INNIO Posts Record Quarterly Revenue of $1.2 Billion, Raises 2026 Forecast
Key Facts
INNIO posted record revenue of $1.2 billion in the third quarter of 2026, up 57% year over year, marking the first quarter in which revenue topped $1 billion, according to a company statement published via GlobeNewswire. The company raised its fiscal 2026 forecast, adding $100 million to its revenue target range and $60 million to its adjusted EBITDA range. The results follow revenue growth to $937.7 million in the second quarter, up 42% year over year. Equipment backlog also expanded to $8.0 billion, reflecting sustained demand and growth in work the company has yet to execute. Management is scheduled to discuss the results on a call on October 27 at 8:00 a.m. Eastern Time.
Equipment revenue rose 86% year over year to $777.6 million in the third quarter, and the company said the increase reflected execution of its backlog and delivery of large data center projects. Service revenue was $390.3 million, up 20%, supported by growth in the installed base. The revenue breakdown shows contributions from both equipment deliveries and services for the existing fleet, with equipment sales accelerating more sharply. INNIO said, "Service revenue was $390.3 million, up 20% year over year, supported by growth in the installed base." In the second quarter, equipment backlog was $6.6 billion before rising to $8.0 billion in the third quarter.
New equipment orders were $2.2 billion in the third quarter, up 10% year over year, while backlog rose to $8.0 billion, up 142%. Backlog had been $6.6 billion in the second quarter, when it was up 279% year over year, a faster annual growth rate than in the third quarter. On October 22, INNIO announced a 620-megawatt follow-on order from a U.S. customer to develop and operate data center campuses. Together with a previously announced 1.1-gigawatt order in July, the customer’s total orders reached about 1.72 gigawatts. The company said the customer also signed a long-term full maintenance agreement covering the first 500 megawatts of ordered capacity, adding project-related service work.
INNIO raised its fiscal 2026 revenue forecast range by $100 million to $3.9–4.0 billion and lifted its adjusted earnings forecast by $60 million to $780–800 million. In July, the company had forecast revenue of $3.8–3.9 billion and adjusted earnings of $720–740 million. The revision raised both the lower and upper ends of each range, with separate increases to the revenue and adjusted earnings forecasts. INNIO reported a net loss of $16.9 million in the second quarter of 2026, which the company attributed mainly to $81.2 million in one-time costs related to its public offering and preparations for going public. In the second quarter of 2025, it reported net income of $62.4 million.
Against the backdrop of demand for data center equipment, INNIO announced the 620-megawatt follow-on order on October 22, after the earlier 1.1-gigawatt order from the same customer. In September, the company said Moody’s and Fitch had raised its credit ratings, linking the upgrades to its operating performance and cash flow generation, as well as favorable demand and growth in the installed base. INNIO said that installed base supports service revenue, which rose 20% in the third quarter to $390.3 million. The company confirmed in September that it is targeting net leverage below 2.0 times over the medium term. It also said it is prioritizing reinvestment and debt reduction and does not intend to pay cash dividends in the near term.
INIO shares closed at $16.63 on October 26, compared with a close of $15.11 on October 22, according to the company’s historical price data; both closes preceded the results announcement scheduled before the market open on October 27. INNIO said management will discuss third-quarter results on a call starting at 8:00 a.m. Eastern Time on the announcement date. The call will present investors with the quarter’s results and the revised forecast for the remainder of the fiscal year. The $8.0 billion backlog at the end of the third quarter also provides an indication of the volume of equipment awaiting execution. The announced fiscal 2026 forecast remains revenue of $3.9–4.0 billion and adjusted earnings of $780–800 million.