For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Avient (AVNT - Free Report) Avient Corporation is a global specialty-materials company focused on color, additives, inks, engineered polymers, advanced composites, and performance fibers, combining materials science, formulation expertise and manufacturing scale. Formed as PolyOne Corporation on Aug. 31, 2000, the company changed its name to Avient Corporation, effective June 30, 2020.
AVNT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.21; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $3.08 per share. AVNT boasts an average earnings surprise of +2.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AVNT should be on investors' short list.
Generac's Commercial & Industrial segment now comprises 48.1% of FQ1'26 revenues, supported by a $700M data center backlog and strong hyperscaler demand. The raised FY2026 guidance and expanding EBITDA margins underscore their multi-year tailwinds beyond the last offered FY2028 guidance offered in the Analyst/Investor Day. This is significantly aided by the accretive acquisitions and the expanding manufacturing capacity, allowing them to deliver up to $1.2B in capacity against the $17B TAM.
Generac delivered a strong quarter, beating on both revenue and earnings, with net earnings up 65% and a $700M order backlog. I maintain a hold rating on GNRC, citing both attractive AI/data center-driven upside and accumulating downside risk after a 95% share price rally. GNRC's residential segment remains core, but macro risks—especially potential demand destruction from geopolitical shocks—temper enthusiasm for new positions.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Generac Holdings (GNRC - Free Report) Headquartered in Waukesha, WI, and founded in 1959, Generac Holdings Inc is a leading manufacturer of backup and prime power generation systems for residential and C&I applications, solar + battery storage solutions, advanced power grid software platforms and services, energy management devices and controls along with engine and battery-powered tools and equipment.
GNRC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Industrial Products stock. GNRC has a Momentum Style Score of A, and shares are up 33.6% over the past four weeks.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $8.50 per share. GNRC also boasts an average earnings surprise of +7.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GNRC should be on investors' short list.
Generac Holdings (GNRC +1.91%) stock jumped this week after reporting quarterly earnings and boosting its full-year sales forecast. Shares were about 17% above last week's close as of Friday at noon, according to data provided by S&P Global Market Intelligence.
A sluggish housing market isn't slowing Generac's growth. That's because the company is now seeing strength from the expanding data center construction market.
Image source: The Motley Fool.
Another data center solution Generac's commercial and industrial (C&I) segment reported a 28% sales increase in Q1, helping to drive overall net sales up 12%. Data center operators are looking for off-grid power generation and backup power solutions. Generac offers both.
The company offers commercial battery energy storage systems and diesel generators to provide uninterrupted power to the exploding data center market. Investors have noticed, and the stock is about 90% higher year to date after this week's surge.
Today's Change
(
1.91
%) $
4.91
Current Price
$
262.24
It may not be too late for investors to jump in, though. Management now sees sales growing in the mid-to-high teens percent range this year, a slight boost from prior guidance. Much of that is thanks to the C&I segment, but even residential sales could increase 10% year over year, according to the company.
A strengthening housing market would only help that residential segment. Generac's business is humming right now, and it may not be too late for investors to get on board.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
From pre-storm planning to backup power solutions, Generac highlights simple ways homeowners can prepare for power outages and prevent disruptions to everyday life.
, /PRNewswire/ -- Generac Holdings, Inc. (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, is supporting homeowners – especially those in hurricane-prone areas – to take simple steps to prepare for severe weather and storm-related power outages, by sharing the 2026 Hurricane Preparedness Guide to help make that planning easier.
Generac releases the 2026 Hurricane Preparedness Guide. For more than a decade, Generac has equipped homeowners with the tools, insights and proven strategies needed to prepare for hurricane season. Marking its 10th anniversary, the 2026 Hurricane Preparedness Guide expands that leadership with new data on the nation's highest-risk zones and a clearer picture of the cost of power outages, from nightly lodging to basement flooding expenses.
According to Colorado State University's annual Atlantic hurricane season forecast, experts are anticipating 13 named storms with six expected to develop into hurricanes and two forecasted to reach major hurricane strength of a Category 3 or higher.
Communities across the Atlantic and Gulf coasts are reminded that planning is critical.
The 2025 Atlantic hurricane season produced 13 named storms, five of which became hurricanes. And in 2024, the U.S. reported nearly 1.5 billion electric outage hours – the most since Generac began tracking this data. Hurricane Helene and Milton together caused a staggering 9.5 million power outages at storm peaks and over $113 billion in damages. During Hurricanes Helene and Milton, Generac Whole Home Standby Generators reported 5.4 million hours of runtime.
"It only takes one storm to disrupt people's lives. These storms don't just knock out power. As our homes are our sanctuaries, our workplaces and our classrooms, having a backup power plan is essential," said Kyle Raabe, President of Home Power Generation at Generac. "Planning ahead this hurricane season will protect you and your family from unnecessary stress and help you ensure safety and stability during a storm-induced power outage."
Generac urges homeowners across the country, regardless of if they live in a high-risk area, to download the Hurricane Preparedness Guide to learn more about how to prepare for a storm-induced power outage. The 2026 preparedness guide includes information on home energy and power options, safety tips before, during and after the storm and helpful tools such as emergency kit checklists, home inventory forms and important emergency contact resources.
To learn more about Generac's complete line of home backup power solutions, contact your local dealer or visit www.generac.com.
About Generac
Generac Holdings, Inc. (NYSE: GNRC) is a total energy solutions company that empowers people to use energy on their own terms. Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products serving the residential, light commercial, and industrial markets. Generac introduced the first affordable backup generator and later created the automatic home standby generator category. The Company continues to expand its energy technology offerings for homes and businesses in its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and sustainable energy solutions.
Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.
But how do you find the right combination of stocks? Funding your retirement, your kids' college tuition, or your short- and long-term savings goals certainly requires significant returns.
Enter the Zacks Rank.
What is the Zacks Rank?The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.
Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.
Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.
Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.
Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.
Each factor is given a raw score, which is recalculated every night and compiled into the Zacks Rank. Utilizing this data, stocks are put into five different groups: Strong Buy, Buy, Hold, Sell, and Strong Sell.
The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.
Institutional investors are the professionals who manage the trillions of dollars invested in mutual funds, investment banks, and hedge funds. Studies have shown that these investors can and do move the market due to the large amounts of money they invest with. Because of this, the market tends to move in the same direction as institutional investors.
These investors are known for designing valuation models that focus on earnings and earnings expectations in order to figure out the fair value of a company and its shares. If earnings estimates are raised, it puts a higher value on a company.
With these changes, institutional investors will act, usually buying stocks with rising estimates and selling those with falling estimates. An increase in earnings expectations can potentially lead to higher stock prices and bigger gains for the investor.
Retail investors who get in at the first sign of upward revisions have a distinct advantage over larger investors since it can often take weeks, if not months, for an institutional investor to build a position. They'll also benefit from the expected institutional buying that could follow.
Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.
How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +23.93%.
Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.
Let's take a look at Generac Holdings (GNRC - Free Report) , which was added to the Zacks Rank #1 list on May 7, 2026. Headquartered in Waukesha, WI, and founded in 1959, Generac Holdings Inc is a leading manufacturer of backup and prime power generation systems for residential and C&I applications, solar + battery storage solutions, advanced power grid software platforms and services, energy management devices and controls along with engine and battery-powered tools and equipment.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.5 to $8.91 per share. GNRC boasts an average earnings surprise of 7.4%.
Earnings are expected to grow 40.5% for the current fiscal year, while revenue is projected to increase 16.9%.
Additionally, GNRC has climbed higher over the past four weeks, gaining 31.8%. The S&P 500 is up 11.4% in comparison.
Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Generac Holdings should be on investors' shortlist.
If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.
Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Generac Holdings (GNRC - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Generac Holdings currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if GNRC is a promising momentum pick, let's examine some Momentum Style elements to see if this generator maker holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For GNRC, shares are up 17.39% over the past week while the Zacks Manufacturing - General Industrial industry is down 0.01% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 31.78% compares favorably with the industry's 3.58% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Generac Holdings have risen 24.39%, and are up 130.43% in the last year. In comparison, the S&P 500 has only moved 6.55% and 32.75%, respectively.
Investors should also pay attention to GNRC's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. GNRC is currently averaging 835,895 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with GNRC.
Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost GNRC's consensus estimate, increasing from $8.41 to $8.91 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that GNRC is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Generac Holdings on your short list.
On May 15, 2026, Generac Holdings Inc GNRC shares fell 4.6% today, bringing the current price to $263.68. Over the past year, the stock has seen significant volatility, with a 52-week high of $276.80 and a low of $118.09.
GF Value™ verdict: Current price of $263.68 is 67.7% above the GF Value™ of $157.24, indicating overvaluation.GF Score™: 84/100, suggesting strong overall potential for returns.Most notable signal: Insiders sold $9.6M worth of stock in the last 3 months, indicating possible concerns about future performance. Is GNRC Overvalued or Undervalued? Generac Holdings Inc GNRC is currently trading at $263.68, which is significantly higher than its GF Value™ estimate of $157.24. This represents a substantial 67.7% overvaluation, raising concerns about the sustainability of its current price level. The GF Valuation label categorizes GNRC as significantly overvalued, which suggests that the market may be pricing in overly optimistic growth expectations or that the stock has reached a speculative level lacking fundamental support.
The margin of safety in investing is crucial for mitigating risk, and in this instance, the overvaluation signals a potential risk for investors. If GNRC’s performance does not meet the high expectations reflected in its stock price, investors could face significant losses. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does GNRC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 82.4x 35.3x Forward P/E 29.2x N/A GNRC’s current P/E (TTM) of 82.4x is 133% above its 5-year median P/E of 35.3x, indicating that the stock is trading well above its historical valuation levels. This analysis aligns with the GF Value™ verdict of overvaluation, suggesting that the current price may not be justified when compared to the company's historical earnings performance. Moreover, the forward P/E of 29.2x also indicates a premium valuation, further confirming the overvalued status of the stock.
What Does GNRC's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 6/10 Profitability 8/10 Growth 8/10 Valuation 3/10 Momentum 10/10 The GF Score™ of 84/100 suggests that GNRC has strong potential based on various factors affecting long-term returns. The strongest areas for the company are its Profitability and Growth, both rated 8/10, indicating robust earnings and expansion prospects. However, the Valuation rank of 3/10 highlights significant concerns regarding its current stock price relative to intrinsic value. Financial Strength at 6/10 reflects moderate stability, while a perfect Momentum rank of 10/10 indicates strong price performance recently.
What Are Insiders Doing with GNRC Stock? In the past three months, insiders sold $9.6M worth of Generac Holdings Inc stock, with no reported buying activity. This trend of selling could suggest that insiders may have concerns about the company’s future prospects or find the current price attractive for realizing gains. Such activity can often be a red flag for investors, potentially indicating a lack of confidence in how the stock will perform moving forward.
What This Means for Investors Based on the GF Value™ assessment, Generac Holdings Inc GNRC is currently overvalued. The significant discrepancy between the current price and the intrinsic value suggests caution for potential investors, as the stock may not be able to sustain its current valuation levels without solid performance backing.
For the complete analysis, visit the Generac Holdings Inc GNRC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is GNRC's GF Score™?
GNRC has a GF Score™ of 84/100, which indicates strong potential for generating long-term returns based on key performance metrics.
Is GNRC overvalued or undervalued?
GNRC is currently overvalued, with a GF Value™ of $157.24 compared to its current price of $263.68, suggesting significant risk for investors.
What is GNRC's P/E ratio?
GNRC's P/E (TTM) ratio is 82.4x, which is significantly above its 5-year median P/E of 35.3x, confirming its overvaluation status.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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Shares of Generac Holdings GNRC surged on Friday after Jefferies upgraded the backup power equipment maker, citing growing momentum in AI-driven data center infrastructure demand and increasing traction for the company’s Baudouin engines among hyperscale operators.
Generac shares climbed 9% after Jefferies raised its rating on the stock to Buy from Hold and increased its price target to $302 from $239.
The new target implies roughly 22% upside from the stock’s previous closing price of $247.79.
The bullish call comes as investors increasingly focus on companies positioned to benefit from accelerating investments in artificial intelligence infrastructure and large-scale data centers.
Jefferies analyst Tanner James said the company could be approaching a key turning point tied to major supply agreements with hyperscale customers.
“Given the continued strong environment for data center development, and potential indications of activity with hyperscalers, we see an asymmetric positive risk/reward setup,” James wrote in a note to clients.
The analyst also pointed to ongoing negotiations involving large backup generator supply contracts that could potentially be announced later this year.
Jefferies highlighted evidence suggesting that Generac’s Baudouin engines are increasingly being adopted within hyperscaler data center configurations.
“Baudouin engines are finding their way into hyperscaler configurations, pointing to market acceptance for a product only GNRC can ably scale,” James said.
The firm noted that Generac had previously disclosed a nonbinding $600 million notice-to-proceed agreement tied to a potential large customer.
Jefferies described the company as being on the “one-yard line” in securing its first major hyperscaler contract.
Part of the optimism stems from permitting documents tied to the “Stargate” AI infrastructure project in Abilene, Texas.
The filings reportedly reference Baudouin engines, which are supplied exclusively in the United States through Generac.
The project has been associated with hyperscaler-backed data center expansion efforts linked to Oracle Corporation.
However, analysts cautioned that the documents do not directly confirm Generac’s involvement in the project.
Still, Jefferies said the filings indicate broader market acceptance of the engine technology among hyperscale operators building next-generation AI infrastructure.
Jefferies now expects Generac to secure two hyperscaler supply agreements over the next three years, potentially driving substantial revenue growth.
The brokerage forecasts the company could generate $6.8 billion in revenue by 2028, exceeding both existing company guidance and Wall Street consensus estimates.
Adjusted EBITDA could rise to nearly $1.5 billion by 2028, according to the firm, supported by growing commercial and industrial demand alongside improving margins.
The upgrade also reflects broader optimism among analysts covering the stock.
According to LSEG data, 13 out of 21 analysts currently maintain either Buy or Strong Buy ratings on Generac shares.
Although Jefferies’ new price target sits above the broader analyst average of approximately $267, several firms have recently increased their targets as enthusiasm around AI infrastructure spending continues to expand.
Generac shares have already risen nearly 91% so far this year.
Residential generator business remains resilientJefferies also pushed back against concerns that slowing consumer spending could hurt Generac’s core residential backup generator business.
The brokerage argued that home standby generators are increasingly viewed as essential infrastructure, particularly among higher-income homeowners facing rising concerns around grid reliability and extreme weather events.
The combination of stable residential demand and rapidly growing commercial opportunities tied to AI infrastructure has strengthened investor confidence in Generac’s long-term growth prospects.
As hyperscalers continue expanding data center capacity to support artificial intelligence workloads, investors appear increasingly focused on the companies supplying critical backup power systems required to support those facilities.
