GE Vernova Inc. (NYSE:GEV) reported third-quarter 2026 results Wednesday, with earnings and revenue above Wall Street expectations, driven by Power and Electrification.
Shares traded lower as investors weighed elevated expectations, uncertainty over Wind, and the $9 billion Trench acquisition.
Diluted GAAP EPS came in at $4.81, beating the $4.01 analyst estimate, while revenue rose 27% year over year to $12.642 billion from $9.969 billion, topping the $11.991 billion estimate.
Organic revenue increased 18%. Net income rose to $1.289 billion from $453 million, while net income margin increased to 10.2% from 4.5%.
Orders, Backlog And Segment Performance
Adjusted EBITDA rose to $1.943 billion from $811 million, with adjusted EBITDA margin increasing to 15.4% from 8.1%.
Orders increased 96% organically to $29.3 billion, while backlog reached $197 billion. Gas Power equipment backlog and slot reservation agreements rose from 116 GW to 122 GW, with GE Vernova expecting at least 130 GW by year-end.
Power revenue rose 25% to $6.067 billion, with segment EBITDA of $1.297 billion and a 21.4% margin.
The company signed 11 GW of new gas equipment agreements, including 8 GW of slot reservations and 3 GW of orders, converted 13 GW of existing slot reservations to orders, and shipped 5 GW
Electrification revenue increased 51% to $3.862 billion, with segment EBITDA of $739 million and a 19.1% margin. Equipment backlog rose 60% year over year to $42.2 billion.
Wind revenue rose 4% to $2.741 billion, while segment EBITDA improved to $72 million from a $61 million loss, partly reflecting tariff recoveries.
Cash Flow, Buybacks And Raised Guidance
Cash from operating activities was $6.057 billion and free cash flow was $5.409 billion. GE Vernova ended the quarter with $16.8 billion in cash and returned $5.7 billion to shareholders during the first nine months.
The board doubled its share-repurchase authorization to $20 billion. The company also paid about $350 million to transfer certain retiree-benefit obligations to an insurer.
GE Vernova raised 2026 revenue guidance to $46.5 billion-$47.5 billion from $45.5 billion-$46.5 billion, compared with the $46.244 billion analyst estimate.
Adjusted EBITDA margin guidance increased to 13.5%-14.5%, while free cash flow guidance rose to $16 billion-$17 billion.
Conference Call: Power Margins And Data-Center Demand
Management said Electrification data-center orders exceeded $6 billion year to date, including roughly $1.4 billion in the third quarter.
CEO Scott Strazik said Trench has secured multiple agreements with hyperscalers and highlighted industry-wide capacity constraints, saying, “Lead times across the industry are increasingly important.”
In Power, better-priced gas equipment is beginning to flow through results.
Strazik said, “We are early in our margin expansion acceleration,” while management indicated second-half 2026 Power margins provide a reasonable starting point for thinking about 2027.
Wind offered a more cautious read-through. Management said it remains difficult to call an inflection point in U.S. onshore orders because of permitting delays and tariff uncertainty, while Strazik said the company still needs to “navigate through 27” as remaining offshore work is completed.
Trench Deal Adds High-Voltage Capacity
GE Vernova agreed to acquire Trench Group for $9 billion, with closing expected in late 2027. The purchase price represents 13 times Trench’s expected 2028 adjusted EBITDA.
Trench Group is a Berlin-based provider of high-voltage grid components and systems, with more than 130 years of engineering expertise serving power transmission markets worldwide.
Trench expects 2028 revenue of $1.9 billion and an adjusted EBITDA margin of about 36%. GE Vernova expects approximately $50 million-$100 million of annualized cost synergies by 2030.
The transaction would vertically integrate an existing supplier of high-voltage bushings, instrument transformers and coils while adding manufacturing capacity to GE Vernova’s Electrification segment.
GEV Price Action: GE Vernova shares were down 6.10% at $840.45 at the time of publication on Wednesday, according to Benzinga Pro data.
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