Updated version 4-GE Vernova accelerates its grid business by acquiring Trench for $9 billion and raises revenue expectations.

The article includes detailed content from the conference call

Sumit Saha

Reuters, October 28 - GE’s Vernova GEV.N announced on Wednesday it will acquire high-voltage grid equipment manufacturer Trench Group from investment firm Triton Partners for $9 billion. The move aims to expand its grid business, while the company has raised its full-year revenue guidance for the third consecutive time.

In order to replace aging infrastructure and meet the electrification needs of data centers and industry, utilities are increasing investments in the grid, driving growth in orders for high-voltage transmission networks and long-distance transmission equipment.

GE Vernova said the deal will expand its grid manufacturing footprint and add Trench’s Charlotte plant, which is expected to begin producing 765-kilovolt equipment by the end of 2027. The acquisition also strengthens its market position in Europe and Asia and brings approximately $5 billion in backlog orders.

The power equipment manufacturer expects Trench to generate about $1.9 billion in revenue by 2028, with an adjusted EBITDA margin of around 36%. It also expects annualized cost synergies of $50 million to $100 million by 2030.

GE Vernova plans to pay for the acquisition with a roughly equal mix of cash and debt and to close the deal by the end of 2027.

Chief Executive Officer Scott Strazik said on the earnings call that the acquisition will help GE Vernova seize global high-voltage market opportunities, which are expected to reach $130 billion by the end of this decade.

The company’s share price fell more than 3%, closing at $863.14.

The company also doubled its share repurchase authorization to $20 billion, with $10.1 billion in remaining capacity for buybacks.

Demand-driven growth

GE Vernova lifted its 2026 revenue outlook to $46.5 billion to $47.5 billion, up from its previous range of $45.5 billion to $46.5 billion.

The company reported a 27% year-on-year increase in third-quarter revenue and adjusted EBITDA of $1.94 billion, exceeding analyst estimates compiled by LSEG.

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Propelled by strong demand for gas turbines, power business order volume nearly tripled, while electrification revenue increased by 51%.

Order value surged 96% to $29.3 billion, and total backlog reached a record $197 billion.

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The company expects wind business EBITDA to post a loss of $400 million to $500 million in 2026, though its third-quarter EBITDA loss improved to $72 million from a $61 million loss a year earlier.

The company also lowered its estimate of global tariff-related costs in 2026 to below $100 million.

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