established demand creation efforts as IHC intensity or the IHCs per outage hour remained strong in the second quarter. Our residential dealer network also expanded again during the quarter and now includes approximately 9,700 dealers, representing an increase of nearly 400 new partners from the prior year. Continuing interest in the home standby category, particularly against the backdrop of multiple quarters of average to below average outage activity, provides us with further confidence in the significant growth opportunity that remains for home standby generators as contractors continue to see value with their involvement in the category. Market adoption of our next-generation home standby product line that we introduced in late 2025 has been very strong, and we have seen excellent traction for our market-leading 28-kilowatt air-cooled generator as the uptake of the high end of our product line has been faster than we had expected, driven by the significantly lower cost of the 28 kW unit when compared to similarly sized liquid cooled units. In addition to growth in our home standby sales in the period, our team at ecobee continued to add to their growing track record of strong execution as they posted another period of profitable top line growth in the second quarter. Ecobee's connected homes count also increased at a mid-teens rate from the prior year, surpassing 5.25 million homes during the quarter, and service attachment rates accelerated as well as consumers look for ways to offset rising energy bills without sacrificing comfort or convenience. As expected, sales of our residential energy storage systems were lower in the quarter as compared to a strong second quarter of 2025 that included the benefit of our DOE program in Puerto Rico, which was completed at the end of 2025. The more challenging policy environment has created broader weakness around the residential solar and storage markets, impacting demand for this part of our residential products portfolio. Although the market for these products has softened significantly here in 2026, we continue to believe that the increasing prices that homeowners pay for electricity will result in a residential solar and storage market that will resume growth over time. As a result, we continue to execute our Generac Home strategy, including the ramp of PWRmicro, our first Generac-branded microinverter product for the residential solar market. We are currently ramping our production capacity and distribution capabilities for PWRmicro and expect growth in these products in the second half of the year. Looking ahead, we now expect our Residential segment sales to increase in the high single-digit range on a year-over-year basis for the full year 2026, a modest reduction from our previous guidance, primarily reflecting a continued soft power outage environment and the impact of affordability concerns amongst certain portions of our customer base. We remain focused on our disciplined approach to operating expense investments in the Residential segment, and we continue to expect significant year-over-year EBITDA margin improvement for this segment in 2026. In closing, our second quarter results and our updated 2026 outlook reflect the tremendous momentum in the C&I segment and the resiliency of our Residential segment. The significant growth in our data center backlog with both hyperscale and non-hyperscale customers provides further confidence in our ability to serve this massive and still rapidly growing market. Additionally, the visibility to our multiyear growth outlook is clearly exceeding our previous expectations, representing a generational growth opportunity that is within the core competencies of our business. Given the mega-trends around AI infrastructure, lower power quality and higher power prices, we believe we are extremely well positioned to success -- for success through continued disciplined execution of our Powering a Smarter World enterprise strategy. With that, I'll turn the call over to York to walk through our second quarter financial results and our updated outlook in more detail. York? York Ragen: Thanks, Aaron. Looking at second quarter 2026 results in more detail. Overall net sales during the quarter increased 11% to $1.17 billion as compared to $1.06 billion in the prior year second quarter. The net effect of acquisitions, divestitures and foreign currency had an approximate 2% favorable impact on revenue growth during the quarter. Commercial & Industrial segment total sales increased approximately 29% to $556 million from $431 million in the prior year quarter, including an approximate 6% net favorable impact from the combination of acquisitions, divestitures and foreign currency. The core total sales growth for the segment was primarily driven by ramping revenue from products sold to the global data center market. In addition, increased shipments to rental and telecom channel customers were more than offset by a decrease in shipments to the domestic industrial distributor channel as we were improving lead times to these customers in the prior year quarter. Residential segment total sales decreased approximately 2% to $621 million as compared to $635 million in the prior year quarter. This slight sales decrease was primarily driven by lower energy storage system shipments in the quarter due to the Department of Energy program in Puerto Rico, which was completed at the end of 2025. In addition, we also saw a decline in portable generator shipments compared to the prior year given the lower power outage environment. Partially offsetting these declines, home standby generator sales returned to solid growth during the quarter, primarily due to increased price realization and slightly higher volumes. As disclosed in our earnings release, our second quarter results included an approximate $71 million pretax impact related to tariff refunds, which is reflected in gross margin, net income, adjusted net income and adjusted EBITDA. Overall, gross profit margin on a consolidated basis was 44.5%, compared to 39.3% in the prior year second quarter. The increase was primarily driven by tariff refunds, which contributed approximately 6% to gross margin growth during the quarter. Additionally, unfavorable sales mix and higher input costs were partially offset by favorable price realization. Overall operating expenses increased $6.4 million or 2% compared to the second quarter of 2025. The increase was primarily driven by increased operating expense investments to support future C&I growth and higher intangible amortization, partially offset by lower legal expenses in the quarter -- in the current year quarter. We continue to expect operating leverage to be an important factor over the long term, helping to drive adjusted EBITDA margin expansion as we remain focused on investments in key growth opportunities while realizing operational efficiencies across the organization. Overall adjusted EBITDA before deducting for noncontrolling interest as defined in our earnings release, was $291 million or 24.8% of net sales in the second quarter as compared to $188 million or 17.7% of net sales in the prior year. The significant increase in adjusted EBITDA margins versus prior year was primarily driven by a 6% impact from tariff refunds. When excluding the impact from tariff refunds, adjusted EBITDA margins increased by approximately 1% from the prior year due to strong operating leverage on higher sales volumes, partially offset by unfavorable sales mix given higher C&I sales. Adjusted EBITDA for the Commercial & Industrial segment before deducting for noncontrolling interest was $81 million or 14.6% of C&I total sales as compared to $53 million or 12.4% of total sales in the prior year. This margin increase was primarily driven by the impact from tariff refunds of approximately 2% as well as the net favorable impact of acquisitions and divestitures and improved operating leverage, offset by an unfavorable sales mix shift and strategic operating expense investments to support future growth. Adjusted EBITDA for the Residential segment was $215 million or 34.7% of total residential sales as compared to $146 million in the prior year or 23.1%. This significant margin increase was primarily driven by tariff refunds, which impacted margins by approximately 9% as well as favorable sales mix and operational efficiencies resulting in lower operating expenses. Now switching back to our overall financial performance for the second quarter of 2026 on a consolidated basis. As disclosed in our earnings release, GAAP net income for the company in the quarter was $143 million as compared to $74 million for the second quarter of 2025. GAAP income taxes during the current year second quarter were $46.7 million or an effective tax rate of 24.6% as compared to $15.4 million or an effective tax rate of 17.2% for the prior year. The increase in effective tax rate was primarily related to a nonrecurring favorable discrete item in the prior year period related to a business disposition that did not repeat in the current year period. Diluted net income per share for the company on a GAAP basis was $2.40 in the second quarter of 2026, compared to $1.25 in the prior year. The current year quarter includes an approximate $0.90 impact from tariff refunds on an after-tax basis. Adjusted net income for the company, as defined in our earnings release, was $174 million in the current year quarter or $2.91 per share. This compares to adjusted net income of $97 million in the prior year or $1.65 per share. Cash flow from operations was $121 million in the current year quarter as compared to $72 million in the prior year second quarter. And free cash flow, as defined in our earnings release, was $63 million as compared to $14 million in the same quarter last year. This strong increase in free cash flow during the quarter was primarily driven by higher operating earnings, cash receipts from tariff refunds and lower cash tax payments in the current year quarter. These items were partially offset by a greater use of cash for working capital as compared to the prior year period. Total debt outstanding at the end of the quarter was approximately $1.33 billion, resulting in a gross debt leverage ratio at the end of the second quarter