Generac Holdings Inc. (GNRC), renowned for its home generator systems and emergency power solutions, has experienced a notable rise in its stock price following the landfall of Hurricane Helene in the southeastern United States.
In an interview with Bloomberg last week, Generac’s CEO Aaron Jagdfeld highlighted the proactive measures people are taking in response to the storm. “You are seeing people taking the situation into their own hands, whether it is backing up their own homes or businesses or doing something to produce their own power,” he stated.
Hurricane Helene made its entry into Florida as a Category 4 storm on Thursday, later weakening to a tropical storm as it moved toward Georgia and South Carolina. By Friday morning, over 4 million homes and businesses across the southeastern U.S. were reported to be without power, according to poweroutage.us.
On the stock market, Generac’s shares rose nearly 2% on Friday alone and have gained almost 10% over the week. With these recent gains, the stock has surged approximately 20% year-to-date.
This positive momentum for Generac follows a revision in its full-year 2024 net sales guidance issued in July, which was attributed to increased power outages, including those caused by Hurricane Beryl. During the two-week period affected by Hurricane Beryl, Generac shares rose by 12%.
Jagdfeld emphasized the growth potential for the company, noting that only about 6% of the potential market for home generators in the U.S. is currently penetrated. He expressed confidence in Generac’s position as the leading provider in the residential standby generator market, stating, “We believe there are significant opportunities to further penetrate this category.”
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