After reaching an important support level, Generac Holdings (GNRC - Free Report) could be a good stock pick from a technical perspective. GNRC surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
GNRC could be on the verge of another rally after moving 22.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
Looking at GNRC's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 7 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors may want to watch GNRC for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
It has been about a month since the last earnings report for Generac Holdings (GNRC - Free Report) . Shares have added about 7.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Generac Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Generac Tops Q1 Earnings EstimatesGenerac reported first-quarter 2026 adjusted earnings per share (EPS) of $1.80, which beat the Zacks Consensus Estimate of $1.33. Adjusted EPS was $1.26 in the prior-year quarter.
Net sales were $1.06 billion, up 12% from $942 million in the prior-year quarter. The figure also beat the consensus estimate of nearly $1.044 billion. Strength in the Commercial & Industrial (“C&I”) segment, especially the data center market, acted as a catalyst. Generac added that it was in the final stages of vendor approval with several hyperscale customers. It has also expanded the backlog for these products with both current and new customers. The Enercon buyout (completed earlier this month) is expected to boost the company’s vertical integration and support margin expansion for megawatt backup power offerings.
Given the strong first-quarter performance and momentum in the data center market and increasing backlog, Generac now expects 2026 revenues to increase in the mid-to-high teens percent range. This includes a 2% positive impact from the net effect of foreign currency, acquisitions and divestitures. The earlier growth target was in the mid-teens percent range.
C&I product sales are anticipated to increase in the mid-to-high 20% range compared with the earlier target of low-to-mid 20% range. Residential product sales are expected to increase in the 10% range for 2026.
The net income margin (before deducting for non-controlling interests) is expected to be between 8% and 9%. The adjusted EBITDA margin is estimated to be 18.5-19.5% as compared with the earlier guided range of 18-19%.
Segments in DetailBeginning from the first quarter of 2026, Generac’s two reportable segments are now Residential and C&I.
The Residential segment consists of the former Domestic segment minus the domestic C&I operations. The C&I segment consists of the former International segment, plus the domestic C&I operations.
Revenues from Residential were up 1% year over year to $552.2 million, driven by higher portable generator shipments, partially offset by reduced energy storage system sales. Sales of home standby generators remained unchanged from the prior-year quarter as higher pricing offset reduced volumes.
C&I revenues totaled $510.1 million, up 28% year over year. This included 10% net favorable impact from the combination of acquisitions, divestitures and foreign currency. The core revenue growth for the segment was driven by higher sales to data center customers and shipments to domestic industrial distributors and rental channels. Increasing sales of the control solutions to the power generation vertical acted as another tailwind.
The Zacks Consensus Estimate for Residential and C&I products’ first-quarter revenues was pegged at $518 million and $439 million, respectively.
Margin PerformanceGross profit was $410.2 million, up from nearly $372 million in the prior-year quarter, with respective margins of 38.7% and 39.5%. The margin performance was impacted by an unfavorable sales mix, which offset higher price realization.
Total operating expenses were $292.9 million, up 2% year over year, caused by higher intangible amortization.
The operating income was $117.3 million compared with $83.6 million in the prior-year quarter. Adjusted EBITDA, before deducting for non-controlling interests, was $193 million compared with $150 million a year ago.
Cash Flow & LiquidityIn the first quarter, the company generated $119 million of net cash from operating activities. The free cash flow totaled $90 million.
As of March 31, 2025, cash and cash equivalents were $265.5 million with $1.25 billion of long-term borrowings and finance-lease obligations.
The company did not buy back stock in the first quarter. In 2025, the company repurchased 1.1 million shares for $148 million. Management also earlier approved a share repurchase authorization of up to $500 million over the next 24 months. This new program replaces the remaining balance of the earlier program.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, Generac Holdings has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Generac Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
On June 01, 2026, Generac Holdings Inc GNRC shares fell 3.1% today, bringing the current price to $269.26. Over the past 52 weeks, GNRC has traded between a low of $118.09 and a high of $287.09, reflecting significant volatility in the stock price.
GF Value™ verdict: Current price is $269.26 vs GF Value™ of $158.62, indicating a 69.8% overvaluation.GF Score™: 83/100, which suggests a strong overall quality assessment.Most notable signal: Insider activity reveals that insiders sold $3.4 million worth of shares in the last three months, indicating a lack of buying interest. Is GNRC Overvalued or Undervalued? The current price of Generac Holdings Inc GNRC at $269.26 is significantly higher than the GF Value™ estimate of $158.62, marking the stock as 69.8% overvalued according to GuruFocus' proprietary valuation metrics. This overvaluation suggests that GNRC may not provide a sufficient margin of safety for potential investors, as the current market price considerably exceeds the calculated intrinsic value of the company. The GF Valuation label categorizes GNRC as "Significantly Overvalued," which presents a risk for investors considering entering a position at this price point.
The GF Value™ methodology evaluates intrinsic value by analyzing historical trading multiples, past business growth, and future performance estimates. Given the substantial divergence between market price and GF Value™, investors must be cautious, as this overvaluation could lead to a price correction if the market reassesses the company’s value in the near future.
How Does GNRC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 84.1x 35.3x Forward P/E 29.9x N/A The current P/E ratio of 84.1x is 138% above its 5-year median P/E of 35.3x, indicating that GNRC is trading significantly above its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict of overvaluation, reinforcing the notion that the current stock price does not reflect the company's historical earnings multiples.
What Does GNRC's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).
Metric Rating GF Score™ 83 Financial Strength 6/10 Profitability 8/10 Growth 8/10 Valuation 3/10 Momentum 9/10 Overall, GNRC's GF Score™ of 83 indicates a strong company, particularly in areas of profitability and growth, which are both rated 8/10. The momentum rank of 9/10 also highlights positive price trends. However, the valuation rank of 3/10 suggests that the stock is not favorably priced relative to its earnings, aligning with the concerns raised by the GF Value™ assessment.
What Are Insiders Doing with GNRC Stock? Insider activity for Generac Holdings Inc has shown a bearish trend, with insiders selling $3.4 million worth of shares in the past three months, and no reported purchases. This selling activity may indicate that those with intimate knowledge of the company do not have confidence in the stock's current valuation, which could be a bearish signal for potential investors.
The lack of insider buying further raises concerns about the stock's current price level and potential future performance, as insiders typically gain insight into the company's prospects and may act accordingly.
What This Means for Investors Based on the GF Value™ assessment, Generac Holdings Inc GNRC is currently overvalued. With shares trading at $269.26 compared to a fair value estimate of $158.62, the stock presents significant risks for potential investors. Caution is advised as the current market price far exceeds intrinsic value.
For the complete analysis, visit the Generac Holdings Inc GNRC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is GNRC's GF Score™?
GNRC's GF Score™ is 83/100, indicating a strong overall assessment based on various key metrics.
Is GNRC overvalued or undervalued?
GNRC is currently overvalued, with a GF Value™ estimate of $158.62 compared to a market price of $269.26.
What is GNRC's P/E ratio?
GNRC's P/E ratio is 84.1x, which is significantly higher than its 5-year median P/E of 35.3x, indicating overvaluation relative to its historical earnings.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
, /PRNewswire/ -- Generac Holdings Inc. (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, today announced it has signed a global supply agreement with a leading hyperscale data center operator to supply backup power generators for the company's data center infrastructure.
Generac signed a global supply agreement with a leading hyperscale data center operator. Data centers underpin the digital infrastructure people rely on every day — banking systems, healthcare delivery, transportation logistics, emergency response, and the broader digital economy. Reliable backup power is the resilience layer that keeps these essential services running through grid disruptions, weather events, and high-demand periods.
The global supply agreement was awarded following a rigorous qualification process including multiple factory visits, performance and quality system reviews, and audits across Generac's broader vendor base.
"This agreement positions Generac at the heart of supporting essential services and the digital economy," said Aaron Jagdfeld, Chairman, President and CEO of Generac. "The successful navigation of this approval process solidifies our position as a top-tier supplier of large megawatt backup power generators and reflects the kind of relationship we expect will grow as the digital economy continues to scale."
"Generac has been supporting mission-critical infrastructure for decades," said Erik Wilde, EVP and President, Domestic C&I at Generac. "Securing this agreement reflects our culture — an engineering-first organization focused on backup power, with the service capabilities required to support critical infrastructure at scale."
Generac has made a series of strategic investments to scale its Commercial & Industrial business and strengthen its global capabilities. Recent initiatives include the collaboration with EPC Power to deploy fully integrated energy solutions for data center applications worldwide, and the acquisition of Enercon, adding 50 years of expertise in generator enclosures and switchgear for mission-critical applications.
These efforts are complemented by the ongoing expansion of manufacturing and operational capacity at facilities in Beaver Dam, Oshkosh and Sussex, Wisconsin, as well as across key regions including APAC, Europe, the Middle East and Latin America, reinforcing Generac's ability to support data center growth with reliable, end-to-end solutions on a global scale. Generac's expertise is further demonstrated through the successful delivery of energy solutions for major colocator data center projects worldwide, supporting some of the industry's leading operators in ensuring resilient, mission-critical infrastructure for rapidly growing digital economies.
About Generac
Generac is a total energy solutions company that empowers people to use energy on their own terms. Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products serving the residential, commercial, data center, telecom, rental and industrial markets. The Company's broad portfolio of energy technology offerings for homes and businesses enables its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and innovative energy solutions.
Forward-looking Information
Certain statements contained in this news release, as well as other information provided from time to time by Generac Holdings Inc. or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements give Generac's current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "forecast," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future," "optimistic" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Generac believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Generac's actual financial results and cause them to differ materially from those anticipated in any forward- looking statements, including:
frequency and duration of power outages impacting demand for our products; fluctuations in cost, availability, and quality of raw materials, key components and labor required to manufacture our products; our dependence on a small number of contract manufacturers and component suppliers, including single-source suppliers; changes and volatility with respect to the trade policies of various countries, which may result in new or increased tariffs, trade restrictions, or other unfavorable trade actions; our ability to protect our intellectual property rights or successfully defend against third party infringement claims; changes in durable goods spending by consumers and businesses or other global macroeconomic conditions, impacting demand for our products; changes in governmental policies, particularly with respect to tax incentives, tax credits, or grant programs, which could: (i) affect the demand for certain of our products; or (ii) result in a withdrawal or reduction of grants previously awarded to the Company; increase in product and other liability claims, warranty costs, recalls, or other claims; significant legal proceedings, claims, fines, penalties, tax assessments, lawsuits or government investigations; our ability to consummate our share repurchase programs; our failure or inability to adapt to, or comply with, current or future changes in applicable laws, regulations, and product standards; our ability to develop and enhance products and gain customer acceptance including our offerings that serve the data center and energy technology markets; uncertainty regarding the growth of the data center market; increase in contract risk related to terms with certain data center customers, including cancellation rights, delivery requirements, and potential liability exposure tied to our performance obligations or other claimed damages; our ability to accurately forecast demand for our products and effectively manage inventory levels relative to such forecast; our ability to remain competitive; our dependence on our dealer and distribution network; market reaction to changes in selling prices or mix of products; loss of our key management and employees; disruptions from labor disputes or organized labor activities; our ability to attract and retain employees; disruptions in our manufacturing operations; the possibility that the expected synergies, efficiencies and cost savings of our acquisitions, divestitures, restructurings, or realignments will not be realized, or will not be realized within the expected time period; risks related to sourcing components in foreign countries; compliance with environmental, health and safety laws and regulations; scrutiny regarding our sustainability practices; government regulation of our products; failures or security breaches of our networks, information technology systems, or connected products; risks due to instability caused by geopolitical conflicts; our ability to make payments on our indebtedness; terms of our credit facilities that may restrict our operations; our potential need for additional capital to finance our growth or refinancing our existing credit facilities; risks of impairment of the value of our goodwill and other indefinite-lived assets; volatility of our stock price; and potential tax liabilities. Should one or more of these risks or uncertainties materialize, Generac's actual results may vary in material respects from those projected in any forward-looking statements. A detailed discussion of these and other factors that may affect future results is contained in Generac's filings with the U.S. Securities and Exchange Commission ("SEC"), particularly in the Risk Factors section of the Annual Report on Form 10-K and in its periodic reports on Form 10-Q. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.
Any forward-looking statement made by Generac in this press release speaks only as of the date on which it is made. Generac undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
, /PRNewswire/ -- Generac Holdings Inc. (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, today announced it has signed a global supply agreement with a leading hyperscale data center operator to supply backup power generators for the company's data center infrastructure.
Generac signed a global supply agreement with a leading hyperscale data center operator. Data centers underpin the digital infrastructure people rely on every day — banking systems, healthcare delivery, transportation logistics, emergency response, and the broader digital economy. Reliable backup power is the resilience layer that keeps these essential services running through grid disruptions, weather events, and high-demand periods.
The global supply agreement was awarded following a rigorous qualification process including multiple factory visits, performance and quality system reviews, and audits across Generac's broader vendor base.
"This agreement positions Generac at the heart of supporting essential services and the digital economy," said Aaron Jagdfeld, Chairman, President and CEO of Generac. "The successful navigation of this approval process solidifies our position as a top-tier supplier of large megawatt backup power generators and reflects the kind of relationship we expect will grow as the digital economy continues to scale."
"Generac has been supporting mission-critical infrastructure for decades," said Erik Wilde, EVP and President, Domestic C&I at Generac. "Securing this agreement reflects our culture — an engineering-first organization focused on backup power, with the service capabilities required to support critical infrastructure at scale."
Generac has made a series of strategic investments to scale its Commercial & Industrial business and strengthen its global capabilities. Recent initiatives include the collaboration with EPC Power to deploy fully integrated energy solutions for data center applications worldwide, and the acquisition of Enercon, adding 50 years of expertise in generator enclosures and switchgear for mission-critical applications.
These efforts are complemented by the ongoing expansion of manufacturing and operational capacity at facilities in Beaver Dam, Oshkosh and Sussex, Wisconsin, as well as across key regions including APAC, Europe, the Middle East and Latin America, reinforcing Generac's ability to support data center growth with reliable, end-to-end solutions on a global scale. Generac's expertise is further demonstrated through the successful delivery of energy solutions for major colocator data center projects worldwide, supporting some of the industry's leading operators in ensuring resilient, mission-critical infrastructure for rapidly growing digital economies.
About Generac
Generac is a total energy solutions company that empowers people to use energy on their own terms. Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products serving the residential, commercial, data center, telecom, rental and industrial markets. The Company's broad portfolio of energy technology offerings for homes and businesses enables its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and innovative energy solutions.
