Generac issues Amazon warrant tied to $8 billion generator supply deal
The warrant, covering up to 1,693,745 shares, vests as Amazon's payments to Generac climb toward $8 billion under a new long-term supply agreement
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Generac Holdings has entered into a transaction agreement with Amazon.com under which it issued a warrant to an Amazon subsidiary, Amazon.com NV Investment Holdings LLC, to acquire up to 1,693,745 shares of Generac common stock at an exercise price of $200.9266 per share.
The warrant was signed alongside a long-term supply agreement covering backup power generators for Amazon's data centers. Vesting is tied to aggregate gross payments to Generac reaching up to $8 billion. Initial deliveries under the agreement are expected to total $2.4 billion across 2027 and 2028.
The warrant is dated September 16, 2026, and can be exercised through September 16, 2033.
The agreement gives Generac committed revenue from data center generators stretching to 2028, a level of multi-year demand visibility that is unusual in a business that typically moves with the cycle. Structuring the deal around a warrant ties Generac's incentive to delivering on the contract while giving Amazon a form of downside protection, a structure that points to a working partnership rather than a speculative bet on future orders.