Generac stock surges 18% on $8B Amazon supply deal

Investing.com -- Generac Holdings (NYSE: GNRC) shares rose 18% in after-hours trading following the announcement of a long-term supply agreement with Amazon.com to provide backup power generators for Amazon data centers.

Under the terms of the agreement announced Thursday, Generac will supply generators with payments totaling up to $8 billion. Initial deliveries are expected to total $2.4 billion across 2027 and 2028.

As part of the transaction, Generac issued a warrant to Amazon.com NV Investment Holdings LLC, a wholly-owned subsidiary of Amazon, allowing it to acquire up to 1,693,745 shares of Generac common stock at an exercise price of $200.93 per share. Of those shares, 307,954 vested immediately, with the remainder vesting in tranches tied to aggregate gross payments received by Generac and its affiliates from Amazon for backup power generators.

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