Amazon can buy Generac stock at $201 after a big power deal

Generac started in 1959. It builds power gear. That means generators, batteries and energy controls. It sells to homes, shops, phone networks, rental firms and data centers. [C4][C4] Note 1, Description of Business and Basis of PresentationFounded in 1959, Generac Holdings Inc. (the Company) is a leading global designer and manufacturer of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products and services serving the residential, commercial, data center, telecom, rental, and industrial markets.Generac Holdings Inc. quarterly report on Form 10-Q for the period ended June 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926025669/gnrc20260630_10q.htm

Sales are rising. Generac sold $1.17 billion of goods in the three months to June 30, 2026. A year before, that number was $1.06 billion. [C5][C5] Condensed Consolidated Statements of Comprehensive IncomeNet sales $ 1,173,510 $ 1,061,169 $ 2,232,875 $ 2,003,290Generac Holdings Inc. quarterly report on Form 10-Q for the period ended June 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926025669/gnrc20260630_10q.htm

Generac warned about data centers in August. Big customers there can cancel. It also said the market may not keep growing. [C6][C6] Cautionary Statement, forward-looking factorsuncertainty regarding the growth of the data center market; ● increase in contract risk related to terms with certain data center customers, including cancellation rights, delivery requirements, and potential liability exposure tied to our performance obligations or other claimed damagesGenerac Holdings Inc. quarterly report on Form 10-Q for the period ended June 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926025669/gnrc20260630_10q.htm

Amazon is the one paying. It will buy backup power gear for its data centers. Generac expects the first of it to come to $2.4 billion in 2027 and 2028. [C2][C2] Item 1.01 Entry into a Material Definitive Agreement307,954 Warrant Shares vested immediately with the remaining balance vesting over the term of the Warrant in multiple tranches contingent upon aggregate gross payments, net of certain offsets, received by the Company and its global affiliates from or on behalf of Amazon and its affiliates for backup power generators for Amazon data centers, up to a total of $8 billion. On the date of issuance, the Company and Amazon executed a long-term supply agreement. Initial deliveries of backup generators are expected to total $2.4 billion in 2027 and 2028.Generac Holdings Inc. current report on Form 8-K, filed September 16, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm

Generac gives Amazon two things. One is the gear. The other is a fixed claim on Generac stock. Amazon may buy up to 1,693,745 shares at $200.9266 each. [C1][C1] Item 1.01 Entry into a Material Definitive AgreementOn September 16, 2026, Generac Holdings Inc. (the “Company”) and Amazon.com, Inc. (“Amazon”) entered into a Transaction Agreement (the “Transaction Agreement”), under which the Company issued to Amazon.com NV Investment Holdings LLC, a wholly-owned subsidiary of Amazon (“Holdings”), a warrant (the “Warrant”) to acquire up to 1,693,745 shares of common stock of the Company (the “Warrant Shares”) at an exercise price of $200.9266 per share.Generac Holdings Inc. current report on Form 8-K, filed September 16, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm

Amazon does not get it all at once. It holds 307,954 shares of that claim today. The rest comes in steps as Amazon pays. The last step needs $8 billion. [C2][C2] Item 1.01 Entry into a Material Definitive Agreement307,954 Warrant Shares vested immediately with the remaining balance vesting over the term of the Warrant in multiple tranches contingent upon aggregate gross payments, net of certain offsets, received by the Company and its global affiliates from or on behalf of Amazon and its affiliates for backup power generators for Amazon data centers, up to a total of $8 billion. On the date of issuance, the Company and Amazon executed a long-term supply agreement. Initial deliveries of backup generators are expected to total $2.4 billion in 2027 and 2028.Generac Holdings Inc. current report on Form 8-K, filed September 16, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm

Amazon can pay cash for the shares. It can also take fewer shares and pay nothing. The choice is Amazon's. The deadline is September 16, 2033. Generac must also help Amazon sell them later. [C3][C3] Item 1.01 Entry into a Material Definitive Agreementthe Warrant may be exercised, in whole or in part, through either a cash exercise or a cashless exercise at the election of Holdings on or before September 16, 2033. The exercise price and the number of Warrant Shares are subject to anti-dilution adjustments. The Company has granted registration rights with respect to the Warrant Shares.Generac Holdings Inc. current report on Form 8-K, filed September 16, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm

So the cash runs one way. The risk runs both ways. Amazon buys power it needs. Generac books the sales and gives up part of any gain. The more Amazon buys, the bigger that part gets. [C1][C1] Item 1.01 Entry into a Material Definitive AgreementOn September 16, 2026, Generac Holdings Inc. (the “Company”) and Amazon.com, Inc. (“Amazon”) entered into a Transaction Agreement (the “Transaction Agreement”), under which the Company issued to Amazon.com NV Investment Holdings LLC, a wholly-owned subsidiary of Amazon (“Holdings”), a warrant (the “Warrant”) to acquire up to 1,693,745 shares of common stock of the Company (the “Warrant Shares”) at an exercise price of $200.9266 per share.Generac Holdings Inc. current report on Form 8-K, filed September 16, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm [C2][C2] Item 1.01 Entry into a Material Definitive Agreement307,954 Warrant Shares vested immediately with the remaining balance vesting over the term of the Warrant in multiple tranches contingent upon aggregate gross payments, net of certain offsets, received by the Company and its global affiliates from or on behalf of Amazon and its affiliates for backup power generators for Amazon data centers, up to a total of $8 billion. On the date of issuance, the Company and Amazon executed a long-term supply agreement. Initial deliveries of backup generators are expected to total $2.4 billion in 2027 and 2028.Generac Holdings Inc. current report on Form 8-K, filed September 16, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm

The supply deal is partly secret. Generac blanked out parts of the papers it filed. It says those parts are private and not important. [C7][C7] Exhibit 4.1, legend above the warrantCertain identified information in this document has been omitted because it is both (i) not material and (ii) is of a type that is treated as private and confidential, and has been marked with “[***]” to indicate where omissions have been made.Warrant to Purchase Common Stock, dated September 16, 2026, between Generac Holdings Inc. and Amazon.com NV Investment Holdings LLCOpen exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/ex_1016888.htm

The steps in between are not spelled out. Generac says more shares turn on in stages. It does not say what each stage costs. [C2][C2] Item 1.01 Entry into a Material Definitive Agreement307,954 Warrant Shares vested immediately with the remaining balance vesting over the term of the Warrant in multiple tranches contingent upon aggregate gross payments, net of certain offsets, received by the Company and its global affiliates from or on behalf of Amazon and its affiliates for backup power generators for Amazon data centers, up to a total of $8 billion. On the date of issuance, the Company and Amazon executed a long-term supply agreement. Initial deliveries of backup generators are expected to total $2.4 billion in 2027 and 2028.Generac Holdings Inc. current report on Form 8-K, filed September 16, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm

Nobody says how long the supply deal runs. The filing calls it long-term and stops there. [C2][C2] Item 1.01 Entry into a Material Definitive Agreement307,954 Warrant Shares vested immediately with the remaining balance vesting over the term of the Warrant in multiple tranches contingent upon aggregate gross payments, net of certain offsets, received by the Company and its global affiliates from or on behalf of Amazon and its affiliates for backup power generators for Amazon data centers, up to a total of $8 billion. On the date of issuance, the Company and Amazon executed a long-term supply agreement. Initial deliveries of backup generators are expected to total $2.4 billion in 2027 and 2028.Generac Holdings Inc. current report on Form 8-K, filed September 16, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm

Amazon has not promised to reach $8 billion. Generac's own August report warns that big data center orders can be dropped. [C6][C6] Cautionary Statement, forward-looking factorsuncertainty regarding the growth of the data center market; ● increase in contract risk related to terms with certain data center customers, including cancellation rights, delivery requirements, and potential liability exposure tied to our performance obligations or other claimed damagesGenerac Holdings Inc. quarterly report on Form 10-Q for the period ended June 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1474735/000143774926025669/gnrc20260630_10q.htm