SouthernSun Asset Management’s fourth-quarter 2025 investor letter highlighted Generac Holdings Inc. (GNRC) as a bottom performer due to decreased demand for its Home Standby (HSB) generators, resulting from fewer power outages in 2025. Despite this, the firm noted strong performance in Generac’s Commercial and Industrial segment, growth in home automation, and rising demand for large gensets in data centers. SouthernSun maintains a positive long-term outlook for GNRC, seeing it as well-positioned in both HSB and data center markets.
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Generac Holdings (GNRC) was Hurt by Lower Demand for Its HSB Generators
SouthernSun Asset Management’s fourth-quarter 2025 investor letter highlighted Generac Holdings Inc. (GNRC) as a bottom performer due to decreased demand for its Home Standby (HSB) generators, resulting from fewer power outages in 2025. Despite this, the firm noted strong performance in Generac’s Commercial and Industrial segment, growth in home automation, and rising demand for large gensets in data centers. SouthernSun maintains a positive long-term outlook for GNRC, seeing it as well-positioned in both HSB and data center markets.