GE Vernova Posts $29 Billion in Orders, Raises 2026 Revenue Forecast
Key Facts
GE Vernova recorded $29 billion in orders in the third quarter of 2026, up 96% organically, and raised its full-year revenue forecast to $46.5–47.5 billion from $45.5–46.5 billion, according to a company statement. The results came amid revenue growth and improved margins, while adjusted earnings per share exceeded analysts’ estimates. CEO Scott Strazik said the company expects its backlog to exceed $200 billion in the fourth quarter. The figures highlight an expansion in contracted orders alongside higher revenue and cash flow. The company also expanded its share repurchase authorization in October to $20 billion from $10 billion.
Revenue reached $12.6 billion in the third quarter, up 27% year over year and 18% organically, driven by the Power and Electrification segments, the company said. Revenue in the second quarter was $11.1 billion, up 22% year over year and 12% organically, indicating an acceleration in growth in the third quarter on all three measures. The company said Power and Electrification led growth in both periods. Net income was $1.3 billion, with a 10.2% margin, in the third quarter. Adjusted earnings per share came in at $4.81, exceeding analysts’ estimate of $4.00, according to Investing.com.
Adjusted EBITDA margin rose to 15.4% in the third quarter, an organic increase of 690 basis points, while the same metric was 11.3% in the second quarter. Adjusted EBITDA totaled $1.9 billion in the third quarter. The company raised its full-year adjusted margin guidance to 13.5–14.5% from 12–14% previously. It also raised its 2026 free cash flow outlook to $16–17 billion from $11.5–12.5 billion. In the third quarter, cash from operating activities was $6.1 billion and free cash flow was $5.4 billion.
Orders added $20 billion to the backlog sequentially, bringing it to $197 billion at the end of the third quarter, according to the company. The 96% organic increase in orders was led by equipment in the Power segment, while services remained strong. Strazik said demand for electricity infrastructure is increasing around the world. He added: "We now expect our backlog to exceed $200 billion in the fourth quarter, with margins improving." This trajectory indicates the volume of contracted work and expected business in coming periods, while the company also forecast an increase in the balance tied to gas power equipment.
The balance of gas power equipment and capacity reservation agreements rose from 116 to 122 gigawatts in the third quarter, and GE Vernova expects contracted gas equipment to reach at least 130 gigawatts by the end of 2026. Strazik included that target in his fourth-quarter and year-end outlook, alongside a backlog exceeding $200 billion. The company also announced an agreement to acquire Trench Group for a value equivalent to $9 billion. Trench expects revenue of $1.9 billion and an adjusted EBITDA margin of about 36% in 2028. The deal is expected to close in late 2027, according to the acquisition statement.
GEV shares rose 2.5% after the results were announced, according to an Investing.com report published on October 28, while EL7 data showed the stock closed at $895.08 on October 27. The company held a webcast on its third-quarter results and discussion of the Trench Group acquisition on October 28, from 7:30 to 8:30 a.m. Eastern Time. The company’s forward-looking targets included expecting its backlog to exceed $200 billion in the fourth quarter. It also aims for contracted gas equipment to reach at least 130 gigawatts by the end of 2026. The updated revenue, margin and cash flow guidance places the year’s financial performance in the context of those operating targets.