Forward-looking Information
Certain statements contained in this news release, as well as other information provided from time to time by Generac Holdings Inc. or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements give Generac's current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "forecast," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future," "optimistic" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Generac believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Generac's actual financial results and cause them to differ materially from those anticipated in any forward- looking statements, including:
frequency and duration of power outages impacting demand for our products; fluctuations in cost, availability, and quality of raw materials, key components and labor required to manufacture our products; our dependence on a small number of contract manufacturers and component suppliers, including single-source suppliers; changes and volatility with respect to the trade policies of various countries, which may result in new or increased tariffs, trade restrictions, or other unfavorable trade actions; our ability to protect our intellectual property rights or successfully defend against third party infringement claims; changes in durable goods spending by consumers and businesses or other global macroeconomic conditions, impacting demand for our products; changes in governmental policies, particularly with respect to tax incentives, tax credits, or grant programs, which could: (i) affect the demand for certain of our products; or (ii) result in a withdrawal or reduction of grants previously awarded to the Company; increase in product and other liability claims, warranty costs, recalls, or other claims; significant legal proceedings, claims, fines, penalties, tax assessments, lawsuits or government investigations; our ability to consummate our share repurchase programs; our failure or inability to adapt to, or comply with, current or future changes in applicable laws, regulations, and product standards; our ability to develop and enhance products and gain customer acceptance including our offerings that serve the data center and energy technology markets; uncertainty regarding the growth of the data center market; increase in contract risk related to terms with certain data center customers, including cancellation rights, delivery requirements, and potential liability exposure tied to our performance obligations or other claimed damages; our ability to accurately forecast demand for our products and effectively manage inventory levels relative to such forecast; our ability to remain competitive; our dependence on our dealer and distribution network; market reaction to changes in selling prices or mix of products; loss of our key management and employees; disruptions from labor disputes or organized labor activities; our ability to attract and retain employees; disruptions in our manufacturing operations; the possibility that the expected synergies, efficiencies and cost savings of our acquisitions, divestitures, restructurings, or realignments will not be realized, or will not be realized within the expected time period; risks related to sourcing components in foreign countries; compliance with environmental, health and safety laws and regulations; scrutiny regarding our sustainability practices; government regulation of our products; failures or security breaches of our networks, information technology systems, or connected products; risks due to instability caused by geopolitical conflicts; our ability to make payments on our indebtedness; terms of our credit facilities that may restrict our operations; our potential need for additional capital to finance our growth or refinancing our existing credit facilities; risks of impairment of the value of our goodwill and other indefinite-lived assets; volatility of our stock price; and potential tax liabilities. Should one or more of these risks or uncertainties materialize, Generac's actual results may vary in material respects from those projected in any forward-looking statements. A detailed discussion of these and other factors that may affect future results is contained in Generac's filings with the U.S. Securities and Exchange Commission ("SEC"), particularly in the Risk Factors section of the Annual Report on Form 10-K and in its periodic reports on Form 10-Q. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.
Any forward-looking statement made by Generac in this press release speaks only as of the date on which it is made. Generac undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Generac Signs Global Supply Agreement with Leading Hyperscale Data Center Operator to Supply Backup Power Generac Signs Global Supply Agreement with Leading Hyperscale Data Center Operator to Supply Backup Power PR Newswire
WAUKESHA, Wis., June 2, 2026
, /PRNewswire/ -- Generac Holdings Inc. (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, today announced it has signed a global supply agreement with a leading hyperscale data center operator to supply backup power generators for the company's data center infrastructure.
Data centers underpin the digital infrastructure people rely on every day — banking systems, healthcare delivery, transportation logistics, emergency response, and the broader digital economy. Reliable backup power is the resilience layer that keeps these essential services running through grid disruptions, weather events, and high-demand periods.
The global supply agreement was awarded following a rigorous qualification process including multiple factory visits, performance and quality system reviews, and audits across Generac's broader vendor base.
"This agreement positions Generac at the heart of supporting essential services and the digital economy," said Aaron Jagdfeld, Chairman, President and CEO of Generac. "The successful navigation of this approval process solidifies our position as a top-tier supplier of large megawatt backup power generators and reflects the kind of relationship we expect will grow as the digital economy continues to scale."
"Generac has been supporting mission-critical infrastructure for decades," said Erik Wilde, EVP and President, Domestic C&I at Generac. "Securing this agreement reflects our culture — an engineering-first organization focused on backup power, with the service capabilities required to support critical infrastructure at scale."
Generac has made a series of strategic investments to scale its Commercial & Industrial business and strengthen its global capabilities. Recent initiatives include the collaboration with EPC Power to deploy fully integrated energy solutions for data center applications worldwide, and the acquisition of Enercon, adding 50 years of expertise in generator enclosures and switchgear for mission-critical applications.
These efforts are complemented by the ongoing expansion of manufacturing and operational capacity at facilities in Beaver Dam, Oshkosh and Sussex, Wisconsin, as well as across key regions including APAC, Europe, the Middle East and Latin America, reinforcing Generac's ability to support data center growth with reliable, end-to-end solutions on a global scale. Generac's expertise is further demonstrated through the successful delivery of energy solutions for major colocator data center projects worldwide, supporting some of the industry's leading operators in ensuring resilient, mission-critical infrastructure for rapidly growing digital economies.
About Generac
Generac is a total energy solutions company that empowers people to use energy on their own terms. Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products serving the residential, commercial, data center, telecom, rental and industrial markets. The Company's broad portfolio of energy technology offerings for homes and businesses enables its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and innovative energy solutions.
Forward-looking Information
Certain statements contained in this news release, as well as other information provided from time to time by Generac Holdings Inc. or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements give Generac's current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "forecast," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future," "optimistic" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Generac believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Generac's actual financial results and cause them to differ materially from those anticipated in any forward- looking statements, including:
frequency and duration of power outages impacting demand for our products;fluctuations in cost, availability, and quality of raw materials, key components and labor required to manufacture our products;our dependence on a small number of contract manufacturers and component suppliers, including single-source suppliers;changes and volatility with respect to the trade policies of various countries, which may result in new or increased tariffs, trade restrictions, or other unfavorable trade actions;our ability to protect our intellectual property rights or successfully defend against third party infringement claims;changes in durable goods spending by consumers and businesses or other global macroeconomic conditions, impacting demand for our products;changes in governmental policies, particularly with respect to tax incentives, tax credits, or grant programs, which could: (i) affect the demand for certain of our products; or (ii) result in a withdrawal or reduction of grants previously awarded to the Company;increase in product and other liability claims, warranty costs, recalls, or other claims;significant legal proceedings, claims, fines, penalties, tax assessments, lawsuits or government investigations;our ability to consummate our share repurchase programs;our failure or inability to adapt to, or comply with, current or future changes in applicable laws, regulations, and product standards;our ability to develop and enhance products and gain customer acceptance including our offerings that serve the data center and energy technology markets;uncertainty regarding the growth of the data center market;increase in contract risk related to terms with certain data center customers, including cancellation rights, delivery requirements, and potential liability exposure tied to our performance obligations or other claimed damages;our ability to accurately forecast demand for our products and effectively manage inventory levels relative to such forecast;our ability to remain competitive;our dependence on our dealer and distribution network;market reaction to changes in selling prices or mix of products;loss of our key management and employees;disruptions from labor disputes or organized labor activities;our ability to attract and retain employees;disruptions in our manufacturing operations;the possibility that the expected synergies, efficiencies and cost savings of our acquisitions, divestitures, restructurings, or realignments will not be realized, or will not be realized within the expected time period;risks related to sourcing components in foreign countries;compliance with environmental, health and safety laws and regulations;scrutiny regarding our sustainability practices;government regulation of our products;failures or security breaches of our networks, information technology systems, or connected products;risks due to instability caused by geopolitical conflicts;our ability to make payments on our indebtedness;terms of our credit facilities that may restrict our operations;our potential need for additional capital to finance our growth or refinancing our existing credit facilities;risks of impairment of the value of our goodwill and other indefinite-lived assets;volatility of our stock price; andpotential tax liabilities.Should one or more of these risks or uncertainties materialize, Generac's actual results may vary in material respects from those projected in any forward-looking statements. A detailed discussion of these and other factors that may affect future results is contained in Generac's filings with the U.S. Securities and Exchange Commission ("SEC"), particularly in the Risk Factors section of the Annual Report on Form 10-K and in its periodic reports on Form 10-Q. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.
Any forward-looking statement made by Generac in this press release speaks only as of the date on which it is made. Generac undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
View original content to download multimedia:https://www.prnewswire.com/news-releases/generac-signs-global-supply-agreement-with-leading-hyperscale-data-center-operator-to-supply-backup-power-302787834.html
Generac CEO Aaron Jagdfeld joins ‘Squawk on the Street' to discuss the company's global supply agreement to provide generators to a major hyperscaler, how the deal could transform the business, and more.
This recognition underscores Generac's momentum in delivering large-scale, mission-critical backup power.
, /PRNewswire/ -- Generac Holdings Inc. (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, today announced that its SD3250 3.25MW generator has been named the Gold winner in the Power Generation & Electrical Infrastructure category of the 2026 Consulting-Specifying Engineer (CSE) Product of the Year awards.
SD3250 3.25MW generator The recognition represents the highest honor within the category and is awarded through a competitive, reader-driven voting process involving qualified consulting-specifying engineers and industry professionals. The annual program recognizes innovative products that demonstrate technological advancement, service to the industry and impact on the market.
"This award is especially meaningful because it comes directly from the engineers and professionals who design, specify and deploy power solutions in mission-critical environments," said Erik Wilde, EVP and President, Domestic C&I. "The SD3250 reflects our continued investment in delivering large-scale power solutions that meet the evolving needs of commercial and industrial customers and we're proud to see that work recognized by the specifying engineer community."
The 3.25MW unit, Generac's largest diesel generator, is designed to support mission-critical applications in a wide range of industries including data centers, healthcare and infrastructure. This model is part of Generac's series of new large diesel generators ranging from 1.75-3.25 MW.
This award follows a series of investments Generac has made to scale its Commercial & Industrial business. Recent investments include the collaboration with EPC Power to deploy fully integrated energy solutions for data center applications, the acquisition of Enercon, bringing 50 years of expertise in generator enclosures and switchgear for mission-critical applications, and continued expansion of domestic manufacturing capacity at facilities in Beaver Dam, Oshkosh and Sussex, Wisconsin.
For more information about Generac's commercial and industrial power solutions, visit www.generac.com/industrial/.
About Generac
Generac is a total energy solutions company that empowers people to use energy on their own terms. Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products and services serving the residential, commercial, data center, telecom, rental, and industrial markets. Generac introduced the first affordable backup generator and later created the automatic home standby generator category. The Company's broad portfolio of energy technology offerings for homes and businesses enables its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and innovative energy solutions.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$123.66▼
$294.18P/E Ratio82.01
Price Target$278.65
Power consumption is the hardest physical limit on artificial intelligence (AI) scaling. As tech giants race to build the next generation of power-hungry data centers, a legacy manufacturer known for residential backup generators has executed a brilliant strategic pivot.
A strategic pivot that now positions Generac Holdings Inc. NYSE: GNRC as a critical infrastructure supplier for the AI supercycle.
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Following a landmark global supply agreement with an undisclosed top-tier hyperscaler, Generac is quietly positioning itself inside the mission-critical grid resilience layer required to keep the AI revolution online, as multi-billion-dollar initiatives like Stargate accelerate demand for reliable backup power.
This deliberate transition from a weather-dependent residential business to a larger data-center-driven commercial and industrial business appears poised to unlock a new, more predictable phase of significant growth. It represents a structural shift that some investors are beginning to notice.
Generac's Ticket to the AI Big LeaguesOn June 2, 2026, Generac announced it had secured a global supply agreement with an undisclosed hyperscale data center operator to provide large-megawatt backup power generators. The news was a clear market signal, validating the industrial pivot and sending Generac shares up nearly 8% in a single session.
Generac Holdings Inc. (GNRC) Price Chart for Friday, June, 12, 2026
The agreement did not come with a disclosed order value, but it builds on an already meaningful data center backlog. Generac reported more than $700 million in data center backlog in Q1, up roughly $300 million from its mid-February update, giving the company revenue visibility into 2027 before any additional contribution from larger hyperscale opportunities.
While the partner remains officially confidential, the deal is heavily connected to the Stargate AI data center, a rumored $100 billion joint venture involving OpenAI, Oracle, and SoftBank. The evidence lies in plain sight within Texas air permitting documents filed for the project's Abilene site.
These public records explicitly list emergency generators powered by Baudouin engines, a brand used in Generac’s large-megawatt data center generator lineup.
This is not just a one-off contract; it is a technical and logistical validation of Generac's capacity to meet the rigorous, always-on demands of the world's most advanced computing infrastructure. Landing a piece of this foundational AI project serves as a powerful calling card for future hyperscale contracts globally.
Generac's Financials Power Up for GrowthGenerac's recent financial performance provides a strong foundation for this growth narrative.
Generac delivered a robust first quarter for 2026, reporting net sales of $1.06 billion, a 12% year-over-year increase. More impressively, earnings per share (EPS) came in at $1.80, crushing consensus estimates of $1.33 by a remarkable 35%.
The key metric for this strategic pivot, however, is margin expansion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins hit 18.3%, reflecting companywide operating leverage and strong C&I momentum.
After the solid report, Generac raised its full-year 2026 revenue guidance to mid-to-high teens growth, with adjusted EBITDA margins now projected to reach 19% at the midpoint.
Current Price$261.59High Forecast$335.00Average Forecast$278.65Low Forecast$202.00Generac Stock Forecast Details
Sell-side analysts reacted swiftly to the hyperscaler and data-center catalyst and improved outlook.
Jefferies upgraded the stock from a Hold to a Buy, raising its price target to $302.
Their long-term model forecasts a clear path for Generac to achieve $6.8 billion in total revenue and nearly $1.5 billion in adjusted EBITDA by 2028.
The outlook is contingent on securing at least two major hyperscaler contracts within the next three years, a goal that now seems attainable.
This trajectory underscores the massive margin expansion potential as the sales mix shifts from lower-margin residential products to high-value, long-term industrial solutions.
The Price of Power: Insider Selling Vs. Analyst HypeDespite the compelling growth story, investors must analyze the counterarguments. The primary risk factor is valuation. With a trailing 12-month price-to-earnings (P/E) ratio of approximately 87x, Generac trades at a significant premium. This multiple suggests the market has already priced in substantial future AI-driven growth, leaving less room for error or execution missteps.
Generac also faces stiff competition from established industrial incumbents such as Caterpillar NYSE: CAT, Cummins NYSE: CMI, and Kohler, all of which have deep roots and extensive global service networks in the data center power space.
But even as analysts have become more constructive on Generac’s AI data center opportunity, there has been no insider buying activity over the past year.
However, it is also worth noting that the only reported insider sale over the past three months came from CEO Aaron Jagdfeld, whose June 1 sale of 5,000 shares for approximately $1.36 million was conducted under a prearranged Rule 10b5-1 trading plan. That planned transaction does not meaningfully support a bearish read on its own, but the absence of insider buying gives investors another risk factor to weigh against the recent wave of bullish analyst upgrades and the stock’s premium valuation.
Plugging Into Generac's AI Power SurgeGenerac presents a unique and timely investment thesis. The industrial giant is successfully leveraging its core competency in power generation to penetrate the booming AI data center market, offering a crucial pick-and-shovel play on one of the most significant technological shifts of our time. The hyperscaler contract provides tangible proof of this strategic pivot and its clear potential for significant, sustained margin expansion.
