GE Vernova Agrees to Buy Trench for $9 Billion as Backlog Reaches $197 Billion
Key Facts
GE Vernova signed an agreement on October 28, 2026, to acquire Trench Group from Triton Partners for the equivalent of $9 billion, in a deal that expands its high-voltage power transmission equipment business. The company expects to fund the purchase price equally with cash and debt, with closing expected in late 2027 after customary regulatory approvals. The announcement coincided with quarterly results showing its backlog reached $197 billion, up $20 billion sequentially. The company also said it expects that total to exceed $200 billion in the fourth quarter. In morning trading on October 30, the shares rose 3.5% after falling in the previous session following the results announcement.
Trench Group serves more than 800 utilities and hyperscale data centers, and employs more than 3,000 people across 11 manufacturing sites in Europe, North America and Asia. The target company has about $5 billion in backlog and framework agreements, some extending into the next decade. GE Vernova says Trench expects revenue of $1.9 billion and an adjusted EBITDA margin of about 36% in 2028. Based on the company’s calculation, the purchase price is 13 times the adjusted EBITDA expected for that year, before synergies. The deal links GE Vernova’s grid equipment business with a supplier serving utilities and hyperscale data center operators.
GE Vernova’s third-quarter orders totaled $29 billion, up 96% organically, while backlog increased $20 billion from the previous quarter to $197 billion. Second-quarter orders were $24.2 billion, up 88% organically, and backlog then stood at $176 billion. Quarterly orders therefore rose between the two quarters, and their organic growth rate accelerated, according to the figures the company reported. GE Vernova said third-quarter backlog growth came from equipment and services. These figures provide the context for the company’s expectation that the total will exceed $200 billion in the fourth quarter.
Third-quarter revenue was $12.6 billion, up 27% year over year and 18% organically, driven by the Power and Electrification segments. Net income was $1.3 billion, while adjusted EBITDA reached $1.9 billion, with a margin of 15.4%. The adjusted margin rose 690 basis points organically, according to the company’s results. Diluted earnings per share also increased to $4.81 in the third quarter, compared with $1.64 in the same period a year earlier, according to GE Vernova’s filing with the U.S. Securities and Exchange Commission. These results add to the growth in orders and revenue during the quarter.
Free cash flow was $5.4 billion, and cash balances reached $16.8 billion in the third quarter. The company returned $5.7 billion to shareholders during the first nine months of 2026. In light of its results, GE Vernova raised its full-year revenue forecast to a range of $46.5–47.5 billion and its adjusted EBITDA margin forecast to 13.5–14.5%. It also raised its 2026 free cash flow forecast to $16–17 billion. The updated forecasts reflect the figures the company reported after the third quarter.
Alongside its backlog target, GE Vernova expects to end 2026 with at least 130 gigawatts of gas equipment under contract. Chief Executive Scott Strazik said the company sees contracted gas turbine gigawatts continuing to grow in 2027, but at a slower pace than in the first half of 2026. Regarding the shares, an Investing.com report said the negative reaction in the previous session was tied to a larger-than-expected loss in the wind segment and concerns about integrating Trench. The report then said Oppenheimer raised its price target on the shares to $1,375 from $1,338, while maintaining an Outperform rating. GEV shares closed at $887.85 on October 29, according to EL7 data.