GE Vernova lifted its full-year revenue, adjusted EBITDA margin, and free cash flow forecasts as orders surged 96% organically and backlog reached $197 billion.
- GE Vernova expects to fund the $9 billion acquisition equally with cash and debt, with closing anticipated in late 2027, subject to customary approvals.
- CEO Scott Strazik said GE Vernova expects backlog to exceed $200 billion in Q4 and aims to end 2026 with at least 130 GW of gas equipment under contract.
- The company reported Q3 revenue of $12.64 billion, beating the $12 billion consensus estimate, while EPS came in at $4.81 versus the $4 estimate, according to estimates compiled by Fiscal.ai.
GE Vernova (GEV) is in focus on Wednesday after announcing a $9 billion agreement to acquire Trench Group from Triton Partners and raising its 2026 financial outlook following a third-quarter revenue beat.
Commenting on the deal, CEO Scott Strazik said, “With a margin-accretive financial profile and approximately $5 billion in backlog and framework agreements, some of which reach into the next decade, this acquisition will deliver both immediate earnings visibility and long-term strategic value.”
GEV shares traded marginally higher in premarket trading at the time of writing.
Trench Acquisition Expands Grid Equipment Business
The acquisition will strengthen GE Vernova’s Electrification business, including its Grid Systems Integration and Power Transmission operations. Trench manufactures high- and medium-voltage bushings, instrument transformers and coils, serving more than 800 utilities and hyperscalers worldwide.
The company has more than 130 years of engineering heritage, over 3,000 employees and 11 manufacturing sites across Europe, North America and Asia. Its components are used in most high-voltage direct-current transmission lines built worldwide, and its portfolio includes SF6-free and mineral oil-free technologies.
Trench Group CEO Dr. Bahadir Basdere said joining GE Vernova would expand the company’s capabilities and market reach, giving more customers access to high-voltage components used in the energy transition.
The acquisition is valued at 13 times Trench’s projected 2028 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) before synergies. The $9 billion purchase price is a U.S.-dollar equivalent based on an EUR/USD exchange rate of 1.12, so the final amount may vary with exchange rates. The transaction is expected to close in late 2027, subject to customary regulatory approvals and employee-representative consultations where required.
GE Vernova also expects production of 765-kilovolt equipment at Trench’s newly opened facility in Charlotte, North Carolina, to begin in late 2027.
Q3 Results Beat Estimates, Guidance Raised
GE Vernova reported third-quarter revenue of $12.64 billion, up 27% year over year, beating analyst consensus of $12 billion. Adjusted earnings-per-share (EPS) came in at $4.81, compared with estimates of $4, according to estimates compiled by Fiscal.ai.
Adjusted EBITDA reached $1.94 billion, for a 15.4% margin. Orders increased 96% organically to $29.3 billion, while backlog grew by $20 billion sequentially to $197 billion. Free cash flow totaled $5.4 billion for the quarter.
The company raised its 2026 revenue outlook to $46.5 billion-$47.5 billion from $45.5 billion-$46.5 billion. It also raised its adjusted EBITDA margin guidance to 13.5%- 14.5% from 12%- 14% and its free cash flow outlook to $16 billion–$17 billion from $11.5 billion–$12.5 billion.
CEO Scott Strazik said GE Vernova expects backlog to exceed $200 billion in the fourth quarter and aims to exit 2026 with at least 130 gigawatts of gas equipment under contract. He attributed the raised outlook to the company’s performance and confidence in its trajectory, citing growing global demand for electricity infrastructure.
How Retail Views GEV
On Stocktwits, retail sentiment around GEV stock remained ‘bullish’ over the past 24 hours, with ‘high’ message volumes. GEV was also one of the platform’s trending tickers at the time of writing.
GEV shares have gained over 35% year-to-date.
Also read: Strive CEO Matt Cole Says Superintelligence Will Make Bitcoin The ‘Most Valuable Scarce Asset’
For updates and corrections, email newsroom[at]stocktwits[dot]com.<