Key Points
- Generac shares jumped 8.8% on Tuesday as a scorching heat wave in the southern United States drove up demand for generators.
- A “heat dome” that has stagnated in the region has taxed electrical systems, especially in Texas.
- Generac CEO Aaron Jagdfeld said the company has seen a dramatic increase in business in Texas.
Shares of Generac Holdings (GNRC) jumped 8.8% on Tuesday amid a scorching heat wave in the southern United States and potential outages have increased demand for its generators.
More than 40 million Americans in Arizona and Florida were on heat warnings or advisories on Tuesday, with a “heat dome”; over the region, according to the National Weather Service.
Texas has been particularly hard hit by the recent heat wave, with several cities posting record triple-digit temperatures. Generac CEO Aaron Jagdfeld told Bloomberg in an interview this week that the company has seen a dramatic increase in sales in the region for generators and battery backup systems.
Last week the The state power grid operator has urged residents to reduce their electricity usage to avoid blackouts. It also issued a weather advisory for this week.
Jagdfeld told Generac customers last week were ready to supply approximately 1 megawatt of electricity to the grid from their home generators. He added that those using the company's smart thermostats that allow local utilities to adjust temperatures saved the state some 34 megawatts of energy. .
Advance of the Shares of Generac Holdings hit a year high on Tuesday. /wp-content/uploads/2023/06/cb5fb86438a4397da03f96b3fbb78528.png” />
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Source: investopedia.com
