GE Vernova raises 2026 outlook and agrees to buy Trench Group for US$9B
The grid-equipment purchase is expected to close in late 2027, with the price funded equally through cash and debt.
Ines Halvorsen
On Wednesday, 2026 revenue guidance rose to US$46.5 billion to US$47.5 billion as GE Vernova Inc. NYSEGEV announced higher forecasts alongside an agreement to acquire Trench Group. The purchase price is US$9 billion equivalent, payable at closing and currently expected to be funded equally with cash and debt. The seller is Triton Partners, and completion is expected in late 2027.
The revised revenue outlook compares with US$45.5 billion to US$46.5 billion previously. GE Vernova also raised its 2026 free cash flow forecast to US$16 billion to US$17 billion. Its previous cash flow range was US$11.5 billion to US$12.5 billion.
The energy-equipment manufacturer reported third-quarter revenue of US$12.6 billion, up 27 per cent from a year earlier. Net income reached US$1.3 billion for the quarter ended Sept. 30, compared with US$453 million a year earlier. Higher equipment revenue at Power and Electrification helped drive growth.
The Oct. 28 acquisition release forecasts Trench's standalone 2028 revenue at US$1.9 billion, with an adjusted EBITDA margin of approximately 36 per cent. GE Vernova puts the purchase multiple at 13 times forecast 2028 adjusted EBITDA before synergies. Those forecasts exclude integration costs and purchase-accounting adjustments, so they do not establish the acquisition's eventual contribution to reported profit.
GE Vernova's 2026 adjusted EBITDA margin guidance increased to 13.5 per cent to 14.5 per cent. The prior range was 12 per cent to 14 per cent. The company also doubled its share repurchase authorization to US$20 billion in October, with US$10.1 billion remaining after purchases through Oct. 23.
"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," GE Vernova chief executive Scott Strazik said in the Oct. 28 acquisition release.
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GE Vernova says the acquisition would bring an existing supplier into its Electrification business, strengthening Grid Systems Integration and Power Transmission. Trench's July 30 factory announcement describes its high-voltage portfolio as including bushings, instrument transformers, coils and reactors. The company also operates two factories in Canada.
Trench said its new Charlotte, N.C., factory represented an investment of more than US$60 million. Assembly was underway when it issued that announcement, with initial deliveries expected by the end of 2026. GE Vernova's acquisition release separately puts the start of 765-kilovolt equipment manufacturing there in late 2027.
The expansion would join a growing grid business. GE Vernova's third-quarter Electrification revenue rose 51 per cent to US$3.9 billion, although organic growth was 16 per cent. Equipment backlog reached US$42.2 billion at Sept. 30, including US$5 billion from Prolec GE.
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Triton Partners confirmed on Oct. 28 that the businesses will continue operating independently until completion. GE Vernova says closing requires customary regulatory approvals and consultation with employee representatives where legally required; its announcement does not identify individual reviewing authorities.
Before the acquisition's expected late-2027 closing, GE Vernova's next operating checkpoint is the fourth quarter of 2026, when management expects total backlog to exceed US$200 billion.
