GE Vernova (NYSE:GEV) reported sharply higher third-quarter orders, revenue, profitability and free cash flow, while announcing plans to acquire high-voltage equipment supplier Trench Group for $9 billion and doubling its share-repurchase authorization to $20 billion.
Chief Executive Officer Scott Strazik said the company booked nearly $30 billion in new orders during the quarter, expanding total backlog to about $200 billion. Services orders rose 10% in the quarter, while year-to-date services orders increased 17%, according to the company.
“Our growth continues to accelerate with both our core business and new products,” Strazik said, citing demand for existing equipment and services as well as newer offerings including nuclear small modular reactors, medium-voltage uninterruptible power systems and solid-state transformers.
Third-Quarter Results and Raised Outlook
Chief Financial Officer Ken Parks said third-quarter orders totaled $29.3 billion, up 96% year over year, producing a book-to-bill ratio of more than 2x. Backlog reached $197 billion, including $104 billion of equipment backlog and $93 billion of services backlog.
Revenue rose 18% year over year, with equipment revenue up 26% and services revenue increasing 6%. Adjusted EBITDA increased 123% to $1.9 billion, and adjusted EBITDA margin expanded by 690 basis points. The company generated $5.4 billion in free cash flow during the quarter, aided by $5.3 billion of working-capital benefits tied primarily to customer down payments and slot reservations in Power and Electrification.
GE Vernova ended the quarter with approximately $17 billion in cash, up $4 billion from the end of the second quarter after returning $1.8 billion to shareholders through dividends and repurchases.
The company raised its full-year 2026 outlook, now expecting:
- Revenue of $46.5 billion to $47.5 billion.
- Adjusted EBITDA margin of 13.5% to 14.5%.
- Free cash flow of $16 billion to $17 billion.
The updated outlook includes a more than 30% year-over-year combined increase in research and development and capital expenditures, Parks said.
Trench Group Acquisition
GE Vernova said it expects to close its acquisition of Trench Group in late 2027, subject to regulatory approvals and other customary closing conditions. The $9 billion transaction is intended to expand the company’s Electrification business in medium- and high-voltage grid equipment.
Trench produces bushings, instrument transformers and coils used in electrical substations, transformers and high-voltage systems. The business has more than 3,000 employees across 11 factories and approximately $5 billion in combined backlog and framework agreements as of September 2026, according to GE Vernova.
Trench is projected to generate about $1.4 billion of revenue in 2026 and approach $2 billion in revenue by 2028, with mid-teens annual revenue growth expected between 2026 and 2028. GE Vernova expects Trench to generate an adjusted EBITDA margin of about 36% in 2028 before synergies and integration costs. The company said the acquisition would be immediately accretive after closing.
GE Vernova plans to fund the purchase price with an equal mix of cash and debt. Parks said the company expects to issue about $4.5 billion of debt while maintaining an investment-grade balance sheet and remaining below a 1x debt-to-adjusted EBITDA ratio.
The company anticipates $50 million to $100 million in annualized cost synergies by 2030, with additional potential revenue synergies. Management said the combination could improve supply-chain control, production planning and delivery lead times for Electrification projects.
Strazik said Trench will bolster GE Vernova’s ability to serve a high-voltage equipment market it projects will reach $130 billion by the end of the decade. He pointed to rising grid investment, data-center electricity demand, electrification of buildings and transportation, and the need to upgrade aging grid infrastructure.
Segment Performance
In Power, revenue rose 25% and EBITDA margin expanded 830 basis points to 21.4%. The company shipped 32 gas turbines during the quarter, up 60% year over year, including 13 aeroderivative units. Power orders more than doubled, supported by Gas Power equipment demand and higher pricing.
GE Vernova raised its full-year Power organic revenue growth outlook to 19% to 21%, from 18% to 20%, and increased its Power EBITDA margin outlook to 19% to 21%, from 17% to 19%.
Strazik said the company signed 52 gigawatts of new Gas Power agreements year to date and expects to have at least 130 gigawatts under contract by year-end, compared with 83 gigawatts at the start of the year. Third-quarter Gas Power orders were priced more than 20% above fourth-quarter 2025 equipment orders, he said, while full-year 2026 gas orders pricing per kilowatt is expected to be approximately 50% above 2025 levels.
Electrification revenue increased 51% on a reported basis, including the Prolec acquisition, and 16% organically. Segment EBITDA increased 57% to $739 million, with margin rising 470 basis points to 19.1%. The company retained its full-year Electrification revenue outlook of $14.5 billion to $15 billion and said margin is now expected to trend toward the high end of its 18% to 20% range.
Wind generated EBITDA of $72 million in the quarter, compared with a loss in the prior-year period, as improved onshore services performance and lower offshore project costs offset lower onshore equipment volume. GE Vernova now expects full-year Wind organic revenue to decline by a mid-single-digit percentage, an improvement from its earlier expectation for a low-double-digit decline. It forecasts a full-year EBITDA loss of $400 million to $500 million.
Capital Returns and Leadership Changes
GE Vernova said it had repurchased 15.6 million shares at an average price of approximately $635 per share, totaling about $9.9 billion through Oct. 23. After repurchasing $1.6 billion of stock in the third quarter and more than $1.3 billion in October, the company said it had largely completed its original $10 billion authorization and would add another $10 billion.
Strazik also announced that Claire will become the company’s next chief financial officer and Hakan will become the next Wind leader. Both are scheduled to begin the following week and transition into their roles in January 2027, succeeding Parks and outgoing Wind leader Vic, respectively.
About GE Vernova (NYSE:GEV)
GE Vernova Inc (NYSE: GEV) is an energy technology company focused on helping generate, transmit, store and deliver electricity. The company serves utilities, power producers, grid operators, commercial and industrial customers, and other energy-sector participants worldwide.
Its business is organized around three primary areas: Power, Wind and Electrification. Power provides technologies and services for gas and steam power generation, hydropower, nuclear power and other energy systems.