However, the stock's premium valuation and the recent pattern of insider selling are material risks that cannot be ignored. A short interest of approximately 4.58% of the float also indicates a healthy market debate between bullish momentum investors and those skeptical of the current price.
Investors with a higher risk tolerance and a long-term horizon might consider Generac an essential infrastructure component for a diversified AI-focused portfolio. More cautious investors, conversely, may prefer to add Generac to their watchlist, waiting for a broader market pullback or a period of consolidation to offer a more attractive entry point into this compelling grid-resilience story.
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Dimensional Fund Advisors LP lessened its stake in shares of Cavco Industries, Inc. (NASDAQ: CVCO) by 10.7% in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 205,737 shares of the construction company's stock after selling 24,729 shares during the quarter.
Allspring Global Investments Holdings LLC decreased its stake in shares of Cavco Industries, Inc. (NASDAQ:CVCO – Free Report) by 18.8% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,255 shares of the construction company’s stock after selling 3,062 shares during the quarter. Allspring Global Investments Holdings LLC owned approximately 0.17% of Cavco Industries worth $7,841,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. lifted its holdings in Cavco Industries by 12.4% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 199 shares of the construction company’s stock valued at $86,000 after buying an additional 22 shares in the last quarter. Sheets Smith Wealth Management increased its position in Cavco Industries by 1.4% during the 3rd quarter. Sheets Smith Wealth Management now owns 2,245 shares of the construction company’s stock valued at $1,304,000 after purchasing an additional 31 shares during the period. Nisa Investment Advisors LLC increased its position in Cavco Industries by 3.8% during the 3rd quarter. Nisa Investment Advisors LLC now owns 872 shares of the construction company’s stock valued at $506,000 after purchasing an additional 32 shares during the period. Guidance Capital Inc. increased its position in Cavco Industries by 3.3% during the 3rd quarter. Guidance Capital Inc. now owns 1,122 shares of the construction company’s stock valued at $663,000 after purchasing an additional 36 shares during the period. Finally, Smartleaf Asset Management LLC increased its position in Cavco Industries by 27.4% during the 3rd quarter. Smartleaf Asset Management LLC now owns 186 shares of the construction company’s stock valued at $109,000 after purchasing an additional 40 shares during the period. Institutional investors own 95.56% of the company’s stock.
Analysts Set New Price Targets A number of research analysts have commented on CVCO shares. Weiss Ratings downgraded shares of Cavco Industries from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, February 26th. Zacks Research downgraded shares of Cavco Industries from a “hold” rating to a “strong sell” rating in a research report on Monday, February 9th. CJS Securities raised shares of Cavco Industries to a “strong-buy” rating in a research report on Thursday, December 11th. Finally, Zelman & Associates raised shares of Cavco Industries to an “outperform” rating in a research report on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $550.00.
Read Our Latest Analysis on Cavco Industries
Insiders Place Their Bets In related news, Director David A. Greenblatt bought 87 shares of the company’s stock in a transaction on Wednesday, February 4th. The shares were bought at an average price of $500.00 per share, with a total value of $43,500.00. Following the transaction, the director owned 16,076 shares in the company, valued at approximately $8,038,000. This trade represents a 0.54% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO William C. Boor bought 1,000 shares of the company’s stock in a transaction on Wednesday, February 4th. The shares were bought at an average cost of $495.00 per share, for a total transaction of $495,000.00. Following the transaction, the chief executive officer owned 48,022 shares in the company, valued at $23,770,890. The trade was a 2.13% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have purchased 1,800 shares of company stock valued at $866,592. Insiders own 1.60% of the company’s stock.
Cavco Industries Trading Up 0.3% NASDAQ:CVCO opened at $481.27 on Tuesday. The company has a market cap of $3.73 billion, a PE ratio of 20.91 and a beta of 1.33. Cavco Industries, Inc. has a twelve month low of $393.53 and a twelve month high of $713.01. The company’s 50 day moving average is $532.16 and its two-hundred day moving average is $566.59.
Cavco Industries (NASDAQ:CVCO – Get Free Report) last released its earnings results on Thursday, January 29th. The construction company reported $5.58 earnings per share for the quarter, missing the consensus estimate of $6.00 by ($0.42). The company had revenue of $580.99 million for the quarter, compared to analysts’ expectations of $593.37 million. Cavco Industries had a return on equity of 17.84% and a net margin of 8.37%. As a group, analysts expect that Cavco Industries, Inc. will post 21.93 EPS for the current fiscal year.
About Cavco Industries (Free Report)
Cavco Industries, Inc is a leading designer, manufacturer and retailer of factory-built homes and modular structures. The company produces a range of HUD-code manufactured homes, modular buildings, park model RVs and cabins through its network of production facilities. Its offerings cater to both residential and commercial markets, including customizable single- and multi-section homes, workforce and affordable housing solutions, educational and healthcare modules, as well as specialty lodging products for the recreational vehicle and hospitality industries.
Since its founding in 1967, Cavco has grown through strategic investments and acquisitions, expanding its footprint across the United States and into parts of Canada and Mexico.
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PHOENIX, April 14, 2026 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) announced today that the Company has received two national design awards from the Manufactured Housing Institute (MHI) at the 2026 MHI Congress & Expo in Las Vegas, Nevada.
As one of the nation’s leading providers of homes focused on factory-built and off-site construction, Cavco continues to expand access to high-quality housing through design, innovation and scale. The recognition highlights Cavco’s continued focus on design innovation, product quality and expanding access to modern, affordable housing.
MHI’s annual Excellence in Manufactured Housing Awards recognize companies across the manufactured and modular housing industry for product innovation, creative solutions and leadership. Each year, MHI invites submissions from manufacturers, vendors, retailers, communities and other strategic partners to compete across 18 categories, with more than 80 entries submitted in 2026. The awards highlight organizations that set the standard for serving customers and strengthening communities.
Cavco received recognition in the following categories:
Manufactured Home Design - Single-Section: the Serenity Cabana, a single-section manufactured home featuring a modern single-slope roofline, stunning trapezoidal clerestory windows and soaring lofted ceilings. The striking contemporary design proves that efficient living space can make a bold architectural statement. The home was built by Cavco’s Millersburg, Oregon manufacturing facility.
Modular Home Design Award: the Luxus, a 3,000 sq. ft., 3-section modular home designed to deliver an open living concept in a larger footprint with elegant finishes and details at an affordable price point. The natural flow of the layout supports today’s lifestyles through open gathering zones and optional flex areas for working from home or extended family members. The home was built by Cavco’s Goshen, Indiana manufacturing facility.
“These awards recognize our continued focus on thoughtful design, build quality and innovation,” said Brian Cira, Cavco President, Manufactured Housing. “It reinforces the work our teams do every day to deliver homes that meet evolving customer expectations across both manufactured and modular construction.”
Housing affordability is at a critical point, and many buyers feel priced out of the home market. Cavco homes give buyers more affordable options without compromising quality. By building homes in controlled environments, Cavco is able to reduce waste, improve material use, shorten construction timelines and consistently deliver high-quality, high-value homes. Every efficiency gained in Cavco’s factories supports their mission to provide affordable homeownership for those who dream of owning homes.
For more information about Cavco Industries, visit cavcohomes.com.
About Cavco
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.
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Cavco Industries Inc. wins the 2026 MHI Excellence in Manufactured Housing Award in the Manufactured Home Design - Single-Section category for the Serenity Cabana.
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Cavco Industries Inc. wins the 2026 MHI Excellence in Manufactured Housing Award in the Modular Home Design category for the Luxus.
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For additional information, contact:
Colleen Rogers
SVP – Marketing & Communications [email protected]
Phone: 972-763-5038
On the Internet: www.cavcohomes.com
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/ed1c4bea-9134-4a37-8855-129c35f19b57
Cavco Industries (CVCO) is downgraded from 'buy' to 'hold' due to declining backlog and worsening profitability despite rising revenue. CVCO's revenue growth is driven by higher home deliveries, price increases, and the American Homestar acquisition, but SG&A costs and acquisition expenses pressured margins. Backlog dropped from $224 million to $160 million year-over-year, raising concerns about forward demand despite a strong balance sheet and no debt.
Phoenix, May 14, 2026 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) will release earnings for the fourth quarter and fiscal year ended March 28, 2026 on Thursday, May 21, 2026 after the close of market. Senior management will discuss the results in a live webcast the following day, Friday, May 22, 2026 at 1:00 p.m. Eastern Time.
Date: May 22, 2026
Listen via Telephone: To participate in the call, please register here to receive the dial-in number and your unique PIN.
If you are unable to participate during the live webcast, the call will be available for 90 days on https://investor.cavco.com/.
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.
PHOENIX, May 20, 2026 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) (“Cavco,” “we” or the “Company”) announced plans to build a state-of-the-art home manufacturing facility in El Mirage, Arizona. The new 616,000 square foot building facility will increase access to affordable housing across multiple states by producing exceptional, affordable HUD-code manufactured and modular single-family homes. Cavco, headquartered in Phoenix, Arizona, designs and produces factory-built housing products distributed nationwide through a network of independent and company-owned retailers.
Bill Boor, Cavco President and Chief Executive Officer, said, “We are excited about the project, which is a key part of a broader operating strategy in the Southwest region. The shortage of affordable housing in the United States is real, and the El Mirage project will expand Cavco’s capacity to provide quality homes for deserving families in Arizona and surrounding states. We are designing a great place to work in the Phoenix area – reaffirming our commitment to the region and to our Cavco team members.”
Jeff Chrisman, Cavco Regional Vice President overseeing the project added, “We continue to raise the standard in construction processes and equipment in our home building facilities. El Mirage will represent the incorporation of these improvements and beyond, which will make us better and increase our ability to produce more homes.”
Construction of the fully temperature-controlled facility will incorporate modern design, sustainable building practices and advanced manufacturing techniques. The initial project design includes one production line, with an option to expand the facility with a second line for modest additional capital.
We recently broke ground and will move forward under a structured, multi-phase schedule, targeting to be operational by mid-2027. This estimate is dependent upon final permitting and other factors that could impact construction schedules. Additional details about the new facility will be shared as key milestones are reached.
About Cavco
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and builds factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco’s finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Additional information about Cavco can be found at www.cavcohomes.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on current expectations, estimates, and projections about the Company’s business, and are subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those expressed or implied by such statements. Forward-looking statements are generally identified by words such as “may,” “will,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “continue,” or similar expressions, although not all forward-looking statements contain these words.
Forward-looking statements are not guarantees of future performance and actual results may differ materially from those projected. Any forward-looking statements in this press release are made only as of the date hereof, and the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.
For additional information, contact:
Mark Fusler
Corporate Controller and Investor Relations [email protected]
Phone: 602-256-6263
On the Internet: www.cavcohomes.com
On May 20, 2026, Cavco Industries Inc CVCO shares rose 6.5% to a current price of $495.37. This increase comes amidst a 52-week range that saw prices fluctuate between $393.53 and $713.01.
GF Value™ verdict: Current price is $495.37, which is 4.2% undervalued compared to the GF Value™ of $517.13.GF Score™: 97/100, indicating a strong overall ranking.Most notable signal: Financial strength score of 9/10, suggesting robust financial health. Is CVCO Overvalued or Undervalued? Based on the current price of $495.37 and the GF Value™ estimate of $517.13, Cavco Industries Inc appears to be 4.2% undervalued. This margin of safety provides a potential opportunity for investors, suggesting that the stock may offer favorable returns if it aligns closer to its intrinsic value. The GF Valuation label indicates that the stock is fairly valued, meaning that it has the potential to appreciate as market conditions normalize.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the current price reflects a slight undervaluation, it is essential to consider market volatility and other external factors that could influence future performance.
How Does CVCO's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 21.5x 19.6x Forward P/E 19.3x N/A The current P/E (TTM) of 21.5x is 10% above its 5-year median P/E of 19.6x, suggesting that the stock is trading higher than its historical valuation metrics. This P/E analysis aligns with the GF Value™ verdict, indicating that while the stock is currently undervalued in terms of intrinsic value, its price-to-earnings ratio suggests that it may be overextended compared to its historical performance.
What Does CVCO's GF Score™ Tell Us? Metric Rating GF Score™ 97/100 Financial Strength 9/10 Profitability 9/10 Growth 10/10 Valuation 10/10 Momentum 7/10 The GF Score™ of 97/100 reflects a robust financial profile, with particularly strong ratings in Growth (10/10) and Valuation (10/10). The Financial Strength and Profitability scores of 9/10 further emphasize the company's solid financial health. However, the Momentum rank of 7/10 indicates a slightly weaker performance in terms of stock price trends compared to its historical averages, suggesting that while the company is fundamentally strong, market sentiment may be fluctuating.
What Are Insiders Doing with CVCO Stock? In the last three months, insiders at Cavco Industries Inc sold $0.1 million worth of shares, with no buying activity reported. This selling activity could suggest a lack of confidence among insiders or a strategic move to capitalize on current price levels. However, the absence of buying may also indicate that insiders do not see immediate value at current prices, which investors should consider when evaluating the stock.
What This Means for Investors Based on the analysis of the GF Value™, Cavco Industries Inc is currently undervalued with some potential for appreciation. However, the high P/E ratio relative to its historical averages suggests caution, as the stock may be trading at a premium. The overall strong GF Score™ indicates a solid financial foundation, although insider selling may raise some concerns. It is crucial for investors to weigh these factors when making decisions.
For the complete analysis, visit the Cavco Industries Inc CVCO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CVCO's GF Score™?
CVCO's GF Score™ is 97/100, indicating a strong overall ranking based on various financial metrics and historical performance.
Is CVCO overvalued or undervalued?
CVCO is currently undervalued, with a GF Value™ estimate of $517.13 compared to the current price of $495.37.
What is CVCO's P/E ratio?
The P/E (TTM) ratio for CVCO is 21.5x, which is 10% above its historical 5-year median of 19.6x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
PHOENIX, May 21, 2026 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 28, 2026.
Quarterly Highlights
Net revenue of $550 million up 8% from $508 million in the prior year quarter.Gross profit as a percentage of Net revenue was 23.1%, up 30 basis points ("bps"), with factory-built housing Gross profit as a percentage of Net revenue at 21.2%, down 110 bps.Net income was $42 million. Net income per diluted share was $5.42 compared to $4.47. Full Fiscal Year Highlights
Net revenue was $2,245 million, up $230 million or 11.4% compared to $2,015 million last year.Factory-built housing Gross profit as a percentage of Net revenue was 22.1%, compared to 22.9%.Income before income taxes was $245 million, up $34 million or 15.9% compared to $211 million.Net income per diluted share was $23.98 compared to $20.71. Backlogs at March 28, 2026 were $195 million, down from $197 million at March 29, 2025.Stock repurchases were approximately $160 million in the year. On May 18, 2026, the Company's Board of Directors approved an additional $150 million stock repurchase program. Commenting on the results, Bill Boor, President and Chief Executive Officer, said, "Cavco made a lot of progress across many fronts in fiscal year 2026. In addition to continuing a progression of digital marketing, branding and product line transformations, all aimed at improving the customer and retailer experience, we sold a record number of homes. We also joined forces with American Homestar which is exceeding expectations for tangible synergies and operating performance. Finally, as announced yesterday, in Q4 we broke ground on a new, state-of the art production facility in El Mirage, Arizona. This expansion reflects our consistent capital allocation approach focused on the long-term need for factory-built solutions to the worsening housing crisis in America."
He continued, “Wholesale orders in the fourth quarter were up significantly from both the third quarter of this year and the fourth quarter of last year, with the bulk of that pick-up and the accompanying backlog increase happening in March. Additionally, both our insurance and lending operations posted strong results in the quarter. Despite an environment that has not materially improved and remains uncertain, we continued to perform well and invest in the future.”
Three months ended March 28, 2026 compared to three months ended March 29, 2025
Three Months Ended ($ in thousands, except revenue per home sold)March 28,
2026 March 29,
2025 ChangeNet revenue Factory-built housing$528,048 $487,860 $40,188 8.2%Financial services 22,079 20,498 1,581 7.7% $550,127 $508,358 $41,769 8.2% Factory-built modules sold 8,328 8,260 68 0.8% Factory-built homes sold (consisting of one or more modules) 5,027 5,060 (33) (0.7)% Net factory-built housing revenue per home sold$105,042 $96,415 $8,627 8.9% In the factory-built housing segment, the increase in Net revenue was caused by higher average selling price per home sold primarily caused by a higher percentage of sales through Company-owned stores and product mix.Financial services segment Net revenue increased primarily due to more loan sales in the current period after securing a long term agreement to sell loans to a third party investor. Additionally, to a lesser extent, the addition of the American Homestar financial services operation also contributed to net revenue. Three Months Ended ($ in thousands)March 28,
2026 March 29,
2025 ChangeGross profit Factory-built housing$111,737 $108,573 $3,164 2.9%Financial services 15,316 7,544 7,772 103.0% $127,053 $116,117 $10,936 9.4% Gross profit as % of Net revenue Consolidated 23.1% 22.8% N/A 0.3%Factory-built housing 21.2% 22.3% N/A (1.1)%Financial services 69.4% 36.8% N/A 32.6% Selling, general and administrative expenses Factory-built housing$68,008 $71,458 $(3,450) (4.8)%Financial services 7,572 6,029 1,543 25.6% $75,580 $77,487 $(1,907) (2.5)% Income from operations Factory-built housing$43,729 $37,115 $6,614 17.8%Financial services 7,744 1,515 6,229 411.2% $51,473 $38,630 $12,843 33.2% In the factory-built housing segment, Gross profit increased from higher average selling price per home sold, partially offset by higher input costs and lower home sales. Selling, general and administrative expenses decreased compared to the prior year period primarily due to a $10 million non‑cash charge related to adjustment of certain legacy brand intangibles in the fourth quarter of fiscal 2025, which impacted Diluted net income per share by $0.93. Excluding the impact of that charge, SG&A increased year‑over‑year due to the inclusion of Selling, general and administrative expense from the Company’s acquisition of American Homestar completed at the beginning of the third quarter of this fiscal year.In the financial services segment, Gross profit increased primarily due to higher premiums and lower claims losses on insurance policies, as well as an increase in loans sold. The claims loss reduction resulted from both policy underwriting improvements and a reduction due to severe weather events in the prior year period which resulted in higher claims that did not recur. Selling, general and administrative expenses increased due to higher compensation. Three Months Ended ($ in thousands, except per share amounts)March 28,
2026 March 29,
2025 ChangeNet income$42,461 $36,330 $6,131 16.9%Diluted net income per share$5.42 $4.47 $0.95 21.3% Year ended March 28, 2026 compared to the year ended March 29, 2025
Year Ended ($ in thousands, except revenue per home sold)March 28,
2026 March 29,
2025 ChangeNet revenue Factory-built housing$2,157,356 $1,933,111 $224,245 11.6%Financial services 87,149 82,347 4,802 5.8% $2,244,505 $2,015,458 $229,047 11.4% Factory-built modules sold 34,745 32,428 2,317 7.1% Factory-built homes sold (consisting of one or more modules) 20,842 19,753 1,089 5.5% Net factory-built housing revenue per home sold$103,510 $97,864 $5,646 5.8% In the factory-built housing segment, the year-over-year increase in Net revenue was primarily due to higher average selling prices and home sales volume. The current year period includes six months of operations of American Homestar.Financial services segment Net revenue increased year-over-year primarily due to higher insurance premiums in the current year compared to the prior year, partially offset by fewer policies in force. Year Ended ($ in thousands)March 28,
2026 March 29,
2025 ChangeGross profit Factory-built housing$476,330 $441,797 $34,533 7.8%Financial services 50,557 23,794 26,763 112.5% $526,887 $465,591 $61,296 13.2% Gross profit as % of Net revenue Consolidated 23.5% 23.1% N/A 0.4%Factory-built housing 22.1% 22.9% N/A (0.8)%Financial services 58.0% 28.9% N/A 29.1% Selling, general and administrative expenses Factory-built housing$271,081 $253,027 $18,054 7.1%Financial services 27,237 22,288 4,949 22.2% $298,318 $275,315 $23,003 8.4% Income from operations Factory-built housing$205,249 $188,770 $16,479 8.7%Financial services 23,320 1,506 21,814 1,448.5% $228,569 $190,276 $38,293 20.1% In the factory-built housing segment, Gross profit increased from higher average selling price and volume driven partially by current year including six months of American Homestar activity, partially offset by higher input costs. Selling, general and administrative expenses increased as a result of higher incentive compensation on higher sales, the inclusion of Selling, general and administrative expenses from the acquisition of American Homestar acquisition in the third quarter of the current fiscal year and deal costs related to the acquisition. These costs were partially offset by a non-recurring $10.0 million non-cash charge related to the adjustment of certain legacy brand intangibles in the prior year.In the financial services segment, Gross profit increased primarily due to the insurance division having higher premiums and lower claims losses. The claims loss reduction resulted from policy underwriting improvements and severe weather events in the prior year period. Selling, general and administrative expenses increased primarily due to higher compensation. Year Ended ($ in thousands, except per share amounts)March 28,
2026 March 29,
2025 ChangeNet income$190,551 $171,036 $19,515 11.4%Diluted net income per share$23.98 $20.71 $3.27 15.8% Conference Call Details
Cavco's management will hold a conference call to review these results tomorrow, May 22, 2026 at 1:00 p.m. (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at https://investor.cavco.com or via telephone. To participate by phone, please register here to receive the dial in number and your PIN. An archive of the webcast and presentation will be available for 60 days at https://investor.cavco.com.
About Cavco
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco's current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) expected financial performance and operating results, such as revenue and gross margin percentage; (ii) our liquidity and financial resources; (iii) our outlook with respect to the Company and the manufactured housing business in general; (iv) the expected effect of certain risks and uncertainties on our business; and (iv) the strength of Cavco's business model. These statements may be preceded by, followed by, or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "outlook," "plan," "potential," "project," "seek," "target," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco's ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) compliance with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating to manufactured housing, privacy, the internet, and accounting matters; (ix) successful defense against litigation, government inquiries, and investigations, and (x) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company's other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended March 29, 2025 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco's reported financial results and our business outlook for future periods.
CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts) March 28,
2026 March 29,
2025ASSETS(Unaudited) Current assets Cash and cash equivalents$236,721 $356,225 Restricted cash, current 20,306 18,535 Accounts receivable, net 108,288 105,849 Short-term investments 16,233 19,842 Current portion of consumer loans receivable, net 19,207 35,852 Current portion of commercial loans receivable, net 54,841 43,492 Current portion of commercial loans receivable from affiliates, net 1,836 2,881 Inventories 295,671 252,695 Prepaid expenses and other current assets 71,630 74,815 Total current assets 824,733 910,186 Restricted cash 585 585 Investments 38,151 18,067 Consumer loans receivable, net 18,974 20,685 Commercial loans receivable, net 55,801 48,605 Commercial loans receivable from affiliates, net 3,519 4,768 Property, plant and equipment, net 278,890 227,620 Goodwill 208,841 121,969 Other intangibles, net 28,067 16,731 Operating lease right-of-use assets 33,578 35,576 Deferred income taxes — 1,853 Total assets$1,491,139 $1,406,645 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable$44,168 $37,195 Accrued expenses and other current liabilities 291,230 265,971 Total current liabilities 335,398 303,166 Operating lease liabilities 30,747 31,538 Other liabilities 7,096 7,359 Deferred income taxes 14,716 — Total liabilities 387,957 342,063 Stockholders' equity Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding — — Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,474,288 and 9,436,732 shares, respectively; Outstanding 7,738,700 and 8,008,012 shares, respectively 95 94 Treasury stock, at cost; 1,735,588 and 1,428,720 shares, respectively (585,865) (424,624)Additional paid-in capital 300,208 290,940 Retained earnings 1,388,714 1,198,163 Accumulated other comprehensive income (loss) 30 9 Total stockholders' equity 1,103,182 1,064,582 Total liabilities and stockholders' equity$1,491,139 $1,406,645 CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
(Unaudited) Three Months Ended Year Ended March 28,
2026 March 29,
2025 March 28,
2026 March 29,
2025Net revenue$550,127 $508,358 $2,244,505 $2,015,458 Cost of sales 423,074 392,241 1,717,618 1,549,867 Gross profit 127,053 116,117 526,887 465,591 Selling, general and administrative expenses 75,580 77,487 298,318 275,315 Income from operations 51,473 38,630 228,569 190,276 Interest income 3,232 4,533 16,337 21,089 Interest expense (134) (147) (541) (517)Other (expense) income, net (20) (93) 335 222 Income before income taxes 54,551 42,923 244,700 211,070 Income tax expense (12,090) (6,593) (54,149) (40,034)Net income$42,461 $36,330 $190,551 $171,036 Net income per share Basic$5.48 $4.53 $24.26 $20.97 Diluted$5.42 $4.47 $23.98 $20.71 Weighted average shares outstanding Basic 7,750,223 8,015,611 7,853,251 8,157,615 Diluted 7,840,942 8,120,407 7,946,049 8,259,956 CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA
(Dollars in thousands)
(Unaudited) Three Months Ended Year Ended March 28,
2026 March 29,
2025 March 28,
2026 March 29,
2025Capital expenditures$8,046 $6,174 $35,406 $21,427 Depreciation$5,769 $4,578 $21,079 $17,729 Amortization of other intangibles$610 $376 $1,963 $1,530 For additional information, contact:
Mark Fusler
Corporate Controller and Investor Relations [email protected]
Phone: 602-256-6263
On the Internet: www.cavcoindustries.com
Cavco's Future Looks Bright as Affordable Housing Demand SoarsCavco Industries NASDAQ: CVCO reported higher fourth-quarter revenue and profit compared with the prior year, while management said orders strengthened late in the period and backlogs improved heading into the new fiscal year.
On the company’s fiscal fourth-quarter earnings call, President and CEO Bill Boor said Cavco shipped an all-time high 20,842 homes in fiscal 2026, despite total industry HUD shipments being down slightly. He said operating income for the year rose 14% when excluding a $10 million non-cash write-off recorded in the prior year.
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Cavco's Ratings Upside, Cheaper Homes Alternative?“In the broader picture, our peak-to-peak ability to deliver homes is up significantly due to the continuous improvement in our plants, the major plant modernization projects we've completed in recent years, and the acquisition of American Homestar,” Boor said.
Fourth-Quarter Revenue Rises From Prior Year Net revenue for the fiscal fourth quarter was $550.1 million, up 8.2% from $508.4 million in the prior-year period. Sequentially, revenue declined by $30.9 million due to lower units sold and lower average revenue per home sold.
Within the factory-built housing segment, net revenue was $528 million, up 8.2% from $487.9 million a year earlier. The company said the increase was driven primarily by the addition of American Homestar and a 7.8% increase in legacy average revenue per home sold, partly offset by an 8.9% decline in legacy home units sold.
Financial services revenue was $22.1 million, up 7.7% from $20.5 million in the year-ago quarter. The company cited higher loan sales after securing a long-term investor agreement, along with the addition of American Homestar Financial Services.
Consolidated gross margin was 23.1% of revenue, compared with 22.8% a year earlier. Factory-built housing gross margin declined to 21.2% from 22.3%, reflecting higher costs per unit sold. Financial services gross margin rose to 69.4% from 36.8%, driven by rate increases, underwriting changes and higher loan sales.
Selling, general and administrative expenses were $75.6 million, or 13.7% of revenue, compared with $77.5 million, or 15.2% of revenue, a year earlier. The prior-year period included the $10 million trade name write-off related to the company’s rebranding project.
Pre-tax profit increased 27.1% to $54.6 million from $42.9 million. Net income was $42.5 million, compared with $36.3 million a year earlier, and diluted earnings per share were $5.42, up from $4.47.
Orders Pick Up in March After Weather-Impacted Start Boor said the quarter began slowly due to unusual weather across southern states, which caused lost production days and reduced market activity in January and early February. Capacity utilization was approximately 70% for the quarter.
Orders improved sharply in March, expanding backlogs late in the quarter. Boor said Cavco ended the period with nearly 25% more floors in backlog than at the start of the quarter, with five to seven weeks of backlog.
In response to analyst questions, Boor said the March order improvement occurred across every region the company tracks, with some of the strongest relative results in the Northwest, Southwest and Texas. He said April order rates remained near March levels, and backlog weeks improved across all regions through April.
“It wasn't just a blip,” Boor said. “We did see it pick up.”
Boor said stronger backlogs give the company an opportunity to raise production at plants that had been constrained by lower order levels. He said Cavco does not aim to build unusually high backlogs, but wants to produce at the level of incoming orders.
American Homestar Integration and Financial Services Progress Boor said Cavco has completed much of the operational integration of American Homestar, with remaining work focused largely on systems integration. He reiterated that the company’s internal estimate of tangible cost synergies remains above $10 million annually, and said Cavco was already “very close to that pace” in the fourth quarter.
Management said additional opportunities remain, primarily in SG&A and purchasing savings.
In financial services, Boor said lending and insurance both contributed to a strong quarter. Cavco reached a new agreement with a purchaser of home-only loans, allowing the company to increase originations and sell some loans off the balance sheet.
Chief Accounting Officer Paul Bigbee said the forward-flow agreement includes a minimum commitment of about $25 million of originated loans per quarter over a two-year period. He said the economics are consistent with existing gain-on-sale transactions and described the agreement as a way to increase lending capacity in a capital-efficient manner rather than materially expand margins.
New Arizona Plant Planned for 2027 Cavco also discussed its recently announced groundbreaking for a new plant in El Mirage, Arizona. Boor said the project is part of a broader Southwest operations strategy intended to create growth and optionality in the region.
The plant is expected to be operational in mid-calendar 2027. Boor described it as a high-capacity, state-of-the-art facility in the Phoenix area, with one production line initially and infrastructure for a second line in the future.
Asked why Cavco is adding capacity while national utilization is around 70%, Boor said the decision was based on a long-term view of the national housing shortage and the role of factory-built housing.
“We made this decision because there's a $4 million-$6 million housing unit deficit in the country, and we think factory-built housing is a solution,” Boor said.
The company did not disclose the specific investment amount for the new plant. Management said it does not expect a noticeable margin drag as the facility ramps, citing Cavco’s experience bringing on capacity in prior projects.
Capital Allocation and Market Outlook Cavco generated $67.4 million in operating cash flow during the quarter. Cash and restricted cash increased by $15.1 million to $257.6 million. Investing activities used $22.6 million, primarily for plant capital expenditures, while financing activities used $30 million, driven by share repurchases.
For fiscal 2026, Boor said Cavco deployed more than $360 million, including:
$160 million for share repurchases; $173 million to acquire American Homestar; $35 million to expand and modernize existing plants. The board recently increased Cavco’s share repurchase authorization by $150 million, leaving about $218 million available for future buybacks.
Management also addressed potential cost pressures. Executive Vice President and CFO Allison Aden said tariffs are having an upward impact on cost of goods sold, though the amount is difficult to estimate. She said lumber had recently begun to move higher and that steel producers were announcing price increases and allocation limitations.
Boor also discussed federal housing legislation passed by the House, saying it reflected bipartisan recognition of manufactured housing’s role in addressing supply constraints. He cited potential benefits related to product innovation, regulatory clarity, financing availability and zoning, while cautioning that the effects would take time to develop.
In closing, Boor said uncertainty remains elevated and that Cavco will continue to focus on reacting quickly to changing conditions. Still, he said the company is encouraged by recent order and backlog trends and remains focused on setting additional shipment records in the future.
About Cavco Industries NASDAQ: CVCOCavco Industries, Inc is a leading designer, manufacturer and retailer of factory-built homes and modular structures. The company produces a range of HUD-code manufactured homes, modular buildings, park model RVs and cabins through its network of production facilities. Its offerings cater to both residential and commercial markets, including customizable single- and multi-section homes, workforce and affordable housing solutions, educational and healthcare modules, as well as specialty lodging products for the recreational vehicle and hospitality industries.
Since its founding in 1967, Cavco has grown through strategic investments and acquisitions, expanding its footprint across the United States and into parts of Canada and Mexico.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Cavco Industries, Inc. reported a revenue miss in Q4, but sales were still more stable than many traditional homebuilders. Housing market conditions weighed on the sector. Margins declined noticeably as weaker pricing power and a sales volume hiccup weighed on CVCO's earnings. The report underlines that CVCO's factory-built housing's better affordability is a clear edge in the current housing market.
On May 27, 2026, Cavco Industries Inc CVCO shares rose 3.3% to a current price of $546.63. Despite today's increase, the stock has experienced a year-to-date decline of 7.5%, with a 52-week range spanning from a low of $393.53 to a high of $713.01.
GF Value™ verdict: Current price is $546.63, which is 2.8% overvalued compared to the GF Value™ estimate of $531.57.GF Score™ of 88/100 indicates a strong overall performance across key metrics.Notable signal: Financial Strength rated at 9/10 suggests a robust financial position. Is CVCO Overvalued or Undervalued? According to the GF Value™ analysis, Cavco Industries Inc CVCO is currently trading at $546.63, which is 2.8% above its estimated fair value of $531.57. This slight overvaluation indicates a limited margin of safety for potential investors. The GF Valuation label classifies CVCO as fairly valued, suggesting that while the stock is not deeply overvalued, the premium above the intrinsic value may present some risk. Investors may want to exercise caution, as an overvalued stock could lead to price corrections if market conditions shift or if the company's performance does not meet expectations.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given this context, CVCO's current price may not provide a compelling buying opportunity without a sufficient margin of safety.
How Does CVCO's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 22.8x 19.5x Forward P/E 21.3x - CVCO's current P/E ratio of 22.8x is significantly above its 5-year median P/E of 19.5x, indicating that the stock is trading at a higher valuation compared to its historical average. This analysis aligns with the GF Value™ verdict of the stock being overvalued, reinforcing the notion that the current price may not reflect a favorable entry point for investors looking at historical valuation metrics.
What Does CVCO's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).
Metric Rating GF Score™ 88 Financial Strength 9/10 Profitability 9/10 Growth 6/10 Valuation 9/10 Momentum 7/10 The strong GF Score™ of 88/100 reflects Cavco Industries Inc's solid financial health, with notable strengths in Financial Strength and Profitability, both rated at 9/10. However, the Growth Rank of 6/10 indicates room for improvement in expanding the company's revenue and earnings. Overall, the high valuation rank suggests that the stock may be priced for perfection, and potential investors should consider these strengths against the backdrop of the current market valuation.
What Are Insiders Doing with CVCO Stock? In the last three months, insider activity has seen a small amount of selling, with insiders selling $0.1 million worth of shares and no reported buying during this period. This pattern of selling could suggest a lack of confidence among insiders regarding the stock's future performance at the current valuation. However, the absence of significant buying does not necessarily indicate a negative outlook, as insider trading can be influenced by various personal or financial reasons unrelated to the company's fundamentals.
What This Means for Investors Based on the GF Value™ assessment, Cavco Industries Inc CVCO is currently overvalued. With its current price exceeding the estimated fair value, investors may need to be cautious and consider the potential for price corrections if the company's performance does not align with market expectations.
For the complete analysis, visit the Cavco Industries Inc CVCO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CVCO's GF Score™?
CVCO's GF Score™ is 88/100, indicating a strong overall performance across key financial metrics, suggesting potential for higher long-term returns.
Is CVCO overvalued or undervalued?
CVCO is currently overvalued, with a price of $546.63 exceeding the GF Value™ estimate of $531.57 by 2.8%.
What is CVCO's P/E ratio?
CVCO's P/E ratio is 22.8x, which is 17% above its 5-year median P/E of 19.5x, indicating the stock is trading at a higher valuation compared to its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
New zoning laws set to expand placement of manufactured homes statewide, effective July 1 June 01, 2026 21:41 ET | Source: Cavco Industries, Inc.
PHOENIX, June 01, 2026 (GLOBE NEWSWIRE) -- Today Cavco Industries, Inc. (Nasdaq: CVCO) (“Cavco,” “we” or the “Company”) hosted Virginia Gov. Abigail Spanberger at its home production facility in Rocky Mount, Virginia for the ceremonial signing of Virginia House Bill 655 and Senate Bill 346, two bipartisan zoning reform measures that reduce zoning barriers that have historically limited manufactured housing placement statewide. Both bills have been signed and take effect July 1, 2026.
The legislation expands where qualifying manufactured homes can be placed in Virginia by allowing them in areas where site-built homes are already permitted. It also prevents local governments from applying different or more restrictive zoning and land-use rules to manufactured homes than those applied to comparable site-built homes in the same area. In addition, the laws limit how localities without zoning ordinances can separately regulate manufactured home communities.
Also attending the ceremony were Randy Grumbine, executive director of the Virginia Manufactured and Modular Housing Association (VMMHA); C. Holland Perdue III, mayor of Rocky Mount, Virginia; state senators and delegates; and local officials. Guests toured the Cavco - Rocky Mount production facility and gave prepared remarks before the signing ceremony.
"We are honored to have welcomed Governor Spanberger, members of the Virginia General Assembly and other officials to our Rocky Mount facility for the tour and bill signing," said Wade Wells, Cavco Regional Vice President. "This legislation accomplishes something meaningful for the people of Virginia – boosting housing supply, expanding where manufactured homes can be placed and creating more pathways for families into affordable homeownership. I want to applaud the Commonwealth for recognizing the quality, energy efficiency and value that today's offsite constructed homes deliver."
Advocates say the bills address Virginia's acknowledged 200,000 estimated affordable housing shortage by making it easier to place manufactured homes on residential lots that already permit comparable site-built construction. Cavco continues to actively support affordable housing policy at the state and federal levels and was honored to host the signing at its Rocky Mount facility.
About Cavco
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and builds factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco’s finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Additional information about Cavco can be found at www.cavcohomes.com.
Phone: 972-763-5038
On the Internet: www.cavcohomes.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/68fac674-03ac-4022-8bc0-e0a70073b56e
CAVCO INDUSTRIES HOSTS VIRGINIA GOVERNOR SPANBERGER FOR LANDMARK MANUFACTURED HOUSING BILL SIGNING Left to Right: VA State Governor Abigail Spanberger flanked by VA State Delegate Josh Thomas, VA Sta...
TransMedics Group, Inc. (NASDAQ:TMDX – Get Free Report)’s share price shot up 8.5% during trading on Friday . The stock traded as high as $117.00 and last traded at $118.4260. 171,261 shares traded hands during trading, a decline of 80% from the average session volume of 857,888 shares. The stock had previously closed at $109.12.
Analyst Ratings Changes Several research firms have recently commented on TMDX. Needham & Company LLC increased their target price on TransMedics Group from $166.00 to $174.00 and gave the company a “buy” rating in a research note on Wednesday, February 25th. Oppenheimer increased their target price on TransMedics Group from $150.00 to $175.00 and gave the company an “outperform” rating in a research note on Wednesday, February 25th. TD Cowen reiterated a “buy” rating on shares of TransMedics Group in a research note on Monday, March 16th. Piper Sandler increased their target price on TransMedics Group from $140.00 to $160.00 and gave the company an “overweight” rating in a research note on Wednesday, February 25th. Finally, Stifel Nicolaus increased their target price on TransMedics Group from $115.00 to $130.00 and gave the company a “hold” rating in a research note on Monday, March 9th. Seven equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $152.33.
View Our Latest Report on TMDX
TransMedics Group Stock Performance The company has a current ratio of 7.14, a quick ratio of 6.59 and a debt-to-equity ratio of 1.06. The firm has a market capitalization of $4.00 billion, a price-to-earnings ratio of 23.65 and a beta of 2.09. The company has a 50-day moving average of $121.95 and a 200-day moving average of $126.37.
Insider Buying and Selling at TransMedics Group In related news, insider Anil P. Ranganath sold 864 shares of the company’s stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $139.12, for a total transaction of $120,199.68. Following the sale, the insider directly owned 13,091 shares of the company’s stock, valued at approximately $1,821,219.92. This represents a 6.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director David Weill sold 3,571 shares of the company’s stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $146.82, for a total value of $524,294.22. Following the sale, the director directly owned 12,134 shares in the company, valued at approximately $1,781,513.88. This represents a 22.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 16,205 shares of company stock worth $2,353,002. 7.00% of the stock is owned by insiders.
Institutional Investors Weigh In On TransMedics Group Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in TransMedics Group by 0.3% in the third quarter. Vanguard Group Inc. now owns 3,605,607 shares of the company’s stock worth $404,549,000 after buying an additional 9,650 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in TransMedics Group by 11.9% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,069,492 shares of the company’s stock worth $119,997,000 after buying an additional 113,817 shares during the period. Goldman Sachs Group Inc. increased its position in TransMedics Group by 50.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 965,931 shares of the company’s stock worth $117,506,000 after buying an additional 322,353 shares during the period. Geode Capital Management LLC increased its position in TransMedics Group by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 816,474 shares of the company’s stock worth $99,339,000 after buying an additional 2,903 shares during the period. Finally, Two Sigma Investments LP increased its position in TransMedics Group by 54.2% in the third quarter. Two Sigma Investments LP now owns 635,394 shares of the company’s stock worth $71,291,000 after buying an additional 223,409 shares during the period. 99.67% of the stock is owned by institutional investors and hedge funds.
TransMedics Group Company Profile (Get Free Report)
TransMedics Group, Inc is a medical device company headquartered in Andover, Massachusetts, that specializes in advanced organ preservation and transport systems for transplantation. The company’s flagship technology, the Organ Care System (OCS), maintains donor organs in a near-physiologic, warm, beating state during transportation, with the aim of extending preservation times and improving post‐transplant outcomes. TransMedics’ solutions address a critical need in transplantation by reducing ischemic injury and expanding the donor organ pool.
TransMedics currently markets two commercially available OCS platforms.
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, /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart and liver failure, today announced that it will release financial results for the first quarter 2026 after market close on Tuesday, May 5, 2026. The TransMedics management team will host a corresponding conference call beginning at 4:30 p.m. ET / 1:30 p.m. PT.
Investors interested in listening to the conference call may do so by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers and providing access code 9254082. A live and archived webcast of the event will be available on the "Investors" section of the TransMedics website at https://investors.transmedics.com/.
About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.
Unveils New Controlled Hypothermic Organ Preservation System (CHOPS) to Expand its Product Portfolio and to Facilitate Enrollment in Control Arms of OCS ENHANCE Heart Part B and OCS DENOVO Lung Clinical Trials ANDOVER, Mass., April 23, 2026 /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, is today providing an update on its ongoing clinical programs at the International Society of Heart and Lung Transplantation (ISHLT) 2026 Annual Meeting in Toronto, Canada.
TransMedics Group is a strong buy, leveraging its technological and logistical moat in organ transport, with OCS and NOP programs driving sector outperformance. TMDX trades at a 39x Non-GAAP PE and 5.2x NTM EV/Sales, appearing undervalued relative to its 20%-25% growth guidance and MedTech peers. Key growth catalysts include the OCS Kidney launch (late 2026/early 2027) and European expansion, particularly in Italy, positioning TMDX for significant volume upside.
Proposed strategic investment in Germany-based PAD Aviation, a premier European private aviation operator, intended to lay the foundation for TransMedics to establish a dedicated organ transplantation air logistics network across Europe
, /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today announced that it has entered into a definitive agreement to invest in PAD Aviation, a premier Germany-based private aviation operator.
The proposed strategic investment is intended to support TransMedics' ongoing efforts to replicate the successful U.S. NOP and logistics model by building a dedicated organ transplantation air and ground logistics network in Europe in support of its OCS™ perfusion platform and clinical services, with the goal of expanding access to donor organs and increasing transplant volumes for patients in need across the European Union.
"Building a dedicated transplant air logistics network in Europe is a necessary first step to supporting our European NOP strategy to bring the full benefits of our OCS technology and integrated logistics model to European patients in need of transplantation. We are already actively building our presence in Italy and our sights are set on expanding access to donor organs and increasing transplant volumes for patients across Europe over time. We look forward to working with the PAD team to advance this vision over the years ahead," said Waleed Hassanein, M.D., President and Chief Executive Officer of TransMedics.
The proposed strategic investment is subject to the satisfaction of closing conditions specified in the definitive agreement between the parties (the "Agreement") as well as applicable regulatory conditions. TransMedics expects the transaction to close later in 2026 but can provide no assurance that the proposed transaction will be consummated. Financial terms are not being disclosed.
About PAD Aviation service GmbH
PAD Aviation is a leading European business aviation operator, independent of commercial airlines. The company operates from its 24/7 hub in Paderborn, Germany, offering maximum flexibility—particularly for time-critical missions such as organ transport. From its centrally located base, PAD Aviation's aircraft can rapidly reach destinations across Europe. The company operates a modern fleet, including nine Embraer Phenom 300 aircraft, and employs more than 40 highly trained and type-rated pilots. PAD Aviation holds a valid EASA Air Operator Certificate (AOC).
