$29 Billion in Orders Prompt GE Vernova to Raise 2026 Outlook
Key Facts
GE Vernova reported third-quarter results on October 28, raising its full-year forecasts for revenue, adjusted profit margin and free cash flow after a surge in orders and an expansion in its backlog. Revenue reached $12.6 billion, up 27% year over year and 18% organically, according to the company’s statement. It said its Power and Electrification segments led revenue growth. Orders reached $29 billion, with organic growth of 96%. Total backlog also increased by $20 billion from the previous quarter, reaching $197 billion.
Net income was $1.3 billion, while adjusted EBITDA reached $1.9 billion, with a 15.4% margin. The adjusted margin increased by 690 basis points organically, according to the company. Adjusted earnings per share were $4.81, topping analysts’ estimate of $4.00 by $0.81, according to Investing.com. The company generated $6.1 billion in cash from operating activities, and free cash flow totaled $5.4 billion during the quarter. In the second quarter, revenue was $11.1 billion and free cash flow was $5.1 billion, while cash stood at $13.1 billion, according to the company’s filing with the Securities and Exchange Commission.
GE Vernova raised its 2026 revenue outlook range to $46.5–$47.5 billion, from $45.5–$46.5 billion previously. Its expected adjusted profit margin range is now 13.5%–14.5%, compared with 12%–14%. The company raised its free cash flow forecast to $16–$17 billion, from a previous range of $11.5–$12.5 billion. The new figures reflect higher forecasts for revenue, margins and cash flow, alongside increased orders and a larger backlog. In October, the board increased its share repurchase authorization to $20 billion from $10 billion, according to the company.
By segment, Electrification revenue grew 51%, while Power orders nearly tripled, supported by demand for gas turbines and services, according to Reuters. The chief executive said the company is developing solutions for utilities and data centers to keep pace with demand growth, including electrification technologies that support integration and resilience. The backlog of gas power and capacity reservation agreements rose from 116 to 122 gigawatts. The company expects to reach at least 130 gigawatts by the end of 2026. It also said backlog will exceed $200 billion in the fourth quarter, with margins improving.
GE Vernova announced an agreement to acquire Trench Group for the equivalent of $9 billion, a move that expands its business in grid electrification products. The consideration equates to 13 times Trench’s expected 2028 adjusted EBITDA, before synergies. The company estimated the group’s revenue at about $1.9 billion and its adjusted profit margin at about 36% that year, according to Reuters. The deal is expected to close in late 2027, subject to customary regulatory approvals. On costs, the company expects global tariffs to add less than $100 million to 2026 costs, compared with a previous estimate of between $100 million and $200 million.
In share trading, EL7 data showed a close at $895.08 on October 27, up from $855.12 in the previous session. These data do not support describing the October 27 close as a decline, and do not include the daily trading range cited in the previous draft. After the results announcement, the stock rose 2.5%, according to an Investing.com report published on October 28, describing the initial reaction. Reuters reported that the stock climbed 4.1% to $931.84 in premarket trading on October 28. These figures reflect the share price at two different times after the announcement and do not, on their own, identify investors’ reasons.