GE Vernova Expands in High-Voltage Grid Gear With Trench Deal

GE Vernova is buying high-voltage equipment maker Trench Group from Triton Partners for $9 billion and raised its 2026 revenue forecast for the third straight time on Wednesday. The company now expects revenue of $46.5 billion to $47.5 billion this year, up from the $45.5-$46.5 billion in its July guidance.

Trench makes high-voltage grid equipment, and utilities are spending more on grids to replace aging infrastructure and meet demand from data centers and industrial electrification. The deal adds Trench’s Charlotte plant, where production of 765-kilovolt equipment is due to start in late 2027, along with a backlog of about $5 billion and a larger footprint in Europe and Asia.

GE Vernova expects Trench to generate about $1.9 billion in revenue in 2028 at an adjusted EBITDA margin of roughly 36%, and to deliver $50 million to $100 million in annual cost savings by 2030. It will pay half in cash and half in debt and expects to close in late 2027. CEO Scott Strazik put the global high-voltage market at $130 billion by the end of the decade.

Third-quarter orders rose 96% to $29.3 billion, lifting the backlog to a record $197 billion from $176 billion three months earlier. Power orders nearly tripled on gas turbine demand, and the company is already taking reservations for 2031 delivery. Revenue rose 27%, Electrification revenue rose 51%, and adjusted EBITDA of $1.94 billion beat analyst estimates compiled by LSEG.

GE Vernova now expects a 2026 wind EBITDA loss of $400 million to $500 million, against roughly $400 million in July. The segment earned $72 million in the third quarter, against a $61 million loss a year earlier. The company cut its estimate of 2026 tariff costs to less than $100 million.

GE Vernova also doubled its buyback authorization to $20 billion, leaving $10.1 billion available. Its shares are currently at $883, up nearly 30% year-on-year.

By Charles Kennedy for Oilprice.com

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