of 1.5x on an as-reported basis, which is within our target gross debt leverage range of 1 to 2x adjusted EBITDA. With that, I will now provide further comments on our updated outlook for 2026. As disclosed in our earnings release this morning, we are maintaining our full year 2026 outlook for overall net sales as our growing backlog for data center customers is offsetting the impact of a modestly lower residential outlook. As a result, we continue to expect consolidated net sales for the full year to increase in the mid- to high teens percent range as compared to the prior year, which includes an approximate 2% favorable impact from the net effect of foreign currency acquisitions and divestitures. Given the momentum in our data center business as well as ongoing strength in the domestic rental channel, more than offsetting the impact of an immaterial divestiture, we are increasing our C&I segment net sales growth guidance to the low 30s percent range compared to 2025. This is an increase from our previous guidance in the mid- to high 20s percent range. As Aaron discussed, given the lower baseline power outages in the second quarter, the current macro environment driving affordability concerns, together with a small divestiture that closed during the second quarter, we are modestly lowering our previously expected Residential segment net sales growth outlook for the second half of the year. We now expect full year Residential segment net sales to increase at a high single-digit rate as compared to the prior year, a relatively small reduction from the previous guidance for growth in the 10% range. The high single-digit rate growth for Residential is expected to be driven primarily by the home standby category, given the combined impact of higher price realization compared to 2025 and higher volumes against an easier prior year comparable period for the second half of the year due to the very low outage environment in 2025. Consistent with our historical approach, this guidance assumes a level of power outage activity in line with the longer-term baseline average for the remainder of the year and does not assume the benefit of a major power outage event during the year. From a quarterly pacing perspective, net sales growth is expected to accelerate in the second half of the year for both Residential and C&I segments. Overall, third quarter net sales is expected to grow in the high teens range with further acceleration expected in the fourth quarter of the year as data center revenue continues to ramp and the prior year comparable period for Residential segment sales eases further. This will result in a more level-loaded second half for Residential segment sales and a rapid sequential improvement in C&I segment sales from the third quarter to fourth quarter as we ramp data center capacity. Looking at our updated gross margin expectations for full year 2026, excluding the tariff recovery impact, we now expect gross margins to be near the low end of our previous guidance range of 38.5% to 39.5%, given the higher sales mix of C&I segment sales in our forecast. Including the $71 million of tariff refunds that are reflected in the second quarter, we expect gross margins for full year 2026 to be in the 40% range. From a seasonality perspective, we expect the second half gross margins to be level loaded across the third and fourth quarter, in line with the full year gross margin guidance, excluding tariff refunds. This assumes that further tariff recovery will be fully offset by higher tariff levels that could potentially get enacted in the second half of the year. With regards to operating expense guidance, we now expect lower operating expenses relative to our previous guidance as a result of the 2 small divestitures that closed during the second quarter as well as continued operational discipline in the Residential segment. This lower operating expense forecast fully offsets the lower gross margin forecast, excluding tariff recovery resulting from the higher mix of C&I sales. As a result of these factors, excluding the 150 basis point impact from tariff refunds, we are maintaining our previous guidance range for full year 2026 adjusted EBITDA margins of 18.5% to 19.5%. When including the impact from tariff refunds, our full year 2026 adjusted EBITDA margin guidance range moves to 20% to 21%. From a seasonality perspective, we expect third quarter EBITDA margins to be similar to Q2 levels, excluding the tariff recovery and expect fourth quarter EBITDA margins to improve from there given significant operating leverage. As is our normal practice, we're also providing additional guidance details to assist with modeling adjusted earnings per share and free cash flow for full year 2026. Importantly, to arrive at appropriate estimates for adjusted net income and adjusted earnings per share, add-back items should be reflected net of tax using our expected effective tax rate. For full year 2026, our GAAP effective tax rate is still expected to be between 24.5% to 25%. We now expect interest expense to be approximately $65 million to $69 million for full year 2026 compared to approximately $65 million previously expected, assuming no term loan principal prepayments during the year. Higher expected interest rates are the primary driver of this modest change in interest expense guidance. Our capital expenditures are now projected to be approximately 4.5% of our forecasted net sales for the year, which now includes the purchase and outfitting of our new packaging facility in Belvidere, Illinois and expanded investment levels in our other global large megawatt generator facilities. Depreciation expense is still expected to be approximately $108 million to $112 million. GAAP intangible amortization expense in 2026 is now expected to be approximately $118 million to $122 million during the year, up from $112 million to $116 million previously expected, primarily due to updated assumptions around recently closed acquisitions. Stock compensation expense is still expected to be between $54 million to $58 million for the year. Consistent with prior guidance, free cash flow generation is still expected to be approximately $350 million for the full year 2026 as tariff refunds help to offset the incremental CapEx required to support future C&I growth. Our full year weighted average diluted share count is still expected to be between 59.5 million and 60 million shares in 2026. And finally, this 2026 outlook does not reflect potential additional acquisitions, divestitures or share repurchases -- share repurchases that could drive incremental shareholder value during the year. This concludes our prepared remarks. At this time, we'd like to open the call for questions. Operator: Our first question will come from the line of Mike Halloran of Baird. Michael Halloran: Aaron, can you just talk about the capacity conversation? That's the tripling of capacity at least having line of sight to that is a pretty big number. And so maybe talk about how that works out from your perspective. Is this more what you're doing today, which is more on the assembly side? Does this contemplate some sort of arrangement with your engine manufacturer and doing something more joint? And how are you thinking about -- what you need to see from commitments to start reaching those large numbers? Aaron P. Jagdfeld: Yes. Thanks, Mike. It's obviously a central question here. We've been focused on this $1.25 billion, $1 billion of that domestically, $250 million internationally by the end of this year and definitely on path for that. In fact, I would argue we're running higher towards even where we'll end of the year in terms of what our theoretical capacity could be. But this pathway to tripling, as I mentioned, over the next 12 months, to be clear, it's only with relation to our generator assembly and our packaging capacity. It does not include anything with engines or any other upstream components at this point. Although those things are currently, as we've talked and as we've discussed in the past, those things are on the table. But today, the tripling of capacity is strictly for our own packaging and our assembly needs. The -- when I say we are on a path to it, maybe to put a finer point on it, that path is one that we're already walking down. In fact, I would say we're running down it. We've been speeding up our efforts to outfit the Sussex facility to bring that online quicker. We were intending to bring that online at the end of this year. We're going to be online here actually in Q3. We've got our first product will be running down the line in August as we kind of prove out the line and then finish out the testing capabilities of that facility. And by the end of Q3, we'll be starting our production ramp there. So that's about a quarter ahead of where we thought we'd be, which is really encouraging. And kudos to our team that is just working like crazy to figure this out. Furthermore, the -- we've identified a number of things that we can do to increase capacity in our existing facility footprint, both domestically and internationally. So Sussex, as an example, we're going to add a second line. And we've made that decision and made those capital commitments already. That's reflected partially in the CapEx elevated -- the elevated CapEx guide from this morning, taking that up to about 4.5% of sales, which is up about, call it, $50 million over our previous guide just in raw dollars. And then there'll be some more dollars going into that next year. But again, I don't see us getting -- we're not going to get over our skis here where suddenly CapEx is going to be 10% of sales or anything like that. It's not -- that's not going to happen. I think we'll stay comfortably below kind of 5% and guiding back towards that as our top line grows, in particular, guiding back towards our historical range at some point in the future. But we've identified a way to get more out of Sussex. We've identified a way to get more out of our Oshkosh facility. We've identified ways to get more out of our international facilities. We have a facility in Asia. We have a facility in Europe. We have a facility in India where these products are manufactured. We'll actually be standing up some production capability in Brazil