GE Vernova boosts grid push with $9 billion Trench deal, lifts revenue forecast

By Sumit Saha

Oct 28 (Reuters) - GE Vernova said on Wednesday it will buy high-voltage grid equipment maker Trench Group from investment firm Triton Partners for $9 billion, as the company moved to expand its grid business and raised its full-year revenue forecast for the third straight time.

Utilities are spending more on grids to replace aging infrastructure and meet demand from data centers and industrial electrification, driving orders for high-voltage transmission networks and specialized equipment used to move power over long distances.

GE Vernova said the deal would expand its grid manufacturing footprint and add Trench's Charlotte facility, where production of 765-kilovolt equipment is expected to begin in late 2027. The acquisition also strengthens its presence in Europe and Asia and brings a backlog of about $5 billion.

The power equipment maker expects Trench to generate about $1.9 billion in revenue and an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin of roughly 36% in 2028, while delivering $50-$100 million in annualized cost synergies by 2030.

GE Vernova expects to split the purchase price equally between cash and debt, and close the transaction in late 2027.

CEO Scott Strazik said on a post-earnings call that the acquisition would help GE Vernova capitalize on a global high-voltage market expected to reach $130 billion by the end of the decade.

Shares of the company were down over 3% at $863.14.

The company also doubled its share buyback authorization to $20 billion, leaving $10.1 billion available for repurchases.

DEMAND DRIVES GROWTH

GE Vernova raised its 2026 revenue forecast to $46.5-$47.5 billion from $45.5-$46.5 billion previously.

The company reported third-quarter revenue growth of 27% year over year, while adjusted EBITDA of $1.94 billion topped analysts' estimates compiled by LSEG.

Power orders nearly tripled on strong gas turbine demand, while Electrification revenue rose 51%.

Orders surged 96% to $29.3 billion and backlog reached a record $197 billion.

The company expects a 2026 wind EBITDA loss of $400 million-$500 million, though third-quarter EBITDA improved to $72 million from a year-earlier loss of $61 million.

It also lowered its estimate for 2026 global tariff-related costs to less than $100 million.

(Reporting by Sumit Saha in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila)