Energy technology company Generac (GNRC) saw its shares jump more than 18% intraday on Sept. 17 after a landmark deal with Amazon (AMZN) was disclosed. The major long-term supply agreement underscores that Generac will supply up to $8 billion worth of backup power generators for Amazon data centers, with initial deliveries expected to total $2.4 billion across 2027 and 2028. An Amazon subsidiary was also issued warrants to acquire up to 1,693,745 shares of Generac's common stock at a fixed exercise price.
This agreement bolsters the emerging data center business that has been Generac’s growth engine. Barclays analyst Christine Cho agrees with this sentiment, saying the “larger-than-expected size of the deal underpins the tripling of manufacturing capacity discussed on the last earnings call.”