and in Mexico. So the combination of all of those adds plus what we're doing to add capacity for packaging, that's through the Enercon acquisition and then also this new facility that we just closed on in Belvidere, Illinois, Northern Illinois, that will help us expand our capacity for packaging. So we won't quite be able to satisfy that full tripling of assembly capacity with packaging, but we'll be somewhere, call it, 70% of that number, and then we'll have to augment that with third-party packaging beyond the assembly capacity. So it is a full court press. It's an aggressive plan. Our team is executing against that plan. So when I say we're walking that path, we're running along that path, and we're actually executing against it. Now obviously, the agreement with the second hyperscaler that we announced this morning is a big part of why we've decided to pull that forward in Sussex and to accelerate our capacity expansions. We believe that, that agreement is going to be at least as big as the first hyperscaler agreement that we announced or bigger. And we're also talking about '27 and '28 simultaneously here with that new customer. And we're just working through the final product schedules that are addendums to the master agreement that we signed in late June. So really excited about it. We've -- I think all systems are green, all systems are go, and we're pushing very hard to make that a reality. Operator: And our next question will be coming from the line of George Gianarikas of Canaccord Genuity. George Gianarikas: It's more of a strategic question. As your revenue mix shifts more towards commercial and data center applications relative to residential, how are you broadly managing the operational transition? Like when you're trying to optimize capital allocation, sales channel capability, supply chain commitments, how do you preserve your return on invested capital profile given the longer sales cycles and the lumpier nature of large enterprise projects? Aaron P. Jagdfeld: Yes. Thanks, George. It's a great question. So obviously, the growth in the C&I business has been aggressive. It's stark. And it's going to change, I think to the point of your question, it's going to change the face of the company in terms of the -- a lot of things. We'll get to your -- the heart of your question, which is return on invested capital and kind of the profile -- financial profile of the company. Big projects obviously bring different sales cycles, as you said, longer sales cycles. We're working through how to match the customer deposits that are parts of these big projects alongside how we cash flow to our supply chain. So it does have ramifications along all of those things. I would say that initially here, the thing that we are observing is that all of the investment level that we've been making, and that's inclusive of not only the CapEx, but also some of the M&A we've done, the payback is remarkable. I mean, based on the volumes that we're projecting. It's very rapid. It's very quick. I think it's -- even with the longer sales cycles, this isn't a dramatically CapEx-intensive part of our business. It's -- there's obviously capital to be deployed, and these are bigger pieces of equipment to move around and to manufacture and to package. But in the end, they're bigger copies of what we've been doing for a long time. We know how to do that very well. And yes, the projects get bigger, the products get bigger. But I would say based on the math that we've laid out, the reward gets bigger. And the paybacks are -- look -- again, look stunning in terms of -- we used to always say when we look at our residential side of our business, when we expand capacity there, you wind the clock back a couple of years when we added the Trenton facility down in South Carolina. And that payback on that facility was inside of -- I think it was inside of 12 months. It's remarkably -- this looks really good, right? York Ragen: And how good this investment would be -- payback would be inside 12 months. Aaron P. Jagdfeld: Exactly. You could argue the same is true of the investments we're making today for large megawatts. So it's... York Ragen: Just with our current backlog... Aaron P. Jagdfeld: Just with the current backlog we have, so that's not even adding in some of the additional opportunities that we have in front of us, which are massive. So we feel good about it. Managing that, of course, maybe to kind of hit the second part of your question or maybe it's the first part. But managing all of that is we have separate teams and separate -- our organization is structured such along the lines of the 2 segments that we have for reporting -- reportable segments here, we have completely separate management teams. We have a corporate structure that serves those teams, and we've had to beef up elements of that corporate structure around our advanced manufacturing teams and others who are supporting the rapid build-out of capacity for our industrial business, our C&I business. But right now, we feel like we're pedaling fast. That business is going to grow. We set out a target to more than double our C&I business in 3 years. We set that target out at our Investor Day in late March. And all indications are we're going to crush that, and we may crush it by next year at the rate that we're headed. So we think that this is a -- as we keep calling it a generational opportunity, we believe that deeply. And we're not going to let that go by without giving it our best shot to see how many points we can put on the board here. And we are very laser-focused on maximizing not only our opportunity, but maximizing the return on that opportunity as well. Operator: And our next question will be coming from the line of Jeff Hammond of KeyBanc Capital Markets Inc. David Tarantino: This is David Tarantino on for Jeff. Maybe just following up on the supply agreements. Could you just put a finer point on the scale and scope of each of these deals? And how much of the $1 billion in orders in the quarter was from the first agreement? And then maybe give us some color on the degree of visibility you have now that these deals are done. Aaron P. Jagdfeld: Yes, David, thanks. So to be clear, the $1 billion of orders that we've taken in the last 90 days, included in that number is about $700 million, approximately $700 million for the first hyperscale customer that we announced, and that's all for deliveries in 2027. So just to be clear, the $1.6 billion in backlog we have, if you do the math on the $450 million of data center business we're going to do here in 2026, $250 million is going to ship in the second half out of that $1.6 billion backlog. So we'll have about $1.35 billion and all $1.35 billion right now is scheduled for deliveries in 2027. So our backlog does not contain at this point anything for 2028. Now with respect to future visibility, as I just said, the second hyperscale agreement that we're talking about is actually as big or bigger, frankly, than that -- the $700 million for the first hyperscaler. So -- and we are talking about more definitively, both 2027 deliveries as well as 2028. And I think also putting a finer point on it, that second hyperscale agreement contemplates deliveries on a global basis, for those, at least for '27 for sure, potentially for '28 as well, depending on the schedule of development for that hyperscaler. So very exciting for us. And I think it's -- based on our global footprint, we felt we were in a very good position to be able to execute that. And it's -- it gives us a lot of confidence around the capacity investments that we just talked about. But we don't have any of that second hyperscaler at all in the $1.6 billion at this point. So we'll provide an update to the market when we finalize the product-specific terms, much like we had a notice to proceed with the first hyperscaler, so we had a little bit more to go on, but the second hyperscaler doesn't -- they don't operate in that fashion. So they don't -- they hadn't given us anything that we could share with the market. So we'll provide that detail additionally when it becomes available, and we hope that, that's going to be over the next several weeks. Operator: The question will be coming from the line of Brian Drab of William Blair. Brian Drab: I guess I'll just ask for -- at this point, you've been put through the paces by 2 hyperscalers. You've got a ton of data regarding the capability of the larger format product. How are you comparing with the competition in that segment of the market? And also, how are your lead times right now compared with the competition? Aaron P. Jagdfeld: Yes. Thanks, Brian. It's a great question. So just from a specification standpoint, the product that we are offering in market is very competitive on all specs with markets -- with products that are in market today for our competitive set. I would even say that at certain particular nodes, our product, at least this is from the feedback we've received from our hyperscale customers who have tested the product fully and they've tested it with respect to how it performs against other competitive products on spec. And we have -- at a couple of nodes, we're actually performing better, they tell us. And that makes sense because the core engine offering that we're using there is -- frankly, it's a next-generation engine. It's the most contemporary engine design in market today relative to the competitive set. And so you would expect that you're going to get from a horsepower standpoint and a power density standpoint in terms of power output, we're getting better values than some of our competitors at certain ratings. So that's encouraging. And in fact, the ability for the product to take load inside of the 10-second start-up requirements is very good. So all signs point to we are on market or better in terms of product specifications. In terms of lead times, Brian, our lead times remain in that 40- to 45-week range for the products today in spite of the backlog that's grown here. And that really is a testament to not only our growing capacity, but also the supply chain that we've been nurturing here over the last 18 months as we've been working to build that out. We're adding secondary sources to key components where we believe there could be constraints in the future. And we're starting to take control over the packaging element, which again is that -- it's not only about adding value to improve the overall margin profile of the products, but it's also about controlling those lead times because we're seeing lead times stretch out for these overall systems 70, 80 weeks in some cases; some cases, 2 years, depending on the node, depending on the competitor. And some of that is related to packaging constraints. And so it's one of the major reasons why we're investing heavily in packaging is because we want to make sure that, that -- even if we have shorter lead times on the bare genset as assembled, that doesn't help us if third-party packagers have long lead times. That won't -- that equation won't work. So we want to control lead times overall for the products, and that includes a deepening of our packaging capabilities as we go forward. Operator: Next question will be coming from the line of Jon Windham of UBS. Jonathan Windham: Great results. Rightfully so, there's been a lot of focus on the data center side of the business. But I was wondering if you could just comment a little bit about where you think the residential side of the business can go. Obviously, interest rates aren't being helpful right now. New housing starts are not great. You've obviously been very successful taking market share over the last decade. What are the self-help levers that you can control to maybe get that business back on a growth trajectory? Aaron P. Jagdfeld: Yes, it's a great question, and I appreciate, by the way, the question on the residential business because we haven't been getting many of those questions, and it's a great business for us. It was down in the quarter, as we said in our prepared remarks, mainly on the back of our portable generator sales and also the clean energy business, really the storage business being down because of the challenging comp from last year when we had the Department of Energy program in Puerto Rico that ended last year. So take that away. And then power outages were more than 30% below the long-term baseline average in the quarter, and that really hampered our portable generator shipments near term here. Longer term, though, maybe to get to the heart of your question, what I just -- I continue to be shocked at the resilience of home standby generator sales. They're up again in the quarter in spite of the lower power outage environment. Now that you can point to -- we did have some winter storm activity in Q1 that I think was helpful for Q2 shipments of home standby. But Q2 outage environment was weak. So we thought it prudent to kind of reflect that in the back half of the year, and that was a little bit of the recalibration of bringing down the outlook. And it's a modest adjustment there, but a slight adjustment to that. But what can we do -- to answer your question, what can we do to get that category to grow? We can't wait for housing starts. We certainly can't wait for Mother Nature. We can't wait for some of these other macro things to turn when it comes to interest rates. I think what we can do is continue to pound the table on awareness. The category is still only in 6.5% of U.S. households, single-family homes. So the upside is 93.5% of the households that don't own the category today. Power outages, power outage activity, even though near term here, it's been softer than the long-term average. In fact, the last 4 or 5 quarters have been below the long-term average. So it's actually been quite soft. That will return, we believe, to the long-term average here. That's just how weather patterns work. But in the near term, we're looking very hard at a couple of things. One, what can we do to continue to promote improved financing offerings. We know that the consumer is -- that there is some fatigue with consumers. There's some concern about inflation. There's concerns about the overall economic conditions. And when it comes to large ticket purchases, we're seeing softness in other parts of the economy. I mean we -- our customers tell us this in terms of the retail customers we deal with. We see this in some of the other sectors where our contractors and our dealers provide products, we're seeing weakness. And I think it's really important for us to continue to focus on getting in front of potential buyers when they experience an outage. Even though outage activity is down, there's still a lot of outage activity. You look across the board and every single day, we track outages. We track the outage hours. And there -- at any point in time, there are 50,000 to 100,000 households in the U.S. without power. Now it's not because of a hurricane. It's not because of an ice storm. It's not because of some other large format type of outage event. It's from the thunderstorm rolling through the Midwest. It's from a winter event. It's from maybe high temperatures on a particular day that have caused equipment failure, accidents, things like that, that cause outages, they have been increasing those everyday outages. And as we become more dependent in our lives on a digital format in our households, right? We're working more from home. We're learning more from home. We're doing a lot more from home. And that -- those were trends that were long-standing. They accelerated certainly during the pandemic, and they're not nearly where they were during the pandemic, but they're certainly higher than they were prior to the pandemic. And all of those trends point to a need for continuous power. And we're seeing great interest still. We said our in-home consultations were actually up in the quarter. We're focusing our advertising and marketing efforts on -- we're sharpening our ability to go after that. We're sharpening our algorithms. We've changed -- and we talked a little bit more about this last year and at our Investor Day, but we changed the way we generate leads and the way we allocate those leads. We've changed the systems for those. We continue to invest in the platforms there and the teams there. We continue to invest in the products. Our next-generation product line that we introduced late last year is a material step forward, and I think puts us leagues ahead of other competitive product that's available in market. So we're the clear leader there. We have the responsibility to grow that market, to create that market, and we take that responsibility seriously. There are a lot of headwinds that are working against us. But in spite of that, home standby generator sales grew. And that, I think, is a testament to just the resilience and the importance of that category and why we can't lose focus on it. We have to stay focused on growing that category because it's such an important thing for us as a company. Operator: And our next question will be coming from the line of Tanner James of Jefferies. Tanner James: Congrats on the new contracting momentum. Maybe to that point, can you discuss how you're approaching the funnel for non-hyperscale data center activity and maybe how you're matching order intake to the potential capacity ramp timing given there's going to be some dedication of future capacity to the hyperscalers? And what degree you can or would wish to manage the growth versus profit mix dynamic between the 2 classes? Aaron P. Jagdfeld: Yes. Thanks, Tanner. I mean those are important questions. Maybe I'll tackle the first one -- or your last question first, the last part of your question first. There's a difference between the hyperscale business and the non-hyperscale business. And it's not unlike anything in business, right? I mean if you have a customer who is going to buy in larger quantities than another customer, typically, you will see the benefit of scale, right, should read through in a sharper price point for that customer, right? Oftentimes, what ends up happening, though, is you tend to see margin profiles of larger customers that are lower than that of our non-hyperscale customers. They're not dramatically different. I will say that. Now the contract terms can be different. And of course, the timing and the scale, as I said before, is different. How -- so we're focused on having a healthy blend. I would just say that first. That said, the addition of the second hyperscaler is going to throw that kind of mix to be obviously more heavily weighted towards hyperscale business versus non-hyperscale business in the near term. But we are very focused on continuing to add new business through existing colocator customers as well as courting new ones. There are a lot of people in this space that are opportunistic for us to go after. And we're still the new kid on the block. I mean our competitors who have been in market for the last 18 months or 2 years selling these products are well established, well known. And as I said, they have lead times, which are longer than ours. So we have an advantage today to use our shorter lead times to get an opportunity to show these non-hyperscaler customers and the hyperscaler customers what we can do as a company, how we perform. And so we're moving into that phase of our relationship. Now in terms of kind of -- I don't want to use the word allocation because it makes it sound like we're at a fixed finite level of capacity, and we're saying hyperscalers are going to get x percentage of that capacity and non-hyperscalers are going to get y capacity. Today, we're growing capacity. And obviously, we're talking about tripling our capacity from the $1.25 billion to something closer to approaching $4 billion in the next year, 1.5 years. That -- we don't have that filled up today, but we are courting customers who have needs that they have projects that they want to bring online faster. In some cases, what we're hearing, in particular, from this particular customer set is that they have projects that if they could get backup power, they could turn the project on quicker because of the lead times of the backup industry today. We can help them with that. If they want to shift those orders to us, we'll give them our slots for 2027 and into 2028 to help them bring those data centers online faster. Those are the kinds of conversations we're having today. And we just -- we're getting success there. I mean we -- included in