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Generac Surges Most On Record As Amazon's Generator Deal Electrifies Data Centers
Generac shares surged the most on record in premarket trading in New York after disclosing a long-term deal with Amazon that could generate up to $8 billion in power-generation spending.
Wells Fargo analyst Praneeth Satish, who covers Generac, shared his initial thoughts on the massive Amazon-Generac power deal in a note:
GNRC Announces Multibillion Dollar Contract With AMZN. GNRC announced a multi year agreement to supply backup generators for Amazon's data centers and issued warrants to AMZN, allowing for the purchase of up to 1.69M GNRC shares at $200.93/ share. The warrants vest as Amazon's cumulative generator purchases increase, up to $8B of spend, with ~18% vesting at signing. Initial deliveries are expected to total $2.4B in 2027-28, or an average of $1.2B/yr (vs our prior estimate of >$1.0B).
Warrants Imply A Long-Term Relationship. The warrant agreement suggests Amazon's relationship with GNRC is intended to extend well beyond the initial $2.4B delivery schedule for 2027-28, with Amazon able to earn the full warrant only if cumulative diesel generator purchases ultimately reach $8B, reinforcing our view that the strategic significance o
Stock Was Not Reflecting Much Data Center Upside, Making This Deal More Impactful. GNRC stock has underperformed recently given investor concerns around Trump's EO on foreign-sourced grid equipment and GNRC's use of Baudouin engines. We estimate GNRC is worth ~$185/sh assuming only a sustained ~$1B annual revenue run rate from its first hyperscaler and colo deals. With GNRC trading at $175/sh pre AMZN deal, the stock appeared to be discounting little to no value for any new data center deals.
William Blair industrials analyst Brian Drab told clients that Generac's seven-year deal with Amazon is a "massive win" :
Our Take. This is a massive win for Generac and provides clarity regarding the demand underpinning management's recently announced plan to triple manufacturing capacity for large-format generators by August 2027. We estimate the agreement will add more than 20% to total company EBITDA in 2028. In addition, the agreement provides strong visibility, with an indication of $8 billion in spend over seven years, for Generac at a time when many investors are questioning the durability of capital spending trends in the data center industry. The agreement also reduces the perceived risk associated with the extraordinary capacity expansion management has in motion. Prior to today's announcement, shares were trading at only 10 times 2027 EBITDA, despite our forecast for greater than 20% EBITDA growth over the next several years. We believe that the signing of this agreement will not only drive material upward estimate revisions but also lower the discount rate applied to the future earnings given increased visibility, driving valuation expansion.
Generac shares surged 34% in premarket trading. If sustained through the cash close, the massive gain would mark the stock's largest one-day gain in Bloomberg data going back to 2010.
Analyst coverage includes 16 "Buy" ratings, six "Holds," and no "Sells," with an average 12-month price target of about $293.
We recently cited Apollo's head of thematic investing, Rob Bittencourt, who said the US reindustrialization is already "underway" and will require trillions of dollars in investment. Bittencourt noted that much of the investing activity has centered on compute-related spending (read the report). Generac's Amazon deal shows how the spending is extending beyond computing hardware into the power infrastructure supporting the data center buildout and powering up America trends.
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CENTCOM Chief Tells Arab States US Will Not Withdraw From Middle East
Kyle Anzalone via The Libertarian Institute
Commander of Central Command (CENTCOM) Adm. Brad Cooper recently organized a meeting of Israeli and Arab military officials. At the summit, he informed his counterparts that the US military has no plans to withdraw its forces from the Middle East.
Axios reported it spoke with two Israeli officials who said representatives from Israel, Saudi Arabia, the UAE, Bahrain, Kuwait, Qatar, Jordan, and Egypt attended the summit hosted by Cooper in Germany last week.
According to the Israeli officials, Cooper told his counterparts the US military would not withdraw its forces from the region despite Iranian attacks on US bases and that Washington planned to expand shipping through the Strait of Hormuz.
via SPAEarlier this month, CNN reported that it spoke with six officials who said there were quiet conversations ongoing on reducing the US military presence in the Middle East. Senior Pentagon officials have privately made clear that they want a smaller US military footprint in several Gulf states after the conflict.
While the US is maintaining tens of thousands of soldiers in the Middle East during the war, many of the permanent military bases and intelligence facilities have been damaged or destroyed during the conflict with Iran. CNN reported that it spoke with an official who said the CIA outpost in Saudi Arabia was destroyed.
Some military and intelligence facilities destroyed during the conflict may not be rebuilt or replaced. Some officials are considering having US special operations and intelligence personnel based in America and travel to the Middle East for specific missions.
Future military bases in the Middle East may be moved underground to protect them in future conflicts.
