Generac CEO Warns of Housing Shortage, Shares Plummet 30%

Generac Shares Tumble Amid CEO's Concerns Over Housing Market Generac Holdings Inc.'s stock price has dropped nearly 30% since mid-August, with the company's shares trading at around $130, down from a peak of $185 in July. Chairman, President, and CEO Aaron Jagdfeld attributed this decline to the general state of the housing market, which he believes is not producing enough houses to meet demand. This assertion was made during a recent appearance on Bloomberg Businessweek Daily, where Jagdfeld discussed Generac's outlook, rising energy costs, and the resilience of the US power grid. According to data from the US Census Bureau, housing starts in the country have been steadily declining since 2022, with a 12.4% drop in the third quarter of 2025 compared to the same period in the previous year. This trend has led to increased competition for Generac and other home generators, which are often used as a backup power source during outages. As a result, the company's sales have been impacted, with revenue growth slowing to 5% in the third quarter, down from 15% in the same period last year. The housing market's struggles have also had a ripple effect on the broader economy, with the National Association of Home Builders estimating that a 10% decline in housing starts could lead to a 1% reduction in GDP growth. This has contributed to a cautious tone on Wall Street, with investors growing increasingly concerned about the potential for a recession. Generac, which is a leading manufacturer of home generators and other power equipment, has historically been well-positioned to benefit from the growth of the US housing market. However, the company's recent struggles have led some analysts to question its ability to maintain its market share in the face of increased competition. In an effort to mitigate this risk, Generac has been diversifying its business, with a growing focus on the development of data centers and other commercial applications for its power equipment. Jagdfeld's comments on the housing market's impact on Generac's business have been echoed by other industry experts, who point to the need for increased investment in housing production to meet growing demand. While the company's shares have been under pressure in recent months, some analysts remain bullish on Generac's long-term prospects, citing its strong brand and diversified product portfolio. As the US housing market continues to navigate a period of uncertainty, investors will be closely watching Generac's performance for signs of a turnaround. With the company's shares currently trading at a discount to their historical average, some analysts see potential for a rebound in the coming months. However, the company's ability to regain its footing will ultimately depend on its ability to adapt to changing market conditions and capitalize on emerging opportunities in the data center and commercial markets.