our backlog is another large colocator that we landed in the quarter, and it's new for us. It's a new colocator. So really excited about that. We continue to grow our existing colocator relationships, getting new projects there. But the funnel, if you look at the whole funnel of opportunities, it's massive. I mean it's just -- it's embarrassingly... York Ragen: A lot of interest. Aaron P. Jagdfeld: Yes, a lot of interest. It's embarrassingly large in terms of the total number of projects we're quoting and the total number of conversations we're having, both hyperscale and non-hyperscale. Operator: And our next question will be coming from the line of Praneeth Satish. Praneeth Satish: I guess just high level here, when we think about -- in your conversations with hyperscale customers, how are they thinking about backup generation for behind-the-meter data centers? I mean, usually for the front-of-the-meter, grid-connected sites, it's usually a 1:1 ratio. But I guess is that still the right framework for behind-the-meter deployments? And are any of the sites that you're bidding on or contemplating shipping to, are they behind the meter? Or are you kind of primarily focused on front of the meter? Aaron P. Jagdfeld: Yes, it's a great question, Praneeth. And so the front-of-the-meter, grid-connected customers, that's an easy one. They need to have backup power. Behind the meter, prime-power generated, self-generated power, it depends on the power format. I would say what we've -- what we've done is we've -- as we've talked to the addressable market, as we've defined it and as we defined it at our Investor Day, we excluded some parts of the behind-the-meter power generation that's going on there, in particular, where a customer may be deploying certain technologies like fuel cells. They believe that there's not a need, particularly for our type of product, a backup, a reciprocating engine-driven backup genset. But those projects are far and few in between today. There are other types of behind-the-meter technologies, behind-the-meter power generation technologies. You've got turbine technologies, well-known technologies. In some cases, there is backup power required there because you could just as easily lose a turbine. Now maybe you have N+1 redundancy in the way that the turbine array is constructed. So maybe you don't feel like or that developer or customer base doesn't feel like they need 100% backup or 120% backup. I think at least today, I think what's -- this is my thesis and people can take and apply this logic if they want or they can use their own logic. There are certain of these behind-the-meter technologies, turbines being one of them and where they're using recip gas engines in particular. Those technologies are bridge technologies. They're a bridge to an interconnect to a grid. They are not permanent technologies simply because from a cost of energy standpoint to produce power on site with those technologies, it's going to be more expensive than it will be to secure grid power. In particular, the risk that comes with producing our own power in terms of hedging the cost of the fuel stock, the input, the natural gas in this case and those -- most of those technologies. So my point there is that we believe that longer term, as grid interconnects catch up, and as that queue shortens instead of lengthens as it's doing today on the grid interconnect, there could be more opportunities for backup power to present. It just may happen later when the grid interconnect time line becomes clearer. So today, we -- as I said, we've kind of adjusted our total addressable market to take out certain behind-the-meter power generation capabilities where certain data centers are going to do that -- do that on their own. I do know we have a couple of projects we're involved with, where we're supplying some backup power into some sites where they are going to generate their own power on site with certain technologies. I don't have the specifics of that, but I do know there are some projects that exist today where they're taking backup generators because they still need them. You could still have a turbine go down. You could still have part of your recip engine array go down. You could lose those technologies and you need to back them up, nonetheless, even if they're bridge power. Operator: Our next question will be coming from the line of Manish Somaiya of Cantor. Manish Somaiya: Congratulations on all the wonderful announcements. A couple of questions. One, I guess, is there -- Aaron, is there a hyperscale customer #3? And how far is that customer behind #2? That's my first question. And then just related to that, I think you talked about some of the capacity constraints. And from my perspective, I'm also a little bit more focused on the supply chain, as it relates to generator assembly, alternator, switch gears. I think you discussed the case -- the packaging part, but perhaps if you can just give us a sense of what's going on with the context that I just provided. Aaron P. Jagdfeld: Yes. Thanks for the question, Manish. So maybe I'll start there with the supply chain. Yes, the supply chain capabilities, like we can talk about how we want to triple our capacity. But if our supply chain can't keep up with it, it's kind of all for naught. And if we believe that, that was going to be a real problem, it'd be difficult for us to make the case that we should be investing in tripling our capacity. So I would tell you that alongside of tripling our capacity, we have a deep road map around how we can also triple our supply chain capacity. And that -- as you get into kind of the second order componentry that you listed, some of those components around alternators, there are cooling packages, there are some of the structural elements of the generator with base tanks and frames. Some of that we're going to undertake internally. We're going to kind of make versus buy type of analysis. We're going to have to augment some of that with external purchases as well and then the canopy components that go into the packaging and some of the other elements. There are some of the after-treatment systems that go into the diesel systems where we're seeing emissions levels where you've got local -- either local codes or you've got local permitting requirements that are calling out best available technology for the after-treatment of these products. Those also require additional components. All of those areas, we have second and third sources identified, and we're in deep negotiations with those for supply starting in 2027. So at this stage of the game, we feel like we have a road map, both for our own internal consumption, our capacity, that tripling of capacity internally as well as with our supply chain. Now there's a lot of work to do, both for our -- tripling our capacity internally here, but also with our suppliers to make sure that they're going to be capable to deliver at those rates. And of course, they're being -- their own capacities are being added to and tested by the growth here in the overall market for data centers. But at this stage of the game, we feel like we're in a really good spot with our supply chain capacity. Now on your first part of your question on the third hyperscaler, we -- look, we have a lot of conversations we have with a lot of customers. We actually serve another hyperscaler with smaller backup power and have served them for a couple of years where they have edge data center infrastructure. We back that up with our smaller generators. And when I say small, these are 500-kilowatt diesel and gas generators. So they're not that small, but they're small in the context of a hyperscale requirement. We continue to talk to these customers about their needs. And as the market evolves here, we could have, I think, additional opportunities. Today, I would tell you, whereas maybe we were on -- I think we described it, it was a 100-meter dash before, we were on the 99th meter of that 100-meter dash with hyperscaler 2 with any future hyperscalers at this point, those are just discussions and they're very early if they're having -- we're having them. So I wouldn't bank on anything coming anytime soon there. Obviously, where a big focus of our pipeline is building out the non-hyperscaler portion of that as well. We want to create better balance there. And those conversations are very robust, and that funnel is very robust, and we continue to get wins there. And I would assume that a good chunk of our backlog growth in the future here is going to be from the firm orders we get from hyperscaler 2, once we are ready to announce those and then additional non-hyperscaler orders as we work through our funnel and we progress through the sales cycle on that side of our business. Operator: And our next question will be coming from the line of Keith Housum of Northcoast Research. Keith Housum: Aaron, just as we think about the data centers, and obviously, it's important to everybody here on the call. As you think about the marketplace, it seems like a lot of the emphasis has been on domestic hyperscalers, understanding the second hyperscaler has some international business. But does your product appeal to international hyperscalers as well? And is that just a little further longer to develop? Or is there a difference where that market may not be as open to you guys? Aaron P. Jagdfeld: Yes, it's a great question, Keith. I would say that there are areas of the world where I think we're going to be very competitive. As an example, outside the U.S. -- first of all, just to level set, the U.S. market for data centers is the biggest market in the world, far enough, right? I mean it's just -- it's orders of magnitude larger at this point than almost every other region in the world. But that said, we have really interesting opportunities in Europe that -- because we're based in Europe, products are manufactured and we have a manufacturing facility in Italy where the products are of this size range are manufactured. We're seeing opportunities within the European theater where I think we can be very competitive. Some of our first projects were in Australia, and they were delivered out of our -- we have a factory in China. They were delivered from that Chinese factory down to