Today, GE Vernova shared two important updates, both of which we will discuss during our extended 3Q earnings call.
First, we released our third quarter 2026 financial results. We delivered strong performance in the quarter, with robust orders, continued backlog growth, margin expansion, and significant cash generation. Given our strong results and momentum, we are increasing our 2026 financial guidance for revenue, adjusted EBITDA margin*, and free cash flow*.
Second, we also announced GE Vernova has signed an agreement to acquire Trench Group, a global leader in high-voltage grid equipment, for $9.0 billion USD equivalent, and reflecting 13x 2028 adjusted EBITDA* before synergies.The deal will create scale across GE Vernova’s Electrification product lines, expanding its capabilities to better serve customers, with close expected in late 2027, subject to customary regulatory approvals.
We encourage you to review the earnings materials and listen to our extended webcast beginning at 7:30 AM ET. A replay of the webcast will be available on our website at https://www.gevernova.com/investors.
Third Quarter 2026 Highlights:
- Orders of $29B, +96% organically* led by equipment at Power and continued services strength
- Backlog1 growth of $20B sequentially from equipment and services, reaching $197B in total
- Gas Power equipment backlog and slot reservation agreements grew from 116 to 122 GW; now anticipate reaching at least 130 GW by year-end 2026
- Revenue of $12.6B, +27%, +18% organically* led by Power and Electrification
- Net income of $1.3B; net income margin of 10.2%
- Adjusted EBITDA* of $1.9B; adjusted EBITDA margin* of 15.4%, up +690 basis points organically*
- Cash from operating activities of $6.1B; free cash flow* of $5.4B
- $16.8B cash balance; $5.7B in capital returned to shareholders in the first nine months of 2026
- In October, the Board of Directors increased the share repurchase authorization to $20B, from $10B
Quote from CEO Scott Strazik on Earnings: “We delivered strong financial results in the third quarter as demand for electricity infrastructure increases around the world. We now expect our backlog to exceed $200 billion in the fourth quarter, with improved margins, and to exit 2026 with at least 130 GW of gas equipment under contract. Given our performance and confidence in our trajectory, we are raising our 2026 financial guidance. We continue to innovate and develop new solutions for utility and data center customers to meet growing demand, including electrification technologies that support integration and resiliency. Our opportunity to create value is accelerating and I’m proud of how our team is executing with discipline and focus.”
Quote from CEO Scott Strazik on Agreement to Acquire Trench Group: “Trench's differentiated high-voltage grid technology, strong execution, and deep customer relationships are key enablers of the modernized, resilient grid required to keep pace with the electricity supercycle. 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. We are investing in our Electrification segment to meet the extraordinary growth opportunity in front of us, and our acquisition of Trench will further strengthen our ability to serve global customers with outstanding technology we know well. I look forward to welcoming the Trench team to GE Vernova."
Quote from CFO Ken Parks on Earnings: "We delivered another strong quarter with robust orders and revenue growth, margin expansion, and significant free cash flow generation. Our backlog continues to expand driven by equipment growth at Power and Electrification, at improved margins from favorable price and disciplined underwriting, and services growth at Power. We ended the quarter with a cash balance of approximately $17 billion, up $4 billion sequentially, increasing our confidence in making high-growth, accretive investments and returning cash to shareholders through our dividend and increased share repurchase program. Based on our strong financial performance, we are raising our guidance for 2026 revenue, adjusted EBITDA margin, and free cash flow.”
2026 Guidance:
GE Vernova is raising its 2026 financial guidance and now expects revenue of $46.5-$47.5 billion, up from $45.5-$46.5 billion, adjusted EBITDA margin* of 13.5%-14.5%, up from 12%-14%, and free cash flow* of $16-$17 billion, up from $11.5-$12.5 billion.
Overall, we are encouraged by our strong year-to-date performance. Our growing backlog with improving margins and disciplined capital allocation continue to provide an excellent foundation for further improvement moving forward. We look forward to connecting with you in the coming days. Please visit our website and sign up for email alerts to stay in touch with us. Thank you for your continued interest in GE Vernova.
Thanks,
The GE Vernova IR team
1Defined as remaining performance obligation (RPO)
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the presentations of and reconciliations to their most directly comparable GAAP financial measures are included in our third quarter 2026 earnings release and presentation slides posted on Investor Relations website at https://www.gevernova.com/investors.
U.S. dollar equivalents presented in this newsletter are based on a EUR/USD exchange rate of 1.12. Actual U.S. dollar equivalent amounts may differ based on the prevailing EUR/USD exchange rate at the applicable times.
This document contains forward-looking statements. Forward-looking statements provide current expectations of future events based on certain assumptions. Words such as “expects,” “intends,” “plans,” “guidance,” “outlook,” and similar expressions, may identify such forward-looking statements. Except as required by law, we disclaim any obligation to update any forward-looking statements.