CENTCOM confirmed the meeting, saying Cooper “hosted senior military leaders from eight nations during a scheduled conference in Germany. The leaders discussed opportunities for enhancing security cooperation in the Middle East.”
At the summit, according to a source familiar with the matter who told Axios, Israel and Saudi Arabia discussed how Tel Aviv could support Riyadh in the war against Ansar Allah in Yemen. Ansar Allah has declared blockades targeting Israeli and Saudi shipping in the Red Sea.
The Pentagon’s Inspector General reports today that “hundreds” of buildings and structures on U.S. bases in the Middle East have been destroyed by Iranian attacks. pic.twitter.com/B7SD33IrZI
— Daniel DePetris (@DanDePetris) September 15, 2026Ansar Allah asserted its view that the blockade on Israeli shipping is a response to the genocide in Gaza, while its restrictions on Saudi shipping are retaliation for Riyadh’s renewed military campaign in Yemen.
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We Are Not In A Recession... So Why Are We Borrowing Like It?
Authored by Ken Buck via The Epoch Times,
Despite a lot of talk about fiscal responsibility, lawmakers in Washington are continuing to run up the tab on America's already maxed-out credit card.
The U.S. annual deficit - the difference between the revenue that the federal government collects and what it spends each year - reached $1.8 trillion through the first 10 months of the current fiscal year. With two months still left to go, this year's deficit will exceed $2 trillion.
In non-pandemic years, the U.S. deficit has never surpassed $1.8 trillion in a single year.
Our economy is growing, unemployment remains low, and there is no national emergency forcing the government's hand. So, what gives? Why can't Washington get our fiscal house in order? As the president of the Committee for a Responsible Federal Budget put it, this is "not normal."
High borrowing costs, which are a result of our country's yawning national debt (the cumulative total of each year's deficit), are a major driver. The U.S. Treasury yield, which is the interest rate the government must pay on bonds issued for debt, hit a 19-year high this month, 5.34 percent.
In other words, as the national debt continues to climb, creditors are wary that the federal government will be able to repay its obligations and therefore demand a higher return. That means more revenue - almost 20 cents of every tax dollar, higher than the previous record set in 1991 - now goes to paying interest rather than investing in our country.
The real problem, however, is Washington's unbridled spending spree. Democrats insist on more federal programs, even as the price tag for existing entitlements continues to grow, and annual shortfalls continue to mount. Federal spending increased by 5 percent this year compared to last, while revenue only grew 3 percent.
Sadly, even conservatives have gone along with the ruse. The Big Beautiful Bill, Republicans' landmark reconciliation package last year, promised to cut a lot of government waste and kept taxes low, but it failed to get to the root of the federal growth. Without serious entitlement reform, tax cuts leave the budget hole even larger.
The nonpartisan Congressional Budget Office estimated that the Big Beautiful Bill would add $3.4 trillion to the national debt over 10 years, and as much as $4.5 trillion when factoring in interest payments.
Don't get me wrong, Republicans' tax cuts are a smart way to spur economic growth, which is one way to improve our country's finances. When the private sector can invest its money, rather than pay it to Uncle Sam, it creates jobs and economic activity - which fill the public coffers. The government doesn't create jobs; businesses do. When companies and workers do well, so does the government.
But tax cuts must be offset by meaningful spending reductions. Addressing just one side of the ledger is like damming half a river; it doesn't fix deficits.
Getting our annual deficits in check doesn't mean looking back; it requires looking forward. It's a live decision, one that's happening at the same time the administration is asking Congress for a 19 percent increase in discretionary spending - which would be the second-largest bump in at least six decades.
Lawmakers must look at our deficit-spending addiction holistically. To his credit, President Donald Trump's 2027 budget proposes cutting non-defense spending by 10 percent. However, those gains are more than negated in defense spending. That's a critical priority, but funding must be offset with significant spending reductions. That means programs that have long been a political third rail, including Social Security, Medicare, and Medicaid.
While slashing entitlement historically has not been a winning recipe for getting reelected, voters understand what's at stake, and they want leaders who will make the right decisions.
Over eight in 10 Americans are more concerned about the national debt now compared to a few years ago, and 85 percent want Congress and the White House to do more to address it.
The heightened awareness owes to voters' own understanding. Nine in 10 people realize that our country's debt problem is driving up costs of living and making personal borrowing more expensive.
Eliminating our country's annual deficits is achievable, and doing so will get our national debt on a path to be paid down. But it will take bold leaders who will set realistic goals and have the political courage to achieve them. That's a tall ask in Washington these days, but voters should demand it when they go to vote this fall.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.
Tyler Durden Thu, 09/17/2026 - 06:30