Australia. Head-to-head in certain markets, like let's just go there, but the Chinese market for data centers, right? The domestic Chinese market for data centers, probably going to be very difficult for us to serve that market competitively. There are a lot of producers of gensets in that range in the Chinese market. And I don't think that the things that we bring to the table for a data center owner-operator developer, such as our brand, the strength of our balance sheet, our ability to serve, our ability to have an international footprint or a global footprint. I don't think they're as well appreciated perhaps in certain markets like China. So I wouldn't expect that we're going to be announcing a bunch of Chinese data center wins. But you get outside of China, India is a growing market. We have a facility in India to serve that market. The South American continent, you get Mexico and so Central South America. We have a big facility in Mexico that serves the Mexican market and can serve the South American market. We have a facility in Brazil that can serve the Brazilian market. That footprint gives us an advantage. And for those data center developers that want to make sure that they're buying a product from a company that's going to be around to support that product. And look, people -- there's a low bar for people to bolt these things together. There's no question that like the -- and this has been the case in generators in general. It's not just large generators. It's smaller generators. What you have to wrap around that, right, is the service network. What you wrap around that is the support capabilities. What you wrap around that is the certainty of a warranty and the certainty of the ability to get somebody to a facility or on site when there's a problem, because uptime is absolutely critical. And so for developers who take uptime seriously and understand the bit of a premium that they may have to pay for that, we're going to do well. And we are doing well. We're seeing that in the domestic market. We're seeing it in Australia. We're seeing that in Europe, where we've got project wins already. York Ragen: Consistent global processes, they covet that. Aaron P. Jagdfeld: Yes, consistent global processes, as York was just saying, one of our hyperscale customers, they are absolutely laser fixated on how do we replicate the processes that they validated here in our U.S. factories, how do we replicate those in other factories around the world if we're going to produce product for them for other site deployments. So I just -- I think that the international market is a good opportunity. Last point, we obviously, we have an exclusive arrangement with our engine supplier here in the U.S. market. We don't have that same exclusivity outside the U.S. So that does have -- that does probably play a role as well, where we can be competing against other packagers using that same engine package outside the U.S. So that's going to have an impact on the overall market dynamics and our ability to succeed in some of those other markets. Again, the closer you get to the Chinese market, I think it's going to be more challenging for us in Asia to be successful outside of perhaps India, if you think about that as part of Southeast Asia. Operator: And our next question will be coming from the line of Vikram Bagri of Citi. Vikram Bagri: I wanted to understand if you're seeing difference in inference data centers attaching more sort of like -- or less capacity backup capacity versus -- let me rephrase that. Our understanding is that the training data centers will have less than 1:1 backup capacity versus inference will have more than 1, if you've seen that. I was also trying to understand if the increase in hyperscale order from initial expectation of $600 million to $700 million is a function of that or you're gaining market share from another supplier to these hyperscale customers? And related to that, you currently have a significant lead time advantage over incumbents in large capacity generators. Do you think there is a premium in pricing for quick delivery right now? And if so, is there a way to frame how much that premium is for sort of speed to delivery? Aaron P. Jagdfeld: Yes. Thanks, Vikram. I appreciate the questions. Maybe I'll start backwards and with your question there. Obviously, the lead time advantage we have, I would say that today, the market overall is higher on a price per kilowatt than actually than we framed the opportunity when we put the business case together to go into the large megawatt genset market. We put that business case together 3-plus years ago now, almost 4 years ago. And we were -- the market at that point was on a lower price per kilowatt basis. Now there's inflation and some other things that have driven that up, but I think it's primarily being driven by the fact that there's a supply-demand imbalance there. Structurally, we're taking advantage of that, obviously. With our shorter lead times, we're able to supply that market that is paying more for access. I don't know that I can put like a number on the premium there. I would tell you that even though we have shorter lead times, the customer base there is not willing to pay more than market, even though we can produce the products and deliver them in a shorter time frame, I don't think we're getting an above-market premium today versus our competition on a per kilowatt basis, slight, if anything. I think all that we're doing is we're able to capture some share here very quickly because of that shorter lead time. That's kind of our assessment of the situation. I think that -- could that change over time? That's probably the bigger question. Like what does the price per kilowatt do over time? My experience in markets where you have supply-demand imbalance led price escalation, oftentimes, what you'll see is the price -- the growth of price slow, but you won't see it go back down. Price rarely goes in reverse. If you're -- especially if it's a non-commodity type business -- commodity-based business, it's -- you're not going to see price go in reverse. I think you'll see the growth of price probably slow, meaning I think these products probably will stay priced in the range that they're at here for the foreseeable future, and -- which is good for us because it's well above, as I said before, kind of how we frame our business case. Now the first part of your question on inference -- inference use data centers versus non, agentic, we do see different approaches based on the use cases for the data center. So you will see a greater percentage of coverage for certain data centers where you're talking about cloud connected versus where they're doing inference or learning model type of training data centers, where maybe uptime, they have different levels of uptime requirements. They actually get very precise, depending on the customer. They can get very precise about what that uptime number is depending on the use case of the facility. And then dependent on that uptime number, that's how they size the backup requirement. So if that uptime number is greater, it's 99.999% per se or even more than 99.999%, you're going to see a greater percentage of coverage to the total potential consumption -- power consumption for the data center. If it's less on the uptime scale because the data center is perhaps doing things that can be viewed in the context of noncritical, and there are differences beyond just inference and non-inference, but that lower uptime statistic then would lead you to a lower coverage rate. So it really is data center dependent. It's customer dependent because they all have their different views on what the right uptime statistic is. But today, we're seeing a healthy coverage of at least 100% and in some cases, up to 125% to 130% of the power consumption of the facility depending on the customer and depending on the use case of the data center. Operator: And our next question will come from the line of Christine Cho of Barclays. Christine Cho: I just wanted to ask about your engine supply. I know you've mentioned that the supplier has no problem growing with you and that will never be a constraint. But as we think about you tripling capacity in the U.S., would that require your engine supplier having to add or maybe diversify their manufacturing capacity in places like the U.S. or Europe? And if so, should we think that the mix shift could impact gross margins in the future if it's skewing towards more expensive manufacturing [indiscernible] with the cost of engines going up. You talk about being priced competitively, and I think you've also talked about how your cost structure is very attractive. So just curious if you think you'll be able to like raise pricing in that case and maintain margins? Or would that impact demand? Aaron P. Jagdfeld: Yes. Thanks, Christine. I mean it's a great question. Our engine supplier is -- they have indicated to us that capacity is not an issue. You used the word never. I'm not sure I'm ready to say it's never going to be an issue. But they've told us that based on -- and we're sharing, by the way, our capacity. We had a team that was just over working with our engine supply team here just last week, as a matter of fact, working through some of our kind of forecasting for '27, '28 and where we think volumes could go. And all indications are that based on their current footprint and the additions they are making, by the way, so they are making investments and additions to capacity, they have, in particular, a facility in France that they are adding a lot of capacity to because we have some customers that want to have engines that are going to come out of the European theater as opposed to coming out of Asia. So they've requested that specifically. There's a bit of a premium to that, to your point, maybe around what that looks like in terms of the -- but we've been able to roll that through with higher pricing. If that's what the customer is requesting, we've made it clear that, that could mean a higher price based on -- based on that decision. Now there are maybe offsets for that. If the customer is going to locate those products in Europe, as an example, there might be lower logistics costs for them, right? So it's lower packaging costs