About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements address various matters, including, among other things, the proposed strategic investment in PAD Aviation pursuant to the Agreement and the expected timing and consummation thereof; the anticipated benefits of the proposed strategic investment, including the establishment of dedicated air logistics infrastructure to support the OCS and NOP platforms in the European Union; our strategy of replicating our U.S. NOP model in Europe, including through dedicated air and ground logistics; the expected role of the aviation licensing, certifications, and operational infrastructure in supporting the European NOP; our ongoing commercial operations in Italy; and our broader international expansion plans and the costs related thereto. For this purpose, all statements other than statements of historical facts are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "could," "target," "predict," "seek" and similar expressions are intended to identify forward-looking statements.
These forward-looking statements are subject to a number of risks and uncertainties. Management cannot predict all risks, nor can we assess the impact of all factors or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in or implied by any forward-looking statements we may make. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated in or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ include: risks and uncertainties related to the pending strategic investment in PAD Aviation, including the occurrence of any event, change or other circumstance that could give rise to the termination of the Agreement; the risk that conditions to closing of the transaction are not obtained in a timely manner or at all; the effects of the transaction (or the announcement or pendency thereof) on relationships with associates, customers, manufacturers, suppliers, employees, other business partners or governmental entities; transaction costs; the risk that the transaction will divert management's attention from TransMedics' ongoing business operations or otherwise disrupts TransMedics' ongoing business operations; risks related to the ability to integrate PAD Aviation with TransMedics, including retaining key employees; risks related to operating an aviation business; risks related to the ability to further grow and enhance the National OCS Program; and other factors described in TransMedics' filings with the Securities and Exchange Commission (the "SEC"), including under the heading "Risk Factors" in TransMedics' Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 24, 2026, and comparable disclosure in our subsequent filings with the SEC. The forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and we are not able to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
Investor Contact:
Brian Johnston
Gilmartin Group
[email protected]
, /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today reported financial results for the quarter ended March 31, 2026.
Recent Highlights
Total revenue of $173.9 million in the first quarter of 2026, a 21% increase compared to the first quarter of 2025 Net income of $7.3 million or $0.20 per fully diluted share in the first quarter of 2026 Adjusted net income of $10.9 million or $0.30 per fully diluted share in the first quarter of 2026 Reiterates full year 2026 revenue guidance to be in the range of $727 million to $757 million Owned 22 aircraft as of March 31, 2026 Hosted annual symposium at the International Society of Heart and Lung Transplantation (ISHLT) 46th Annual Meeting & Scientific Session in Toronto; unveiled new Controlled Hypothermic Organ Preservation System ("CHOPS") aimed at facilitating enrollment in control arms of OCS ENHANCE Heart Part B and OCS DENOVO Lung clinical trials Entered into definitive agreement to invest in PAD Aviation, a premier Germany-based private aviation operator, with intent to create the first dedicated European transplant logistic network "We are pleased with our first quarter results and see 2026 as another critical period for TransMedics as we deliver on several critical growth catalysts for our business," said Waleed Hassanein, MD, President and Chief Executive Officer. "We are laser focused on executing our multi-pronged growth strategy by accelerating ENHANCE heart and DENOVO lung programs in the U.S., launching our NOP model in Europe, and advancing our OCS Kidney program. We believe these initiatives will position us well to drive continued growth and expand access to life-saving transplants for patients globally."
A summary of first quarter financial results is as follows (dollars in thousands except per share):
Three Months Ended March 31,
2026
2025
% Change
Revenue
$
173,933
$
143,537
21
%
Income from operations
$
13,297
$
27,443
-52
%
Operating margin %
7.6
%
19.1
%
-1147bps
Adjusted income from operations(1)
$
18,109
$
29,801
-39
%
Adjusted operating margin %(1)
10.4
%
20.7
%
-1030bps
Diluted net income per share
$
0.20
$
0.70
-71
%
Adjusted diluted net income per share(1)
$
0.30
$
0.74
-59
%
(1)
Adjusted income from operations, adjusted operating margin and adjusted diluted net
income per share represent non-GAAP financial measures. For a reconciliation of GAAP
to Non-GAAP items, please see the tables attached to this press release.
First Quarter 2026 Financial Results
Total revenue for the first quarter of 2026 was $173.9 million, a 21% increase compared to $143.5 million in the first quarter of 2025. The increase was due primarily to the increase in utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP") as well as additional revenue generated by TransMedics logistics services.
Gross margin for the first quarter of 2026 was 58%, compared to 61% in the first quarter of 2025. Gross margin was impacted primarily by investments to support growth and scale, together with higher supply chain and operating costs compared to the prior year.
Operating expenses for the first quarter of 2026 were $87.9 million compared to $60.8 million in the first quarter of 2025. The increase in operating expenses was driven primarily by increased research and development investment as well as investment throughout the organization to support the growth of the company. First quarter operating expenses in 2026 included $9.6 million of stock compensation expense compared to $8.7 million of stock compensation expense in the first quarter of 2025.
Income from operations in the first quarter of 2026 was $13.3 million, compared to operating income of $27.4 million in the first quarter of 2025. Adjusted income from operations in the first quarter of 2026 was $18.1 million compared to adjusted income from operations of $29.8 million in the first quarter of 2025.
Net income in the first quarter of 2026 was $7.3 million, or $0.20 per diluted share, compared to net income of $25.7 million, or $0.70 per diluted share, in the first quarter of 2025. Adjusted net income in the first quarter of 2026 was $10.9 million, or $0.30 per diluted share compared to adjusted net income of $27.4 million, or $0.74 per diluted share, in the first quarter of 2025.
Cash was $461.7 million as of March 31, 2026.
2026 Financial Outlook
TransMedics is reiterating its full year 2026 revenue guidance to be in the range of $727 million to $757 million, which represents 20% to 25% growth compared to the company's prior year revenue.
Webcast and Conference Call Details
The TransMedics management team will host a conference call beginning at 4:30 p.m. ET / 1:30 p.m. PT on Tuesday, May 5, 2026. Investors interested in listening to the conference call may do so by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers and providing access code 9254082. A live and archived webcast of the event and the company's slide presentation with information on first quarter 2026 financial results will be available on the "Investors" section of the TransMedics website at www.transmedics.com.
About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.
Forward-Looking Statements
This press release contains forward-looking statements with respect to, among other things, future results and events, including financial guidance and projected estimates, potential clinical outcomes and therapies, and statements about our operations, operational execution, financial position, strategic plans and other business plans. For this purpose, all statements other than statements of historical facts are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "could," "target," "predict," "seek" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties. Our management cannot predict all risks, nor can we assess the impact of all factors or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in or implied by any forward-looking statements we may make. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated in or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ include: the fluctuation of our financial results from quarter to quarter; our ability to attract, train and retain key personnel; our dependence on the success of the OCS; our ability to expand access to the OCS through our NOP; our ability to improve the OCS platform, including by developing the next generation of the OCS products or expanding into new indications and the development, and potential commercialization of our OCS Kidney device; the timing or results of clinical trials for the OCS, including pre- and post-approval studies, or other product candidates, including CHOPS; our ability to sustain profitability; our need to raise additional funding and our ability to obtain it on favorable terms, or at all; our ability to use net operating losses and research and development credit carryforwards; that we have identified a material weakness in our internal control over financial reporting, and that we may identify additional material weaknesses in the future; our ability to scale our manufacturing and sterilization capabilities to meet increasing demand for our products; the rate and degree of market acceptance of the OCS; our ability to educate patients, surgeons, transplant centers and private and public payors on the benefits offered by the OCS; our dependence on a limited number of customers for a significant portion of our revenue; our ability to maintain regulatory approvals or clearances for our OCS products in the United States, the European Union and other select jurisdictions worldwide; our ability to adequately respond to the Food and Drug Administration (the "FDA") or other competent authorities, follow-up inquiries in a timely manner; the impact of healthcare policy changes, including recently enacted or potential future legislation or administrative actions affecting or reforming the U.S. healthcare system, Organ Procurement and Transplantation Network, or the FDA; the performance of our third-party suppliers and manufacturers; our use of third parties to transport donor organs and medical personnel for our NOP and our ability to maintain and grow our transplant logistics capabilities to support our NOP to reduce dependence on third party transportation, including by means of attracting, training and retaining pilots, and the acquisition, maintenance or replacement of fixed-wing aircraft for our aviation transportation services or other acquisitions, joint ventures or strategic investments; our ability to maintain Federal Aviation Administration, or other regulatory licenses or approvals for our aircraft transportation services; price increases of the components of our products and maintenance, parts and fuel for our aircraft; our manufacturing, sales, marketing and clinical support capabilities and strategy; attacks against our information technology, or IT, infrastructure; the economic, political and other risks associated with our foreign operations; our ability to protect, defend, maintain and enforce our intellectual property rights relating to the OCS and avoid allegations that our products or services infringe, misappropriate or otherwise violate the intellectual property rights of third parties; the pricing of the OCS, as well as the reimbursement coverage for the OCS in the United States and internationally; regulatory developments in the United States, European Union and other jurisdictions; the impact of a shutdown of the U.S. government; the extent and success of competing products or procedures that are or may become available; our ability to service our 1.50% convertible senior notes, due 2028; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreements to which we will remain subject until maturity; the impact of any product recalls or improper use of our products; our international expansion plans and the costs related thereto; our estimates regarding revenue, expenses and needs for additional financing; and other factors that may be described in our filings with the Securities and Exchange Commission (the "SEC"). Additional information will be made available in our annual and quarterly reports and other filings that we make with the SEC. The forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and we are not able to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we disclose certain non-GAAP financial measures, including adjusted income from operations, adjusted operating margin, adjusted net income, and adjusted diluted net income per common share. These non-GAAP financial measures are not calculated in accordance with GAAP, are not a substitute for, and should be considered supplemental to, GAAP financial measures. Our definitions of these non-GAAP measures may differ from similarly titled measures used by other companies, which may limit their usefulness for comparative purposes.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe the presentation of these measures is useful to both management and investors as they provide meaningful supplemental information with respect to our core operational performance and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making.
To calculate adjusted income from operations, adjusted operating margin, adjusted net income and adjusted diluted net income per common share, we exclude certain charges (credits) from GAAP income from operations and GAAP net income, such as transaction-related costs, incremental amortization of intangible assets, headquarters relocation costs and legal matters. Amounts are presented after-tax using the company's statutory tax rate unless the amount is a significant unusual or infrequently occurring item in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 740-270-30, "General Methodology and Use of Estimated Annual Effective Tax Rate."
Investor Contact:
Brian Johnston
332-895-3222
[email protected]
TransMedics Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended March 31,
2026
2025
Revenue:
Net product revenue
$
107,972
$
88,234
Service revenue
65,961
55,303
Total revenue
173,933
143,537
Cost of revenue:
Cost of net product revenue
24,308
16,312
Cost of service revenue
48,464
38,997
Total cost of revenue
72,772
55,309
Gross profit
101,161
88,228
Gross margin
58
%
61
%
Operating expenses:
Research, development and clinical trials
24,879
17,160
Selling, general and administrative
62,985
43,625
Total operating expenses
87,864
60,785
Income from operations
13,297
27,443
Other income (expense):
Interest expense
(7,170)
(3,461)
Interest income and other income (expense), net
2,358
2,694
Total other expense, net
(4,812)
(767)
Income before income taxes
8,485
26,676
Provision for income taxes
(1,170)
(994)
Net income
$
7,315
$
25,682
Net income per share:
Basic
$
0.21
$
0.76
Diluted
$
0.20
$
0.70
Weighted average common shares outstanding:
Basic
34,384,207
33,721,603
Diluted
36,194,023
39,914,487
TransMedics Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 31,
December 31,
2026
2025
Assets
Current assets:
Cash
$
461,739
$
488,366
Accounts receivable
90,727
84,282
Inventory
49,890
48,881
Prepaid expenses and other current assets
16,924
16,254
Total current assets
619,280
637,783
Property, plant and equipment, net
361,571
327,656
Finance lease right-of-use assets, net
334,545
—
Operating lease right-of-use assets, net
4,858
5,155
Deferred tax assets
82,476
83,543
Restricted cash
18,438
500
Goodwill
11,549
11,549
Acquired intangible assets, net
—
1,948
Other non-current assets
2,103
239
Total assets
$
1,434,820
$
1,068,373
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
11,151
$
10,350
Accrued expenses and other current liabilities
59,316
62,740
Current portion of long-term debt
15,000
10,000
Deferred revenue
2,945
2,905
Operating lease liabilities
3,508
3,310
Total current liabilities
91,920
89,305
Convertible senior notes, net
453,530
452,804
Long-term debt, net
44,665
49,587
Finance lease liability
343,829
—
Operating lease liabilities, net of current portion
2,883
3,577
Other long-term liabilities
3,986
—
Total liabilities
940,813
595,273
Total stockholders' equity
494,007
473,100
Total liabilities and stockholders' equity
$
1,434,820
$
1,068,373
TransMedics Group, Inc.
NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND DILUTED NET INCOME PER SHARE
RECONCILIATIONS
(dollars in thousands, except per share)
(unaudited)
Three Months Ended March 31, 2026
Income from
Operations
Operating
Margin %
Net Income
Diluted Net
Income per
Common Share
Reported
$
13,297
7.6
%
$
7,315
$
0.20
Non-GAAP adjustments:
Incremental amortization of acquired
intangible assets(1)
1,898
1.1
%
1,418
0.04
Transaction-related costs(2)
2,707
1.6
%
2,023
0.06
Headquarters relocation costs(3)
207
0.1
%
155
0.00
Adjusted
$
18,109
10.4
%
$
10,911
$
0.30
Three Months Ended March 31, 2025
Income from
Operations
Operating
Margin %
Net Income
Diluted Net
Income per
Common Share
Reported
$
27,443
19.1
%
$
25,682
$
0.70
Non-GAAP adjustments:
Legal matters(4)
2,358
1.6
%
1,759
0.04
Adjusted
$
29,801
20.7
%
$
27,441
$
0.74
(1)
Incremental amortization of acquired intangible assets – We record intangible assets acquired in a business combination or asset acquisition at acquisition date fair values and amortize over their estimated useful lives. These adjustments reflect non-cash charges related to incremental amortization of acquired intangible assets, resulting from periodic reassessments of estimated economic lives. These amounts are excluded as they relate to discrete, non-routine activities rather than the Company's ongoing operations and therefore are not considered indicative of normal operating costs.
(2)
Transaction-related costs – These adjustments primarily reflect direct and incremental costs incurred in connection with strategic initiatives and corporate development activities, and may include due diligence, deal fees, integration and other fees and costs related to transactions. The Company excludes only costs that are directly attributable to individually identifiable transactions that have progressed beyond preliminary evaluation, including those for which formal internal approvals have been obtained or third-party advisors have been engaged. Exploratory and other ongoing corporate development and strategy-related operating expenses are not excluded. Excluded costs are associated with discrete transaction events and are not reflective of the Company's core operating performance, although similar costs may be incurred in future periods.
