Archive photo: Electrical infrastructure. Dirk Schuneman/Pexels (cropped)
GE Vernova raised its full-year outlook Wednesday after third-quarter revenue rose 27%, while doubling its share-buyback authorization to $20 billion and announcing an agreement to acquire high-voltage equipment maker Trench Group for $9 billion.
The energy-equipment company reported revenue of $12.642 billion and net income of $1.289 billion, compared with $453 million a year earlier. Diluted earnings per share were $4.81 under U.S. generally accepted accounting principles, according to its third-quarter results release.
Orders reached $29.3 billion, up 96% organically, while backlog increased by $20 billion from the previous quarter to $197 billion. Revenue grew 18% organically, a non-GAAP comparison that adjusts for factors including acquisitions and currency movements.
Higher sales and cash-flow forecasts
GE Vernova now forecasts 2026 revenue of $46.5-$47.5 billion, up from $45.5-$46.5 billion. It raised its adjusted EBITDA margin forecast to 13.5-14.5% from 12-14%, and its free-cash-flow forecast to $16-$17 billion from $11.5-$12.5 billion.
Adjusted EBITDA and free cash flow are non-GAAP measures. Third-quarter adjusted EBITDA was $1.943 billion, with a 15.4% margin. Free cash flow was $5.409 billion, while reported cash from operating activities was $6.057 billion.
The company said higher working-capital benefits and stronger adjusted earnings supported cash generation, partly offset by higher taxes. It ended the quarter with $16.8 billion in cash.
Gas equipment demand expands
Gas Power equipment backlog and slot-reservation agreements together increased from 116 to 122 gigawatts. GE Vernova expects that combined figure to reach at least 130 gigawatts by year-end and its total backlog to exceed $200 billion in the fourth quarter. These are company forecasts, not completed orders or deliveries.
Chief Executive Scott Strazik cited growing demand from utilities and data-center customers. Power revenue rose 25% to about $6.1 billion, while Electrification revenue increased 51% to about $3.9 billion, or 16% organically.
Trench acquisition awaits approvals
GE Vernova said its agreement to acquire Trench Group is valued at $9 billion in U.S.-dollar equivalent. The deal is expected to close in late 2027, subject to customary regulatory approvals. It has not closed.
The company said the acquisition would expand its high-voltage grid-equipment business. Separately, its board increased the share-repurchase authorization from $10 billion to $20 billion in October. An authorization permits purchases; it does not mean the full amount has been spent.
JBizNews Desk | Cambridge, Massachusetts
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