for them. So it's -- there's kind of an overall economic kind of model that they have to run through to understand whether our price increase on the genset because they want an engine that's coming from a higher cost region of the world that, that works in their economic model overall. I suspect that, that's going to be the case where our engine supplier is going to be increasing capacity in other regions of the world, potentially the U.S. as well. We've said this before. They continue to evaluate that. And we're evaluating alongside of them to see what we can do to help them with that should they require that. But they are a very competent company. They have a lot of really great talent within their company and a very aggressive stance on their ability to produce these products wherever they need them on the planet. And so they -- right now, they are working through their kind of footprint for the future. I can't speak too detailed about that. It's their footprint. So they would really need to speak to that. But I can tell you that in the one example we have, where we have customers who might want engines out of a different region, we've said that the price is higher. So we're trying to maintain our economics. And at least that's how I think we would treat it going forward. I don't have an idea of what a cost structure will look like in the U.S. We haven't gotten that far yet. So I don't know how to assess that. But obviously, there will be a tariff offset there in that instance, right? So there's a lot of moving pieces with that, and the tariff environment continues to move as well. So we're going to continue to watch it and put together the right economic models. And if we need to adjust pricing, we will. And if our supplier there, if they -- if we need to work harder with them to make sure the cost structure stays competitive, we'll continue to do that, too. But I have no doubt that our supplier is going to be cost competitive. They are laser-focused on being a leader in their cost structure for these types of products. Operator: And I would now like to turn the call back to Kris for closing remarks. Kris Rosemann: We want to thank everyone for joining us this morning. We look forward to discussing our third quarter earnings results in late October. Thank you again, and goodbye. Operator: And this concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Generac, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Generac wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Generac (GNRC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Parker-Hannifin Corporation PH reported fourth-quarter fiscal 2026 (ended June 2026) adjusted earnings of $9.27 per share, which beat the Zacks Consensus Estimate of $8.29. The bottom line jumped 21% year over year.Total sales of $5.8 billion beat the consensus estimate of $5.61 billion. The top line increased 9.8% year over year. Organic sales grew 8%. Orders increased 19% year over year.In fiscal 2026, adjusted earnings were $32.3 per share, up 18.2% year over year. Total sales increased 8.3% to $21.5 billion. The Diversified Industrial segment’s sales totaled $3.89 billion, representing 67% of total sales. On a year-over-year basis, the segment’s sales increased 8.1%.Sales from Diversified Industrial North America totaled $2.22 billion, up 7% year over year. The Zacks Consensus Estimate was pegged at $2.19 billion. Diversified International sales were $1.63 billion, up 9.5% year over year. The consensus mark was pegged at $1.56 billion.Orders for Diversified Industrial North America increased 16% year over year, while Diversified Industrial International orders rose 24% on a year-over-year basis.The Aerospace Systems segment generated sales of $1.90 billion, which accounted for 33% of total sales. The Zacks Consensus Estimate was pegged at $1.83 billion. Sales jumped 13.4% year over year, driven by double-digit growth across all market segments. Orders for the Aerospace Systems unit increased 18% on a year-over-year basis. Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote Parker-Hannifin’s cost of sales was $3.51 billion, up 6.8% year over year. Selling, general and administrative expenses increased 4.2% from the prior year to $874 million.Adjusted total segment operating income increased 14.5% year over year to $1.61 billion. Adjusted total segment operating margin increased 110 basis points year over year to 28%. Exiting fiscal 2026, Parker-Hannifin had cash and cash equivalents of $501 million compared with $467 million at the end of fiscal 2025. Long-term debt was $6.77 billion compared with $7.49 billion at the end of fiscal 2025. In fiscal 2026, Parker-Hannifin generated net cash of $4.36 billion from operating activities compared with $3.78 billion in the prior year.Capital spending totaled $459 million in fiscal 2026 compared with $435 million in fiscal 2025. Parker-Hannifin paid out cash dividends of $936 million, up 8.7% year over year. Parker-Hannifin has issued its fiscal 2027 guidance. The company expects total sales to increase 5.5-8.5% year over year. Organic sales are also projected to grow 5.5-8.5%. Previously completed acquisitions are expected to contribute 0.5% and unfavorable currency movements are anticipated to reduce sales growth by 0.5%.The company expects an adjusted segment operating margin of 27.5-27.9%. Parker-Hannifin currently projects adjusted earnings of $34.25-$35.25 per share. The outlook excludes the pending acquisitions of Filtration Group and CIRCOR’s Commercial and Defense Aerospace business. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Parker-Hannifin Corporation (PH) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Constellium SE (CSTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Watts Water Technologies, Inc. WTS reported second-quarter 2026 adjusted earnings of $3.66 per share, up 18.4% from $3.09 a year ago. The bottom line beat the Zacks Consensus Estimate of $3.34 by 9.6%. Net sales rose 18.6% year over year to $763.2 million and topped the consensus mark of $726 million by 5.1%. Organic sales advanced 12.2%, driven by favorable pricing, higher volumes and data center growth. Year-to-date data center sales represented 8% of total sales. Shares of the company have gained 40.6% in the past year compared with the Zacks Manufacturing - General Industrial industry’s growth of 13.6%. Image Source: Zacks Investment Research Second-quarter data center sales more than tripled year over year. Demand was concentrated in the Americas and APMEA, while Europe represented an emerging opportunity. Management said project-based demand could create quarter-to-quarter variability. Watts Water is investing in talent, product innovation and capacity while expanding relationships with contractors, original equipment manufacturers and hyperscalers. The company estimates its served addressable data center market at about $2 billion, with potential content ranging from roughly $25,000 to $100,000 per megawatt. Americas sales increased 17.4% year over year to $585 million and rose 11.6% organically. Favorable pricing and higher volumes tied to data center demand supported the increase, while acquisitions added $28 million. Segment margin fell 150 basis points (bps) to 25.7%. Acquisition dilution, inflation, tariffs and a difficult comparison with a prior-year tariff-related price-cost benefit outweighed gains from pricing, volume leverage and productivity. Watts Water Technologies, Inc. price-consensus-eps-surprise-chart | Watts Water Technologies, Inc. Quote Europe sales rose 12.3% to $124.6 million, including 9.2% organic growth. Higher volumes and favorable pricing drove the advance, while foreign exchange contributed 3.1%. Segment margin expanded 160 bps to 13.3% as operating gains more than offset inflation. APMEA sales climbed 56.7% to $53.6 million and advanced 30.7% organically. Data center growth in China more than offset weaker Middle East activity. Acquisitions contributed 17.3% and foreign exchange added 8.7%, while segment margin improved 100 bps to 19.9%. Gross profit increased 14.8% to $374.1 million, though gross margin contracted 160 bps to 49.0%. Selling, general and administrative expenses rose 14.6% to $214.5 million. Adjusted operating income increased 15% to $160 million, while adjusted operating margin declined 60 bps to 21.0%. Adjusted EBITDA rose 15.5% to $176.7 million, but its margin decreased 70 bps to 23.1%. Acquisition dilution, inflation and tariffs pressured profitability, partly offset by price realization, volume leverage and productivity. For the first six months of 2026, operating cash flow declined to $120.8 million from $124.9 million. Free cash flow decreased to $98.2 million from $105.1 million, reflecting higher working capital and capital expenditures. The cash conversion rate fell to 45.1% from 60.1%. Watts Water ended June with $347.9 million in cash and $108 million of long-term debt, resulting in net cash of $239.9 million. The company repurchased about 13,000 shares for $4.1 million during the quarter, leaving roughly $121 million under its authorization. Management expects cash flow to improve sequentially in the second half as working capital is monetized. WTS now expects full-year reported sales growth of 14% to 17%, up from its prior 8% to 12% range. Organic growth is projected at 8% to 11% compared with the previous 2% to 6% outlook. Adjusted operating margin is forecast between 19.8% and 20.4%, while adjusted EBITDA margin is expected between 22.1% and 22.7%. For the third quarter, management expects reported sales growth of 11% to 14% and organic growth of 5% to 8%. Adjusted operating margin is projected between 19.8% and 20.4%, with adjusted EBITDA margin of 22.2% to 22.8%. The outlook assumes no change in the Middle East conflict's impact and includes tariffs announced through Aug. 4, 2026. On Aug. 3, 2026, WTS also declared a quarterly dividend of 63 cents per share, payable on Sept. 15, 2026, to shareholders of record as of Sept. 1, 2026. Watts Water currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Flowserve Corporation’s FLS second-quarter 2026 adjusted earnings of 95 cents per share beat the Zacks Consensus Estimate of 86 cents by 10.5%. The bottom line increased 4.4% year over year. The company generated revenues of $1.17 billion, which surpassed the Zacks Consensus Estimate of $1.16 billion by 0.9%. However, sales declined 1.6% year over year. Strong bookings growth and operating-margin expansion, along with a record aftermarket bookings performance, supported the quarterly results. Generac Holdings Inc. GNRC reported second-quarter 2026 adjusted earnings per share (EPS) of $2.91, which beat the Zacks Consensus Estimate of $1.95. GNRC registered an adjusted EPS of $1.65 in the prior-year quarter. Net sales were $1.173 billion, up 11% from $1.06 billion in the prior-year quarter. The figure missed the consensus estimate by 0.4%. Zebra Technologies Corporation ZBRA reported second-quarter 2026 adjusted earnings of $6.35 per share, which beat the Zacks Consensus Estimate of $4.35. The bottom line increased 75.9% from $3.61 per share reported in the year-ago quarter. Total revenues of $1.56 billion surpassed the consensus estimate of $1.50 billion. The top line increased 20.4% year over year, supported by broad-based growth across segments and regions. Consolidated organic net sales increased 9.2% year over year. Acquisitions contributed 8.7% to reported sales growth, while favorable foreign currency translation contributed 2.5%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flowserve Corporation (FLS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Axon Enterprise, Inc. AXON reported second-quarter 2026 adjusted earnings of $1.88 per share, down 13.8% year over year. The figure missed the Zacks Consensus Estimate of $1.89 by 0.5%.Total revenues were $904.4 million, up 35.3% year over year and ahead of the consensus estimate of $868.4 million by 4.1%. Effective first-quarter 2025, AXON realigned its business segments. The company now reports results under two segments, namely Connected Devices and Software & Services.Connected Devices: The segment’s revenues increased 34.6% year over year to $506.6 million, driven by strong demand for Dedrone, TASER 10 and Axon Body 4. The adjusted gross margin expanded to 53.4% from 51.1% in the year-ago quarter, primarily aided by tariff refunds, partly offset by a higher mix of Dedrone revenues.Software & Services: The segment’s revenues rose 36.2% year over year to $397.8 million, supported by new users and increased adoption of premium software offerings, including Axon Fusus, the AI Era Plan and Axon 911. However, the adjusted gross margin decreased to 75.1% from 78.9% in the prior-year quarter, reflecting a higher mix of professional services revenues and investments in newer offerings. Axon Enterprise, Inc price-consensus-eps-surprise-chart | Axon Enterprise, Inc Quote Axon’s cost of sales increased 35.2% year over year to $357.9 million. Selling, general and administrative expenses were $291 million, while research and development expenses totaled $209 million.The adjusted gross margin decreased to 62.9% from 63.3% in the year-ago period. A higher mix of professional services revenues and the scaling of newer products more than offset the benefits from global tariff refunds. At the end of second-quarter 2026, Axon had cash and cash equivalents of $597.7 million compared with $1.20 billion at December 2025-end. Long-term lease liabilities totaled $101.7 million compared with $98.9 million at 2025-end.In the first six months of 2026, the company used net cash of $11.4 million in operating activities compared with $65.9 million used in the prior-year period. Adjusted free cash outflow was $55.6 million in the first six months of 2026 compared with $113.7 million in the prior-year period. Management raised its full-year revenue outlook to 32-34% annual growth, up from 30-32% expected earlier, while maintaining an adjusted EBITDA margin target of approximately 25.5%. The updated view reflects continued momentum across the company’s connected devices and software offerings.Axon also maintained its capital expenditure projection at $160-$190 million. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Axon Enterprise, Inc (AXON) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Constellium SE (CSTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Zebra Technologies Corporation ZBRA reported second-quarter 2026 adjusted earnings of $6.35 per share, which beat the Zacks Consensus Estimate of $4.35. The bottom line increased 75.9% from $3.61 per share reported in the year-ago quarter.Total revenues of $1.56 billion surpassed the consensus estimate of $1.50 billion. The top line increased 20.4% year over year, supported by broad-based growth across segments and regions. Consolidated organic net sales increased 9.2% year over year. Acquisitions contributed 8.7% to reported sales growth, while favorable foreign currency translation contributed 2.5%. Effective from the fourth quarter of 2025, the company started reporting under two segments, namely Connected Frontline and Asset Visibility & Automation.Revenues from the Connected Frontline segment rose 25.9% year over year to $903 million. Organic net sales increased 7.5%. The Zacks Consensus Estimate was pegged at $839 million.The Asset Visibility & Automation segment’s revenues totaled $654 million, up 13.5% year over year. Organic net sales increased 11.4%. The Zacks Consensus Estimate was pegged at $662 million. Zebra Technologies Corporation price-consensus-eps-surprise-chart | Zebra Technologies Corporation Quote In the second quarter of 2026, Zebra Technologies’ cost of sales totaled $732 million, up 8.1% year over year. Total operating expenses increased 16.4% year over year to $504 million.The company reported net income of $233 million compared with $112 million in the year-ago quarter. Adjusted net income increased to $305 million from $186 million reported in the prior-year quarter. Zebra Technologies had cash and cash equivalents of $157 million at the end of the second quarter of 2026. Total debt amounted to $2.78 billion, while the net debt-to-adjusted EBITDA ratio was 1.9. In the first six months of 2026, Zebra Technologies generated net cash of $387 million from operating activities compared with $325 million in the year-ago period. The company incurred capital expenditures of $26 million in the same time frame. Free cash flow amounted to $361 million compared with $288 million in the prior-year period. For the third quarter of 2026, Zebra Technologies expects net sales growth in the band of 17-20% year over year. The guidance includes an approximately 10.5-percentage-point favorable impact from acquisitions and foreign currency.Adjusted EBITDA margin is anticipated to be approximately 22% in the third quarter. Adjusted earnings per share are expected to be in the band of $4.70-$4.90.For 2026, ZBRA raised its financial outlook. The company now expects adjusted earnings to be $20.75-$21.25 per share. Adjusted EBITDA margin is anticipated to be in the band of 23.5-24.0% for the year. ZBRA currently expects net sales growth of 14-16% year over year. It expects free cash flow to be at least $1 billion. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Constellium SE (CSTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

In late July 2026, Generac Holdings Inc. reported second-quarter 2026 results showing sales of US$1,173.51 million and net income of US$143.24 million, with both basic and diluted earnings per share from continuing operations rising compared with the same period a year earlier, and it also maintained its full-year 2026 net sales growth guidance in the mid-to-high teens percent range. Alongside these results, a subsequent upgrade to a top-tier analyst rating, driven by higher earnings estimates, pointed to growing confidence in Generac’s earnings power and business execution. With this strong earnings momentum and reaffirmed growth guidance now on the table, we’ll examine how it reshapes Generac’s investment narrative. Invest in the nuclear renaissance through our list of 88 elite nuclear energy infrastructure plays powering the global AI revolution. To own Generac, you need to believe that demand for backup power and energy resiliency can offset headwinds in clean energy and diesel-heavy product lines. The key short term catalyst is execution on its core generator and emerging data center businesses, while the biggest risk remains profit drag and recalibration in clean energy. The latest results strengthen the earnings side of that story but do not materially change the underlying clean energy or outage-dependence risks. The most relevant recent announcement here is Generac’s decision to maintain its full year 2026 net sales growth guidance in the mid to high teens percent range. Against the backdrop of stronger second quarter earnings, holding that outlook steady reinforces the idea that management still sees enough demand, including from data center and commercial customers, to support its existing catalyst path without signaling a shift in risk or reward. But even with this upbeat earnings picture, investors should still be aware of how dependent Generac remains on major outage activity and evolving clean energy economics... Read the full narrative on Generac Holdings (it's free!) Generac Holdings' narrative projects $6.7 billion revenue and $736.0 million earnings by 2029. Uncover how Generac Holdings' forecasts yield a $290.27 fair value, a 44% upside to its current price. Some of the most optimistic analysts were already modeling revenue growth of about 17.8 percent a year and earnings near US$969.0 million, yet views on how rising renewable adoption and tougher fossil fuel rules could pressure Generac’s core generator business show just how differently you and other investors might interpret this latest earnings beat and guidance. Explore 5 other fair value estimates on Generac Holdings - why the stock might be worth as much as 66% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Generac Holdings research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free Generac Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Generac Holdings' overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Outshine the giants: these 17 early-stage AI stocks could fund your retirement. Find 53 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GNRC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]