(3)
Headquarter relocation costs – These adjustments reflect primarily direct and incremental third-party professional fees, including valuation, accounting, and advisory services, incurred in connection with the Company's relocation of its headquarters to Somerville, Massachusetts. These costs may also include incremental depreciation of fixed assets resulting from reassessments of estimated economic lives in consideration of the relocation. The Company excludes only costs that are directly attributable to the relocation event and does not exclude ongoing occupancy, personnel, or other recurring operating expenses associated with the new headquarters.
(4)
Legal matters - These adjustments reflect legal fees and other directly attributable costs incurred in connection with responding to and addressing matters arising from the short-seller report issued in January 2025. Such costs may include external legal counsel, advisory services, and other incremental expenses necessary to evaluate and defend against the claims. The Company excludes only costs that are specifically associated with this discrete event and does not exclude ongoing legal expenses related to normal business operations. These costs are excluded as they are non-recurring in nature and not indicative of the Company's core operating performance, although similar costs could arise in future periods.
TransMedics (TMDX - Free Report) came out with quarterly earnings of $0.3 per share, missing the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.7 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -51.46%. A quarter ago, it was expected that this medical technology company would post earnings of $0.41 per share when it actually produced earnings of $0.57, delivering a surprise of +39.02%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
TransMedics, which belongs to the Zacks Medical - Instruments industry, posted revenues of $173.93 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.99%. This compares to year-ago revenues of $143.54 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
TransMedics shares have lost about 20.2% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for TransMedics?While TransMedics has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for TransMedics was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.74 on $190.57 million in revenues for the coming quarter and $2.48 on $739.75 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Envoy Medical, Inc. (COCH - Free Report) , is yet to report results for the quarter ended March 2026.
This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +51.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Envoy Medical, Inc.'s revenues are expected to be $0.06 million, up 20% from the year-ago quarter.
For the quarter ended March 2026, TransMedics (TMDX - Free Report) reported revenue of $173.93 million, up 21.2% over the same period last year. EPS came in at $0.30, compared to $0.70 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $175.67 million, representing a surprise of -0.99%. The company delivered an EPS surprise of -51.46%, with the consensus EPS estimate being $0.62.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how TransMedics performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
OCS transplant revenue- United States- Total: $167.02 million versus the three-analyst average estimate of $171.27 million. The reported number represents a year-over-year change of +20.5%.OCS transplant revenue- United States- Lung total revenue: $2.2 million versus the three-analyst average estimate of $4.6 million.OCS transplant revenue- United States- Heart total revenue: $25.86 million versus the three-analyst average estimate of $31.3 million.OCS transplant revenue- All other countries- Heart total revenue: $5.01 million versus $3.78 million estimated by three analysts on average.OCS transplant revenue- All other countries- Total: $5.65 million versus $4.45 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +38.9% change.OCS transplant revenue- All other countries- Lung total revenue: $0.63 million versus $0.4 million estimated by three analysts on average.OCS transplant revenue- United States- Liver total revenue: $138.97 million versus the three-analyst average estimate of $135.37 million.OCS transplant revenue- Lung net revenue (U.S. & All Other countries): $2.82 million versus $5 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -29.6% change.OCS transplant revenue- Heart net revenue (U.S. & All Other countries): $30.87 million versus $35.08 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.5% change.OCS transplant revenue- Liver net revenue (U.S. & All Other countries): $138.98 million compared to the $135.64 million average estimate based on three analysts. The reported number represents a change of +27.7% year over year.Revenue- Net Product: $107.97 million versus $105.26 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +22.4% change.Revenue- Service: $65.96 million versus $65.1 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +19.3% change.View all Key Company Metrics for TransMedics here>>>
Shares of TransMedics have returned -7.4% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Key Takeaways TransMedics posted Q1 EPS of $0.30, down 59.5% YoY, missing estimates by 51.6%.TMDX's revenues grew 21% to $173.9M, driven by OCS adoption and logistics services expansion.TransMedics saw margin contraction as expenses surged despite growth in products and services. TransMedics Group (TMDX - Free Report) delivered earnings per share (EPS) of 30 cents in the first quarter of 2026, down 59.5% year over year. The figure missed the Zacks Consensus Estimate by 51.6%.
TMDX’s Q1 Revenues in DetailTransMedics registered revenues of $173.9 million in the first quarter, up 21% year over year. The figure fell short of the Zacks Consensus Estimate by 1%.
Per management, the year-over-year rise was driven by the increased utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP"), as well as additional revenues generated by TransMedics logistics services.
During the reported quarter, TMDX was able to cover 82% of its NOP missions requiring air transport compared with 78% in the first quarter of 2025.
However, shares of TransMedics lost 19.7% in yesterday’s after-market trading. The company’s shares have declined 22% in the year-to-date period compared with the industry’s fall of 16.6%. However, the broader S&P 500 Index has increased 6% in the same time frame.
Image Source: Zacks Investment Research
TransMedics’ Segment DetailsTMDX derives revenues via two sources: Net product revenues and Service revenues.
In the first quarter of 2026, Net product revenues totaled $108 million, up 22% year over year. Growth was driven by continued strong liver performance and modest growth in the heart.
Service revenues totaled $66 million, up 19% year over year, driven primarily by logistics revenues, supported by increased utilization of the TransMedics aviation fleet.
Transplant Logistics’ services revenues for first-quarter 2026 were $32 million, up 22% year over year. This resulted from the continued expansion and strong utilization of TransMedics’ aviation fleet.
TMDX’s Margin TrendIn the quarter under review, TransMedics’ gross profit increased 14.7% year over year to $101.2 million. The gross margin contracted 331 basis points (bps) to 58%.
Selling, general and administrative expenses rose 44.4% year over year to $62.9 million. Research, development and clinical trials expenses surged 45% year over year to $24.9 million. Total operating expenses of $87.9 million increased 44.5% year over year.
Adjusted operating profit totaled $18.1 million, reflecting a downtick of 39.2% from the prior-year quarter. The adjusted operating margin in the first quarter contracted 1030 bps to 10.4%.
TransMedics’ Financial PositionTransMedics exited first-quarter 2026 with cash of $461.7 million compared with $488.4 million at the end of 2025. Total long-term debt at the end of first-quarter 2026 was $44.5 million compared with $49.6 million at the end of 2025.
Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $24.5 million, against net cash used in operating activities of $2.9 million a year ago.
TMDX’s 2026 GuidanceTransMedics reiterated its revenue outlook for 2026.
For 2026, the company expects revenues in the range of $727-$757 million, reflecting growth of 20-25% from the 2025 level. The Zacks Consensus Estimate is pegged at $739.7 million.
Our Take on TransMedics’ Q1 ResultsTransMedics delivered mixed first-quarter 2026 results, where solid top-line growth was overshadowed by profitability pressure and an earnings miss. Quarterly performance was driven bygrowing OCS case volume, increased clinical adoption and expanding logistics services. While earnings per share declined year over year due to elevated investments, results still exceeded expectations, signaling underlying strength in the business. However, both gross margin and operating margin contraction during the quarter were disappointing.
Growth was supported by balanced contributions from both product and service segments. Transplant product revenues benefited from strong liver performance and steady heart adoption, while logistics services continued to scale. Increased utilization of the company’s aviation fleet and improved operational efficiency further reinforced the value of its integrated National OCS Program (NOP).
TransMedics is accelerating investments in 2026, positioning the year as a transformational phase. Strategic priorities include advancing the ENHANCE Heart and DENOVO Lung programs, expanding international operations and progressing the OCS Kidney platform. The kidney program, built on the new Gen 3.0 platform, represents a significant opportunity to penetrate the largest segment of the transplant market and drive long-term growth.
A notable development is the introduction of the Controlled Hypothermic Organ Preservation System (CHOPS), designed to complement existing technologies and expand the company’s product portfolio. CHOPS targets shorter-duration transplant scenarios, allowing TransMedics to address a broader spectrum of clinical needs while strengthening its competitive positioning.
International expansion is also gaining momentum, with early infrastructure development underway in Europe and partnerships being formed to replicate the NOP model overseas.
Despite near-term margin pressure from increased investments, TransMedics remains confident that these investments will drive long-term operating leverage and market expansion.
TMDX’s Zacks Rank & Key PicksTransMedics currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
West Pharmaceutical reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, beating the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.
Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has a long-term estimated growth rate of 15.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.
TransMedics Group, Inc. remains a Sell as its valuation still bakes in near-perfect execution, despite the stock being nearly 40% cheaper since October. TMDX's valuation implies sustaining some combination of between 9–20% revenue growth and 9–17% free cash flow margins, which remains a high bar given current trends. Growth levers like CHOPS, international expansion, and potential OPO conversion are either hedges, slow-moving, or highly uncertain, making current valuation hard to justify.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today announced the company will be participating in the William Blair 46th Annual Growth Stock Conference in Chicago on Tuesday, June 2, 2026. The TransMedics management team will present beginning at 2:20 p.m. ET/ 1:20 p.m. CT.
A live and archived webcast of the presentations will be available on the "Investors" section of the TransMedics website at https://investors.transmedics.com/. The Company's standard investor presentation is also available through this link.
About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.
Investor Contact:
Brian Johnston
Hannah Jeffrey
332-895-3222 [email protected]
, /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today announced that on May 19, 2026, TransMedics granted non-qualified stock options to purchase an aggregate of 37,367 shares of its common stock and an aggregate of 24,848 restricted stock units to 14 employees, each as a material inducement for each employee's entry into employment with TransMedics. The grants included stock options to purchase 23,171 shares of TransMedics' common stock and 15,409 restricted stock units granted to Matthew S. Forsyth, the Company's Senior Vice President, General Counsel & Corporate Secretary. The grants were approved by the Compensation Committee of the TransMedics Board of Directors and were granted in accordance with Nasdaq Listing Rule 5635(c)(4) and pursuant to the TransMedics Group, Inc. Inducement Plan.
The stock options were granted with a per share exercise price of $66.13, the closing price of the common stock on the Nasdaq Global Market on May 19, 2026. Twenty-five percent of the shares subject to each option grant will vest on the first yearly anniversary of the date of the employee's start of employment, with the remainder vesting in equal monthly installments over the subsequent three year period, subject to the employee's continued service with the Company through the applicable vesting date. The options have a 10-year term and are subject to the terms of the TransMedics Group, Inc. Inducement Plan. Twenty-five percent of each restricted stock unit award will vest on the first four anniversaries of the date of the employee's start of employment, subject to the employee's continued service with the Company through the applicable vesting date. The restricted stock units are subject to the terms of the TransMedics Group, Inc. Inducement Plan.
About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.
Investor Contact:
Brian Johnston
Hannah Jeffrey
332-895-3222
[email protected]
TransMedics remains a 'Strong Buy' despite a 50% stock decline and Q1 2026 earnings miss, supported by robust long-term growth initiatives. TMDX's portfolio expansion includes CHOPS as a complementary offering and aggressive European NOP rollout, aiming to expand its addressable market. Q1 2026 revenue grew 21% year-over-year to $174 million, led by liver segment strength, though higher costs compressed margins and net income.
TransMedics (TMDX 1.36%) has been hit hard as investors question margins, spending, and execution. But beneath the sell-off, the company's Organ Care System, aviation network, and National OCS Program could be building a deeper transplant infrastructure moat than the market realizes.
*Stock prices used were the market prices of May 25, 2026. The video was published on June 1, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TransMedics Group. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
A month has gone by since the last earnings report for TransMedics (TMDX - Free Report) . Shares have lost about 4.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is TransMedics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
TransMedics Q1 Earnings & Revenues Miss EstimatesTransMedics delivered earnings per share of 30 cents in the first quarter of 2026, down 59.5% year over year. The figure missed the Zacks Consensus Estimate by 51.6%.
TMDX’s Q1 Revenues in DetailTransMedics registered revenues of $173.9 million in the first quarter, up 21% year over year. The figure fell short of the Zacks Consensus Estimate by 1%.
Per management, the year-over-year rise was driven by the increased utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP"), as well as additional revenues generated by TransMedics logistics services.
During the reported quarter, TMDX was able to cover 82% of its NOP missions requiring air transport compared with 78% in the first quarter of 2025.
TransMedics’ Segment DetailsTMDX derives revenues via two sources: Net product revenues and Service revenues.
In the first quarter of 2026, Net product revenues totaled $108 million, up 22% year over year. Growth was driven by continued strong liver performance and modest growth in the heart.
Service revenues totaled $66 million, up 19% year over year, driven primarily by logistics revenues, supported by increased utilization of the TransMedics aviation fleet.
Transplant Logistics’ services revenues for first-quarter 2026 were $32 million, up 22% year over year. This resulted from the continued expansion and strong utilization of TransMedics’ aviation fleet.
TMDX’s Margin TrendIn the quarter under review, TransMedics’ gross profit increased 14.7% year over year to $101.2 million. The gross margin contracted 331 basis points (bps) to 58%.
Selling, general and administrative expenses rose 44.4% year over year to $62.9 million. Research, development and clinical trials expenses surged 45% year over year to $24.9 million. Total operating expenses of $87.9 million increased 44.5% year over year.
Adjusted operating profit totaled $18.1 million, reflecting a downtick of 39.2% from the prior-year quarter. The adjusted operating margin in the first quarter contracted 1030 bps to 10.4%.
TransMedics’ Financial PositionTransMedics exited first-quarter 2026 with cash of $461.7 million compared with $488.4 million at the end of 2025. Total long-term debt at the end of first-quarter 2026 was $44.5 million compared with $49.6 million at the end of 2025.
Net cash provided by operating activities at the end of first-quarter 2026 was $24.5 million, against net cash used in operating activities of $2.9 million a year ago.
TMDX’s 2026 GuidanceTransMedics reiterated its revenue outlook for 2026.
For 2026, the company expects revenues in the range of $727-$757 million, reflecting growth of 20-25% from the 2025 level. The Zacks Consensus Estimate is pegged at $739.7 million.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -29.46% due to these changes.
VGM ScoresCurrently, TransMedics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
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.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, TransMedics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerTransMedics is part of the Zacks Medical - Instruments industry. Over the past month, Thermo Fisher Scientific (TMO - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended March 2026 more than a month ago.
Thermo Fisher reported revenues of $11.01 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $5.44 for the same period compares with $5.15 a year ago.
For the current quarter, Thermo Fisher is expected to post earnings of $5.75 per share, indicating a change of +7.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Thermo Fisher. Also, the stock has a VGM Score of D.
TransMedics (TMDX) faces decelerating revenue growth, margin pressure, and increased investment, yet maintains strong market share gains and competitive positioning. TMDX's logistics and clinical services now comprise nearly 40% of revenue, enhancing competitive advantages and supporting long-term margin strength. Despite growth normalizing to 20-25% and compressed margins, I see current valuation at 4x EV/Sales as attractive, supporting a Buy rating.
